Production system and representation of economic sectors - WITNESS
Production
As described with equations in the detailed macro-economy documentation in gitlab, from the definition of the usable capital, a standard constant elasticity of substitution function from classical economy is used to compute the GDP, function of the Total Factor Productivity, the labor force, the share parameter reflecting the capital intensity in production, and the substitution parameter (elasticity of substitution between capital and labor).
A net production is then computed as the output net of climate damage using the damage fraction of output explained in the documentation of the damage model.
Sectorization
For sectorization, WITNESS follow the International Standard Industrial Classification (ISIC) comprehensive classification of economic activities developed by the United Nations.
The sectorized macroeconomics model is used to gather and sum the outputs from the economics sectors models and compute the total investment (more details here).
The list of first level economics sectors is:
- agriculture
- industry
- services
For each of them, an econometric subdivision is implemented for several sub-sectors, than will enable to perform back to back models calibration on past data while macro-economic subsectors models will be developed.
Note: The documentation of WITNESS is 'in preparation' and is not yet 'published'!| Corresponding documentation | |
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| Previous versions | |
| No previous version available | |
| Model information | |
| Model link | |
| Institution | Open-Source for Climate (OS-C), N/A, https://os-climate.org/transition-analysis/., Linux Foundation (LF), N/A, https://www.linuxfoundation.org/. |
| Solution concept | Systems dynamics based approach |
| Solution method | OptimizationSimulation-based optimization |
| Anticipation | |