Reference card - MERGE-ETL

The reference card is a clearly defined description of model features. The numerous options have been organized into a limited amount of default and model specific (non default) options. In addition some features are described by a short clarifying text.

Legend:

• not implemented
• implemented
• implemented (not default option)

About

Name and version

MERGE-ETL 6.0

Model link

https://www.psi.ch/sites/default/files/import/eem/ModelsEN/2012MergeDescription.pdf

Institution

Paul Scherrer Institute (PSI), Switzerland, https://www.psi.ch/en.

Documentation

MERGE-ETL documentation consists of a referencecard and detailed model documentation

Process state

in preparation

Model scope and methods

Model documentation: Model scope and methods - MERGE-ETL

Model type

• Integrated assessment model
• Energy system model
• CGE
• CBA-integrated assessment model

Geographical scope

• Global
• Regional

Objective

MERGE acts as a global social planner with perfect foresight where the objective function is the maximization of a global welfare that corresponds to the Negishi-weighted regional utility. The utility is modeled as the natural logarithm of consumption. The logarithmic form of the regional utility func- tion implies diminishing marginal utility to consumption; therefore, an additional dollar of consumption produces larger utility gains in poorer regions. The global utility is calculated using the utility of each region weighted by means of Negishi weights. The Negishi weights are used to equalize the marginal utility of consumption among regions, hence an additional dollar of consumption in any region has the same effect on the global welfare.

Solution concept

• Partial equilibrium (price elastic demand)
• Partial equilibrium (fixed demand)
• General equilibrium (closed economy)

Solution horizon

• Recursive dynamic (myopic)
• Intertemporal optimization (foresight)

Note: The model can also run in a Recursive Dynamic (myopic) mode

Solution method

• Simulation
• Optimization

Anticipation

MERGE-ETL acts as a rational global social planner with perfect foresight to maximize the global welfare.

Temporal dimension

Base year:2015, time steps:8 time steps of duration of 5 years each, horizon: 2020-2100

Spatial dimension

Number of regions:10

1. European Union plus UK, Andorra, Faroe Islands, Gibraltar, Holy See, Iceland, Liechtenstein, Monaco, Norway, San Marino, Albania, Bosnia and Herzegovina, Croatia, North Macedonia, Serbia and Montenegro (EUP)
2. Switzerland (SWI)
3. Russia (RUS)
4. Middle East (MEA)
5. India (IND)
6. China (CHI)
7. Japan (JPN)
8. Canada, Australia and New Zealand (CANZ)
9. United States (USA)
10. Rest of the World (ROW)

Time discounting type

• Discount rate exogenous
• Discount rate endogenous

Policies

• Emission tax
• Emission pricing
• Cap and trade
• Fuel taxes
• Fuel subsidies
• Feed-in-tariff
• Portfolio standard
• Capacity targets
• Emission standards
• Energy efficiency standards
• Agricultural producer subsidies
• Agricultural consumer subsidies
• Land protection
• Pricing carbon stocks

Socio-economic drivers

Model documentation: Socio-economic drivers - MERGE-ETL

Population

• Yes (exogenous)
• Yes (endogenous)

Population age structure

• Yes (exogenous)
• Yes (endogenous)

Education level

• Yes (exogenous)
• Yes (endogenous)

Urbanization rate

• Yes (exogenous)
• Yes (endogenous)

GDP

• Yes (exogenous)
• Yes (endogenous)

Income distribution

• Yes (exogenous)
• Yes (endogenous)

Employment rate

• Yes (exogenous)
• Yes (endogenous)

Labor productivity

• Yes (exogenous)
• Yes (endogenous)

Total factor productivity

• Yes (exogenous)
• Yes (endogenous)

Autonomous energy efficiency improvements

• Yes (exogenous)
• Yes (endogenous)

Macro-economy

Model documentation: Macro-economy - MERGE-ETL

Economic sector

Industry

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Energy

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Transportation

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Residential and commercial

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Agriculture

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Forestry

• Yes (physical)
• Yes (economic)
• Yes (physical & economic)

Macro-economy

Trade

• Coal
• Oil
• Gas
• Uranium
• Electricity
• Bioenergy crops
• Food crops
• Capital
• Emissions permits
• Non-energy goods

Cost measures

• GDP loss
• Welfare loss
• Consumption loss
• Area under MAC
• Energy system cost mark-up

Categorization by group

• Income
• Urban - rural
• Technology adoption
• Age
• Gender
• Education level
• Household size

Institutional and political factors

• Early retirement of capital allowed
• Interest rates differentiated by country/region
• Regional risk factors included
• Technology costs differentiated by country/region
• Technological change differentiated by country/region
• Behavioural change differentiated by country/region
• Constraints on cross country financial transfers

Resource use

Coal

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Conventional Oil

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Unconventional Oil

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Conventional Gas

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Unconventional Gas

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Uranium

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Bioenergy

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Water

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Raw Materials

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Land

• Yes (fixed)
• Yes (supply curve)
• Yes (process model)

Technological change

Energy conversion technologies

• No technological change
• Exogenous technological change
• Endogenous technological change

Energy End-use

• No technological change
• Exogenous technological change
• Endogenous technological change

Material Use

• No technological change
• Exogenous technological change
• Endogenous technological change

Agriculture (tc)

• No technological change
• Exogenous technological change
• Endogenous technological change

Energy

Model documentation: Energy - MERGE-ETL

Behaviour

Modelled as side constraints influencing deployment rate (or adoption rate) of energy supply and demand technologies

Energy technology substitution

Energy technology choice

• No discrete technology choices
• Logit choice model
• Production function
• Linear choice (lowest cost)
• Lowest cost with adjustment penalties

Energy technology substitutability

• Mostly high substitutability
• Mostly low substitutability
• Mixed high and low substitutability

Energy technology deployment

• Expansion and decline constraints
• System integration constraints

Energy

Electricity technologies

• Coal w/o CCS
• Coal w/ CCS
• Gas w/o CCS
• Gas w/ CCS
• Oil w/o CCS
• Oil w/ CCS
• Bioenergy w/o CCS
• Bioenergy w/ CCS
• Geothermal power
• Nuclear power
• Solar power
• Solar power-central PV
• Solar power-distributed PV
• Solar power-CSP
• Wind power
• Wind power-onshore
• Wind power-offshore
• Hydroelectric power
• Ocean power

Hydrogen production

• Coal to hydrogen w/o CCS
• Coal to hydrogen w/ CCS
• Natural gas to hydrogen w/o CCS
• Natural gas to hydrogen w/ CCS
• Oil to hydrogen w/o CCS
• Oil to hydrogen w/ CCS
• Biomass to hydrogen w/o CCS
• Biomass to hydrogen w/ CCS
• Nuclear thermochemical hydrogen
• Solar thermochemical hydrogen
• Electrolysis

Refined liquids

• Coal to liquids w/o CCS
• Coal to liquids w/ CCS
• Gas to liquids w/o CCS
• Gas to liquids w/ CCS
• Bioliquids w/o CCS
• Bioliquids w/ CCS
• Oil refining

Refined gases

• Coal to gas w/o CCS
• Coal to gas w/ CCS
• Oil to gas w/o CCS
• Oil to gas w/ CCS
• Biomass to gas w/o CCS
• Biomass to gas w/ CCS

Heat generation

• Coal heat
• Natural gas heat
• Oil heat
• Biomass heat
• Geothermal heat
• Solarthermal heat
• CHP (coupled heat and power)

Grid Infra Structure

Electricity

• Yes (aggregate)
• Yes (spatially explicit)

Gas

• Yes (aggregate)
• Yes (spatially explicit)

Heat

• Yes (aggregate)
• Yes (spatially explicit)

CO2

• Yes (aggregate)
• Yes (spatially explicit)

Hydrogen

• Yes (aggregate)
• Yes (spatially explicit)

Energy end-use technologies

Passenger transportation

• Passenger trains
• Buses
• Light Duty Vehicles (LDVs)
• Electric LDVs
• Hydrogen LDVs
• Hybrid LDVs
• Gasoline LDVs
• Diesel LDVs
• Passenger aircrafts
• Aggregate transport technologies that correspond to fuel consumption

Freight transportation

• Freight trains
• Heavy duty vehicles
• Freight aircrafts
• Freight ships
• Aggregate transport technologies that correspond to fuel consumption

Industry

• Steel production
• Aluminium production
• Cement production
• Petrochemical production
• Paper production
• Plastics production
• Pulp production
• Aggregate industry technologies corresponding to boilers/fuels

Residential and commercial

• Space heating
• Space cooling
• Cooking
• Refrigeration
• Washing
• Lighting
• Aggregate residential and commercial technologies corresponding to boilers/fuels

Land-use

Model documentation: Land-use - MERGE-ETL

Land cover

• Cropland
• Cropland irrigated
• Cropland food crops
• Cropland feed crops
• Cropland energy crops
• Forest
• Managed forest
• Natural forest
• Pasture
• Shrubland
• Built-up area

Agriculture and forestry demands

• Agriculture food
• Agriculture food crops
• Agriculture food livestock
• Agriculture feed
• Agriculture feed crops
• Agriculture feed livestock
• Agriculture non-food
• Agriculture non-food crops
• Agriculture non-food livestock
• Agriculture bioenergy
• Agriculture residues
• Forest industrial roundwood
• Forest fuelwood
• Forest residues

Agricultural commodities

• Wheat
• Rice
• Other coarse grains
• Oilseeds
• Sugar crops
• Ruminant meat
• Non-ruminant meat and eggs
• Dairy products

Emission, climate and impacts

Model documentation: Emissions - MERGE-ETL, Climate - MERGE-ETL, Non-climate sustainability dimension - MERGE-ETL

Greenhouse gases

• CO2 fossil fuels
• CO2 cement
• CO2 land use
• CH4 energy
• CH4 land use
• CH4 other
• N2O energy
• N2O land use
• N2O other
• CFCs
• HFCs
• SF6
• PFCs

Pollutants

• CO energy
• CO land use
• CO other
• NOx energy
• NOx land use
• NOx other
• VOC energy
• VOC land use
• VOC other
• SO2 energy
• SO2 land use
• SO2 other
• BC energy
• BC land use
• BC other
• OC energy
• OC land use
• OC other
• NH3 energy
• NH3 land use
• NH3 other

Climate indicators

• Concentration: CO2
• Concentration: CH4
• Concentration: N2O
• Concentration: Kyoto gases
• Radiative forcing: CO2
• Radiative forcing: CH4
• Radiative forcing: N2O
• Radiative forcing: F-gases
• Radiative forcing: Kyoto gases
• Radiative forcing: aerosols
• Radiative forcing: land albedo
• Radiative forcing: AN3A
• Radiative forcing: total
• Temperature change
• Sea level rise
• Ocean acidification

Carbon dioxide removal

• Bioenergy with CCS
• Reforestation
• Afforestation
• Soil carbon enhancement
• Direct air capture
• Enhanced weathering
• Backstop CDR technology corresponding to Soil carbon enehancement, enhanced weathering, reforestation/afforestation

Climate change impacts

• Agriculture
• Energy supply
• Energy demand
• Economic output
• Built capital
• Inequality

Co-Linkages

• Energy security: Fossil fuel imports & exports (region)
• Energy access: Household energy consumption
• Air pollution & health: Source-based aerosol emissions
• Air pollution & health: Health impacts of air Pollution
• Food access
• Water availability
• Biodiversity