Capital and labour markets - COFFEE-TEA

The macroeconomic closure assumes full employment of the factors of production (capital and labour). Savings equals investment in the general equilibrium, but regionally the imbalances are closed by a surplus (or deficit) in the current account. An endogenous real exchange rate clears the current accounts and the capital account decreases exougenously in the long-run. Capital stock evolves at each period with the formation of new capital that depends on the investment level in that period and the capital depreciation rate, as described in <xr id="eqn:TEA_eq1"/>.

<equation id="eqn:TEA_eq1"> $K{_{r,t}}=I{_{r,t}}+(1-\delta {_{r}})K{_{r,t-1}}$ </equation>

where: $K{_{r,t}}$ is the capital stock in region r and time t; $I{_{r,t}}$ is the investment in new capital goods in region r and time t;

$\delta {_{r}}$ is the depreciation rate of capital in region r.

Note: The documentation of COFFEE-TEA is 'under review' and is not yet 'published'!

Model Documentation - COFFEE-TEA
Model scope and methods - COFFEE-TEA Model concept, solver and details - COFFEE-TEA Temporal dimension - COFFEE-TEA Spatial dimension - COFFEE-TEA Macro-economy - COFFEE-TEA Production system and representation of economic sectors - COFFEE-TEA Capital and labour markets - COFFEE-TEA Monetary instruments - COFFEE-TEA Trade - COFFEE-TEA Technological change - COFFEE-TEA Energy - COFFEE-TEA Energy resource endowments - COFFEE-TEA Fossil energy resources - COFFEE-TEA Uranium and other fissile resources - COFFEE-TEA Bioenergy - COFFEE-TEA Non-biomass renewables - COFFEE-TEA Energy conversion - COFFEE-TEA Electricity - COFFEE-TEA Heat - COFFEE-TEA Gaseous fuels - COFFEE-TEA Liquid fuels - COFFEE-TEA Solid fuels - COFFEE-TEA Grid, pipelines and other infrastructure - COFFEE-TEA Energy end-use - COFFEE-TEA Transport - COFFEE-TEA Residential and commercial sectors - COFFEE-TEA Industrial sector - COFFEE-TEA Other end-use - COFFEE-TEA Energy demand - COFFEE-TEA Technological change in energy - COFFEE-TEA Land-use - COFFEE-TEA Agriculture - COFFEE-TEA Forestry - COFFEE-TEA Land-use change - COFFEE-TEA Bioenergy land-use - COFFEE-TEA Other land-use - COFFEE-TEA Agricultural demand - COFFEE-TEA Technological change in land-use - COFFEE-TEA Emissions - COFFEE-TEA GHGs - COFFEE-TEA Pollutants and non-GHG forcing agents - COFFEE-TEA Carbon dioxide removal (CDR) options - COFFEE-TEA Climate - COFFEE-TEA Modelling of climate indicators - COFFEE-TEA Climate damages, temperature changes - COFFEE-TEA Non-climate sustainability dimension - COFFEE-TEA Air pollution and health - COFFEE-TEA Water - COFFEE-TEA Other materials - COFFEE-TEA Other sustainability dimensions - COFFEE-TEA Appendices - COFFEE-TEA Mathematical model description - COFFEE-TEA Data - COFFEE-TEA References - COFFEE-TEA
Corresponding documentation
AIM-Hub BLUES C3IAM COFFEE-TEA DNE21+ GEM-E3 GRACE IMACLIM PROMETHEUS
Previous versions
Archive of COFFEE-TEA version v1
Model information
Model link
Institution	COPPE/UFRJ (Cenergia), Brazil, http://www.cenergialab.coppe.ufrj.br/.
Solution concept	General equilibrium (closed economy)
Solution method	The COFFEE model is solved through Linear Programming (LP). The TEA model is formulated as a mixed complementary problem (MCP) and is solved through Mathematical Programming System for General Equilibrium -- MPSGE within GAMS using the PATH solver.
Anticipation