Trade causing net loss
Here are my comments to the question:
  • As I understand, the model decisions in TIMES are made to minimise the system cost for all the model regions. This implies that the model decisions in a model with two regions are not necessarily the optimal model decisions for one of the regions separately. If both regions should optimise their decisions in accordance to what is optimal for their region, you need to use a complementary model using game theory.

  • Personally, I think this issue can cause a dilemma with the regional coverage of TIMES models. Using one region provides a set of policy recommendations that are optimal for this region, but does not necessarily capture the interaction with surrounding regions properly. On the other hand, using several model regions, endogenously capturing the interaction with neighbouring regions, do not provide optimal solutions for one specific model region.   


Messages In This Thread
Trade causing net loss - by Antti-L - 30-07-2017, 11:08 PM
RE: Trade causing net loss - by Pernille.S - 31-07-2017, 05:05 PM
RE: Trade causing net loss - by Antti-L - 31-07-2017, 11:27 PM

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