Argiro Roinioti 3/16/2011

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Hello,

I have a question concerning the resource costs.
I have included in my model the mining and extraction module and I have set as cost boundary the whole energy system. I have inserted capital and O&M costs in the Transformation section.
However, I do not quite understand whether I should set the indigenous cost of some resources equal to zero or set it equal to the market cost.
For example, crude oil is imported in my country, but there is also a very very small indigenous production. Should I insert the market price of crude oil both for the indigenous cost and import cost? What exactly is the resource depletion cost (I don't think there are relevant data available in my case.)

Thank you in advance.

Sincerely,


Argiro

Tory Clark 3/18/2011
 

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Hi Argiro,

LEAP is set up to allow a variety of economic and costing modeling approaches, so there is no "right" assumption to use for indigenous cost.

The simplest way to model resource costs would be to use the same value for imports, exports and indigenous production. LEAP has different variables to allow users to model higher levels of complexity where each value would be different.

Resource depletion cost is one method of including indigenous resource costs. If you would like to learn more about this costing methodology, feel free to read the Wikipedia article (linked below) or to search for more detailed resources on your own.

http://en.wikipedia.org/wiki/Depletion_(accounting)

Best,

Tory