• 118 views | 2 messages Discussion: LEAP
    Topic: Modeling the Impact of Multiple Policy SchemesSubscribe | Previous | Next
  • Raphael Apeaning 3/4/2017

    Hi Leap Community,

    I am new to LEAP and try to develop a model which imposes multiple policies scenarios ( such as tax, subsidies etc) on an energy end use sector. The ultimate goal is to assess the cost-effective of these policy schemes.
    I have gone through the training guide for software and reviewed tons of literature using this software and I can't seem to find any meaningful leads.
    Can anyone give me pointers on how to models these policies either endogenous or exogeneous to the LEAP model,if it's possible ?

    Thank you in advance.

  • Taylor Binnington 3/9/2017
      Best Response

    Hi Raphael,

    Sorry for the slow response. It sounds like what you're looking for is a model which responds automatically to prices and price changes (including taxes or subsidies), through a number of mechanisms. These mechanisms could include household fuel switching, choosing lower cost electricity generation, consumers choosing to purchase different vehicles, et cetera. Is that right? Are all of your policies predicated on price changes such as taxes or subsidies, or were these simply examples which you provided?

    In LEAP, it is generally up to the modeler to define relationships among its variables. For example, if household LPG usage increases as the result of a fuel subsidy, then you need to relate one of LEAP's variables (for example, the energy intensity of household LPG usage) to this change in price using a function of your choosing, entered using LEAP's Expressions. In other words, it is up to you to decide how variables will change in your policy scenarios, in response to other variables such as fuel prices. A recent example that comes from another forum user's question can be found here, where the user wanted to relate energy consumption to both population and GDP using different elasticities.

    Within the electricity generation sector, you also have the option of allowing LEAP to find an (optimized) least-cost solution for new capacity additions and capacity dispatch. If you provide cost inputs for power generation technologies in your scenarios, then LEAP can automatically find the least-cost electricity mix.

    If you suggest a specific policy or technology intervention, and a specific goal which the intervention will achieve in your policy scenario, then we can help you to translate that into LEAP - otherwise, I don't want to provide you with too much "general" information that might not be relevant for your modeling.

    Hope this helps,
    Taylor