Spatial dimension - WITCH
|Model Documentation - WITCH|
|Institution||Fondazione Eni Enrico Mattei (FEEM), Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC)|
|Concept||Hybrid: Economic optimal growth model, including a bottom-up energy sector and a simple climate model, embedded in a `game theory` framework.|
|Solution method||Regional growth models solved by non-linear optimization and game theoretic setup solved by tatonnement algorithm (cooperative solution: Negishi welfare aggregation, non-cooperative solution: Nash equilibrium)|
Countries included within the model are grouped into 14 regions clustered by geography, income and the structure of energy demand. Regional disaggregation can be easily performed subject to the issue being tackled.
The 14 regions are:
|cajaz||Canada, Japan, New Zealand|
|china||China, including Taiwan|
|easia||South East Asia|
|kosau||South Korea, South Africa, Australia|
|laca||Latin America, Mexico and Caribbean|
|mena||Middle East and North Africa|
|neweuro||EU new countries + Switzerland + Norway|
|oldeuro||EU old countries (EU-15)|
|ssa||Sub Saharan Africa|
|te||Non-EU Eastern European countries, including Russia|
|usa||United States of America|
WITCH features any regional aggregations in the so-called coalitions. Some common coalitions are:
- regional coalitions : each region is mapped to a coalition containing only this region.
- world coalition : a coalition containing all the world regions.
Coalitions and regions interact with each others because of the presence of economic (technology, exhaustible natural resources) and environmental global externalities.