Spatial dimension - WITCH

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Model Documentation - WITCH
Corresponding documentation
Model information
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)
Anticipation Perfect foresight

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.

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Figure 1.1: Regions of the WITCH model (except that India and Indonesia are not detached from their former regions, sasia and easia, respectively).

The 14 regions are:

Region Countries
cajaz Canada, Japan, New Zealand
china China, including Taiwan
easia South East Asia
india India
indonesia Indonesia
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)
sasia South Asia
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.