Case Study of a Permit System
This tutorial examines a permitting system where demand from one substance moves into the other. This may help explore how multiple substances may interact with each other in the market.Motivation
In the previous tutorial, we both introduced our simulation to multiple substances and to policies which can manipulate across two substances. However, that prior policy didn't directly model how demand might be changing in the market. For example, a permitting system could cause pressure where some consumers of a refrigerant will move to an alternative when permits become scarce. In this tutorial, we will tell our simulation about how we expect demand may shift from one substance to another.
Adding Permits
We will express our permitting intervention as a policy which limits use of a substance to a target. Go ahead and create a new "com permit" policy with the following properties for HFC-134a set through the limit tab:
- Cap all sales to 98% from years 5 to 10.
- Cap all sales to 95% from years 11 onwards.
This will model a permitting system requiring an annual reduction of 2% followed by 5% for HFC-134a. Note that we won't yet introduce the idea of demand shifting so please leave "displacing" as nothing. See the gif below for a video demonstration of how to do this step.
New Simulation
Let's quickly take a look at what this policy looks like. Go ahead and make a new simulation which shows the impact of this permitting system on its own. You may also add this to the combined policy scenario. See the gif below for a video demonstration of how to do this step.
Adding Displacement
Right now, the permitting doesn't yet exhibit that pressure which causes an alternative like R-600a to go up. We can change this by modifying the policy to say that we "displace" into R-600a. After adding this into the permits policy, go ahead and take a look again at the simulations to see how the two substances are interacting with each other. See the gif below for a video demonstration of how to do this step.
Conclusion
In this tutorial, we explored adding a policy into our simulations which specifically considers how demand in one substance may impact another. In the next tutorial, we take a look at the editor tab.