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International Futures Help System

Energy Equations Economic Linkages

The economic model and the two physical models have many variables in common. As in the agricultural model, IFs generally uses the values in the physical model to override those in the economic model. To do so, it computes coefficients in the first year that serve to adjust the physical values subsequently. The adjustment coefficients serve double duty - they translate from physical terms to constant monetary ones, and they adjust for discrepancies in initial empirical values between the two models. For instance, gross production (ZS) in the second or energy sec"tor of the economic submodel is the sum of energy production (ENP) times an adjustment factor (SZSF) that IFs determines in the first time step.

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Similarly, energy stocks (ENST) and an adjustment factor (SSF) determine stocks (ST).

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In the same way energy exports (ENX) and imports (ENM) from the physical model provide the basis for the same variables in the economic model.

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The indexed price (with a base of 1) in the energy sector of the economic submodel (PRI) is simply the ratio of current to initial regional energy price (ENPRI).

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