* Simulation of Stern runs as double discounting

* Run with low discounting and capital stock at base

 ELASMU   = 1.0001;
 PRSTP    = 0.001;
 R(T)=PRSTP*EXP(-DR*10*(ORD(T)-1));RR("1")=1;LOOP(T,RR(T+1)=RR(T)/((1+R(T))**10););
 
K0=280;
 

model co2stern2 / all /

solve CO2stern2 maximizing UTILITY using nlp ;
solve CO2stern2 maximizing UTILITY using nlp ;
solve CO2stern2 maximizing UTILITY using nlp ;

display damages.l;

* Then sset miu for the double discount run

Parameters
miudoublediscstern(t)   Result for run without damages;
miudoublediscstern(t) = miu.l(t);

* Then do the run with Stern mius, base capital stock, and our damages

 ELASMU   = b_elasmu;
 PRSTP    = b_prstp;
 R(T)=PRSTP*EXP(-DR*10*(ORD(T)-1));RR("1")=1;LOOP(T,RR(T+1)=RR(T)/((1+R(T))**10););
 K0= 137;
miu.up(t)= miudoublediscstern(t);
miu.lo(t)= miudoublediscstern(t);

*k.lo(t) = base25_k(t);
*k.up(t) = base25_k(t);

model co2ddstern1 /all/
solve CO2ddstern1 maximizing UTILITY using nlp ;
solve CO2ddstern1 maximizing UTILITY using nlp ;
solve CO2ddstern1 maximizing UTILITY using nlp ;

* Output

Parameters
Year(t)         Date
doublediscstern_y(t)
doublediscstern_cpc(t)
doublediscstern_s(t)
doublediscstern_indem(t)
doublediscstern_sigma(t)
doublediscstern_tatm(t)
doublediscstern_mat(t)
doublediscstern_tax(t)
doublediscstern_ri(t)
doublediscstern_rr(t)
doublediscstern_al(t)
doublediscstern_forcoth(t)
doublediscstern_l(t)
doublediscstern_etree(t)
doublediscstern_yy(t)
doublediscstern_cc(t)
doublediscstern_miu(t)
doublediscstern_wem(t)
doublediscstern_ri(t)
doublediscstern_dam(t)
doublediscstern_abate(t)
doublediscstern_mcemis(t)
doublediscstern_utility   ;

Year(t)         = 2005 +10*(ord(t)-1);
doublediscstern_y(t)=y.l(t);
doublediscstern_cpc(t)=cpc.l(t);
doublediscstern_s(t)=s.l(t)     ;
doublediscstern_indem(t)= e.l(t)-etree(t);;
doublediscstern_sigma(t)=sigma(t) ;
doublediscstern_tatm(t)=tatm.l(t)  ;
doublediscstern_mat(t)=mat.l(t)     ;
doublediscstern_tax(t)=-1*ee.m(t)*1000/(kk.m(t)+.0000001)       ;
doublediscstern_ri(t)=ri.l(t);
doublediscstern_rr(t)=rr(t)   ;
doublediscstern_al(t)=al(t)    ;
doublediscstern_forcoth(t)=forcoth(t);
doublediscstern_l(t)=l(t);
doublediscstern_etree(t)=etree(t);
doublediscstern_yy(t)=yy.m(t)     ;
doublediscstern_cc(t)=cc.m(t)      ;
doublediscstern_miu(t)=miu.l(t)     ;
doublediscstern_wem(t)= e.l(t);
doublediscstern_ri(t)=ri.l(t)         ;
doublediscstern_dam(t)= damages.l(t);
doublediscstern_abate(t) = abatecost.l(t);
doublediscstern_utility=utility.l        ;
doublediscstern_mcemis(t)= expcost2*cost1(t)*miu.l(t)**(expcost2-1)/sigma(t)*1000;

miu.up(t)= 1;
miu.lo(t)= 0;
k.lo(t) = 1;
k.up(t) = 1000000;

K0 = 137;