This is the source code to generate terminal value function for CJL.
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Get the terminal value function of Cimate project
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SET T Time periods /1*800/ ;
scalar deltat interval length of each period (number of years) / 1 /;
set n index /1*5/;
alias(n,n2,n3,n4,n5,n6,d,d2,d3,d4,d5,d6);
SCALARS
** Preferences
B_ELASMU Elasticity of marginal utility of consumption / 2.0 /
B_PRSTP Initial rate of social time preference per year / .015 /
** Population and technology
POPASYM Asymptotic population / 8600 /
A0 Initial level of total factor productivity /.02722 /
GA0 Initial growth rate for technology per year /.0092 /
DELA Decline rate of technol change per year /.001 /
DK Depreciation rate on capital per year /.100 /
GAMA Capital elasticity in production function /.300 /
** Emissions
SIG0 CO2-equivalent emissions-GNP ratio 2005 /.13418 /
GSIGMA Initial growth of sigma per year /-.00730 /
DSIG Decline rate of decarbonization per year /.003 /
** Carbon cycle
b12 Carbon cycle transition matrix per year /0.0189288 /
b23 Carbon cycle transition matrix per year /0.005 /
** Climate model
T2XCO2 Equilibrium temp impact of CO2 doubling oC / 3 /
C1 Climate-equation coefficient for upper level per year /.0220 /
C3 Transfer coeffic upper to lower stratum per year /.300 /
C4 Transfer coeffic for lower level per year /.0050 /
FCO22X Estimated forcings of equilibrium co2 doubling /3.8 /
** Climate damage parameters calibrated for quadratic at 2.5 C for 2105
A1 Damage intercept / 0.00000 /
A2 Damage quadratic term / 0.0028388 /
A3 Damage exponent / 2.00 /
** Abatement cost
EXPCOST2 Exponent of control cost function /2.8 /
PBACK Cost of backstop 2005 000$ per tC 2005 /1.17 /
BACKRAT Ratio initial to final backstop cost / 2 /
GBACK Initial cost decline backstop pc per year /.005 /
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parameters
bb11 Carbon cycle transition matrix
bb12 Carbon cycle transition matrix
bb21 Carbon cycle transition matrix
bb22 Carbon cycle transition matrix
bb23 Carbon cycle transition matrix
bb32 Carbon cycle transition matrix
bb33 Carbon cycle transition matrix
CC1 Climate-equation coefficient for upper level
CC3 Transfer coeffic upper to lower stratum
CC4 Transfer coeffic for lower level
GGPOP0 Growth rate of population
GGA0 Initial growth rate for technology
DDELA Decline rate of technol change
GGSIGMA Initial growth of sigma
DDSIG Decline rate of decarbonization
GGBACK Initial cost decline backstop pc
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set dim indices of dimensions /1*6/;
parameters
SVmin(dim) minimal state variables
SVmax(dim) maximal state variables
LBrate lower bound rate
UBrate upper bound rate
;
LBrate = 0.8;
UBrate = 1.5;
SVmin(‘1’) = 80000*0.5;
SVmax(‘1’) = 80000*2;
SVmin(‘2’) = 900*LBrate;
SVmax(‘2’) = 900*UBrate;
SVmin(‘3’) = 1600*LBrate;
SVmax(‘3’) = 1600*UBrate;
SVmin(‘4’) = 20000*LBrate;
SVmax(‘4’) = 20000*UBrate;
SVmin(‘5’) = 1;
SVmax(‘5’) = 3;
SVmin(‘6’) = 1.5;
SVmax(‘6’) = 3.5;
parameter z(n) standard Chebyshev nodes;
z(n) = – cos((2*ord(n)-1)/(2*card(n))*pi);
parameter ext(dim) expanded Chebyshev parameter;
*ext(dim) = -(z(‘1’)+1)*(SVmax(dim)-SVmin(dim))/2/z(‘1′);
ext(dim) = 0;
parameter extSVmin(dim) expanded minimal state value;
extSVmin(dim) = SVmin(dim)-ext(dim);
parameter extSVmax(dim) expanded maximal state value;
extSVmax(dim) = SVmax(dim)+ext(dim);
parameter dz(dim) derivative of z over x;
dz(dim) = 2/(extSVmax(dim)-extSVmin(dim));
parameter ChebyT(n,d) Chebyshev polynomial values at nodes;
ChebyT(n,’1′) = 1;
ChebyT(n,’2’) = z(n);
loop(d$(ord(d)>=2 and ord(d)