Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

PROCESSOR: Add discount rate to wood price dialog that applies to Optimizer via its associated Processor scenario #363

Open
lbross opened this issue Oct 10, 2024 · 0 comments

Comments

@lbross
Copy link
Contributor

lbross commented Oct 10, 2024

From @jsfried: It would be far less confusing to the user to specify a discount rate for the processor scenario (that carries over also into the optimizer scenario to which it is linked) separate from these escalators. If it is confusing to us (with graduate training in economics) to figure out how to correctly load the different elements we want to account for onto these escalators, it seems a fair assumption that others will also find it daunting.

I think the best bet would be to specify a new, processor scenario variable Discount Rate that gets collected on the wood price dialog and defaults to 0.04 (i.e., 4%). Then let the escalators default to 1, and have the out decade costs and values be adjusted (via multiplication) by both the appropriate escalator and a discount multiplier implied by the assumed 0.04 discount rate, i.e.:

image

Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment
Labels
None yet
Projects
None yet
Development

No branches or pull requests

1 participant