In all previous models exercises, you had to do the hard work: you had to balance the system taking into account costs or emissions. Now, you are promoted to a higher position: you only choose objectives and let others (the model) figure out the details.

In this setting, you only have to make two choices: how important is the damage of CO₂-emissions compared to costs (the social costs of carbon) and how important is the risk induced by nuclear power compared to costs (the social costs of nuclear).

You can again adjust the sliders for the two cost factors. Once you chose these two numbers, the model automatically selects – by using the optimization logic described in the previous steps – the technologies that do best under your settings. Relax and enjoy!

Can you replicate the results of your former work in this setting?

Note: if you want to keep a certain result for later use we suggest that you make a screenshot (Command-Shift-3 for Mac or CTRL+PrtScn for Windows) and download it.

Exercise

Your first market model: allocative optimum