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pypsa-meets-earth / pypsa-earth

PyPSA-Earth: A flexible Python-based open optimisation model to study energy system futures around the world.
https://pypsa-earth.readthedocs.io/en/latest/
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Add global WACC assumptions #357

Open pz-max opened 2 years ago

pz-max commented 2 years ago

Describe the feature you'd like to see

In PyPSA we use one discount rate. We could add an option to calculate a discount rate per country. There is a global WACC database. Thanks @chrstphtrs for sharing: "Country WACC (e.g. for global hydrogen production) then calculated as 5% + country risk premium by Xiaoming Kan, Lina Reichenberg, Fredrik Hedenus, David Daniels (preprint: https://arxiv.org/abs/2202.02257)"

chrstphtrs commented 2 years ago

Data for country risk premiums from Professor Aswath Damodaran (NYU Stern) here: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html

pz-max commented 2 years ago

Credits to @euronion for sharing this related work from a conference (IEW)! Polzin, F., Sanders, M., Steffen, B. et al. The effect of differentiating costs of capital by country and technology on the European energy transition. Climatic Change 167, 26 (2021). https://doi.org/10.1007/s10584-021-03163-4

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