COALMOD

COALMOD-World: A Model of the International Steam Coal Market

COALMOD-World is a model of the international steam coal market that can be readily used to explore implications of climate policies, but also to analyze market structure or to investigate issue of supply security. It features a detailed representation of both domestic and international steam coal supply, based on endogenously calculated Cost, Insurance, Fright (CIF) costs, and prices that take into account additional rents. It features endogenous investment into production, land transport, and export capacity, as well as an endogenous mechanism assessing production cost increase due to resource depletion.

Below you find an overview of available open-source COALMOD-World versions. The ZIP file includes the GAMS code and data files with all necessary input parameters. The COALMOD-World code is licensed under the MIT License. To view a copy of the license, visit http://opensource.org/licenses/MIT. Whenever you use this model, please refer to http://www.diw.de/coalmod.

The model is implemented in the General Algebraic Modeling System (GAMS). Running the model thus requires a GAMS system, a MCP solver, and respective licenses. We use the commercial solver PATH.

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COALMOD-World Version 1.0

COALMOD-World_v1.0.zip | ZIP, 1.7 MB | ZIP, 1.75 MB

The model is used and documented in  Holz, F. Haftendorn, C. Mendelevitch, R. Hirschhausen C. v. (2016): A Model of the International Steam Coal Market (COALMOD-World). DIW Data Documentation 85 | PDF, 3.69 MB

Earlier versions of the model were applied to test for market power abuse in the international steam coal market in
Haftendorn, C. Holz, F. (2010): Modeling and Analysis of the International Steam Coal Trade. The Energy Journal Vol. 31 No. 3 and later in
Haftendorn, C. (2012): Evidence of Market Power in the Atlantic Steam Coal Market Using Oligopoly Models with a Competitive Fringe. DIW Discussion Paper 1185 | PDF, 0.64 MB

Moreover, they were used to study the mid- and long-term effect of climate policies on the international steam coal market in
Haftendorn, C. Kemfert, C. Holz, F. (2012): What about Coal? Interactions between Climate Policies and the Global Steam Coal Market until 2030. Energy Policy Vol. 48

A two stage version of the model is introduced in Richter, P. Mendelevitch, R. Jotzo F. (2015): Market Power Rents and Climate Change Mitigation: A Rationale for Coal Taxes?” DIW Discussion Paper 1471 | PDF, 6.7 MB

The current version of the model is used to analyze the effects of different, currently discussed supply-side climate policies for the steam coal market in
Mendelevitch, R. (2016): Testing Supply-Side Climate Policies for the Global Steam Coal Market – Can They Curb Coal Consumption?” DIW Discussion Paper 1604 | PDF, 1.11 MB

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