This task need to be solved within 12 hours.
I can also send the basic source code.
ØExecute the following tasks using the GAMS code provided ([login to view URL])
vFor the Baseline scenario, add the missing market equilibrium condition to the simultaneous equation system and select and exclude one of the existing equations and show the simulation results do not change (15Pts)
vConduct the simulation for carbon tax of 0.3 for the two cases of CES elasticities for composite supply (Armington) function, 0.5 and 1.0, and evaluate how the impacts of carbon tax changes according to the different elasticity values. (35 Pts)
vConstruct Carbon Market Model, with introducing a constraint on total CO2 emissions (Equation CO2limit) and a price for CO2 emission allowances (Variable CPrice). Evaluate the impact on real GDP of reducing the total CO2 emission by 3% below baseline scenario. (50 Pts)
üIntroduce an index parameter for Carbon Pricing scenario (Parameter CPscn) and set it to be 0 for the baseline scenario and set it to be 1 for carbon market scenario. Use $ control when you define the equation CO2limit and fix/unfix the variable CPrice. (Fix Cprice to zero for the baseline scenario and unfix it for carbon market simulation with “[login to view URL]$CPscn = -inf; [login to view URL]$CPscn = inf;”)
Submit GAMS codes and excel output files with pivot tables and a report on the evaluation.