For deep decarbonisation, the design of climate policy needs to account for consumption choices being influenced not only by pricing but also by social learning. This involves changes that pertain to the whole spectrum of consumption, possibly involving shifts in lifestyles. In this regard, it is crucial to consider not just short-term social learning processes but also slower, longer-term, cultural change. Against this background, we analyse the interaction between climate policy and cultural change, focusing on carbon taxation. We extend the notion of “social multiplier” of environmental policy derived in an earlier study to the context of multiple consumer needs while allowing for behavioural spillovers between these, giving rise to a “cultural multiplier”. We develop a model to assess how this cultural multiplier contributes to the effectiveness of carbon taxation. Our results show that the cultural multiplier stimulates greater low-carbon consumption compared to fixed preferences. The model results are of particular relevance for policy acceptance due to the cultural multiplier being most effective at low-carbon tax values, relative to a counter-case of short-term social interactions. Notably, at high carbon tax levels, the distinction between social and cultural multiplier effects diminishes, as the strong price signal drives even resistant individuals toward low-carbon consumption. By varying socio-economic conditions, such as substitutability between low- and high-carbon goods, social network structure, proximity of like-minded individuals and the richness of consumption lifestyles, the model provides insight into how cultural change can be leveraged to induce maximum effectiveness of climate policy.

Reducing packaging waste is a critical challenge that requires organizations to collaborate within circular ecosystems, considering social, economic, and technical variables like decision-making behavior, material prices, and available technologies. Agent-Based Modeling (ABM) offers a valuable methodology for understanding these complex dynamics. In our research, we have developed an ABM to explore circular ecosystems’ potential in reducing packaging waste, using a case study of the Dutch food packaging ecosystem. The model incorporates three types of agents—beverage producers, packaging producers, and waste treaters—who can form closed-loop recycling systems.

Beverage Producer Agents: These agents represent the beverage company divided into five types based on packaging formats: cans, PET bottles, glass bottles, cartons, and bag-in-boxes. Each producer has specific packaging demands based on product volume, type, weight, and reuse potential. They select packaging suppliers annually, guided by deterministic decision styles: bargaining (seeking the lowest price) or problem-solving (prioritizing high recycled content).

Packaging Producer Agents: These agents are responsible for creating packaging using either recycled or virgin materials. The model assumes a mix of monopolistic and competitive market situations, with agents calculating annual material needs. Decision styles influence their choices: bargaining agents compare recycled and virgin material costs, while problem-solving agents prioritize maximum recycled content. They calculate recycled content in packaging and set prices accordingly, ensuring all produced packaging is sold within or outside the model.

…

The Non-Deterministic model of affordable housing Negotiations (NoD-Neg) is designed for generating hypotheses about the possible outcomes of negotiating affordable housing obligations in new developments in England. By outcomes we mean, the probabilities of failing the negotiation and/or the different possibilities of agreement.
The model focuses on two negotiations which are key in the provision of affordable housing. The first is between a developer (DEV) who is submitting a planning application for approval and the relevant Local Planning Authority (LPA) who is responsible for reviewing the application and enforcing the affordable housing obligations. The second negotiation is between the developer and a Registered Social Landlord (RSL) who buys the affordable units from the developer and rents them out. They can negotiate the price of selling the affordable units to the RSL.
The model runs the two negotiations on the same development project several times to enable agents representing stakeholders to apply different negotiation tactics (different agendas and concession-making tactics), hence, explore the different possibilities of outcomes.
The model produces three types of outputs: (i) histograms showing the distribution of the negotiation outcomes in all the simulation runs and the probability of each outcome; (ii) a data file with the exact values shown in the histograms; and (iii) a conversation log detailing the exchange of messages between agents in each simulation run.

The model’s aim is to represent the price dynamics under very simple market conditions, given the values adopted by the user for the model parameters. We suppose the market of a financial asset contains agents on the hypothesis they have zero-intelligence. In each period, a certain amount of agents are randomly selected to participate to the market. Each of these agents decides, in a equiprobable way, between proposing to make a transaction (talk = 1) or not (talk = 0). Again in an equiprobable way, each participating agent decides to speak on the supply (ask) or the demand side (bid) of the market, and proposes a volume of assets, where this number is drawn randomly from a uniform distribution. The granularity depends on various factors, including market conventions, the type of assets or goods being traded, and regulatory requirements. In some markets, high granularity is essential to capture small price movements accurately, while in others, coarser granularity is sufficient due to the nature of the assets or goods being traded

Viable North Sea (ViNoS) is an Agent-based Model of the German North Sea Small-scale Fisheries in a Social-Ecological Systems framework focussing on the adaptive behaviour of fishers facing regulatory, economic, and resource changes. Small-scale fisheries are an important part both of the cultural perception of the German North Sea coast and of its fishing industry. These fisheries are typically family-run operations that use smaller boats and traditional fishing methods to catch a variety of bottom-dwelling species, including plaice, sole, and brown shrimp. Fisheries in the North Sea face area competition with other uses of the sea – long practiced ones like shipping, gas exploration and sand extractions, and currently increasing ones like marine protection and offshore wind farming. German authorities have just released a new maritime spatial plan implementing the need for 30% of protection areas demanded by the United Nations High Seas Treaty and aiming at up to 70 GW of offshore wind power generation by 2045. Fisheries in the North Sea also have to adjust to the northward migration of their established resources following the climate heating of the water. And they have to re-evaluate their economic balance by figuring in the foreseeable rise in oil price and the need for re-investing into their aged fleet.

We introduce a model of prediction markets that uses opinion dynamics as its underlying mechanism for price formation. We base the opinion dynamics on the Deffuant model of bounded rationality. We have used this model to show that price formation in prediction markets can be robustly explained by opinion dynamics, and that the model can also explain phase transitions depending on just two parameters.

This is a replication of the SequiaBasalto model, originally built in Cormas by Dieguez Cameroni et al. (2012, 2014, Bommel et al. 2014 and Morales et al. 2015). The model aimed to test various adaptations of livestock producers to the drought phenomenon provoked by climate change. For that purpose, it simulates the behavior of one livestock farm in the Basaltic Region of Uruguay. The model incorporates the price of livestock, fodder and paddocks, as well as the growth of grass as a function of climate and seasons (environmental submodel), the life cycle of animals feeding on the pasture (livestock submodel), and the different strategies used by farmers to manage their livestock (management submodel). The purpose of the model is to analyze to what degree the common management practices used by farmers (i.e., proactive and reactive) to cope with seasonal and interannual climate variations allow to maintain a sustainable livestock production without depleting the natural resources (i.e., pasture). Here, we replicate the environmental and livestock submodel using NetLogo.

One year is 368 days. Seasons change every 92 days. Each day begins with the growth of grass as a function of climate and season. This is followed by updating the live weight of cows according to the grass height of their patch, and grass consumption, which is determined based on the updated live weight. After consumption, cows grow and reproduce, and a new grass height is calculated. Cows then move to the patch with less cows and with the highest grass height. This updated grass height value will be the initial grass height for the next day.

The Modern Wage Dynamics Model is a generative model of coupled economic production and allocation systems. Each simulation describes a series of interactions between a single aggregate firm and a set of households through both labour and goods markets. The firm produces a representative consumption good using labour provided by the households, who in turn purchase these goods as desired using wages earned, thus the coupling.

Each model iteration the firm decides wage, price and labour hours requested. Given price and wage, households decide hours worked based on their utility function for leisure and consumption. A labour market construct chooses the minimum of hours required and aggregate hours supplied. The firm then uses these inputs to produce goods. Given the hours actually worked, the households decide actual consumption and a market chooses the minimum of goods supplied and aggregate demand. The firm uses information gained through observing market transactions about consumption demand to refine their conceptions of the population’s demand.

The purpose of this model is to explore the general behaviour of an economy with coupled production and allocation systems, as well as to explore the effects of various policies on wage and production, such as minimum wage, tax credits, unemployment benefits, and universal income.

…

The Price Evolution with Expectations model provides the opportunity to explore the question of non-equilibrium market dynamics, and how and under which conditions an economic system converges to the classically defined economic equilibrium. To accomplish this, we bring together two points of view of the economy; the classical perspective of general equilibrium theory and an evolutionary perspective, in which the current development of the economic system determines the possibilities for further evolution.

The Price Evolution with Expectations model consists of a representative firm producing no profit but producing a single good, which we call sugar, and a representative household which provides labour to the firm and purchases sugar.The model explores the evolutionary dynamics whereby the firm does not initially know the household demand but eventually this demand and thus the correct price for sugar given the household’s optimal labour.

The model can be run in one of two ways; the first does not include money and the second uses money such that the firm and/or the household have an endowment that can be spent or saved. In either case, the household has preferences for leisure and consumption and a demand function relating sugar and price, and the firm has a production function and learns the household demand over a set number of time steps using either an endogenous or exogenous learning algorithm. The resulting equilibria, or fixed points of the system, may or may not match the classical economic equilibrium.

This study simulates the evolution of artificial economies in order to understand the tax relevance of administrative boundaries in the quality of life of its citizens. The modeling involves the construction of a computational algorithm, which includes citizens, bounded into families; firms and governments; all of them interacting in markets for goods, labor and real estate. The real estate market allows families to move to dwellings with higher quality or lower price when the families capitalize property values. The goods market allows consumers to search on a flexible number of firms choosing by price and proximity. The labor market entails a matching process between firms (given its location) and candidates, according to their qualification. The government may be configured into one, four or seven distinct sub-national governments, which are all economically conurbated. The role of government is to collect taxes on the value added of firms in its territory and invest the taxes into higher levels of quality of life for residents. The results suggest that the configuration of administrative boundaries is relevant to the levels of quality of life arising from the reversal of taxes. The model with seven regions is more dynamic, but more unequal and heterogeneous across regions. The simulation with only one region is more homogeneously poor. The study seeks to contribute to a theoretical and methodological framework as well as to describe, operationalize and test computer models of public finance analysis, with explicitly spatial and dynamic emphasis. Several alternatives of expansion of the model for future research are described. Moreover, this study adds to the existing literature in the realm of simple microeconomic computational models, specifying structural relationships between local governments and firms, consumers and dwellings mediated by distance.