This function executes the core transition risk stress test model calculations.
Usage
run_trisk_model(
assets_data,
scenarios_data,
financial_data,
carbon_data,
baseline_scenario = "",
target_scenario = "",
scenario_geography = "Global",
carbon_price_model = "no_carbon_tax",
risk_free_rate = 0.02,
discount_rate = 0.07,
growth_rate = 0.03,
div_netprofit_prop_coef = 1,
shock_year = 2030,
market_passthrough = 0,
run_id = NULL
)Arguments
- assets_data
Data frame containing asset information.
- scenarios_data
Data frame containing scenario information.
- financial_data
Data frame containing financial information.
- carbon_data
Data frame containing carbon price information.
- baseline_scenario
String specifying the name of the baseline scenario.
- target_scenario
String specifying the name of the shock scenario.
- scenario_geography
Character vector indicating which geographical region(s) to calculate results for.
- carbon_price_model
Character vector specifying which NGFS model to use for carbon prices. Default is "no_carbon_tax".
- risk_free_rate
Numeric value for the risk-free interest rate. Default is 0.02.
- discount_rate
Numeric value for the discount rate of dividends per year in the DCF. Default is 0.07.
- growth_rate
Numeric value for the terminal growth rate of profits beyond the final year in the DCF. Default is 0.03.
- div_netprofit_prop_coef
Numeric coefficient determining how strongly future dividends propagate to company value. Default is 1.
- shock_year
Numeric value specifying the year when the shock is applied. Default is 2030.
- market_passthrough
Numeric value representing the firm's ability to pass carbon tax onto the consumer. Default is 0.
- run_id
(Optional) Character value representing the ID of current Trisk's iteration