Add Investment_Inefficiencies realization to module 01_macro

[daymontas1]

Purpose of this PR

This PR introduces a new realization in the macro module that accounts for investment losses arising from domestic capital market inefficiencies.

Please explain your PR here.
Investment_Inefficiencies
The Investment_Inefficiencies realization in the macro module computes the share of new investments that is not transformed into productive capital due to financial frictions, misallocation, installation costs, or other inefficiencies. A parameter, φ, is introduced into the capital accumulation equation to represent these inefficiencies.

Specifically, φ captures the share of gross investment that successfully translates into productive capital in each region. Regional φ values are calibrated using literature-defined bounds* and empirical data on the efficiency of financial systems.
Capital.Market.Modelling.in.REMIND.pptx

Type of change

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Parts concerned

• ☑️ GAMS Code
• ◻️ R-scripts
• ☑️ Documentation (GAMS incode documentation, comments, tutorials)
• ◻️ Input data / CES parameters
• ◻️ Tests, CI/CD (continuous integration/deployment)
• ☑️ Configuration (switches in main.gms, default.cfg, and scenario_config*.csv files)
• ◻️ Other (please give a description)

Impact

• ◻️ Bug fix
• ◻️ Refactoring
• ☑️ New feature
• ◻️ Change of parameter values or input data (including CES parameters)
• ☑️ Minor change (default scenarios show only small differences)
• ◻️ Fundamental change of results of default scenarios

Checklist

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In the end all checkboxes must be ticked before you can merge.

• I executed the automated model tests (make test) after my final commit and all tests pass (FAIL 0)
• I adjusted the reporting in remind2 if and where it was needed
• I adjusted the madrat packages (mrremind and other packages involved) for input data generation if and where it was needed
• My code follows the coding etiquette
• I explained my changes within the PR, particularly in hard-to-understand areas
• I checked that the in-code documentation is up-to-date
• I adjusted forbiddenColumnNames in readCheckScenarioConfig.R in case the PR leads to deprecated switches
• I updated the CHANGELOG.md correctly (added, changed, fixed, removed, input data/calibration)

Further information (optional)

• Runs with these changes are here:
• Comparison of results (what changes by this PR?):

[nicobauer]

Fine with me! Lavinia will check one more thing abut the file red for the calibration runs.

[daymontas1]

I tested the following three different variations, T1, T2, and T3, in the capital accumulation equation using the latest development branch. For the calibration, I switched on investment inefficiencies in the macro module together with the macroinvestments' capital costs from the WACC module.

All three variants lead to some calibration issues; some occur in different regions, time periods, or variables; while others are common across all three variants (for example, ue_steel_primary in NEU). Do you have any suggestions on how to proceed? Thanks.

Attached the calibration files for the different variants. Also, the runs are available in p/tmp/adamanti/remind_imperfect_markets_b/ouput with the names:
SSP2-NPi-calibrate_T1_2026-06-29_13.38.05, SSP2-NPi-calibrate_T2_2026-06-29_14.55.02, and SSP2-NPi-calibrate_T3_2026-06-29_14.27.00
CES_calibration_report_SSP2-NPi-calibrate_T3_2026-06-29_14.27.00.pdf
CES_calibration_report_SSP2-NPi-calibrate_T2_2026-06-29_14.55.02.pdf
CES_calibration_report_SSP2-NPi-calibrate_T1_2026-06-29_13.38.05.pdf

T1

• p01_cumDeprecFactor_old(ttot+1,regi,in) * vm_invMacro(ttot,regi,in) * p01_investeffectv(regi)
• p01_cumDeprecFactor_new(ttot+1,regi,in) * vm_invMacro(ttot+1,regi,in) * p01_investeffectv(regi)
  ;

T3

• p01_cumDeprecFactor_old(ttot+1,regi,in) * vm_invMacro(ttot,regi,in)
• p01_cumDeprecFactor_new(ttot+1,regi,in) * vm_invMacro(ttot+1,regi,in) * p01_investeffectv(regi)
  ;

T2

• p01_cumDeprecFactor_old(ttot+1,regi,in) * vm_invMacro(ttot+1,regi,in) * p01_investeffectv(regi)
• p01_cumDeprecFactor_new(ttot+1,regi,in) * vm_invMacro(ttot+1,regi,in) * p01_investeffectv(regi)
  ;

[nicobauer]

I checked the calibration files. This looks good.
[Not directly related with the purpose here, but worth noting is this:There are some deviations with primary steel in CHA and NEU. The decline in the target is so fast that the model is not able to achieve this (it seems).]

[nicobauer]

@Lavinia: I think oyu can give 👍

[LaviniaBaumstark]

please run codeCheck and finalize teh PR template

[daymontas1]

please run codeCheck and finalize teh PR template

It looks ready to merge now. All tests have passed, and the PR checklist is complete.

[nicobauer]

Very good! Thanks Diamantis!!