Calculates annual net profits on the company-ald_business_unit level for the shock scenario for increasing technologies. Climate laggards which need to build out their production in increasing technologies to compensate for their missed targets, are "punished" by adjusting the net profit margin on their additional build out based on their proximity to target within the given ald_business_unit. Specifically, we measure the ratio of how much of the required build out or reduction in a ald_business_unit the company will have done at the end of the forecast period. If the ald_business_unit has an increasing target and the ratio of completion is below one, the net_profit_margin on the additional production build out is multiplied with the proximity to the target. This approximates the additional capital investment such a company would have to make in a short time, which leads to added costs. This ensures that late build out will not proportionally translate into increased profits.

Calculates annual net profits on the company-ald_business_unit level for the shock scenario for increasing technologies. Climate laggards which need to build out their production in increasing technologies to compensate for their missed targets, are "punished" by adjusting the net profit margin on their additional build out based on their proximity to target within the given ald_business_unit. Specifically, we measure the ratio of how much of the required build out or reduction in a ald_business_unit the company will have done at the end of the forecast period. If the ald_business_unit has an increasing target and the ratio of completion is below one, the net_profit_margin on the additional production build out is multiplied with the proximity to the target. This approximates the additional capital investment such a company would have to make in a short time, which leads to added costs. This ensures that late build out will not proportionally translate into increased profits.

calculate_net_profits_shock_increasing_technologies(
  data,
  financial_stimulus,
  shock_year
)

Arguments

data

A data frame containing the production forecasts of companies with increasing under the late and sudden, market prices/costs, company net profit margins, the proximity to target in the production forecast period and an indication of the direction of the ald_business_unit.

financial_stimulus

Additional channel through which the net profits of green companies can be boosted under a shock scenario

shock_year

Year of the shock.

Value

A data frame with net profits of companies with a increasing ald_business_unit