Check that input values are valid — validate_input_values • r2dii.climate.stress.test

Checks that user inputs are within defined ranges.

validate_input_values(
  baseline_scenario,
  shock_scenario,
  scenario_geography,
  lgd,
  risk_free_rate,
  discount_rate,
  growth_rate,
  div_netprofit_prop_coef,
  shock_year,
  settlement_factor,
  exp_share_damages_paid,
  scc,
  risk_type,
  carbon_price_model,
  market_passthrough,
  financial_stimulus
)

Arguments

baseline_scenario: Holds the name of the baseline scenario to be used in the stress test.
shock_scenario: Holds the name of the shock scenario to be used in the stress test.
scenario_geography: Character vector, indicating which geographical region(s) (concerning asset location) results shall be calculated for. For accepted values compare stress_test_arguments.
lgd: Numeric, holding the loss given default, for accepted value range check stress_test_arguments.
risk_free_rate: Numeric that indicates the risk free rate of interest. For accepted range compare stress_test_arguments.
discount_rate: Numeric, that holds the discount rate of dividends per year in the DCF. For accepted range compare stress_test_arguments.
growth_rate: Numeric, that holds the terminal growth rate of profits beyond the final year in the DCF. For accepted range compare stress_test_arguments.
div_netprofit_prop_coef: Numeric. A coefficient that determines how strongly the future dividends propagate to the company value. For accepted range compare stress_test_arguments.
shock_year: Numeric, holding year the shock is applied. For accepted range compare stress_test_arguments.
settlement_factor: Catch all factor (ratio) that can be used to adjust the expected payout of the settlement due to further data gaps. Set to 1 by default.
exp_share_damages_paid: Numeric. Ratio that defines the expected share of the calculated social cost of carbon that is considered in the liability. This can follow historical precedents such as the Tobacco Master Settlement that had a an expected share of 2.7% of the damages paid.
scc: Numeric. Social cost of carbon per excess ton of CO2 emitted. This is the price for each surplus ton of CO2 that goes into the calculation of the carbon liability of a company.
risk_type: String that is either lrisk or trisk.
carbon_price_model: Character vector, indicating which NGFS model is used in regards to carbon prices. Default is no carbon tax.
market_passthrough: Firm's ability to pass carbon tax onto the consumer.
financial_stimulus: Additional channel through which the net profits of green companies can be boosted under a shock scenario.