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This tutorial is part of the [guide](/guide) for the [Kigali Sim](/).

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# Tutorial 4: Growth and Trade

Adding economic growth projections and import flows to create more
nuanced business-as-usual scenarios.

**Note that this is the conventional version of this tutorial.** An
AI-assisted alternative is available at [Tutorial
4a](/guide/tutorial_04a.html).

Contents

- [Motivation](#motivation)
- [Adding Imports for HFC-134a](#adding-imports-for-hfc-134a)
- [First Economic Growth](#first-economic-growth)
- [Expanding the Growth](#expanding-the-growth)
- [Results](#results)
- [Conclusion](#conclusion)
- [Next Steps](#next-steps)

<div id="motivation" class="section major">

## Motivation

Let's say ABC has economic growth forecasts and data on equipment
imports. In this tutorial, we will add growth patterns and import flows
to our multi-application model from Tutorial 3, creating a more nuanced
business-as-usual baseline to help aid policy analysis. In addition to
adding more sophistication to our model, this also demonstrates use of
multiple sales streams.

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<div id="adding-imports-for-hfc-134a" class="section major">

## Adding Imports for HFC-134a

Before we add in growth rates, let's consider trade. Specifically, for
brevity, let's have just one substance with imports.

Let's say that ABC imports some but not all of their HFC-134a.
Therefore, for **Domestic Refrigeration**, modify your **HFC-134a**
consumption record:

- **General** tab: **Enable "Import"** (in addition to existing
  manufacture)
- **Equipment** tab: Add **0.20 kg/unit for import**.
- **Set** tab: Change your existing 25 mt by reducing **domestic** to 13
  mt in year 2025 and adding **import** of 11 mt in year 2025

Our tutorial later will expand this further but this gives us a good
starting point.

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<div id="first-economic-growth" class="section major">

## First Economic Growth

In addition to trade, let's also add in economic growth. For example,
these projections might come from industry surveys or from outside
modeling efforts. Let's start with HFC-134a:

- Click **edit** for HFC-134a if you already clicked finish.
- Go to **Change** tab, add a change record of **+6%** (or equivalently
  **+6% current**) from 2025 to 2030 for all sales as this will apply to
  all consumption in the country. In our case, both imports and domestic
  manufacturing.
- Add a change record of **+4%** from 2031 to 2035 for all sales.

More about percentages

Note: You can use `% current` instead of `%` for growth rates to make it
explicit that the percentage applies to the current year's value. The
system supports three percentage formats: `%` (equivalent to
`% current`) applies the percentage to the current year's value,
`% current` explicitly applies to the current year's value, and
`% prior year` applies the percentage to the previous year's value. This
flexibility allows you to match your data source's reference year
convention. This could come up in simulations with multiple change
directives due to complex economic modeling.

More about the sales stream

This refers to all consumption in the country. So, having Kigali Sim set
/ change sales impacts overall consumption. More specifically, it
includes domestic and import but excludes export. When applying changes
through the sales keyword, Kigali Sim will try to keep the ratio between
domestic and import the same for the substance.

Note that this may also include "secondary" substance if recycling is
active. That said, indicated by the recover command, recycling capacity
is assumed to be limited. So, domestic and import will be modified to
satisfy a set or change command after taking the unchanged recycling
stream into account. However, using sales with cap/floor (like for
permitting) places lower or upper limits on all consumption including
recycling. For virgin only, use the `virgin` keyword which includes
domestic and import but excludes secondary. Alternatively, replace sales
with individual commands on domestic and import. This will exclude
secondary production.

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<div id="expanding-the-growth" class="section major">

## Expanding the Growth

Let's continue by applying these growth rates using the **Change** tab
for the consumption records. Below is a table of everything that should
be present after you are done. However, remember that you already did
HFC-134a!

| Application            | Substance | Domestic Growth                  | Import Growth                    |
|------------------------|-----------|----------------------------------|----------------------------------|
| Domestic Refrigeration | HFC-134a  | +6% (2025-2030), +4% (2031-2035) | +6% (2025-2030), +4% (2031-2035) |
| Domestic Refrigeration | R-600a    | +5% (2025-2030), +3% (2031-2035) | N/A (domestic only)              |
| Domestic AC            | HFC-32    | +10% (2025-2035)                 | N/A (domestic only)              |
| Domestic AC            | R-410A    | +6% (2025-2035)                  | N/A (domestic only)              |

You can go to **Change** tab and add changes for domestic manufacture
stream or all sales, both have the same effect in this case.

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<div id="results" class="section major">

## Results

Note that the drop down menu under the Consumption radio button which
can flip between domestic and imports. Just as we did with the custom
metric under emissions before, we can click configure custom to combine
imports and domestic together.

Does the imports part of HFC-134a seem small? It's important to note
that, by default, initial charge for new equipment is attributed to the
exporting country. We can temporarily change this behavior to get a
fuller picture of our global consumption by checking **Attribute initial
charge to importer**. However, to stay consistent with Montreal Protocol
standards, uncheck it to review treaty-aligned numbers. When authoring
simulations, often it helps to consider both perspectives.

Zooming out, we should see the acceleration in HFC-134a and HFC-32. With
the **Emissions** radio button, things still remain quite dominated by
HFC-134a. In contrast, the two are closer when selecting the
**Consumption** radio button as that 10% increase compounds over time
for HFC-32.

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<div id="conclusion" class="section major">

## Conclusion

You now have ABC Country's realistic business-as-usual scenario
incorporating economic growth, trade flows, and technology transitions.
This foundation shows how consumption evolves without intervention.
Later, we will try out different policies on this of this baseline.

Finally, for those with **local assembly**, domestic can be used to
model in-country initial charge. In other words, for substance which is
equipment and then initial charged within the country, you can move the
"sales" of that substance from import to domestic and the correct trade
attribution will apply.

**Download the completed tutorial** result at
<a href="tutorial_04.qta" download="">tutorial_04.qta</a> which contains
the complete model with economic growth and trade flows. This differs
from the <a href="tutorial_03.qta" download="">prior tutorial result</a>
in that it now has the consumption change over time.

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<div id="next-steps" class="section major">

## Next Steps

[Tutorial 5](/guide/tutorial_05.html) will start to add new
sophistication by modeling policies. You'll learn to create sales
permitting systems that progressively reduce HFC consumption while
managing market displacement to lower-GWP alternatives.

[Previous: Tutorial 3](/guide/tutorial_03.html) \| [Return to Guide
Index](/guide) \| [Next: Tutorial 5](/guide/tutorial_05.html)

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*This tutorial is part of the ABC Country case study series
demonstrating progressive HFC policy analysis using Kigali Sim. [View
Markdown version](md/tutorial_04.md)*
