Simulation with system dynamics and fuzzy reasoning of a tax policy to reduce CO2 emissions in the residential sector

This methodological paper presents a planning and control methodology illustrated by a simplified case study on the carbon-tax design in the residential sector. The first objective is to show how to simulate with system dynamics the consumers’ behaviour and the continuous tax-control mechanism depending on few important feedbacks, often ignored in static macroeconomic modelling. A second objective is to show how to aggregate external data driving this model and stemming from different sources with various credibility levels. This is realised by means of fuzzy-reasoning techniques incorporated into the system-dynamics model.