Energy Systems Analysis for Developing Countries

The lecture notes presented in these pages were originally developed for use in the Energy Management Training Program (EMTP), sponsored by the Office of Energy, U. S. Agency for International Development. This program, held at Brookhaven National Laborat

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S.lect,on M"II,ple

Network

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Reg"",on. Inl.rclep.ndenci lilli, 181 pag.. 1074

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Xf3)

differentiation with respect to

B,

and setting equal to zero, yields

hence

clearly, If all wi = 1, then W Is the identity matrix, and XTW unweighted regression.

39

xTr

X ~ which

Is the result fo

2.3

LINEAR PROGRAMMING16 Linear programming can best be introduced by example.

Consider some

hypothetical country, which we shall call Republica,17 which produces only two

goods-agricultural

goods,

Xl

and

machinery,

x2.

Assume

that

three

primary inputs are available--labor, energy and capital, and that to produce one unit of xl and x2, the following inputs are required. Output Input

xl

x2

10

5

Capital

2

5

Energy

2

4

Labor

Suppose both units of Xl and X2 have the same value, and that the planners in Republica wish to maximize total output in the economy, i.e. (2.64) Suppose also that the total supply of labor is 25, of capital is 15 and of energy is 10 units.

What is the optimum combination of production in Repub-

lica? Obviously, production is contrained by resources; from the above table it follows that 10xi + 5x2 2Xl + 5x2 2xl + 4x2

i

25

< 15 < 10

(2.65)

Xl and x2