Description
Compute unitGap = permitPrice-referencePrice, chargeableUnits = max(0,emissionsUnits-freeAllocation) and valueGap = unitGap*chargeableUnits.
Environmental payment and credit arithmetic depends on eligibility, allocation, withholding and sign conventions. A supplied verification flag or accounting label does not establish that a payment, permit or credit is legally valid or actually available.
Compute unitGap = permitPrice-referencePrice, chargeableUnits = max(0,emissionsUnits-freeAllocation) and valueGap = unitGap*chargeableUnits.
When to use this tool
Use Permit Price Reference Gap when checking a specified allocation, charge or payment balance.
How to use the tool and how it works
- Enter permitPrice, referencePrice, emissionsUnits, freeAllocation. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read unitGap, chargeableUnits, valueGap. Use the output convention below.
Require nonnegative emissionsUnits and freeAllocation. Compute unitGap = permitPrice-referencePrice, chargeableUnits = max(0,emissionsUnits-freeAllocation) and valueGap = unitGap*chargeableUnits. Prices share one currency per the emissions unit.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| permitPrice | Permit Price | Required. Finite number. |
| referencePrice | Reference Price | Required. Finite number. |
| emissionsUnits | Emissions Units | Required. Finite number; minimum 0. |
| freeAllocation | Free Allocation | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| unitGap | Unit Gap | Required. Finite number. |
| chargeableUnits | Chargeable Units | Required. Finite number. |
| valueGap | Value Gap | Required. Finite number. |
{
"input": {
"permitPrice": 12,
"referencePrice": 10,
"emissionsUnits": 100,
"freeAllocation": 20
},
"output": {
"unitGap": 2,
"chargeableUnits": 80,
"valueGap": 160
}
}Limitations and assumptions
- Unused free allocation is not treated as saleable credit here. The value gap compares prices on chargeable units; it is not a total compliance cost, verified permit obligation or legal allocation determination.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Review the applicable agreement or program rules and reconcile the full ledger before treating a calculated amount as payable or saleable.
References
Similar or alternative tools
- Water Charge Exempt Quantity Token
Set chargeable = max(0,withdrawal-exemptQuantity) when applyExemption is true, otherwise withdrawal; amount = chargeable*suppliedRate.
- Emissions Charge Free Allocation Gap Term
With allowSale true, return signed netObligation = emissions-freeAllocation; otherwise clamp this difference at zero.