Type of practice:
The Monte Carlo simulation is used for the purpose of the Impact Assessment on general rules for the granting of Community financial aid in the field of the trans-European transport and energy networks. Monte Carlo simulation is a method for iteratively evaluating a deterministic model using sets of random numbers as inputs. This method is often used when the model is complex, nonlinear, or involves more than just a couple of uncertain parameters. Simulation is based on probabilities of certain events. The corresponding IA Report (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2011:1237:FIN:EN:PDF) gives an account of this application.