Market Power in Emissions Trading and Renewable Energy Policy

Mari Ito, Ryuta Takashima

2019

Abstract

Policies for reducing greenhouse gas emissions, e.g., cap-and-trade (C&T) as emissions permits trading and renewable portfolio standards (RPS) as renewable energy policies, have recently been introduced in various countries. In this study, we examine market equilibria under C&T and RPS in a bi-level optimization framework. For the lower level, generation of outputs of renewable and non-renewable sectors and electricity prices are decided by maximizing their profits. For the upper level, the policy maker chooses optimal policy level in an attempt to maximize the social welfare. Our results indicate that C&T is the best scheme for both increasing social welfare and reducing greenhouse gas emissions.

Paper Citation

in Harvard Style

Ito M. and Takashima R. (2019). Market Power in Emissions Trading and Renewable Energy Policy.In Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-352-0, pages 429-434. DOI: 10.5220/0007470304290434

in Bibtex Style

@conference{icores19,
author={Mari Ito and Ryuta Takashima},
title={Market Power in Emissions Trading and Renewable Energy Policy},
booktitle={Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2019},
pages={429-434},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007470304290434},
isbn={978-989-758-352-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Market Power in Emissions Trading and Renewable Energy Policy
SN - 978-989-758-352-0
AU - Ito M.
AU - Takashima R.
PY - 2019
SP - 429
EP - 434
DO - 10.5220/0007470304290434