TY - GEN
T1 - Market Power in Emissions Trading and Renewable Energy Policy
AU - Ito, Mari
AU - Takashima, Ryuta
N1 - Publisher Copyright:
© 2023 by His Majesty the King in Right of Canada as represented by the Minister of National Defence and SCITEPRESS - Science and Technology Publications, Lda.
PY - 2019
Y1 - 2019
N2 - 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.
AB - 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.
KW - Cap-and-Trade
KW - Electricity Price
KW - Market Power
KW - Renewable Portfolio Standards
KW - Social Welfare
UR - https://www.scopus.com/pages/publications/85173935029
U2 - 10.5220/0007470304290434
DO - 10.5220/0007470304290434
M3 - Conference contribution
AN - SCOPUS:85173935029
SN - 9789897583520
T3 - International Conference on Operations Research and Enterprise Systems
SP - 429
EP - 434
BT - ICORES 2019 - Proceedings of the 8th International Conference on Operations Research and Enterprise Systems
A2 - Parlier, Greg H.
A2 - Liberatore, Federico
A2 - Demange, Marc
PB - Science and Technology Publications, Lda
T2 - 8th International Conference on Operations Research and Enterprise Systems , ICORES 2019
Y2 - 19 February 2019 through 21 February 2019
ER -