We investigate the impact of ETS on the emissions and the energy-mix through a bilevel model where at the upper level the policymaker interacts with an oligopolistic electricity market over a finite time horizon. At the upper level, the policymaker aims at maximizing a social welfare function deciding the optimal number of allowances to be distributed to the electricity market. At the lower level, the electricity market, represented by two large producers, decide the optimal long-term capacity expansion between conventional and non-conventional technologies. The uncertainty is modeled through scenarios, obtained using a Markov chain bootstrapping, made of coal and gas prices and electricity demand. We solve the problem considering a large set of efficient equilibrium solution between the two electricity producers.

ETS, Emissions and the Energy-Mix Problem

Falbo, Paolo;Pelizzari, Cristian;
2021

Abstract

We investigate the impact of ETS on the emissions and the energy-mix through a bilevel model where at the upper level the policymaker interacts with an oligopolistic electricity market over a finite time horizon. At the upper level, the policymaker aims at maximizing a social welfare function deciding the optimal number of allowances to be distributed to the electricity market. At the lower level, the electricity market, represented by two large producers, decide the optimal long-term capacity expansion between conventional and non-conventional technologies. The uncertainty is modeled through scenarios, obtained using a Markov chain bootstrapping, made of coal and gas prices and electricity demand. We solve the problem considering a large set of efficient equilibrium solution between the two electricity producers.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11379/554719
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