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In this paper we deal with production situations where a cap or limit to the amount of greenhouse gas emissions permitted is imposed. Fixing a tax for each ton of pollutant emitted is also considered. We use bankruptcy rules to define…

Computer Science and Game Theory · Computer Science 2024-02-09 Elisabeth Gutierrez , Natividad Llorca , Joaquin Sanchez-Soriano , Manuel A. Mosquera

We introduce a model for the evolution of emissions and the price of emissions allowances in a carbon market such as the European Union Emissions Trading System (EU ETS). The model accounts for multiple trading periods, or phases, with…

Mathematical Finance · Quantitative Finance 2020-08-21 Chassagneux Jean-Francois , Chotai Hinesh , Crisan Dan

We present a novel approach to the pricing of financial instruments in emission markets, for example, the EU ETS. The proposed structural model is positioned between existing complex full equilibrium models and pure reduced form models.…

Pricing of Securities · Quantitative Finance 2015-06-03 Sam Howison , Daniel Schwarz

Climate change compels a reduction of greenhouse gas emissions, yet vehicular traffic still contributes significantly to the emission of air pollutants. Hence, in this paper we focus on the optimization of traffic flow while simultaneously…

Optimization and Control · Mathematics 2024-06-10 Simone Göttlich , Michael Herty , Alena Ulke

We consider the problem of reducing the carbon emissions of a set of firms over a finite horizon. A regulator dynamically allocates emission allowances to each firm. Firms face idiosyncratic as well as common economic shocks on emissions,…

General Economics · Economics 2021-02-25 René Aïd , Sara Biagini

Inspired by the recent developments in the field of Spectrum Auctions, we have tried to provide a comprehensive framework for the complete procedure of Spectrum Licensing. We have identified the various issues the Governments need to decide…

Computer Science and Game Theory · Computer Science 2009-02-19 Devansh Dikshit , Y. Narahari

Diffusion auction is an emerging business model where a seller aims to incentivise buyers in a social network to diffuse the auction information thereby attracting potential buyers. We focus on designing mechanisms for multi-unit diffusion…

Computer Science and Game Theory · Computer Science 2023-09-26 Yuan Fang , Mengxiao Zhang , Jiamou Liu , Bakh Khoussainov , Mingyu Xiao

The sustainability of urban environments is an increasingly relevant problem. Air pollution plays a key role in the degradation of the environment as well as the health of the citizens exposed to it. In this chapter we provide a review of…

Machine Learning · Computer Science 2022-01-03 Pablo Torres , Beril Sirmacek , Sergio Hoyas , Ricardo Vinuesa

We present a machine learning-powered iterative combinatorial auction (MLCA). The main goal of integrating machine learning (ML) into the auction is to improve preference elicitation, which is a major challenge in large combinatorial…

Computer Science and Game Theory · Computer Science 2021-09-03 Gianluca Brero , Benjamin Lubin , Sven Seuken

While wind and solar power contribute to sustainability, their intermittent nature poses challenges when integrated into the grid. To mitigate these issues, renewable energy can be combined with coal fired power and hydropower sources to…

Systems and Control · Electrical Eng. & Systems 2024-11-12 Manling Hu , Manqi Xu , Dunnan Liu

The aim of this paper is to address the effect of the carbon emission allowance market on the production policy of a large polluter production firm. We investigate this effect in two cases; when the large polluter cannot affect the risk…

Optimization and Control · Mathematics 2023-12-07 Arash Fahim , Nizar Touzi

With the sustained attention on carbon neutrality, the personal carbon trading (PCT) scheme has been embraced as an auspicious paradigm for scaling down carbon emissions. To facilitate the simultaneous clearance of energy and carbon…

Systems and Control · Electrical Eng. & Systems 2023-01-31 Yuanxi Wu , Zhi Wu , Wei Gu , Zheng Xu , Shu Zheng , Qirun Sun

We consider repeated multi-unit auctions with uniform pricing, which are widely used in practice for allocating goods such as carbon licenses. In each round, $K$ identical units of a good are sold to a group of buyers that have valuations…

Computer Science and Game Theory · Computer Science 2024-01-17 Simina Brânzei , Mahsa Derakhshan , Negin Golrezaei , Yanjun Han

There is much disagreement concerning how best to control global carbon emissions. We explore quantitatively how different control schemes affect the collective emission dynamics of a population of emitting entities. We uncover a complex…

Physics and Society · Physics 2011-07-12 Zhenyuan Zhao , Dan Fenn , Pak Ming Hui , Neil F. Johnson

Reducing air pollution, such as CO2 and PM2.5 emissions, is one of the most important issues for many countries worldwide. Selecting an environmentally friendly transport mode can be an effective approach of individuals to reduce air…

Machine Learning · Computer Science 2021-09-15 Keiichi Ochiai , Tsukasa Demizu , Shin Ishiguro , Shohei Maruyama , Akihiro Kawana

In this paper, we present an algorithm which lies in the domain of task allocation for a set of static autonomous radars with rotating antennas. It allows a set of radars to allocate in a fully decentralized way a set of active tracking…

Multiagent Systems · Computer Science 2022-05-12 Pierre Larrenie , Cédric Buron , Frédéric Barbaresco

We cast the problem of combinatorial auction design in a Bayesian framework in order to incorporate prior information into the auction process and minimize the number of rounds to convergence. We first develop a generative model of agent…

Computer Science and Game Theory · Computer Science 2018-11-19 Gianluca Brero , Sébastien Lahaie

Combinatorial auctions are formulated as frustrated lattice gases on sparse random graphs, allowing the determination of the optimal revenue by methods of statistical physics. Transitions between computationally easy and hard regimes are…

Statistical Mechanics · Physics 2009-11-11 Tobias Galla , Michele Leone , Matteo Marsili , Mauro Sellitto , Martin Weigt , Riccardo Zecchina

We study the problem of achieving high efficiency in iterative combinatorial auctions (ICAs). ICAs are a kind of combinatorial auction where the auctioneer interacts with bidders to gather their valuation information using a limited number…

Computer Science and Game Theory · Computer Science 2024-09-24 Ryota Maruo , Hisashi Kashima

In this paper we investigate the causal impact of the European Union Emissions Trading System, a cap-and-trade scheme limiting greenhouse gas emissions of firms, on their environmental performance. Although previous studies have focused…

Econometrics · Economics 2025-12-18 Andrea Ciaccio , Francesco Moscone , Elisa Tosetti