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An increasing share of energy is produced from renewable sources by many small producers. The efficiency of those sources is volatile and, to some extent, random, exacerbating the problem of energy market balancing. In many countries, this…

Machine Learning · Computer Science 2024-02-15 Łukasz Lepak , Paweł Wawrzyński

We develop a dynamic multi-region climate-economy model with emissions trading and solve for the dynamic Nash equilibrium under noncooperation, where each region follows Paris Agreement-based emissions caps. The permit price reaches $923…

General Economics · Economics 2026-01-09 Yongyang Cai , Khyati Malik , Hyeseon Shin

This paper explores stochastic control models in the context of decarbonization within the energy market. We study three progressively complex scenarios: (1) a single firm operating with two technologies-one polluting and one clean,(2)two…

General Finance · Quantitative Finance 2025-06-18 Benhao Du , Thomas Treillard , Francois Wang

Over the past years, distributed energy resources (DER) have been the object of many studies, which recognise and establish their emerging role in the future of power systems. However, the implementation of many scenarios and mechanism are…

Systems and Control · Computer Science 2018-09-20 Jaysson Guerrero , Archie Chapman , Gregor Verbic

This paper investigates strategic investments needed to mitigate transition risks, particularly focusing on sectors significantly impacted by the shift to a low-carbon economy. It emphasizes the importance of tailored sector-specific…

General Economics · Economics 2025-09-16 Jiayue Zhang , Tony S. Wirjanto , Lysa Porth , Ken Seng Tan

China accounts for one-third of the world's total carbon emissions. How to reach the peak of carbon emissions by 2030 and achieve carbon neutrality by 2060 to ensure the effective realization of the "dual-carbon" target is an important…

General Economics · Economics 2024-11-28 Zhao Sanglin , Li Zhetong , Deng Hao , You Xing , Tong Jiaang , Yuan Bingkun , Zeng Zihao

Integrating renewable energy production into the electricity grid is an important policy goal to address climate change. However, such an integration faces economic and technological challenges. As power generation by renewable sources…

Systems and Control · Electrical Eng. & Systems 2021-01-15 Nayara Aguiar , Indraneel Chakraborty , Vijay Gupta

Emissions markets play a vital role in emissions reduction by incentivizing firms to minimize costs. However, their effectiveness heavily depends on the decisions of policymakers, future economic activity, and the availability of abatement…

General Finance · Quantitative Finance 2025-10-16 Stéphane Crépey , Mekonnen Tadese , Gauthier Vermandel

Investments into renewable energy are increasing rapidly around the world. Energy system models are able to provide insights into optimal investment capacities and thus are widely used to aid the long-term investment decision-making under…

Optimization and Control · Mathematics 2022-01-06 Ni Wang , Remco A. Verzijlbergh , Petra W. Heijnen , Paulien M. Herder

Tackling climate change is at the top of many agendas. In this context, emission trading schemes are considered as promising tools. The regulatory framework for an emission trading scheme introduces a market for emission allowances and…

Statistics Theory · Mathematics 2010-11-29 Juri Hinz , Alex Novikov

This study replicates the findings of Wang et al. (2017) on reference-dependent preferences and their impact on the risk-return trade-off in the Chinese stock market, a unique context characterized by high retail investor participation,…

Statistical Finance · Quantitative Finance 2025-05-28 Penggan Xu

We provide ex-post empirical analysis of the effects of climate policies on carbon dioxide emissions at the aggregate national level. Our results are based on a comprehensive database of 121 countries. As climate policies we examine carbon…

General Economics · Economics 2026-01-14 Emanuel Kohlscheen , Richhild Moessner , Elod Takats

Carbon emission right allowance is a double-edged sword, one edge is to reduce emission as its original design intention, another edge has in practice slain many less developed coal-consuming enterprises, especially for those in thermal…

General Economics · Economics 2021-04-13 Yue Liu , Lixin Tian , Zhuyun Xie , Zaili Zhen , Huaping Sun

Effective climate action depends on dismantling the assumptions and oversimplifications that have become the basis of climate policy. The assumption that greenhouse gases (GHG) are fungible and the use of single-point values in normalizing…

General Economics · Economics 2025-06-27 Alyssa R. Pfadt-Trilling , Marie-Odile P. Fortier

In European day-ahead electricity markets, carbon allowance costs passed through by marginal fossil plants raise consumer expenditure and generate inframarginal rents for non-emitting generators. We propose a settlement modification: when…

General Economics · Economics 2026-03-30 Simon Finster , Bernhard Kasberger , Simon Rütten

As global climate change and environmental issues escalate, carbon reduction has emerged as a paramount global concern. Agriculture accounts for approximately 30% of global greenhouse gas emissions, making carbon reduction in this sector…

Optimization and Control · Mathematics 2024-07-09 Tingting Meng , Yukun Cheng , Xujin Pu , Rui Li

With the recent technological feasibility of electronic commerce over the Internet, much attention has been given to the design of electronic markets for various types of electronically-tradable goods. Such markets, however, will normally…

Computer Science and Game Theory · Computer Science 2011-07-04 M. Babaioff , N. Nisan

Using a firm-level dataset from the Spanish Technological Innovation Panel (2003-2016), this study explores the characteristics of environmentally innovative firms and quantifies the effects of pursuing different types of environmental…

General Economics · Economics 2023-10-13 Gianluca Biggi , Andrea Mina , Federico Tamagni

We examine a green transition policy involving a tax on brown goods in an economy where preferences for green consumption consist of a constant intrinsic individual component and an evolving social component. We analyse equilibrium dynamics…

Theoretical Economics · Economics 2025-07-24 Kirill Borissov , Nigar Hashimzade

The combustion of coal, the most polluting form of energy, must be significantly curtailed to limit global average temperature increase to well below 2 degrees C. The effectiveness of carbon pricing is frequently undermined by sub-optimally…

General Economics · Economics 2024-06-21 Sugandha Srivastav , Michael Zaehringer
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