IDEAS home Printed from https://ideas.repec.org/a/spr/climat/v124y2014i3p647-662.html
   My bibliography  Save this article

Simulation of an uncertain emission market for greenhouse gases using agent-based methods

Author

Listed:
  • Zbigniew Nahorski
  • Jarosław Stańczak
  • Piotr Pałka

Abstract

The paper presents the problem of a simulation of the greenhouse gases emission permits market where only low accuracy emission amounts are known. An organization of the market with uncertain emissions is proposed and trading rules for individual market participants are discussed. Simulation of the market is based on a multi-agent system. Negotiation of purchase/sale prices between the parties are introduced, where the trading parties adopt one of two options: (i) bilateral negotiations, and (ii) sealed bid reverse auctions. Results of simulation runs show trajectories of transaction prices, as well as probability distributions of learning agents’ bidding prices. Copyright The Author(s) 2014

Suggested Citation

  • Zbigniew Nahorski & Jarosław Stańczak & Piotr Pałka, 2014. "Simulation of an uncertain emission market for greenhouse gases using agent-based methods," Climatic Change, Springer, vol. 124(3), pages 647-662, June.
    • Handle: RePEc:spr:climat:v:124:y:2014:i:3:p:647-662
    DOI: 10.1007/s10584-013-1039-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10584-013-1039-2
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10584-013-1039-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ermoliev, Yuri & Klaassen, Ger & Nentjes, Andries, 1996. "Adaptive Cost-Effective Ambient Charges under Incomplete Information," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 37-48, July.
    2. Grimm, Volker & Berger, Uta & DeAngelis, Donald L. & Polhill, J. Gary & Giske, Jarl & Railsback, Steven F., 2010. "The ODD protocol: A review and first update," Ecological Modelling, Elsevier, vol. 221(23), pages 2760-2768.
    3. T. Ermolieva & Y. Ermoliev & G. Fischer & M. Jonas & M. Makowski, 2010. "Cost Effective and Environmentally Safe Emission Trading Under Uncertainty," Lecture Notes in Economics and Mathematical Systems, in: Kurt Marti & Yuri Ermoliev & Marek Makowski (ed.), Coping with Uncertainty, chapter 0, pages 79-99, Springer.
    4. Y. Ermoliev & M. Michalevich & A. Nentjes, 2000. "Markets for Tradeable Emission and Ambient Permits: A Dynamic Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(1), pages 39-56, January.
    5. Brenner, Thomas, 2006. "Agent Learning Representation: Advice on Modelling Economic Learning," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 18, pages 895-947, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiangyang Xu & Joanna Horabik & Zbigniew Nahorski, 2014. "Pricing of uncertain certified emission reductions in a Chinese coal mine methane project with an extended Rubinstein-Ståhl model," Climatic Change, Springer, vol. 124(3), pages 617-632, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Flã…M, S. D. & Ermoliev, Y. M., 2009. "Investment, uncertainty, and production games," Environment and Development Economics, Cambridge University Press, vol. 14(1), pages 51-66, February.
    2. Carrasco, L. Roman & Cook, David & Baker, Richard & MacLeod, Alan & Knight, Jon D. & Mumford, John D., 2012. "Towards the integration of spread and economic impacts of biological invasions in a landscape of learning and imitating agents," Ecological Economics, Elsevier, vol. 76(C), pages 95-103.
    3. Tardy, Olivia & Lenglos, Christophe & Lai, Sandra & Berteaux, Dominique & Leighton, Patrick A., 2023. "Rabies transmission in the Arctic: An agent-based model reveals the effects of broad-scale movement strategies on contact risk between Arctic foxes," Ecological Modelling, Elsevier, vol. 476(C).
    4. Vimercati, Giovanni & Hui, Cang & Davies, Sarah J. & Measey, G. John, 2017. "Integrating age structured and landscape resistance models to disentangle invasion dynamics of a pond-breeding anuran," Ecological Modelling, Elsevier, vol. 356(C), pages 104-116.
    5. Chao-Ning Liao, 2009. "Technology adoption decisions under a mixed regulatory system of tradable permits and air pollution fees for the control of Total Suspended Particulates in Taiwan," Journal of Regulatory Economics, Springer, vol. 35(2), pages 135-153, April.
    6. Liao, Chao-Ning, 2007. "Modelling a mixed system of air pollution fee and tradable permits for controlling nitrogen oxide: a case study of Taiwan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-16.
    7. Hinker, Jonas & Hemkendreis, Christian & Drewing, Emily & März, Steven & Hidalgo Rodríguez, Diego I. & Myrzik, Johanna M.A., 2017. "A novel conceptual model facilitating the derivation of agent-based models for analyzing socio-technical optimality gaps in the energy domain," Energy, Elsevier, vol. 137(C), pages 1219-1230.
    8. Tianran Ding & Wouter Achten, 2023. "Coupling agent-based modeling with territorial LCA to support agricultural land-use planning," ULB Institutional Repository 2013/359527, ULB -- Universite Libre de Bruxelles.
    9. Crevier, Lucas Phillip & Salkeld, Joseph H & Marley, Jessa & Parrott, Lael, 2021. "Making the best possible choice: Using agent-based modelling to inform wildlife management in small communities," Ecological Modelling, Elsevier, vol. 446(C).
    10. Fernando Lozano & Jaime Lozano & Mario García, 2007. "An artificial economy based on reinforcement learning and agent based modeling," Documentos de Trabajo 3907, Universidad del Rosario.
    11. Meli, Mattia & Auclerc, Apolline & Palmqvist, Annemette & Forbes, Valery E. & Grimm, Volker, 2013. "Population-level consequences of spatially heterogeneous exposure to heavy metals in soil: An individual-based model of springtails," Ecological Modelling, Elsevier, vol. 250(C), pages 338-351.
    12. Peterson, Jeffrey M. & Smith, Craig M. & Valentin, Luc, 2005. "A Water Quality Trading Simulation for Northeast Kansas," 2005 Annual meeting, July 24-27, Providence, RI 19167, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Claudia Dislich & Elisabeth Hettig & Jan Salecker & Johannes Heinonen & Jann Lay & Katrin M Meyer & Kerstin Wiegand & Suria Tarigan, 2018. "Land-use change in oil palm dominated tropical landscapes—An agent-based model to explore ecological and socio-economic trade-offs," PLOS ONE, Public Library of Science, vol. 13(1), pages 1-20, January.
    14. Dur, Gaël & Won, Eun-Ji & Han, Jeonghoon & Lee, Jae-Seong & Souissi, Sami, 2021. "An individual-based model for evaluating post-exposure effects of UV-B radiation on zooplankton reproduction," Ecological Modelling, Elsevier, vol. 441(C).
    15. Bauduin, Sarah & Grente, Oksana & Santostasi, Nina Luisa & Ciucci, Paolo & Duchamp, Christophe & Gimenez, Olivier, 2020. "An individual-based model to explore the impacts of lesser-known social dynamics on wolf populations," Ecological Modelling, Elsevier, vol. 433(C).
    16. Zhai, Xueting & Zhong, Dixi & Luo, Qiuju, 2019. "Turn it around in crisis communication: An ABM approach," Annals of Tourism Research, Elsevier, vol. 79(C).
    17. Graciá, Eva & Rodríguez-Caro, Roberto C. & Sanz-Aguilar, Ana & Anadón, José D. & Botella, Francisco & García-García, Angel Luis & Wiegand, Thorsten & Giménez, Andrés, 2020. "Assessment of the key evolutionary traits that prevent extinctions in human-altered habitats using a spatially explicit individual-based model," Ecological Modelling, Elsevier, vol. 415(C).
    18. Ahmed Laatabi & Nicolas Marilleau & Tri Nguyen-Huu & Hassan Hbid & Mohamed Ait Babram, 2018. "ODD+2D: An ODD Based Protocol for Mapping Data to Empirical ABMs," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 21(2), pages 1-9.
    19. Ahmadreza Asgharpourmasouleh & Atiye Sadeghi & Ali Yousofi, 2017. "A Grounded Agent-Based Model of Common Good Production in a Residential Complex: Applying Artificial Experiments," SAGE Open, , vol. 7(4), pages 21582440177, October.
    20. Coronese, Matteo & Occelli, Martina & Lamperti, Francesco & Roventini, Andrea, 2023. "AgriLOVE: Agriculture, land-use and technical change in an evolutionary, agent-based model," Ecological Economics, Elsevier, vol. 208(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:climat:v:124:y:2014:i:3:p:647-662. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.