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Game theory analysis for carbon auction market through electricity market coupling

Author

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  • Mireille Bossy

    (TOSCA - TO Simulate and CAlibrate stochastic models - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique - IECL - Institut Élie Cartan de Lorraine - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Odile Pourtallier

    (COPRIN - Constraints solving, optimization and robust interval analysis - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique - ENPC - École des Ponts ParisTech, HEPHAISTOS - HExapode, PHysiologie, AssISTance et Objets de Service - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique)

  • Nadia Maïzi

    (CMA - Centre de Mathématiques Appliquées - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres)

Abstract

In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers' strategies integrate the coupling of the two markets via the cost functions of the electricity production. We set out a clear Nash equilibrium on the power market that can be used to compute equilibrium prices on both markets as well as the related electricity produced and CO2 emissions released.

Suggested Citation

  • Mireille Bossy & Odile Pourtallier & Nadia Maïzi, 2015. "Game theory analysis for carbon auction market through electricity market coupling," Post-Print hal-00954377, HAL.
    • Handle: RePEc:hal:journl:hal-00954377
    DOI: 10.1007/978-1-4939-2733-3_13
    Note: View the original document on HAL open archive server: https://inria.hal.science/hal-00954377
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    References listed on IDEAS

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    1. Rene Carmona & Michael Coulon & Daniel Schwarz, 2012. "Electricity price modeling and asset valuation: a multi-fuel structural approach," Papers 1205.2299, arXiv.org.
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