| Title |
A Study on Modeling of Market Price Analysis in Coupled Electricity and Emissions Trading Markets |
| DOI |
https://doi.org/10.5370/KIEE.2022.71.6.812 |
| Keywords |
Electricity Market; Emission Allowance; Market Price; Emission Trading; Nash Equilibrium; Cournot Competition; Oligopoly |
| Abstract |
Emissions allowance trading has been used to assist in mitigation of greenhouse gas emissions. The scale of emissions from thermal power plants accounts for a large proportion of the total, so power generations in an electricity market play an important role in an emissions trading market. It is well known that competitive generations exercise market power in the oligopolistic electricity market.
The competitive generations affect to exercise market power even in the emission trading market due to the coupled markets with the electricity market. This study proposes a coupled model for analyzing the competitive operation of power generation in terms of supply and demand for emissions allowance. According to case studies, it is shown that market power of power generations appears in the emissions trading market through the calculation of the Nash equilibrium in the proposed model. |