1. CO emission trading model with trading prices.
- Author
-
Stańczak, Jarosław and Bartoszczuk, Paweł
- Subjects
EMISSIONS trading ,CARBON dioxide & the environment ,GREENHOUSE gases ,CARBON offsetting ,POLLUTION prevention ,GREENHOUSE gas mitigation ,AIR pollution monitoring ,GREENHOUSE effect - Abstract
In this paper we consider the buying/selling prices of carbon dioxide (CO) emission permits in trading models with uncertainty. Permission prices, although usually omitted from standard models, may significantly influence the trading market. We thus undertook to construct a more realistic trade model and to compare it with the standard one. To do this, we introduced several important changes to the standard model, namely, (1) a new optimized quality function; and (2) transactions with price negotiations between regions. We also enhanced the model using methods described in the literature to allow it to deal with reported emissions uncertainty. Additionally, we used an original method of simulating this kind of market based on a specialized evolutionary algorithm (EA). [ABSTRACT FROM AUTHOR]
- Published
- 2010
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