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The Broker Simulation Model in the Emission Allowances Trading Area

Author

Listed:
  • Petr Cermak

    (Research Institute of the IT4Innovations Centre of Excellence, Faculty of Philosophy and Science, Silesian University, Bezruc Sq. 13, Opava, 74601, Czech Republic.)

  • Jarmila Zimmermannova

    (Department of Economics, Moravian University College Olomouc, tr. Kosmonautu 1288/1, Olomouc, 77900, Czech Republic.)

  • Jan Lavrincik

    (Department of IT and Applied Mathematics, Moravian University College Olomouc, tr. Kosmonautu 1288/1, Olomouc, 77900, Czech Republic.)

  • Miroslav Pokorny

    (Department of IT and Applied Mathematics, Moravian University College Olomouc, tr. Kosmonautu 1288/1, Olomouc, 77900, Czech Republic.)

  • Jiri Martinu

    (Research Institute of the IT4Innovations Centre of Excellence, Faculty of Philosophy and Science, Silesian University, Bezruc Sq. 13, Opava, 74601, Czech Republic.)

Abstract

This paper is focused on possibilities of simulations of emission allowances trading within the EU emission trading system using new designed broker simulation model which integrates different original soft computing and decision making methods. Firstly, the paper presents the background of the EU emissions trading system and an overview of different methods used in current research connected with CO2 emission allowances trading. The key part of the paper focuses on the broker simulation model creation and application. The results are based on expert systems with fuzzy rule bases, nonlinear fuzzy rule based predictors and fuzzy rule based behavior modelling. The application part of the results has been performed in Matlab. The broker simulation model is able to make decisions connected with the traded amount, price of allowances and buy/sell actions within the time on the market.

Suggested Citation

  • Petr Cermak & Jarmila Zimmermannova & Jan Lavrincik & Miroslav Pokorny & Jiri Martinu, 2015. "The Broker Simulation Model in the Emission Allowances Trading Area," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 80-95.
    • Handle: RePEc:eco:journ2:2015-01-07
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    References listed on IDEAS

    as
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    Cited by:

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    More about this item

    Keywords

    EU ETS; Fuzzy modelling; Broker;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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