Analysis on the synergy between markets of electricity, carbon, and tradable green certificates in China

China has integrated tradable green certificates and carbon markets with its electricity sector to promote renewable energy and reduce carbon emissions. However, the impact mechanism of decision-making behaviors of involved entities in these integrated markets on the market equilibrium is still unclear, hence limiting the further development of renewable energy industries and carbon reduction progress to some extent. Therefore, conducting in-depth research to inform policy makers about the impacts of entities' decision-making behaviors on market equilibrium within the context of integrated multiple markets is crucial. This study aims to analyze the characteristics of entities' decision-making behaviors and equilibrium states within the collaborative dynamics of carbon, electricity, and green certificate markets. Specifically, an optimal decision-making model for entities given the multi-market coupling was developed by employing mathematical programming methods to analyze market equilibriums across various market combinations and policy parameters. The conclusions underscore equilibrium price shifts and decision-making characteristics among entities across multiple markets. The result shows that the carbon market could increase power prices and decrease green certificate prices. To ensure sustainable energy development, policymakers should consider the decision-making behavior of entities under multi-market coupling, which can promote the low-carbon transformation of the Chinese energy industry.