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Application of an evolutionary algorithm to simulation of the CO2 emission permits market with purchase prices

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  • Jarosław Stańczak

Abstract

This article describes the problem of the CO2 emission permits market and introduces several important changes to the standard model, in particular a new goal function, transactions with price negotiations between regions and - as a consequence of introducing prices for permits – the possibility of investigating the influence of purchase/sale prices on the market. An additional novelty is the method of simulating such a market, which is based on a specialized evolutionary algorithm (EA).

Suggested Citation

  • Jarosław Stańczak, 2009. "Application of an evolutionary algorithm to simulation of the CO2 emission permits market with purchase prices," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 19(4), pages 93-108.
    • Handle: RePEc:wut:journl:v:4:y:2009:p:93-108:id:148
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    1. Floortje Alkemade & Han Poutré & Hans Amman, 2006. "Robust Evolutionary Algorithm Design for Socio-economic Simulation," Computational Economics, Springer;Society for Computational Economics, vol. 28(4), pages 355-370, November.
    2. Y. Ermoliev & M. Michalevich & A. Nentjes, 2000. "Markets for Tradeable Emission and Ambient Permits: A Dynamic Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(1), pages 39-56, January.
    3. Christiane Clemens & Thomas Riechmann, 2006. "Evolutionary Dynamics in Public Good Games," Computational Economics, Springer;Society for Computational Economics, vol. 28(4), pages 399-420, November.
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