Integrated model for robust emission trading under uncertainties: Cost-effectiveness and environmental safety
نویسندگان
چکیده
Article history: Received 20 August 2014 Received in revised form 7 January 2015 Accepted 10 January 2015 Available online 31 January 2015 Emission trading scheme was devised to lower the cost of achieving greenhouse gas emission reductions: emissions are reducedwhere it is cheapest and emission certificates are then traded to meet the nominal targets for each participant. However, carbon markets, like other commodity markets, are volatile. They react to stochastic “disequilibrium” spot prices, which may be affected by inadequate policies, speculations and bubbles. The market-based emission trading, therefore, does not necessarily minimize abatement costs and achieve emission reduction goals. We introduce a basic stochastic trading model allowing analysis of the robustness of emission reduction policies under irreversibility, asymmetric information and other multiple anthropogenic and natural uncertainties. We illustrate functioning of the robust market with numerical results involving such countries as US, Australia, Canada, Japan, EU27, Russia, Ukraine, China. In particular, we analyze if knowledge about uncertainties may affect portfolios of technological and trade policies and how uncertainty characteristics may influence market prices and change the market structure. © 2015 Elsevier Inc. All rights reserved.
منابع مشابه
Uncertainty, Cost-effectiveness and Environmental Safety of Robust Carbon Trading: Integrated Approach
متن کامل
An integrated optimization modeling approach for planning emission trading and clean-energy development under uncertainty
The growing concern for global warming caused by the increased atmospheric concentration of carbon dioxide (CO2) has a significant effect on environmental and energy policies and economic activities, due to the ever-increasing use of fossil fuels such as coal, oil and natural gas throughout the world. A variety of complexities and uncertainties exist in CO2-emission-related processes and variou...
متن کاملGlobal Supply Chain Management under Carbon Emission Trading Program Using Mixed Integer Programming and Genetic Algorithm
In this paper, the transportation problem under the carbon emission trading program ismodelled by mathematical programming and genetic algorithm. Since green supply chain issuesbecome important and new legislations are taken into account, carbon emissions costs are included inthe total costs of the supply chain. The optimisation model has the ability to minimise the total costsand provides the ...
متن کاملDesign of An Integrated Robust Optimization Model for Closed-Loop Supply Chain and supplier and remanufacturing subcontractor selection
The development of optimization and mathematical models for closed loop supply chain (CLSC) design has attracted considerable interest over the past decades. However, the uncertainties that are inherent in the network design are challenging the capabilities of the developed tools. In CLSC Uncertainty in demand is major source of uncertainty. The aim of this paper, therefore, is to present a Rob...
متن کاملA robust multi-objective global supplier selection model under currency fluctuation and price discount
Robust supplier selection problem, in a scenario-based approach has been proposed, when the demand and exchange rates are subject to uncertainties. First, a deterministic multi-objective mixed integer linear programming is developed; then, the robust counterpart of the proposed mixed integer linear programming is presented using the recent extension in robust optimization theory. We discuss dec...
متن کامل