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Nash equilibrium for coupling of CO2 allowances and electricity markets

Authors
  • Bossy, Mireille
  • Maïzi, Nadia
  • Pourtallier, Odile
Publication Date
Nov 13, 2014
Source
HAL-UPMC
Keywords
Language
English
License
Unknown
External links

Abstract

In this note, we present an existence result of a Nash equilibrium between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers' strategies integrate the coupling of the two markets via the cost functions of the electricity production. We set out a clear Nash equilibrium that can be used to compute equilibrium prices on both markets as well as the related electricity produced and CO2 emissions covered.

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