A Fuzzy Methodology for Evaluating a Market of Tradable CO(in2)-Permits

  • Pierre L. Kunsch
  • Johan Springael

Abstract

When developing a market of tradable CO2-permits for achieving emission reductions, many badly known aspects must be accounted for. There are the landmarks to be imposed to the industry, the realistic schedules for their achievement, the potentials of different reduction technologies, the annual budgets that can be spent and last but not least the marginal pollution-abatement costs. In this methodological paper a simulation technique is developed to provide insight to public policy-makers into this complex matter. We propose to use fuzzy reasoning techniques to reconcile the diverging opinions of experts and to take into account the many uncertainties on marginal abatement costs.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Brans, J.P., Kunsch, P.L. and Mareschal, B. (2001). Management of the future. A system dynamics and MCDA approach. In: Special Volume dedicated to Bernard Roy, pp. 483–502. Kluwer Academic Publishers.Google Scholar
  2. Cox, D.E. (1995). Fuzzy Logic for Business and Industry, Charles River Media, Inc.Google Scholar
  3. Hanley, N., Shogren, J.F. and White, B. (eds.) (1997). Environmental Economics in Theory and Practice. Macmillan Texts in Economics, Macmillan Press Ltd.Google Scholar
  4. International Energy Agency (2001). International Emission Trading. From Concept to Reality, OECD/IEA.Google Scholar
  5. Kunsch, P.L., Álvarez-Nóvoa, R., and Springael, J. (2002). Simulation d'un marché de certificates verts pour la promotion de l'énergie éolienne en Belgique. INFOR, Canadian Journal of Operational Research and Information Processing, 40(3):241–258.Google Scholar
  6. Kunsch, P.L. and Fortemps, Ph. (2002). A fuzzy decision support system for the economic calculus in radioactive waste management. Information Sciences, 142:103–116.CrossRefGoogle Scholar
  7. Kunsch, P.L., Springael, J. and Brans, J.P. (1999). An adaptive multicriteria control methodology in sustainable development — case study: a CO2 ecotax. Belgian Journal of Operations Research, Statistics and Computer Science, 39(2–3):109–143.Google Scholar
  8. Kunsch, P.L., Springael, J. and Brans, J.P. (2004). The zero-emission certificates: A novel CO2-pollution reduction instrument applied to the electricity market. European Journal of Operational Research, 153(2):386–399.CrossRefGoogle Scholar
  9. Kyoto Protocol (1997). Attached to the Framework Convention on Climate Change available on the site http://www.unfccc.de.Google Scholar
  10. Meyer, M.A. and Booker, J.M. (2001). Eliciting and Analysing Expert Judgment. A Practical Guide. Society for Industrial an Applied Mathematics.Google Scholar
  11. Passino, K.M. and Yurkovich, S. (1998). Fuzzy Control. Addison Wesley.Google Scholar
  12. Perman, R., Ma, Y., McGilvray, J., and Common, M. (2003). Natural Resource and Environmental Economics. Pearson Education Limited.Google Scholar
  13. VENSIM® (2000). DSS32 version 4.1, Ventana Systems, Inc.Google Scholar

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  • Pierre L. Kunsch
  • Johan Springael

There are no affiliations available

Personalised recommendations