Abstract
In this paper we consider the buying/selling prices of carbon dioxide (CO2) emission permits in trading models with uncertainty. Permission prices, although usually omitted from standard models, may significantly influence the trading market. We thus undertook to construct a more realistic trade model and to compare it with the standard one. To do this, we introduced several important changes to the standard model, namely, (1) a new optimized quality function; and (2) transactions with price negotiations between regions. We also enhanced the model using methods described in the literature to allow it to deal with reported emissions uncertainty. Additionally, we used an original method of simulating this kind of market based on a specialized evolutionary algorithm (EA).
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Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
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Stańczak, J., Bartoszczuk, P. CO 2 emission trading model with trading prices. Climatic Change 103, 291–301 (2010). https://doi.org/10.1007/s10584-010-9905-7
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DOI: https://doi.org/10.1007/s10584-010-9905-7