Analysis of Environmental Policy in the Power Sector

1. Front Matter

   Pages i-xiv

   PDF

2. Introduction

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 1-11

3. Environmental Policies in the Power Sector

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 13-24

4. Features of Power Sectors

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 25-37

5. Analysis of Power System Operations with Non-Dominant Firms

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 39-70

6. Analysis of Power System Operations with a Dominant Firm and an Oligopolistic Industry

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 71-109

7. Investment in New Power Plants Under Environmental Policies

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 111-151

8. Sustainable Transmission Investment

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 153-194

9. First-Best Policy and Decentralized Mechanisms

   • Yihsu Chen, Afzal S. Siddiqui, Makoto Tanaka

   Pages 195-228

10. Back Matter

    Pages 229-270

    PDF

This book covers game-theoretic approaches to analyzing policies for environmental regulation in the power sector. The scope includes operational and investment decisions in imperfectly competitive electricity markets as well as transmission planning and policy design. Given this context, this book synthesizes equilibrium and bi-level modeling to address challenging research questions such as: • How are power-plant operations affected by carbon policy, such as cap-and-trade (C&T) systems? 
• How does market power in electricity generation affect market outcomes and CO2 emissions? 
• How does a strategic firm with first-mover advantage manipulate both electricity and C&T permit prices? 
• How does a strategic firm with first-mover advantage invest in new generation capacity under a C&T system? 
• How does sustainable transmission planning adapt to an imperfectly competitive power sector? 
• How should arenewable portfolio standard (RPS) target be revised in an imperfectly competitive power sector? 


This book includes plenty of illustrative examples to facilitate the concepts’ comprehension. It is intended to make equilibrium and bi-level models adapted for policy assessment accessible to graduate students, academic researchers, industry practitioners, and policy analysts.

• Environmental Policy
• Power Sector
• Power System Operations
• Power Plants
• Bi-Level Modeling
• MPEC/MILP
• Performance-Based Standards
• Sustainable Transmission Investment
• First-Best Policy
• Socially Optimal Plan
• Mixed-Complementarity Problem
• Greenhouse Gas Emissions
• Game Theoretic Approaches
• Equilibrium Methods
• Market Power
• Bi-Level Modeling

• Jack Baskin School of Engineering, University of California, Santa Cruz, Santa Cruz, USA

  Yihsu Chen

• Department of Statistical Science, University College London, London, UK

  Afzal S. Siddiqui

• National Graduate Institute for Policy Studies (GRIPS), Tokyo, Japan

  Makoto Tanaka

Yihsu Chen is Professor of Sustainability in Technology Management in the Department of Electrical and Computer Engineering at the University of California Santa Cruz. He is also affiliated with the Environmental Studies Department at the University of California Santa Cruz . Professor Chen's main research focuses on studying the impact of public policies on energy, water resources, and transportation sectors.


Afzal Siddiqui is Professor of Energy Economics in the Department of Statistical Science at University College London and a Professor in the Department of Computer and Systems Sciences at Stockholm University. His research interests are in energy economics, specifically the application of equilibrium methods for making decisions and analyzing policy in the power sector under uncertainty and competition.


Makoto Tanaka is a Professor at the National Graduate Institute for Policy Studies (GRIPS) in Tokyo, Japan. He focuses on the interdisciplinary fields of operations research and economic analysis with special interests in the energy and environmental policy issues. His research interests include analysis of oligopolistic power markets and transmission investment using approaches such as complementarity modeling and bi-level programming.

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