References & Citations
Mathematics > Optimization and Control
Title: A Prescriptive Trilevel Equilibrium Model for Optimal Emissions Pricing and Sustainable Energy Systems Development
(Submitted on 5 Sep 2023 (this version), latest version 27 Mar 2024 (v2))
Abstract: We explore the class of trilevel equilibrium problems with a focus on energy-environmental applications. In particular, we apply this trilevel framework to a power market model, exploring the possibilities of an international policymaker in reducing emissions of the system. We present two alternative solution methods for such problems and a comparison of the resulting model sizes. The first method is based on a reformulation of the bottom-level solution set, and the second one uses strong duality. The first approach results in optimality conditions that are both necessary and sufficient, while the second one results in a model with fewer constraints but only sufficient optimality conditions. Using the proposed methods, we are able to obtain globally optimal solutions for a realistic five-node case study representing the Nordic countries and assess the impact of a carbon tax on the electricity production portfolio.
Submission history
From: Olli Herrala [view email][v1] Tue, 5 Sep 2023 08:21:31 GMT (208kb,D)
[v2] Wed, 27 Mar 2024 09:48:31 GMT (253kb,D)
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