A multi-market equilibrium model considering the carbon-green certificate mutual recognition trading mechanism under the electricity market

Benke Wang, Chunhua Li, Yongshuang Ban, Zeming Zhao and Zengxu Wang

Energy, 2025, vol. 330, issue C

Abstract: To promote the synergistic development of the electricity-carbon-green certificate markets, a multi-market equilibrium model considering the carbon-green certificate mutual recognition trading mechanism under the electricity market is proposed. Considering the generator's game behavior in the electricity-carbon-green certificate market, the generator's bidding layer and the multi-market clearing layer are constructed. The carbon-green certificate mutual recognition trading mechanism is introduced. By calculating the carbon emissions reduction behind the green certificates, it can offset part of the carbon emissions when carbon allowance is applied to the system. While promoting the consumption of renewable energy units, the optimizable space and trading enthusiasm of thermal units increase. The two market mechanisms are further simulated to promote the low-carbon nature of the electricity market. The results of the arithmetic examples show that the proposed model can maximize the reduction of carbon emissions in the system and the consumption of renewable energy producers while reducing the total system cost.

Keywords: Carbon emission trading; Green certificate trading; Electricity market; Multi-market equilibrium model; Mutual recognition trading mechanism (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:330:y:2025:i:c:s0360544225025447

DOI: 10.1016/j.energy.2025.136902

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