Issue: 2009/Vol.19/No.4, Pages 93-108
APPLICATION OF AN EVOLUTIONARY ALGORITHM TO SIMULATION OF THE CO2 EMISSION PERMITS MARKET WITH PURCHASE PRICES
Cite as: J. Stańczak. Application of an evolutionary algorithm to simulation of the CO2 emission permits market with purchase prices. Operations Research and Decisions 2009: 19(4), 93-108.
This article describes the problem of the CO2 emission permits market and introduces several important changes to the standard model, in particular a new goal function, transactions with price negotiations between regions and - as a consequence of introducing prices for permits – the possibility of investigating the influence of purchase/sale prices on the market. An additional novelty is the method of simulating such a market, which is based on a specialized evolutionary algorithm (EA).
Keywords: emission permits trading, Kyoto Protocol, evolutionary algorithm