The Alberta carbon market : an exploration of alternative policy options through agent-based modeling
Date
2012
Authors
Aiyegbusi, Olufemi
Journal Title
Journal ISSN
Volume Title
Publisher
Lethbridge, Alta. : University of Lethbridge, Faculty of Management, c2012
Abstract
Our study examines some design alternatives for a carbon market by exploring the fledgling Alberta carbon market. We attempt to evaluate the performance of these designs on the bases of trade volume, cost efficiency and stability. To achieve this we construct an empirically-calibrated but simple agent-based model, certain aspects of which we selectively modify to incorporate various design options. We make comparisons among these options based on data simulated from the ensuing family of models.
We find strong evidence that in general, market design features such as source-of-credits, the scale of the market, and pricing-mechanism are very important considerations that influence the performance of the market. In addition, we find support for the notion that the level of the price cap relative to the average cost of abatement in the market matters, and beyond a threshold, higher price caps are associated with lower levels of performance.
Description
vii, 155 leaves ; 29 cm
Keywords
Carbon offsetting -- Economic aspects -- Alberta , Emissions trading -- Research -- Alberta , Multiagent systems -- Mathematical models