Energy market, uncertainty, and optimal environmental policy

• Project/Area Number: 18K01565
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07040:Economic policy-related
• Research Institution: National Graduate Institute for Policy Studies
• Principal Investigator: Tanaka Makoto 政策研究大学院大学, 政策研究科, 教授 (10377137)
• Project Period (FY): 2018-04-01 – 2024-03-31
• Project Status: Completed (Fiscal Year 2023)
• Budget Amount: ¥4,420,000 (Direct Cost: ¥3,400,000、Indirect Cost: ¥1,020,000); Fiscal Year 2021: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2020: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2019: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2018: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
• Keywords: 環境政策 / エネルギー政策 / 電力市場 / 不確実性 / 不完全競争 / エネルギー市場

Outline of Final Research Achievements

We examined the optimal performance-based environmental regulation via bi-level programming problems, taking into account the equilibrium of the electricity market. We derived the socially optimal rates for performance-based regulation and found that distinct state-by-state regulation yields higher social welfare than broader national regulation. This is because power producers can maintain flexibility in adjusting power supply by participating in a wide-area power market even under state-by-state environmental regulation.

Academic Significance and Societal Importance of the Research Achievements

これまで公共経済分野の一般的な規制研究の文脈では、州等の狭い単位と国等の広い単位の仕組みのどちらが望ましいかについて断定的な結果が得られていない。本研究では、燃料種別排出原単位の環境規制に関して、社会的に最適な水準（率）を導出したことに加え、国等の広域の規制方式よりも、州等の狭い単位の規制方式を採用した方が、社会厚生が高まることを示しており、学術的意義だけでなく、現実の政策への応用面での意義がある。

Research Products

• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] Stockholm University(スウェーデン)
• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] Stockholm University(スウェーデン)
• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] Stockholm University(スウェーデン)
• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] University College London(英国)
• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] University College London(英国)
• [Int'l Joint Research] University of California at Santa Cruz(米国)
• [Int'l Joint Research] University College London(英国)
• [Journal Article] Market-Based Environmental Policies in the Power Sector (2023)
  • Author(s): Siddiqui Afzal S.、Tanaka Makoto、Chen Yihsu
  • Journal Title: Current Sustainable/Renewable Energy Reports Volume: 10 Issue: 3 Pages: 59-74
  • DOI: 10.1007/s40518-023-00211-8
  • Peer Reviewed / Open Access / Int'l Joint Research
• [Journal Article] Endogenous Risk Management of Prosumers by Distributionally Robust Chance-Constrained Optimization (2023)
  • Author(s): Ramyar, S., M. Tanaka, A. L. Liu, and Y. Chen
  • Journal Title: IEEE Transactions on Energy Markets, Policy, and Regulation Volume: 1(1) Issue: 1 Pages: 48-59
  • DOI: 10.1109/tempr.2023.3242664
  • Peer Reviewed / Int'l Joint Research
• [Journal Article] Regulatory Jurisdiction and Policy Coordination: A Bi-Level Modeling Approach for Performance-Based Environmental Policy (2022)
  • Author(s): Tanaka, M., Y. Chen, and A. S. Siddiqui
  • Journal Title: Journal of the Operational Research Society Volume: 73(3) Issue: 3 Pages: 509-524
  • DOI: 10.1080/01605682.2020.1843980
  • Peer Reviewed / Int'l Joint Research
• [Journal Article] Economic and Environmental Consequences of Market Power in the South-East Europe Regional Electricity Market (2021)
  • Author(s): Viskovic, V., Y. Chen, A. S. Siddiqui, and M. Tanaka
  • Journal Title: Energy Journal Volume: 42(6) Issue: 6 Pages: 121-145
  • DOI: 10.5547/01956574.42.6.vvis
  • Peer Reviewed / Int'l Joint Research
• [Journal Article] Regional Carbon Policies in an Interconnected Power System: How Expanded Coverage Could Exacerbate Emission Leakage (2019)
  • Author(s): Viskovic, V., Y. Chen, A. S. Siddiqui, and M. Tanaka
  • Journal Title: Energy Policy Volume: 134 Pages: 110914-110914
  • DOI: 10.1016/j.enpol.2019.110914
  • Peer Reviewed / Int'l Joint Research
• [Journal Article] Market Power with Tradable Performance-Based CO2 Emission Standards in the Electricity Sector (2018)
  • Author(s): Chen, Y., M. Tanaka, and A. S. Siddiqui
  • Journal Title: Energy Journal Volume: 39(6) Issue: 6 Pages: 121-145
  • DOI: 10.5547/01956574.39.6.yche
  • Peer Reviewed / Int'l Joint Research
• [Presentation] Rearranging the Deck Chairs? Coordinating Environmental Policy and Transmission Planning in Decentralised Electricity Industries (2022)
  • Author(s): Siddiqui, A. S., M. Tanaka, and Y. Chen
  • Organizer: EURO 2022
  • Int'l Joint Research
• [Presentation] Prosumers’ Investment Decisions and Social Welfare under Different Pricing Schemes (2022)
  • Author(s): 伊藤和哉・田中誠・Yihsu Chen・高嶋隆太
  • Organizer: 日本オペレーションズ・リサーチ学会2022年春季研究発表会
• [Presentation] Sustainable Transmission Planning (2021)
  • Author(s): Siddiqui, A. S., M. Tanaka, and Y. Chen
  • Organizer: INFORMS Annual Meeting
  • Int'l Joint Research
• [Presentation] Prosumers’ Investment Decisions under Different Pricing Schemes (2021)
  • Author(s): Ito, K., M. Tanaka, Y. Chen, and R. Takashima
  • Organizer: INFORMS Annual Meeting
  • Int'l Joint Research
• [Presentation] Economic and Environmental Consequences of Market Power in the South-East Europe Regional Electricity Market (2019)
  • Author(s): Viskovic, V., Y. Chen, A. Siddiqui, and M. Tanaka
  • Organizer: 42nd IAEE International Conference
  • Int'l Joint Research
• [Presentation] Equilibrium Methods for Analysis of Environmental Policy in the Power Sector (2019)
  • Author(s): Chen, Y., A. Siddiqui, and M. Tanaka
  • Organizer: Pre-Conference Seminar of the 42nd IAEE International Conference
  • Int'l Joint Research / Invited
• [Presentation] Regulatory Jurisdiction and Policy Coordination: A Bi-level Modeling Approach For Performance-based Policy (2018)
  • Author(s): Tanaka, M., Y. Chen, and A. S. Siddiqui
  • Organizer: INFORMS Annual Meeting
  • Int'l Joint Research
• [Presentation] Regulatory Jurisdiction and Policy Coordination: A Bi-level Modeling Approach For Performance-based Policy (2018)
  • Author(s): Tanaka, M., Y. Chen, and A. S. Siddiqui
  • Organizer: INFORMS International Conference
  • Int'l Joint Research
• [Book] Analysis of Environmental Policy in the Power Sector: Equilibrium Methods and Bi-Level Modeling (2020)
  • Author(s): Chen, Y., A. S. Siddiqui, and M. Tanaka
  • Total Pages: 284
  • Publisher: Springer International Publishing
  • ISBN: 3030448657