An analysis on emissions trading with forward and spot markets under oligopolistic competition

• Project/Area Number: 22530220
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Applied economics
• 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): 2010-04-01 – 2014-03-31
• Project Status: Completed (Fiscal Year 2013)
• Budget Amount: ¥4,030,000 (Direct Cost: ¥3,100,000、Indirect Cost: ¥930,000); Fiscal Year 2013: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2012: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2011: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000); Fiscal Year 2010: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
• Keywords: 環境政策 / 排出権取引 / 寡占競争 / 先渡し市場 / スポット市場

Research Abstract

Tradable allowances have received considerable attention in recent years. One emerging issue is their interaction with electricity markets. This paper extends the model of Allaz and Vila (1993) by incorporating emissions trading with forward and spot markets for electricity. We focus on the effects of strategic forward position and initial allowances allocation on the equilibrium outcomes. We find that firms with a dirty portfolio would have stronger incentives to take a long position in the forward market to raise the electricity price. Increasing the amount of allowances assigned to clean firms leads to a reduction in electricity and allowance prices.

Research Products

• [Journal Article] Market Power in Renewable Portfolio Standards (2013)
  • Author(s): Tanaka, M., and Y. Chen
  • Journal Title: Energy Economics Volume: 39 Pages: 187-196
  • DOI: 10.1016/j.eneco.2013.05.004
  • Peer Reviewed
• [Journal Article] Voluntary Electricity Conservation of Households after the Great East Japan Earthquake: A Stated Preference Analysis (2013)
  • Author(s): Tanaka, M. and T. Ida
  • Journal Title: Energy Economics Volume: 39 Pages: 296-304
  • DOI: 10.1016/j.eneco.2013.05.011
  • Peer Reviewed
• [Journal Article] Emissions Trading in Forward and Spot Markets for Electricity (2012)
  • Author(s): Tanaka, M., and Y. Chen
  • Journal Title: Energy Journal Volume: 33(2) Issue: 2 Pages: 195-221
  • DOI: 10.5547/01956574.33.2.9
  • Peer Reviewed
• [Journal Article] Market Power in Emissions Trading : Strategically Manipulating Permit Price through Fringe Firms (2012)
  • Author(s): Tanaka, M., and Y. Chen
  • Journal Title: Applied Energy Volume: 96 Pages: 203-211
  • DOI: 10.1016/j.apenergy.2011.08.049
  • Peer Reviewed
• [Journal Article] Multi-Sector Model of Tradable Emission Permits (2012)
  • Author(s): Tanaka, M.
  • Journal Title: Environmental and Resource Economics Volume: 51(1) Issue: 1 Pages: 61-77
  • DOI: 10.1007/s10640-011-9488-4
  • Peer Reviewed
• [Journal Article] The Effects of Uncertain Divestiture as Regulatory Threat (2011)
  • Author(s): Tanaka, M.
  • Journal Title: Journal of Industry, Competition and Trade Volume: 11(4) Issue: 4 Pages: 385-397
  • DOI: 10.1007/s10842-010-0089-7
  • Peer Reviewed
• [Journal Article] Multi-Sector Model of Tradable Emission Permits (2010)
  • Author(s): Tanaka, M.
  • Journal Title: University of California, Berkeley, GoldmanSchool of Public Policy Working Paper Volume: GSPP10-005 Pages: 1-26
• [Presentation] Save for the Future: Modeling Inter-temporal Permit Banking in Multi-sector Emission Trading Programs (2013)
  • Author(s): Chen, Y., and M. Tanaka
  • Organizer: 都市のORワークショップ2013
  • Place of Presentation: 南山大学
• [Presentation] Emissions Trading in Forward and Spot Markets for Electricity (2011)
  • Author(s): Tanaka, M., and Y. Chen
  • Organizer: INFORMS Annual Meeting
  • Place of Presentation: Charlotte Convention Center, Charlotte, North Carolina
  • Year and Date: 2011-11-15
• [Presentation] Emissions Trading in Forward and Spot Markets for Electricity (2011)
  • Author(s): Tanaka, M., Y.Chen
  • Organizer: INFORMS Annual Meeting
  • Place of Presentation: Charlotte, North Carolina
  • Year and Date: 2011-11-15
• [Presentation] Keys to Smart Home Diffusion : A Stated Preference Analysis of Smart Meters, Photovoltaic Generation, and Electric/Hybrid Vehicles (2011)
  • Author(s): Ida, T., K.Murakami, M.Tanaka
  • Organizer: 33rd Annual APPAM Fall Research Conference
  • Place of Presentation: Washington D.C.
  • Year and Date: 2011-11-03
• [Presentation] The Effects of Uncertain Divestiture as Regulatory Threat (2010)
  • Author(s): Tanaka, M.
  • Organizer: The 8th Annual International Industrial Organization Conference
  • Place of Presentation: University of British Columbia, Vancouver, Canada
  • Year and Date: 2010-05-16
• [Presentation] The Effects of Uncertain Divestiture as Regulatory Threat (2010)
  • Author(s): Tanaka, M.
  • Organizer: Annual International Industrial Organization Conference
  • Place of Presentation: Vancouver, Canada
  • Year and Date: 2010-05-16
• [Remarks]
  • URL: http://www.grips.ac.jp/jp/
• [Remarks]
  • URL: http://www.grips.ac.jp/jp/
• [Remarks]
  • URL: http://www.grips.ac.jp/jp/