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A Survey of Carbon Market Mechanisms and Models

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Handbook of CO₂ in Power Systems

Part of the book series: Energy Systems ((ENERGY))

Abstract

Climate change is one of the most important challenges of this century. Human activity, particularly that of the electric power sector, has played a dramatic role in exacerbating this scenario. This paper presents a brief survey of some of the policies that are being adopted around the world to tackle the challenge of emissions reductions, with specific focus on the power sector. We discuss some widely used policies such as renewable portfolio standards, feed-in tariffs, carbon taxes, and cap-and-trade, with more emphasis on the latter. We conclude the chapter with a detailed discussion of some of the simulation and mathematical programming models that have been developed to examine economic and environmental impacts of emissions control policies on electricity markets.

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Abbreviations

RGGI:

Regional Greenhouse Gas Initiative

EUETS:

European Union Emissions Trading Scheme

CRPS:

Carbon Pollution Reduction Scheme

GHGs:

Greenhouse Gases

MGGA:

Midwestern Greenhouse Gas Reduction Accord

WCI:

Western Climate Initiative

CCE:

Chicago Climate Exchange

RPS:

Renewable Portfolio Standards

RECs:

Renewable Energy Credits

FIT:

Feed-in Tariffs

ADAGE:

Applied Dynamic Analysis of the Global Economy

IPM:

Integrated Planning Model

IGEM:

Inter-temporal General Equilibrium Model

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Author information

Authors and Affiliations

  1. Department of Industrial and Manufacturing Engineering, University of Wisconsin-Milwaukee, 3200 N. Cramer Street, Milwaukee, WI, 53211, USA

    Vishnuteja Nanduri & Narges Kazemzadeh

Authors
  1. Vishnuteja Nanduri
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  2. Narges Kazemzadeh
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Correspondence to Vishnuteja Nanduri .

Editor information

Editors and Affiliations

  1. , Department of Industrial & Management Sy, West Virginia University, Evansdale Drive 401, Morgantown, 26506-6070, West Virginia, USA

    Qipeng P. Zheng

  2. , Division of Economics and Business, Colorado School of Mines, 15th Street 816, Golden, 80401, Colorado, USA

    Steffen Rebennack

  3. , Department of Industrial & Systems Engin, University of Florida, Weil Hall 401, Gainesville, 32611, Florida, USA

    Panos M. Pardalos

  4. Rio Praia de Botafogo, Centro Empresarial, -A-Botafogo 2281701, Rio de Janeiro, 22250-040, Rio de Janeiro, Brazil

    Mario V. F. Pereira

  5. Research & Development, EnerCoRD - Energy Consulting,, Plastira Street 4, Athens, 171 21, Greece

    Niko A. Iliadis

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Nanduri, V., Kazemzadeh, N. (2012). A Survey of Carbon Market Mechanisms and Models. In: Zheng, Q., Rebennack, S., Pardalos, P., Pereira, M., Iliadis, N. (eds) Handbook of CO₂ in Power Systems. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27431-2_6

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  • DOI: https://doi.org/10.1007/978-3-642-27431-2_6

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-27430-5

  • Online ISBN: 978-3-642-27431-2

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