Climate Policy Shocks Propagation in Electricity Markets: An Agent-Based Approach

47 Pages Posted: 10 Apr 2017

See all articles by Tomas Balint

Tomas Balint

Université Paris I Panthéon-Sorbonne

Antoine Mandel

Climate Finance Alpha; Université Paris I Panthéon-Sorbonne

Date Written: April 7, 2017

Abstract

The process of electricity production, distribution, and consumption represents a complex system with many heterogeneous characteristics. Physical constraints of the electricity, especially the difficulties with its storage, pose specific challenges on the structure of the power network and the parameters of production nodes. In order to better understand the complexity of the electricity market and to study the impacts of climate policies on the ownership structure of the production portfolios, we have developed a simple agent-based economic model. The main ambition of the model is to follow the propagation of shocks on revenues of energy companies induced in the electricity markets through the application of various climate policies. Special attention is paid to the investigation of structural changes in the portfolio and financial performance of the energy companies in function of these climate policies.

Keywords: Climate Change, Climate Policy, Climate Economics, Electricity Markets, Complex Systems, Agent-Based Models, Socio-Economic Networks, Wavelets

JEL Classification: C63, Q02, Q41, Q48

Suggested Citation

Balint, Tomas and Mandel, Antoine and Mandel, Antoine, Climate Policy Shocks Propagation in Electricity Markets: An Agent-Based Approach (April 7, 2017). Available at SSRN: https://ssrn.com/abstract=2948844 or http://dx.doi.org/10.2139/ssrn.2948844

Tomas Balint (Contact Author)

Université Paris I Panthéon-Sorbonne ( email )

106-112 boulevard de l'Hôpital
Paris, 75013
France

Antoine Mandel

Climate Finance Alpha ( email )

20 rue de Vintimille
PARIS 9E ARRONDISSEMENT, 75009

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

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