A MFG approach for competing firms in the Emission Trading System

leocata marta, LUISS

In this talk we consider the problem of reducing the carbon emissions of a set of firms over a finite time horizon. Firms can trade allowances in a way that minimizes the total expected costs from abatement and trading plus a terminal quadratic penalty, and they can also choose which type of energy to use (fossil or green) to produce their goods and thus maximize profits from production. Using mean-field game theory as a mathematical tool, we aim to understand how different types of market competition can influence the energy transition. This is a joint work with Giulia Livieri (LSE) and Gianmarco Del Sarto (SNS).

Area: CS23 - Stochastic processes and their applications (Katia Colaneri)

Keywords: environmental economics;ETS;Mean Field Games

Il paper è coperto da copyright.