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Pricing Designs Considering Environmental Constraints
March 27 @ 12:00 - 13:00
We study the problem of deriving financially adequate prices for trading a perishable commodity under a centralized auction with environmental considerations. Our model is based on an electricity market, with producers using conventional technologies with byproduct emissions; and environmentally clean producers subject to exogenous weather realizations, but lower emissions in production. For this purpose, we derive a new financially adequate market clearing pricing scheme. Unlike related financially adequate pricing schemes that only take into account the marginal market costs associated with market clearing commodity demands, the proposed pricing scheme also takes into account the marginal market costs associated with the market participants operating at maximum capabilities. The proposed pricing scheme allows to analyze the effects of environmental limitations in the market, as it internalizes, in the pricing signals, the costs or benefits associated with compliance of these limits by the market participants; and in particular, conventional technology producers including transit operators. Speaker(s): Alberto Lamadrid Agenda: – Talk by Alberto Lamadrid at 4:00 pm – Dinner box after the talk at 5:00 pm – You don’t have to be an IEEE member to attend this meeting. Room: 202, Bldg: ECE, New Jersey Institute of Technology, 141 Warren St, Newark, New Jersey, United States, 07103