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Strategic Pricing in Electricity Markets with Pollution Constraints
Abstract
We introduce a new model for a regulated day-ahead type auction-based electrical market in which the system operator can measure and limit the producer's emissions when choosing its optimal dispatch. We prove properties of this market model that describe it as a generalization to other previous works in the electrical market literature. Furthermore, we use standard sensitivity analysis tools to measure the impact of these pollution variables on market equilibria and present numerical examples of this effect.
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BibTeX
@misc{brotcorne2026strategic,
title = {{Strategic Pricing in Electricity Markets with Pollution Constraints}},
author = {Luce Brotcorne and Gaël Guillot and Alejandro Jofré and Benjamín Vera},
howpublished = {arXiv},
year = {2026},
month = sep,
doi = {10.48550/arxiv.2609.19968},
eprint = {2609.19968},
archivePrefix = {arXiv},
url = {https://arxiv.org/abs/2609.19968},
}
RIS
TY - UNPB
TI - Strategic Pricing in Electricity Markets with Pollution Constraints
AU - Luce Brotcorne
AU - Gaël Guillot
AU - Alejandro Jofré
AU - Benjamín Vera
PY - 2026
DA - 2026/09/17
PB - arXiv
DO - 10.48550/arxiv.2609.19968
UR - https://arxiv.org/abs/2609.19968
AB - We introduce a new model for a regulated day-ahead type auction-based electrical market in which the system operator can measure and limit the producer's emissions when choosing its optimal dispatch. We prove properties of this market model that describe it as a generalization to other previous works in the electrical market literature. Furthermore, we use standard sensitivity analysis tools to measure the impact of these pollution variables on market equilibria and present numerical examples of this effect.
ER -