Skip to:

PUBLICATIONS

Carbon in the classroom: Lessons from a simulation of California’s electricity market under a stringent cap and trade system
Journal Article

This paper summarizes the lessons learned from implementing a realistic, game-based simulation of California’s electricity market with a cap-and-trade market for greenhouse gas (GHG) emissions and fixed-price forward financial contracts for energy. Sophisticated market participants competed to maximize their returns under stressed (high carbon price) market conditions. Our simulation exhibited volatile carbon prices that could be influenced by strategic behavior of market participants.

Publication Materials
Complete Download pdf

Share This Publication