Impact of different auction mechanisms in the carbon emission auction market on the electricity market

Abstract

Carbon emission trading mechanism is considered as one of the most effective tools to control carbon emissions. In this paper, the initial auction proportion of carbon emission trading (CET) market is designed, and the uniform-price auction and the discriminatory-price auction are considered, and a multi-agent simulation model of the interaction between CET market and electricity market is constructed. The simulation results show that with the increase of the auction proportion in the primary CET market, the electricity price in the electricity market keeps rising, and the discriminatory-price auction is more suitable for China's national conditions. The discriminatory-price auction can stimulate the enthusiasm of power generation firms to participate in carbon trading, and enable the government to obtain higher revenue. At the same time, the discriminatory-price auction has a more violent emission reduction effect.