Abstract
Initial allocation modes and schemes are studied in this paper to provide guidelines for allocation of carbon emission permits in power system. We first introduce different allocation modes and the need to apply free allocation to assignability of emission permits. Then, we compare two different allocation schemes, which are based on historical emissions and generation performance standard. Further, a new allocation scheme based on Boltzmann distribution is proposed. Finally, a case study on Shanghai power grid in China is conducted to compare the allocation effects of these schemes respectively. The analytical results show that Boltzmann distribution based scheme has the best performance and should be adopted when developing initial allocation of carbon emission permits in Chinese power systems.
Highlights
The climate change resulted by global greenhouse gas emission has become a significant issue that drew attention from the international community
Carbon emission trading originated from the West, and it has developed into an effective measure to reduce carbon emissions worldwide
A fundamental problem needed to be settled is how to set the initial allocation approaches, which is what this paper focuses on
Summary
Boltzmann distribution is a kind of probability distribution, and it has been widely employed in the fields of physics and chemistry, most commonly in statistic mechanics. In making inferences on the basis of partial information, we must use the probability distribution which has maximum entropy subject to whatever is known. Ji-Won Park of Cornell University brought entropy maximization to international emissions trading via the Boltzmann distribution, providing guidelines for allocating emissions permits among multiple countries. When brought to initial permits allocation, it provides the most probable (or fair) allocation among multiple countries It is pointed out by Ji-Won Park that Boltzmann distribution is a simple yet versatile, flexible method, and it can be applied to permits allocation in emissions trading and to other economic and environmental problems. There is another paper introduces Boltzmann distribution to allocation of emission permits among enterprises, and a distribution mechanism based on Boltzmann distribution combined with Gail-Shapley game is proposed [25]. An allocation scheme based on Boltzmann distribution which is different from the two above-mentioned schemes both in the math expressions and indexes is presented
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
