Trading Mode Research Articles

Research on the Connection Market Trading Issues of Green Certificates and CCER Based on Contribution Degree and Social Welfare

The connection between the green certificate market and the CCER market can further achieve the dual carbon goals, so it is imperative for the green certificate market, CCER market, and the connection market to coexist. it is necessary to convert green certificates into CCER in the connection market to achieve transactions between the two. The research is aimed at exploring the interface between green certificates and CCER, with the main objective of finding trading mode and trading method to address the interface between the two. This paper firstly proposes a concept of contribution degree that assists fair trading in the market, based on the different ways in which contribution degree is introduced in the trading of green certificates, CCER markets, and connecting markets, and establishes basic trading mode, unilateral contribution trading mode (UCM) and bilateral contribution trading mode. Then, the rolling matching trading model with the goal of maximizing total social welfare, the contribution degree model and the effect test model are established to realize the implementation of the above three modes through different combinations of the models. Finally, the quantitative results are obtained by simulating the trading situation of the three modes, and CCER offset ratio and contribution degree indicator weight are discussed. The results show that it is feasible to build a bridging market between green certificate and CCER by using the contribution degree, in which the UCM is the optimal solution to achieve the dual-carbon goal and market development. The setting of CCER offset ratio can be based on the difference of enterprise types, and the weight of indicators affecting the contribution level should be adjusted with the policy. The research in this paper has the following contributions: (1) a new criterion to satisfy fair trade—contribution degree is proposed to provide ideas for mutual recognition of products in the bridging market, and proposed a contribution degree calculation model for the green certificate and CCER markets, as well as the bridging market; (2) from the perspective of the contradiction between supply and demand in the market and fair trade, different schemes to build a bridging market are given in a fixed context and compared and analyzed; (3) from the market level, the quantitative analysis of the indicator settings affecting emission reduction, providing suggestions for the differentiated evaluation of warrants and the formulation of carbon reduction policies.

A new pricing method for integrated energy systems based on geometric Brownian motions under the risk-neutral measure

An integrated energy system (IES) is a promising energy-saving technology. With the advancement of technology and deregulation of the energy market, numerous distributed energy systems (DESs) will be accessed in the IES with various trading modes in the future. This makes it even more challenging to evaluate the fair energy selling price of IES, which is of great concern to market regulators and participants. To address this issue, this study proposes a risk-neutral pricing method for IES based on geometric Brownian motions. First, geometric Brownian motions are introduced to characterize the uncertainty feature of the energy price of the DESs. Then, we propose a stochastic partial differential equation (SPDE) for the energy price of an IES by utilizing the Ito lemma and the properties of the martingale under the risk-neutral measure. Finally, sensitivity analyses of the proposed SPDE on the volatilities and two types of correlation coefficients are conducted by implementing the proposed model in the given scenario.

Blue carbon development in China: realistic foundation, internal demands, and the construction of blue carbon market trading mode

Promoting the inclusion of blue carbon in market trading is crucial for recognizing its value and protecting the marine ecological environment. However, China currently does not have an internationally influential blue carbon market trading platform, which hampers the transmission of supply and demand in the blue carbon market and prevents the realization of blue carbon value. In this study, we analyze the feasibility and necessity of establishing a trading mode for the blue carbon market in China. The introduction of futures trading in the blue carbon market’s trading mode allows for the use of futures pricing methods and multiple financial instruments to address the challenges of income cost mismatch in blue carbon project development. The paper also discusses key strategies for the development of China’s blue carbon market, including the creation of a blue carbon trading methodology, the improvement of preservation and appreciation mechanisms, and the establishment of a unified trading platform. These strategies aim to provide intellectual support and decision-making reference for the construction of the market.

Research on Power Investment and Expansion Planning Considering Coal-fired Power Capacity and Electricity Price in Market-Driven Environment

The market-oriented environment and the shift away from the coal-fired power are inevitable trends in the future development of electric power energy. Based on this, this article establishes a dual-level model for power investment expansion planning with wind power system in an oligopoly competitive electricity market. In the upper-level model, power generation companies make investment decisions and formulate their bidding strategies in market transactions, while the lower-level model simulates the day-ahead market clearing process under the centralized bidding and trading mode. To encourage the transition from coal-fired power plants, a model for expected annual operating revenue of coal-fired power companies under a dual pricing system is proposed, and the conditional value-at-risk (CVaR) is used to measure the investment risk brought by the uncertainty of competitors in the investment planning game for power generation companies. The numerical results verify the effectiveness of the proposed model and method.

A study of coupled incentive-based clearing mechanisms in electricity markets considering uncertainty risk

Abstract Promoting the construction of the electricity spot market and considering the market-oriented trading mode with joint participation of the generation side and load side and fair competition will be the trend of future development of the electricity spot market. The unit generation bidding strategy is adjusted by this paper based on incentive factors and an incentive-based clearing mechanism is designed for market coupling. To establish a coupled two-layer model of the power market, the upper layer of the heterogeneous generator bidding strategy modeling, the lower layer of the incentive-based market clearing mechanism modeling. On this basis, a spot market model is designed in which both the generation and user sides participate in peaking, and the peaking resources on the generation side and the user side are included in the market mechanism bidding. This paper’s clearing cost can save 854.42 yuan compared to the unified clearing mechanism in the bidding stage for clearing the total market electricity energy volume of 1000kW. The total carbon emissions are reduced by 5816.8 tons in a single day when compared to the single electric energy trading mechanism, which is based on the market-coupled incentive system. The market model proposed in the paper can effectively improve the level of new energy consumption and provide a useful reference for the design of the electricity market in regions with a high proportion of new energy.

Market potential and the industrial sectors inclusion sequence in China's national carbon emission trading: From the perspective of maximizing gains

The carbon emission trading scheme (CETS) has been gradually introduced in China to control carbon emissions and boost economic and social development. The existing literature has evaluated the market potential of pilot CETSs or a certain industry, yet no study has focused on the industrial sectors to be covered in the national CETS to analyze trading flexibility and the sector inclusion sequence. This study presents an analytical framework for estimating market potential (i.e., potential gains and carbon emission reduction potential) and industrial sector inclusion sequences for China's national CETS using by-production models. Three simulation scenarios (i.e., no-trading scenario, power sector trading scenario, and multiple-industry trading scenario) and two trading modes (i.e., contemporary and intertemporal trading mode) are simultaneously considered. The novel evidences are: (i) There would be 39.93% (27.7 trillion CNY), 65.26% (273.0 trillion CNY) and 159.42% (666.7 trillion CNY) national aggregated potential gains of CETS in intertemporal power sector trading scenario, contemporary multiple-industry trading scenario and intertemporal multiple-industry trading scenario, and they would help save 3.60%, 5.18% and 6.05% of CO2 emissions reduction, respectively. (ii) CO2 emission permits would transfer from nonmetal minerals, ferrous metals, and electricity, to paper making, non-ferrous metals, petrochemicals, and chemicals under the intertemporal multiple-industry trading simulation. (iii) Based on the principle of potential gain maximization, it is recommended that the sector of smelting and processing of non-ferrous metals should to be included as the next sector in national CETS. The results show that national CETS has great market potential for achieving China's joint carbon control and economic growth goals.

Outward foreign direct investment and GVC position of manufacturing industry: A perspective on China's general trade and processing trade structure.

Depending on the trading modes, the effect of Outward Foreign Direct Investment (OFDI) on the manufacturing industry's position within the global value chain (GVC) may differ considerably. This paper examines the GVC position of China's manufacturing industry from 2003 to 2018, specifically focusing on the general trade and processing trade. Drawing upon this premise, this paper analyzes the effect and mechanism by which OFDI influences the GVC position of China's manufacturing industry. The result demonstrates that: (1) China's processing trade manufacturing industry has a much lower GVC position than general trade manufacturing industry. The GVC position of China's general trade manufacturing industry rose from 2.76 to 2.90 from 2003 to 2018, while processing trade manufacturing industry remained around 1.93. (2) OFDI boosts the GVC position of general trade manufacturing industry through facilitating reverse technology spillover, inducing industry structure upgrading, and enabling export scale expansion. (3) OFDI hinders the GVC position growth of processing trade manufacturing industry. The research findings offer theoretical backing for China to develop OFDI strategies that are tailored to different trading modes within the new framework of dual circulation. These strategies aim to facilitate the transformation and advancement of the manufacturing industry, as well as the growth of the GVC position.

How to promote the trading in China's green electricity market? Based on environmental perceptions, renewable portfolio standard and subsidies

The behavior evolution of market players is crucial to promoting green electricity trading. This paper develops an evolutionary game model of China's green electricity market to analyze the strategic interactions among players. The model incorporates key variables such as renewable energy subsidies, renewable energy quotas, and environmental perceptions. Then, a system dynamics simulation model is constructed, and simulation experiments are designed to reveal the influence of key factors on the evolutionary path. The results indicate that: (1) Players exhibit varying sensitivities to green electricity prices under different trading modes. (2) Renewable energy projects with high subsidy intensity have no willingness to enter the market if the benefits of participating in the green electricity market cannot surpass subsidies. (3) The evolutionary stabilization trend depends on users' environmental perceptions, and the environmental perception effect exhibits a diminishing marginal trend. (4) The implementation of renewable portfolio standard is an effective way to promote green electricity trading, especially when there is a high green electricity premium. (5) There is a trade-off between low incentive participation and high incentive coefficients in the system. These findings provide valuable policy recommendations for effectively promoting green electricity trading in China.

Evolutionary game analysis of forestry carbon sink trading model under blockchain technology

As a new balanced economy, the green economy guides the upgrade and transformation of industrial structures based on the original concept of sustainable development. Reducing carbon emissions is indispensable for achieving better and faster green economic development. From a functional perspective, forestry carbon sinks have good carbon sequestration potential and have positive attributes, such as climate regulation and biodiversity maintenance, for the entire ecosystem. To promote the continuous development of forestry carbon sink trading in China, blockchain, a new technology with several advantages such as traceability, supervision, and tamper-proofness, has emerged, which creates a good market trading environment and has made a breakthrough in the trading mode. If forestry carbon sink trading is effectively supported, organic combinations and simultaneous synergistic development can be conducted, which will open new avenues for the carbon sink economy. In this study, a game model of the forest carbon sink trading mode under blockchain technology was constructed from the perspective of traders, and influential factors, such as the carbon sink available for sale by the supply side and the demand side's perspective towards emission reduction, were considered. Subsequently, the MATLAB R2020b software was used to conduct a simulation analysis of the transactions, thereby showing the evolutionary path of the game between the two sides and the influence mechanism of the addition of blockchain technology on the evolution trajectory of the demand-side decision. The findings indicate that, from the perspective of participating traders, the inclusion of blockchain technology in forestry carbon sink trading resulted in positive effects. Moreover, the greater the probability that the carbon sinks available for sale in the market can meet the demand, the more likely the demand side is to participate in the transaction.

Research on the Attack Strategy of Multifunctional Market Trading Oriented to Price

In the context of energy transformation and power market system reform, it is crucial to address the network risks associated with enhancing the integration of the “Energy–Information–Market” paradigm. This necessitates research on multi-energy market trading modes and the corresponding offensive and defensive technologies. This paper proposes a novel approach centered around a node-local Energy Hub (EH) that represents large industrial users with diverse energy demands. To facilitate multi-energy two-way trading, a price-oriented Transactive Energy (TE) market clearing strategy is developed. Building upon this transaction network framework, a data-driven attack strategy targeting the state estimator of the Transmission System Operator (TSO) is introduced and implemented in two stages, encompassing real-time topology estimation and False Data Injection attacks. By leveraging Matrix Transfer Entropy (MTE), the optimal attack target is identified to disrupt the economic stability of the system and the profit of the attacker increases significantly. The proposed attack strategy is validated through simulations conducted on a 30-node system, yielding conclusive evidence of its effectiveness while offering vital insights for system defense.

P2P trading mode for real-time coupled electricity and carbon markets based on a new indicator green energy

The carbon trading market has introduced new opportunities for the low-carbon transformation of China's power industry. To realize real-time coupling of the electric–carbon market at the mechanism level, this study constructs a P2P trading mode that improves economic and environmental benefits through innovative mechanisms. First, we propose a novel indicator, Green Energy, which has multidimensional composite attributes and accurately characterizes the supply of clean and low-carbon energy. Green Energy is used as a matchmaking indicator in the P2P electricity market to increase the rate of renewable energy consumption and encourage emission reduction of fossil energy suppliers. Second, the carbon price is dynamically adjusted according to real-time electricity consumption information and it is transmitted to the electricity market through Green Energy. Third, blockchain cross-chain interoperability technology is introduced to establish a real-time data-sharing network for electricity and carbon co-trading. Moreover, a case study is conducted, and the simulation results show that the proposed method improves social welfare by over 18% compared to the traditional trading mode. And it can improve renewable energy utilization efficiency by 26.78% and reduce carbon emissions by more than 17%. This study provides a reference for the real-time coupled electricity and carbon markets.

Building an Online Licensing Platform for Digital Images of Artwork

Digital artwork can facilitate the spread of culture while preserving and sustaining its value. However, digital image transactions are trapped in the traditional trading modes. As digital technology and the Internet of Things progressed, society moved into the information age. Thus, our conceptualization of private intellectual property rights evolved, allowing for the removal of artificial barriers between rights owners and consumers. This study bridges this gap by developing an individually-tailored authorized trading platform for digital artwork. First, we use copyrights underlying digital artwork licensing as a lens to examine new copyright licensing model challenges and the use of value-added applications in the modern digital environment. Second, we analyze foreign digital artwork trading platforms to better understand the functions of a digital artwork image licensing platform. By using the questionnaire to determine what functions digital artwork platforms should include, we can shift the object of investigation to the artists themselves.

A Trading Mode Based on the Management of Residual Electric Energy in Electric Vehicles

Aiming at the distributed resources of electric vehicles with photovoltaics (PVs) on the user side, a trading mode of surplus energy sharing for electric vehicles based on the user-side PVs is proposed by utilizing the bidirectional mobility of information and energy. Power transfer can be implemented between different electric vehicle users through vehicle-to-grid (V2G) technology with a reasonable distribution of benefits taken into account. First, the operational framework of electric energy trading is presented, and the transmission architecture of each body of interest in the system is analyzed. Second, the portraits of EV users’ charging behaviors are established considering their different charging habits, and electric vehicle users are divided into electricity buyers and sellers in each trading time period. An electricity transaction model based on “multi-seller–multi-buyer” is established, and all electricity transactions are realized through blockchain-based decentralized technology. Finally, the benefit to each interest group is maximized using the improved Northern Goshawk Optimization (NGO) algorithm. Simulation results of a sample system indicate that the new power trading mode proposed in this study could lead to reasonable reuse of the electric energy of private electric vehicles and can achieve a win–win situation for all stakeholders.

The promotion mechanism of digital platformization of enterprises for "double carbon" goal: a Chinese case study.

At the 75th United Nations General Assembly, China formally proposed the goals of achieving carbon peak by 2030 and carbon neutrality by 2060, which is referred to as the "double carbon" strategic goal. And energy revolution is the key to achieve this goal. More and more energy enterprises seek to promote the "double carbon" goal through the digital platformization. However, the mechanism of digital platformization promoting the realization of "double carbon" goal is still unclear. Based on the perspective of platform ecosystem and organization structure, this paper deeply analyzes the key intermediary role of energy production mode change and energy trading mode change in energy transformation. This paper also studies the regulatory effect of policy environment, digital platform characteristics, platform leverage, value chain changes, and the ability of digital technology practice and innovatively puts forward the theoretical model. This model reveals the transmission path and internal mechanism of digital platformization of energy companies to promote the realization of dual-carbon goal. Through the established model, this paper analyzes a case that present the commercial digital platformization process developed by Chinese energy company. Such an innovative process in China context has been developed in order to contribute to achieve "double carbon" goals for the future.

Research on Hedging Strategies in Gold Futures Market

Since the ratio of gold to oil and gold to silver has an important impact on the financial market, its periodic changes will affect the trading of gold, so the trading mode and strategy of gold as futures must be analyzed and judged as an important conclusion, to use the correct strategy for trading. In order to obtain the most accurate way of gold trading, the knowledge of time series was used in statistics to analyze from the perspective of ratio historical data, to obtain the cyclical data of ratio, and finally summarize a set of strategies suitable for gold trading through the method of futures trading mode in finance. The findings showed that whether "Gold/Oil Ratio" or "Gold/Silver Ratio" both have a certain periodicity. There are no permanent boom and downturns in the futures market. When there is a market surge, the price will fall back to normal, and vice versa. Finally, this study provides an effective hedging strategy in gold futures market.

Distributionally robust comprehensive declaration strategy of virtual power plant participating in the power market considering flexible ramping product and uncertainties

The volatility and randomness of renewable energy output make the flexible ramping ability demand of power system more urgent, and flexible ramping product (FRP) can effectively improve the flexibility of the power system. Virtual power plant (VPP) can regulate distributed generation, which is conducive to the regulation potential of flexible resources. To solve the problems of FRP and electric energy markets synergy and the wind power output uncertainty faced by the VPP in the declaration process, this paper proposes a comprehensive declaration strategy for the VPP to participate in the power market considering FRP and uncertainties. Firstly, this paper designs a synergistic trading mode covering flexibility resource demand determination and the virtual bidding curve formation for electric energy and FRP markets, in which the virtual bidding curve can reasonably compensate for the unit opportunity cost. Secondly, a comprehensive declaration-dispatching strategy decision-making model for VPP is constructed, and a two-stage distributed robust optimization (DRO) technology is used to deal with the wind power output uncertainty in the model, and flexible resources such as energy storage are used to mitigate energy deviation in the VPP. Finally, simulations implemented on a typical VPP are delivered to show that: 1) Virtual bidding curve realizes the accurate compensation for the units providing FRP. 2) Compared with the single market, VPP can increase the expected profit by 20.44% and reduce wind curtailment cost by 59.68% in the joint declaration of multi-markets.3) VPP can effectively suppress output uncertainty through energy storage system. 4) DRO model has significant advantages in data-driven, less conservative results and stable running time.

Grid-friendly pricing mechanism for peer-to-peer energy sharing market diffusion in communities

As a novel trading mode, the peer-to-peer (P2P) energy market cannot be accepted by the end-users immediately. There is an adoption process before all the energy prosumers participate in the P2P trading market. Therefore, we first employ a generalized Bass model to depict the P2P energy market diffusion process in the communities. Since the P2P market is still in the diffusion stage, we develop a hybrid P2P energy market consisting of traditional pool-based and P2P trading modes. Then, we establish the cost minimization models of energy prosumers, community managers, and system operators to analyze the market equilibrium in such a hybrid P2P energy market. The dynamic network usage costs are included in the system operator’s model to guarantee the market operation considering the heterogeneous prosumers. Finally, we propose a hybrid market-clearing method consisting of deep reinforcement learning and optimization algorithms. We model the generalized Bass model as an equivalent Markov process. The community manager and system operator can learn the near-optimal prices in their Markov decision processes with prosumers’ partial information. Numerical simulations demonstrate that the Markovian Bass model describes the P2P market adoption process precisely. The trading and network usage prices with and without considering the P2P energy market diffusion are compared and analyzed.

Dynamic pricing and energy management of hydrogen-based integrated energy service provider considering integrated demand response with a bi-level approach

Integrated energy system with a large-scale integration of renewable energy has witnessed an enormous growth recently. Besides, traditional electric demand response has gradually developed into integrated demand response (IDR). However, the renewable energy curtailment becomes a prominent problem. In addition, a reasonable trading mode between integrated energy service provider (IESP) and demander is required to ensure the benefits of both sides. To the end, the operation framework of an IESP comprising power to gas, fuel cell (FC) and carbon capture system (CCS) is established in the paper. Then the bilevel energy trading mode between IESP and users is proposed, wherein the upper level considers the IESP profit maximization while the lower level is to minimize consumers' cost. By utilizing Karush-Kuhn Tucker optimality condition and strong duality theory, the two-level model is recast into a tractable single-level mixed integer programming model. The simulation results show that: corresponding to the models with removing bilevel trading, IDR, FC and CCS, as well as CCS, 1) the formulated price can achieve peak cutting and valley filling, as well as improve the flexibility of the system operation. 2) the IESP and users can take benefit in the proposed model. For IESP, profit experiences an increase with a rate by 20.41 %, 3.2 % -16.8 % and − 15.9 %. For demander, cost witnesses a decline by 4.07 %, 3.69 %, 1.12 % and 0.89 %. 3) In terms of environmental benefit, the proposed model can not only achieve a carbon emissions mitigation but also maintain a relatively reasonable and acceptable economic advantage.

Brunt of technology in stock trading - empirical evaluation of movement in trading modes

Technical indicators use volume patterns to confirm trends, momentum, return, and volatility of the market. Assessing the conviction behind market advances and declines based on exchange-defined differences in trading mode is a fascinating way to ascertain market insights. In this context, the study is novel and structured to add literature in two aspects - the study evaluates: 1) the relationships between trade movements in seven different stock trading platforms; 2) attempts to gather additional evidence for the mixed distribution hypothesis identifying the relationship between trade movements and index movement, return and volatility. The study recommends the model as a part of surveillance to assess the impact of trade movement generated in specific trading mode. It can also be used by technical traders to ascertain trading signals, and behavioural insights from the other trading modes mutually.

A Three-Stage Multi-Energy Trading Strategy Based on P2P Trading Mode

This paper proposes a three-stage multi-energy sharing strategy for a gas-electricity integrated energy system (IES). It aims to solve the multi-energy imbalance problem among energy hubs (EHs) based on the peer-to-peer (P2P) trading mode. First, considering the characteristics of multi-energy coupling and conversion, the quantity of shareable energy is determined for EHs that participate in the P2P trading. Furthermore, EHs conduct multi-bilateral negotiations based on the Raiffa-Kalai-Smorodinsky bargaining solution (RBS) to determine the optimal energy trading price. Finally, the buyer agent and the seller agent will design the optimal energy sharing trading strategy for all EHs. Moreover, the results show that the pricing mechanism improves the fairness of satisfaction obtained by the EHs from the utility distribution, and the social welfare of the system is improved, which proves that the three-stage multi-energy sharing trading strategy is effective.