Operations Research, Systems Engineering and Industrial Engineering Commons^™

Cap-And-Trade Modeling And Analysis For Electric Power Generation Systems, Patricio Rocha

USF Tampa Graduate Theses and Dissertations

Cap-and-trade is the most discussed CO₂ emissions control scheme in the U.S. It is a market-based mechanism that has been used previously to successfully reduce the levels of SO₂ and NO_x emitted by power generators. Since electricity generators are responsible for about 40% of the CO₂ emissions in the U.S., the implementation of CO₂ cap-and-trade will have a significant impact on electric power generation systems. In particular, cap-and-trade will influence the investment decisions made by power generators. These decisions in turn, will affect electricity prices and demand. If the allowances (or emission permits) created by …