Modeling generator power plant portfolios and pollution taxes in electric power supply chain networks: A transportation network equilibrium transformation

Kai Wu, Anna Nagurney, Zugang Liu, John K. Stranlund

Research output: Contribution to journalArticle

46 Scopus citations

Abstract

Global climate change and fuel security risks have encouraged international and regional adoption of pollution/carbon taxes. A major portion of such policy interventions is directed at the electric power industry with taxes applied according to the type of fuel used by the power generators in their power plants. This paper proposes an electric power supply chain network model that captures the behavior of power generators faced with a portfolio of power plant options and subject to pollution taxes. We demonstrate that this general model can be reformulated as a transportation network equilibrium model with elastic demands and qualitatively analyzed and solved as such. The connections between these two different modeling schemas is done through finite-dimensional variational inequality theory. The numerical examples illustrate how changes in the pollution/carbon taxes affect the equilibrium electric power supply chain network production outputs, the transactions between the various decision-makers the demand market prices, as well as the total amount of carbon emissions generated.

Original languageEnglish (US)
Pages (from-to)171-190
Number of pages20
JournalTransportation Research Part D: Transport and Environment
Volume11
Issue number3
DOIs
StatePublished - May 2006

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Transportation
  • Environmental Science(all)

Fingerprint Dive into the research topics of 'Modeling generator power plant portfolios and pollution taxes in electric power supply chain networks: A transportation network equilibrium transformation'. Together they form a unique fingerprint.

  • Cite this