Credit rating- and credit score-based carbon emission quota trading model of city dwellers
Introduction: The reduction of electricity-related carbon emissions by city dwellers (CDs) is important for China to achieve low-carbon development and sustainable energy transformation. Due to the lack of incentives for reduction, electricity-related carbon emissions from CDs are increasing year by...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2023-08-01
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| Series: | Frontiers in Energy Research |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenrg.2023.1250717/full |
| _version_ | 1797737005140934656 |
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| author | Donglai Tang Qiang Li Jie Zhang Yongdong Chen Youbo Liu Weiping Song |
| author_facet | Donglai Tang Qiang Li Jie Zhang Yongdong Chen Youbo Liu Weiping Song |
| author_sort | Donglai Tang |
| collection | DOAJ |
| description | Introduction: The reduction of electricity-related carbon emissions by city dwellers (CDs) is important for China to achieve low-carbon development and sustainable energy transformation. Due to the lack of incentives for reduction, electricity-related carbon emissions from CDs are increasing year by year. To this end, this paper proposes an electricity-related carbon emission quota trading model that integrates a credit rating and credit score system, particularly for motivating CDs to actively participate in carbon emission reduction.Methods: With the history of electricity bill payment data, the density-based spatial clustering of applications with noise (DBSCAN) algorithm is used to cluster CDs, forming different clusters of CDs with different sensitivity levels to carbon emission quota prices. Thereafter, based on the total carbon emission quota and tiered electricity prices from the power company, incentive rules according to the classification result and credit scores of CDs are formulated. Under certain conditions, a leader–follower Stackelberg game between CDs and the power company is built to determine the base price of the carbon emission quota, and thereby, referring to the credit scores of CDs, floating carbon emission quota prices are offered to them in the final settlement.Results: The simulation results for an actual community in a city in China show that the proposed method can considerably reduce the carbon emissions.Discussion: The proposed credit rating and credit score system outperforms the asymmetric Nash negotiation method in terms of promoting carbon emission reduction. |
| first_indexed | 2024-03-12T13:21:12Z |
| format | Article |
| id | doaj.art-37a50c5c4f704c1f9c37ce9f8d5cd507 |
| institution | Directory Open Access Journal |
| issn | 2296-598X |
| language | English |
| last_indexed | 2024-03-12T13:21:12Z |
| publishDate | 2023-08-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Energy Research |
| spelling | doaj.art-37a50c5c4f704c1f9c37ce9f8d5cd5072023-08-25T18:23:49ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2023-08-011110.3389/fenrg.2023.12507171250717Credit rating- and credit score-based carbon emission quota trading model of city dwellersDonglai Tang0Qiang Li1Jie Zhang2Yongdong Chen3Youbo Liu4Weiping Song5Aostar Information Technology Co., Ltd., Chengdu, ChinaState Grid Information and Communication Industry Group Co., Ltd., Beijing, ChinaAostar Information Technology Co., Ltd., Chengdu, ChinaSchool of Electrical Engineering, Sichuan University, Chengdu, ChinaSchool of Electrical Engineering, Sichuan University, Chengdu, ChinaAostar Information Technology Co., Ltd., Chengdu, ChinaIntroduction: The reduction of electricity-related carbon emissions by city dwellers (CDs) is important for China to achieve low-carbon development and sustainable energy transformation. Due to the lack of incentives for reduction, electricity-related carbon emissions from CDs are increasing year by year. To this end, this paper proposes an electricity-related carbon emission quota trading model that integrates a credit rating and credit score system, particularly for motivating CDs to actively participate in carbon emission reduction.Methods: With the history of electricity bill payment data, the density-based spatial clustering of applications with noise (DBSCAN) algorithm is used to cluster CDs, forming different clusters of CDs with different sensitivity levels to carbon emission quota prices. Thereafter, based on the total carbon emission quota and tiered electricity prices from the power company, incentive rules according to the classification result and credit scores of CDs are formulated. Under certain conditions, a leader–follower Stackelberg game between CDs and the power company is built to determine the base price of the carbon emission quota, and thereby, referring to the credit scores of CDs, floating carbon emission quota prices are offered to them in the final settlement.Results: The simulation results for an actual community in a city in China show that the proposed method can considerably reduce the carbon emissions.Discussion: The proposed credit rating and credit score system outperforms the asymmetric Nash negotiation method in terms of promoting carbon emission reduction.https://www.frontiersin.org/articles/10.3389/fenrg.2023.1250717/fullcarbon emissionselectricitycredit scorecity dwellerStackelberg game |
| spellingShingle | Donglai Tang Qiang Li Jie Zhang Yongdong Chen Youbo Liu Weiping Song Credit rating- and credit score-based carbon emission quota trading model of city dwellers Frontiers in Energy Research carbon emissions electricity credit score city dweller Stackelberg game |
| title | Credit rating- and credit score-based carbon emission quota trading model of city dwellers |
| title_full | Credit rating- and credit score-based carbon emission quota trading model of city dwellers |
| title_fullStr | Credit rating- and credit score-based carbon emission quota trading model of city dwellers |
| title_full_unstemmed | Credit rating- and credit score-based carbon emission quota trading model of city dwellers |
| title_short | Credit rating- and credit score-based carbon emission quota trading model of city dwellers |
| title_sort | credit rating and credit score based carbon emission quota trading model of city dwellers |
| topic | carbon emissions electricity credit score city dweller Stackelberg game |
| url | https://www.frontiersin.org/articles/10.3389/fenrg.2023.1250717/full |
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