Economic dispatch model considering policy-guided carbon trading mechanisms

Climate change has become one of the most serious problems nowadays. Electric power industry, as a major emitter of greenhouse gas CO₂, has been demanded to develop in an environmental friendly way. This paper presents economic dispatch model considering carbon reduction policies, as well as basic data analysis to determine the impact of policy-guided carbon emission reduction strategies on power system operation and dispatch. Carbon reduction mechanisms are simulated and discussed in different case studies. By analyzing the effect of different carbon reduction policies, this model can be used to help regulators with decision making and system operators with economical and environmental operation.