Study on the efficiency of emissions trading system using agent-based modelling

According to economic basis of emissions trading, a heterogeneous agent-based computational experiment platform is established, by combining analyses of the diversities and decision-making strategies of firms in real. Pilot analyses are done on efficiency of emission trading and the dynamics of permit price. The results show that diversities of firms would advance system efficiency, market price converged above equilibrium price, and a retarding effect is on permit price through itself. Price-oriented trading strategy could not lead to effective allocation of permits. However, diversities of firms would generate a countervailing effect on system efficiency. Besides, the requirement of heterogeneous modeling and analysis on emissions trading system has been well proofed thought experimental results.