Internal Carbon Financing with Transferable Offsets from Renewable Portfolio Standard
构建分析性局部均衡模型，研究可再生能源组合标准与排放交易体系通过信用转换的相互影响，比较政策工具（如可再生能源要求、减排目标、罚金水平）的直接与间接效果。
Power generation under the Renewable Portfolio Standard (RPS) can reduce greenhouse gas emissions below the baseline level, so entities may argue to use this attribute to meet the goal of Emission Trading Scheme (ETS). Although these two quantity-based regulation systems have different policy objectives, both mechanisms are implicitly linked by credit conversions depending on credit prices. This paper builds an analytic partial equilibrium model and derives market equilibria in a closed form to demonstrate how each mechanism influences the other by policy instruments such as a renewable requirement, a reduction target in greenhouse gas emission, levels of penalties, or marginal costs. We can compare “direct vs indirect” effectiveness of a regulatory changes across both markets with the case where converting renewable offsets are completed prohibited.