Carbon emission market modeling and simulation based on complex adaptive system theory

Abstract

Carbon Emission Trading (CET) Market is a complex and dynamic system involving multiple participants, variety of behavioral decisions and numerous economic, government policy and others. Behaviors which are influenced by the changes in the market will also affect the performance and development of the market. Making a prototype of China’s current CET market, attributes, behavior rules and decision models of agents are designed applying complex systems modeling and simulation, combined with object-oriented analysis. A CET market simulation system is built based on SWARM to simulate and analysis the dynamic actors in CET market by transferring the related modules. To examine the validity and accuracy, Shanghai CET market is simulated as an experiment.