Agent Based Simulation of Carbon Emissions Trading Market

Abstract

In this research we examine the supply and demand relationship in a carbon emissions trading market by using agent based system simulation. An agent based system is a computational system that simulates the behaviors of autonomous agents. We model different nations which take place in the carbon trading market as autonomous agents, and these agents act as buyers or sellers in the same trading market. A market-director agent directs the trading between the buyer and seller agents and enables a market mechanism with dynamic auction. This study analyzes the changes in carbon price and the total carbon reduction amount under several different demand scenarios. We used JADE (Java Based Agent Development Environment) as the simulation environment.