Investments in long-lived, fossil-fuel intensive infrastructure can have large effects on carbon emissions over a long future period. We simulate a 2-period model of infrastructure investment with subsequent retrofit to purge its carbon emissions, under uncertainty about climate and retrofit...

This paper studies a dynamic game where each of two large blocs, of fossil fuel importers and exporters respectively, sets either taxes or quotas to exercise power in fossil-fuel markets. The main novel feature is the inclusion of a"fringe"of non- strategic (emerging and developing) countries...

Investments in large, long-lived, energy-intensive infrastructure investments using fossil fuels increase longer-term energy use and greenhouse gas emissions, unless the plant is shut down early or undergoes costly retrofit later. These investments will depend on expectations of retrofit costs...

We propose a novel method to find Nash equilibria in games with binary decision variables by including compensation payments and incentive-compatibility constraints from non-cooperative game theory directly into an optimization framework in lieu of using first order conditions of a...

Uncertainty and integer variables often exist together in economics and engineering design problems. The goal of robust optimization problems is to find an optimal solution that has acceptable sensitivity with respect to uncertain factors. Including integer variables with or without uncertainty...

This paper provides a methodology to solve Nash–Cournot energy production games allowing some variables to be discrete. Normally, these games can be stated as mixed complementarity problems but only permit continuous variables in order to make use of each producer’s Karush–Kuhn–Tucker...

This paper presents a new method for solving mathematical programs with equilibrium constraints. The approach uses a transformation of the original problem via Schur’s decomposition coupled with two separate formulations for modeling related absolute value functions. The first formulation,...

Natural gas is increasingly important as a fuel for electric power generation as well as other uses due to its environmental advantage over other fossil fuels. Using the World Gas Model, a large-scale energy equilibrium system based on a complementarity formulation, this paper analyzes possible...