“A model of optimal incentives for renewable investments”
Venerdì 28 Ottobre 2022, ore 11:30 - Aula 2BC30 e Zoom - René Aïd (Université Paris Dauphine - PSL, LEDA)
We analyze the optimal regulatory incentives to foster the development of non-emissive electricity generation when the demand for power is served either by a monopoly or by two competing firms. The regulator wishes to encourage renewable investments to limit carbon emissions, while simultaneously reducing intermittency of the total energy production. We provide the expression of the optimal contract for each market structure. We show how the market structure affects the complexity of the optimal incentive mechanism.
A joint work with Annika Kemper and Nizar Touzi.