Tax vs ETS ABM 1.0.0
This agent-based model (ABM), developed in NetLogo and available on the COMSES repository, simulates a stylized, competitive electricity market to explore the effects of carbon pricing policies under conditions of technological innovation. Unlike traditional models that treat innovation as exogenous, this ABM incorporates endogenous innovation dynamics, allowing clean technology costs to evolve based on cumulative deployment (Wright’s Law) or time (Moore’s Law). Electricity generation companies act as agents, making investment decisions across coal, gas, wind, and solar PV technologies based on expected returns and market conditions. The model evaluates three policy scenarios—No Policy, Emissions Trading System (ETS), and Carbon Tax—within a merit-order market framework. It is partially empirically grounded, using real-world data for technology costs and emissions caps. By capturing emergent system behavior, this model offers a flexible and transparent tool for analyzing the transition to low-carbon electricity systems.
Release Notes
Current version is V3.9