Market-mechanisms to reduce pollution

E. Freitsis, S. Kraus

Research output: Contribution to conferencePaperpeer-review


There are situations in which plants located in the same geographical area need to reduce air pollution by a given percentage for a short time period because of external factors. The default solution currently being implemented is simply the reduction of emission by each plant by the appropriate required percentage. However, the cost to the different plants for the reduction of a given pollutant may be different, and therefore there are allocations that are more profitable to all the plants than the default one. In such environments, each plant has incomplete information about the other plants' utility functions. We propose three market mechanisms to allocate the pollution permits. Simulation results show that one of the greedy market mechanisms that we propose leads to allocations that yield the plants an average utility that is very close to the optimal.

Original languageEnglish
Number of pages2
StatePublished - 2001
EventFifth International Conference on Autonomous Agents - Montreal, Que., Canada
Duration: 28 May 20011 Jun 2001


ConferenceFifth International Conference on Autonomous Agents
CityMontreal, Que.


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