Allocating electricity transmission costs through tracing: a game-theoretic rationale

Allocating electricity transmission costs through tracing: a game-theoretic rationale

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Article ID: iaor20043285
Country: Netherlands
Volume: 32
Issue: 2
Start Page Number: 114
End Page Number: 120
Publication Date: Mar 2004
Journal: Operations Research Letters
Authors: , ,
Keywords: energy, game theory
Abstract:

Tracing is a method of assigning flows in an electricity network to particular generators and loads, assuming perfect mixing at each node. It can be used to assign costs to transmission users. We show that the resulting allocation is equal to Shapley value of an equivalent co-operative game.

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