Abstract: Power generation under the Renewable Portfolio Standard (RPS) can reduce greenhouse gas emissions below the baseline level, so entities may argue to use this attribute to meet the goal of Emission Trading Scheme (ETS). Although these two quantity-based regulation systems have different policy objectives, both mechanisms are implicitly linked by credit conversions depending on credit prices. This paper builds an analytic partial equilibrium model and derives market equilibria in a closed form to demonstrate how each mechanism influences the other by policy instruments such as a renewable requirement, a reduction target in greenhouse gas emission, levels of penalties, or marginal costs. We can compare �direct vs indirect� effectiveness of a regulatory changes across both markets with the case where converting renewable offsets are completed prohibited.

中文翻译：

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与可再生能源投资组合标准可转移抵销的内部碳融资

摘要：根据可再生能源投资组合标准（RPS）进行的发电可以将温室气体排放量减少到基准水平以下，因此企业可能会争辩说要使用此属性来实现排放交易计划（ETS）的目标。尽管这两种基于数量的监管系统具有不同的政策目标，但是这两种机制都是根据信贷价格通过信贷转换隐含地联系在一起的。本文建立了一个分析性的局部均衡模型，并以封闭的形式得出市场均衡，以说明每种机制如何通过政策工具（如可再生能源需求，温室气体减排目标，罚款水平或边际成本）相互影响。