Market Engineering: A Research Agenda

One option to counteract anthropogenic climate change is to increase the share of renewable electricity supply. Current market structures provide only a limited framework for the creation of "green" electricity tariffs, which are often criticised as "greenwashing", lacking transparency, and ineffective investment signalling. This paper defines and discusses a day-ahead spot market for tradable (short-term) time-specific renewable energy certificates (REC). Implementing an unbundled spot market for REC promises a more credible provision of renewable electricity, along with a mechanism rewarding flexibility in renewable production and storage as well as tangible investment signals.

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“…trading fees as a business model for the market operator). Auxiliary services can provide decision support for market participants [30].…”

Section: Method: the Framework Of Market Engineeringmentioning

confidence: 99%

“…In the following, we apply the framework of Market Engineering to design a time-specific day-ahead REC market (tsRM) [28,30]. Fig.…”

Section: Defining a New Spot Market For Unbundled Recmentioning

confidence: 99%

Defining a day-ahead spot market for unbundled time-specific renewable energy certificates

Will

Jochem

Fïchtner

2017

2017 14th International Conference on the European Energy Market (EEM)

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“…"A market is a set of humanly devised rules that structure the interaction and exchange of information by self-interested participants in order to carry out exchange transactions at a relatively low cost. As such, markets are constrained by a sociocultural and legal framework" (Gimpel et al 2008). Markets are information processing systems and services that support equating supply and demand, finding prices, and deciding on allocations and transactions.…”

Section: Market Design and Market Engineeringmentioning

confidence: 99%

“…Market design was initially rooted in microeconomics but was soon extended to a broad range of other research areas such as computer science and operations research (Baliga and Vohra 2003;Roth 2008). Market engineering was coined by Christof Weinhardt and his team in the early 2000s (Weinhardt et al 2003(Weinhardt et al , 2006Neumann 2004;Holtmann 2004;Weinhardt and Gimpel 2007;Gimpel et al 2008). Christof and his team had a background in economics and information systems and leveraged the respective literature.…”

Section: Market Design and Market Engineeringmentioning

confidence: 99%

“…They added multiple perspectives from their interdisciplinary work and collaboration with researchers from various disciplines, along with economics and information systems including management, finance, operations research, computer science, and law, to name but a few. The engineering perspective stresses the holistic view of markets, the notion that details matter, the need for an interdisciplinary approach, and the use of multiple methodologies (Gimpel et al 2008;Roth 2002;Weinhardt et al 2003). In sum, market engineering offers a broader and more holistic perspective on designing and engineering markets.…”

Section: Market Design and Market Engineeringmentioning

confidence: 99%

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Market Success: The Quest for the Objectives and Success Factors of Markets

et al. 2021

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Markets are an essential tool to coordinate complex systems. Engineering markets requires the consideration of numerous objectives and factors that will eventually determine the market’s success. These objectives and factors are frequently not well defined or elaborated. Hence, this chapter aims to support market design through a perspective on what determines market success. To this end, we review the literature, consider examples of market success and failure, and reflect on our ongoing work regarding future electricity market design. We provide a framework for market objectives and success factors with a focus on electricity markets. The framework could spur the identification of objectives and success factors of markets in other domains, and inform the engineering of future electricity markets.

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