Olli Herrala: A Prescriptive Trilevel Equilibrium Model for Optimal Emissions Pricing and Sustainable Energy Systems…

Date: 2023-07-07

Time: 11:30 - 12:00

Zoom link: https://kva-se.zoom.us/j/9217561880


Olli Herrala, Aalto University


In this research, we go beyond the well-explored realm of bilevel optimization and turn our attention to models with three hierarchical levels of decision making. We present two single-level reformulations for trilevel models, along with discussion on the strengths, weaknesses and required assumptions for both reformulations. The methodological contributions are demonstrated using a case study on finding an optimal carbon tax for the Nordic electricity market. This is joint work with Steven Gabriel, Fabricio Oliveira and Tommi Ekholm.