Monotonicity of equilibria in nonatomic congestion games

This paper studies the monotonicity of equilibrium costs and equilibrium loads in nonatomic congestion games, in response to variations of the demands. The main goal is to identify conditions under which a paradoxical non-monotone behavior can be excluded. In contrast with routing games with a single commodity, where the network topology is the sole determinant factor for monotonicity, for general congestion games with multiple commodities the structure of the strategy sets plays a crucial role. We frame our study in the general setting of congestion games, with a special focus on singleton congestion games, for which we establish the monotonicity of equilibrium loads with respect to every demand. We then provide conditions for comonotonicity of the equilibrium loads, i.e.,we investigate when they jointly increase or decrease after variations of the demands. We finally extend our study from singleton congestion games to the larger class of constrained series-parallel congestion games, whose structure is reminiscent of the concept of a series-parallel network

Information requirements for strategic decision making: energy market

Over the last two decades, the electricity sector has been involved in a challenging restructuring process in which the vertical integrated structure (monopoly) is being replaced by a horizontal set of companies. The growing supply of electricity, flowing in response to free market pricing at the wellhead, led to increased competition. In the new framework of deregulation, what characterizes the electric industry is a commodity wholesale electricity marketplace. This new environment has drastically changed the objective of electricity producing companies. In the vertical integrated industry, utilities were forced to meet all the demand from customers living in a certain region at fixed rates. Then, the operation of the Generation Companies (GENCOs) was centralized and a single decision maker allocated the energy services by minimizing total production costs. Nowadays, GENCOs are involved not only in the electricity market but also in additional markets such as fuel markets or environmental markets. A gas or coal producer may have fuel contracts that define the production limit over a time horizon. Therefore, producers must observe this price levels in these other markets. This is a lesson we learned from the Electricity Crisis in California. The Californian market\u27s collapse was not the result of market decentralization but it was triggered by other decisions, such as high natural gas prices, with a direct impact in the supply-demand chain. This dissertation supports generation asset business decisions -from fuel supply concerns to wholesale trading in energy and ancillary services. The forces influencing the value chain are changing rapidly, and can become highly controversial. Through this report, the author brings an integrated and objective perspective, providing a forum to identify and address common planning and operational needs. The purpose of this dissertation is to present theories and ideas that can be applied directly in algorithms to make GENCOs decisions more efficient. This will decompose the problem into independent subproblems for each time interval. This is preferred because building a complete model in one time is practically impossible. The diverse scope of this report is unified by the importance of each topic to understanding or enhancing the profitability of generation assets. Studies of top strategic issues will assess directly the promise and limits to profitability of energy trading. Studies of ancillary services will permit companies to realistically gauge the profitability of different services, and develop bidding strategies tuned to competitive markets

Space-time patterns of urban sprawl, a 1D cellular automata and microeconomic approach

We present a theoretical model of residential growth that emphasizes the path-dependent nature of urban sprawl patterns. The model is founded on the monocentric urban economic model and uses a cellular automata (CA) approach to introduce endogenous neighbourhood effects. Households are assumed to both like and dislike the density of their neighbourhood, and trade-off this density with housing space consumption and commuting costs. Discontinuous spatial patterns emerge from that trade-off, with the size of suburban clusters varying with time and distance to the centre. We use space-time diagrams inspired from 1D elementary CA to visualize changes in spatial patterns through time and space, and undertake sensitivity analyses to show how the pattern and timing of sprawl are affected by neighbourhood preferences, income level, commuting costs or by imposing a green belt.urban sprawl, open space, neighbourhood externalities, cellular automata, residential dynamics.

Governing the urban water commons : essays on collaborative policy networks in a polycentric ecology of urban water policy games.

Governing social-ecological systems, such as the urban water commons, is a multi-scale and multi-sector (polycentric) human-environment process. This dissertation interrogates this process by situating itself within the Ecology of Games Framework by Norton Long (and updated by Mark Lubell) and the literature on polycentric governance by the Bloomington School of Political Economy. The dissertation’s three essays 1) offer both theoretical and methodological means to enact polycentric public economies within the ecology of games framework, and 2) explicate the conditions under which interoganizational collaboration is fostered within a polycentric ecology of policy games in governing the Middle Rio Grande urban watershed. First, it deploys a synthesized theoretical construct which puts into conversation three theoretical paradigms to excavate the conceptual pillars to study the polycentricity of urban water governance in the United States. A novel conceptual tool is hereby constructed to help engage the thoughts that polycentricity is not the antithesis of monocentricity but the co-constitution of actors at multiple governing scales and within multiple sectors. Second, the conceptual pillars are reworked into theoretical and methodological models to study the polycentricity of governing the Middle Rio Grande (MRG) urban watershed in New Mexico, USA. Four indices are developed to measure the level of political, market, nonprofit, and overall polycentricity in governing this urban water commons. Employing multiple methods like the social network analysis, social-ecological network analysis (SENA), and regression analysis, the dissertation’s findings suggest that polycentric water governance could primarily be about the politics of power and resource distribution, the reconfigurations of actors’ positionalities as they align themselves and their interests strategically. This, among other findings in the dissertation, points to the need to centralize the politics of power and resource distribution in the study of polycentricity in social-ecological governance. Third and finally, the overall polycentric index is used to model the role of polycentricity in interorganizational collaboration within the Middle Rio Grande (MRG) urban water commons. The exponential random graph models (ERGMs) is used in this analysis. Among other findings, the results show that polycentric governance increases the probability of interorganizational collaboration within the MRG. The implications of the dissertation’s three cohesive essays to theory, methods and policy are discussed in the conclusion chapter of the dissertation. In all, this dissertation concludes that there is still no panacea in governing the (urban water) commons

Local Market Mechanisms: how Local Markets can shape the Energy Transition

Europe has embarked on a journey towards a zero-emission system, with the power system at its core. From electricity generation to electric vehicles, the European power system must transform into an interconnected, intelligent network. To achieve this vision, active user participation is crucial, ensuring transparency, efficiency, and inclusivity. Thus, Europe has increasingly focused on the concept of markets in all their facets. This thesis seeks to answer the following questions: How can markets, often considered abstract and accessible only to high-level users, be integrated for end-users? How can market mechanisms be leveraged across various phases of the electrical system? Why is a market- driven approach essential for solving network congestions and even influencing planning? These questions shape the core of this research. The analysis unfolds in three layers, each aligned with milestones leading to 2050. The first explores how market mechanisms can be integrated into system operator development plans, enhancing system resilience in the face of changes. In this regard, this step addresses the question of how a market can be integrated into the development plans of a network and how network planning can account for uncertainties. Finally, the analysis highlights the importance of sector coupling in network planning, proposing a study in which various energy vectors lead to a multi-energy system. According to the roadmap to 2030, this layer demonstrates how markets can manage several components of the gas and electrical network. Finally, even though the robust optimisation increases the final cost in the market, it allows to cover the system operator from uncertainties. The second step delves into the concept of network congestion. While congestion management is primarily the domain of operators, it explores how technical and economic collaboration between operators and system users, via flexibility markets, can enhance resilience amid demand uncertainties and aggressive market behaviours. In addition to flexibility markets, other congestion markets are proposed, some radically different, like locational marginal pricing, and others more innovative, such as redispatching markets for distribution. Building upon the first analysis, this section addresses questions of how various energy vectors can be used not only to meet demand but also to manage the uncertainties associated with each resource. Consequently, this second part revisits the concept of sector coupling, demonstrating how various energy vectors can be managed through flexibility markets to resolve network congestion while simultaneously handling uncertainties related to different vectors. The results demonstrate the usefulness of the flexibility market in managing the sector coupling and the uncertainties related to several energy vectors. The third and most innovative step proposes energy and service markets for low-voltage users, employing distributed ledger technology. Since this step highlights topics that are currently too innovative to be realized, this third section offers a comparative study between centralised and decentralised markets using blockchain technology, highlighting which aspects of distributed ledger technology deserve attention and which aspects of low-voltage markets need revision. The results show that the blockchain technology is still in the early stage of its evolution, and several improvements are needed to fully apply this technology into real-world applications. To sum up, this thesis explores the evolving role of markets in the energy transition. Its insights are aimed at assisting system operators and network planners in effectively integrating market mechanisms at all levels of