Capacity Market Mechanism Design,Considering Network Optimization and Energy Transition

The coordination of enrgy transition,fixed cost recovery,and sufficient generation supply leads to a new challenge for a traditional capacity market mechanism.Moreover,in order to better match network expansion at the same time,it is crucial to redesign the capacity market mechanism considering system topology.In this paper,a novel capacity market mechanism is proposed considering spot market operations,network expansion,and energy transition,which can minimize the total cost of capacity investment,network expansion,and generation operations,while satisfying the energy transition constraints and topology circumstances.Specifically,the capacity market mechanism co-ordinated with spot market operations is illustrated,in which the energy transition and network constraints are embedded.Then,a bi-level optimization model is established where the trade organizers minimize the total cost of both investment and operations,subject to the spot power market simultaneously minimizing the local dispatching costs.The numerical results of a test system show that more economical capacity portfolios can be obtained by constructing reasonable transmission lines,thereby obtaining a more optimal market cost.A detailed multi-scenario simulation is further analyzed to verify the effectiveness of the proposed market mechanism.

Measurement of self-development capacity in the contiguous destitute mountainous areas, China

Affected by the mountainous location and ecological vulnerability, the incidence of poverty in contiguous destitute mountainous areas is higher than that in other regions of China. Regional selfdevelopment capacity is an internal driving force for poverty reduction in contiguous destitute mountainous areas. This study selects 17 indicators from the four dimensions: industrial capacity, market capacity, spatial capacity and soft power to measure the overall self-development capacity of 658 counties in 14 different mountain areas in China. The results show that self-development capacity is at a low level and the development of the different regions is unbalanced. The self-development capacity is low in the southwest and high in the east and "low in the middle, high around" in each study region. It has achieved a certain degree of improvement in 2011, 2013 and 2015. From the perspective of the four dimensions, industrial capacity is the constraint on the promotion of self-development capacity. Based on this, we should develop green industries in line with local realities and achieve industrial poverty eradication, but the expansion of space capacity should take into account the resources and environmental carrying capacity in these areas and should not be blindly expanded. Local leaders should be made to improve the local education level and public service level, improve social infrastructure, develop reserve strength for the future, and enhance future development potential.

Analysis of a Firm's Optimal Size Based on Accessible Market Capacity

E-commerce has dramatically reduced the limitation of space and time on economic activities,resulting in individuals having access to a huge number of consumers.In this paper,we propose a company's optimal size decision model containing management costs as a means of investigating the evolution of the company size in e-commerce.Given that production decisions are made based on accessible market capacity,we explain how a company enters the market,and we draw an evolutionary path of the optimal company size.The results show that in the early expansion stage of accessible market capacity,a firm's optimal size keeps increasing;after reaching a peak,the change in a firm's optimal size depends on its cost management.When the accessible market capacity reaches a threshold,the firm will no longer be in the market,and may no longer exist.Finally,we construct a simulation framework based on complex adaptive systems to validate our proposed model.A simulation experiment confirms our model and reveals the dynamic co-evolution process of individual producers and firms.

Study on the Optimal Localization Rate for Shipbuilding Industry in China

In China,the target setting on loading rate of domestic equipment for shipbuilding industry has not been studied from a perspective of an optimization problem.Based on the constant elasticity of substitution production function,a localization rate model for shipbuilding industry is established to investigate the government's trade-off between the interest of shipbuilding industry and that of ship supporting industry and to set the optimal localization rate.The results show that the market capacity has a significant effect on localization rate.In particular,when the market capacity is too small,the optimal localization rate is zero.When the market capacity is too large,the optimal localization rate is one.When the market capacity is in a certain range,a regular localization rate target exists.Moreover,the optimal localization rate could be affected by the technology gap and prices of domestic and foreign marine equipments.When the market capacity is large and the technology gap between domestic and foreign marine equipments is small,or the price of domestic equipment is too low,a higher localization rate target should be set.Finally,the substitutability of domestic and foreign equipments affects the optimal set of localization rate.If the substitutability of domestic and foreign equipments is too low,the improvement of localization rate caused by technological progress or price reduction of domestic equipment will be limited.This study provides several significant policy suggestions on dynamic adjustment of localization rate,classified implementation,and core technology mastering.