My PhD investigated risk allocation problems in electricity markets, their consequences for societal climate goals, and their implications for public policy. My thesis consisted of four papers focusing on the following questions:
- How does power system decarbonization depend on investor risk aversion and the incompleteness of risk markets?
- How do climate policy effects change when risk markets are incomplete?
- How does the optimal choice of renewable subsidies and carbon prices change in power markets with incomplete risk trading?
- How does risk impact the timing of EV infrastructure investments and how can government policies accelerate deployment?
To shed light on these questions, I developed stochastic optimization and equilibrium methods, including an equilibrium approach to modeling generation expansion in liberalized power systems, a game theoretic model of the interactions between an electricity market and a government seeking to reduce emissions, and a real options model of EV charging investments.