Joint Market-Clearing Framework for Carbon Emission Allowances, Green Certificates, and Electricity Based on ADMM Method

Along with the dynamic shift in energy-environmental paradigms, the nexus between carbon, green certificate, and power markets has become a focal point. Yet, the ambiguity surrounding their cross-market interactions often hampers effective policy design and compromises resource efficiency, especially as decarbonization intensifies. To mitigate the risk of sub-optimal social welfare, this paper develops an integrated modeling framework designed to harmonize decision-making across these three domains. By adopting a localized welfare maximization approach for each market and employing the Alternating Direction Method of Multipliers, we establish an information-sharing mechanism. This leads to a unified clearing model that ensures systemic consistency and optimizes overall welfare in coupled market environments.