Agent-Based Modeling of Consumer and Producer Behavior in Sustainable Energy Markets

As electricity consumption significantly contributes to carbon dioxide emissions in the U.S., increased renewable energy utilization and individual behavior changes could combine to substantially decrease the carbon footprint of the sector. This study proposes an agent-based modelling (ABM) framework of the New Jersey electricity market that features consumer and producer agents, each defined by a unique set of attributes. The consumer agents are capable of making decisions about energy use, opting into a clean energy program, and investing in solar panels, while the producer agents decide when to retire and introduce power plants of each type. The model is used to simulate agent behavior and to thereby explore the resulting system outcomes. The results show how ABM is an effective modeling technique for energy markets, upon which we may introduce more market complexities such as compound and dynamic policy scenarios as well as social network analysis.