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Article
Publication date: 14 June 2021

Waldemar de Souza, Carlos Heitor Campani, Martin Bohl, Rafael Palazzi and Felipe de Oliveira

This study aims to formulate a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market.

Abstract

Purpose

This study aims to formulate a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market.

Design/methodology/approach

This exploratory study formulates a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market.

Findings

The results show a positive economic outcome for the creation of the Brazilian futures electricity market.

Originality/value

The main feature in this work is to summarize a framework to set up the Brazilian electricity futures market applying mechanism design, applicable in other countries. The features of the mechanism are the space of expected results (Z), the strategies to survey the environmental space (θ) and the mechanism design – messages space (M).

Details

International Journal of Energy Sector Management, vol. 15 no. 5
Type: Research Article
ISSN: 1750-6220

Keywords

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