## 3 Materials and Methods
### Data and Variables
\begin{table}
\begin{tabular}{c c c c} \hline \hline
**Category** & **Number** & **Variables** & **Initial Value and Function Relation** & **Unit** \\ \hline
18 & Fossil fuel power generation & The utilization time of fossil fuel power generation equipment \(\times\) installed capacity of fossil fuel power generation & \(10^{8}\) KWh fossil fuel power generation & \(10^{8}\) KWh \\ \hline
19 & Carbon emissions per unit of electricity production from fossil fuels & 9 & Ton/10\({}^{4}\) KWh \\ \hline
20 & Carbon emissions & Carbon emissions per unit of electricity production from fossil fuels \(\times\) Fossil fuel power generation & \(10^{4}\) ton \\ \hline
21 & The cost of carbon emissions & MAX (CET demand \(\times\) CET price \(\times\) 0.1, 0) & \(10^{8}\) yuan \\ \hline
22 & CET consumption & Carbon emissions & \(10^{4}\) ton \\ \hline
23 & CET demand & CET consumption \(-\) CET supply & \(10^{4}\) ton \\ \hline
24 & CET supply & Market allocation coefficient \(\times\) Carbon emission cap target \(\times\) Carbon emissions & \(10^{4}\) ton \\ \hline
25 & Carbon emission cap target & 0.75 & Unitless \\ \hline
26 & Market allocation coefficient & \(0.95+(0.05\times(1-\text{EXP}\left(-0.01\times\text{Time}\right)))\) & Unitless \\ \hline
27 & CET price cap & 0.2 & yuan/kg \\ \hline
28 & CET price floor & 0.01 & yuan/kg \\ \hline
29 & CET price & MIN (MAX (CET price floor, CET reference price), CET price cap) & yuan/kg \\ \hline
30 & Income from fossil fuel power generation & Fossil fuel power generation \(\times\) Electricity sale price & \(10^{8}\) yuan \\ \hline
31 & Electricity price cap & 0.6 & yuan/KWh \\ \hline
32 & Electricity price floor & 0.4 & yuan/KWh \\ \hline
33 & Electricity reference price & electricity demand/Electricity supply \(\times\) 0.5 & yuan/KWh \\ \hline
34 & Electricity price & MIN (MAX (Electricity price floor, Electricity price cap) & yuan/KWh \\ \hline
35 & Electricity demand growth rate & 1 & \% \\ \hline
36 & Initial demand for electricity & 221.60 & \(10^{8}\) KWh \\ \hline
37 & Incremental demand for electricity & Initial demand for electricity \(\times\) (1 + electricity demand growth rate) \(\times\) Time \(-\) Initial demand for electricity & \(10^{8}\) KWh \\ \hline
38 & Electricity demand & Incremental demand for electricity + Initial demand for electricity & \(10^{8}\) KWh \\ \hline
39 & Electricity supply & Fossil fuel power generation + renewable energy power generation & \(10^{8}\) KWh \\ \hline
40 & Electricity sale price & Electricity price + TGC price/\(1000-\text{CET price}\) \(\times\) (Carbon emissions per unit of electricity production from fossil fuels/\(10\)) & yuan/KWh \\ \hline \hline \end{tabular}
\end{table} 
Table 1: _Cont._To ensure the credibility of the model and the smooth development of empirical research, the following basic assumptions are proposed:  
**Assumption 1**. : _The effect of force majeure is not considered during the operation of the system;_  
**Assumption 2**. : _The supply and demand relations of the Liaoning power market subsystem, TGC subsystem, and CET subsystem accord with the principle of free competition. The decision-making of market entities aims to maximize economic benefits;_  
**Assumption 3**. : _The technological level of power enterprises (such as power generation efficiency, carbon emission reduction technology, etc.) maintains a predetermined change trend during the research period without significant technological breakthroughs or innovations._