Carbon Market Simulation with Adaptive Mechanism DesignHan Wang, Wenhao Li, Hongyuan Zha et al.
A carbon market is a market-based tool that incentivizes economic agents to align individual profits with the global utility, i.e., reducing carbon emissions to tackle climate change. Cap and trade stands as a critical principle based on allocating and trading carbon allowances (carbon emission credit), enabling economic agents to follow planned emissions and penalizing excess emissions. A central authority is responsible for introducing and allocating those allowances in cap and trade. However, the complexity of carbon market dynamics makes accurate simulation intractable, which in turn hinders the design of effective allocation strategies. To address this, we propose an adaptive mechanism design framework, simulating the market using hierarchical, model-free multi-agent reinforcement learning (MARL). Government agents allocate carbon credits, while enterprises engage in economic activities and carbon trading. This framework illustrates agents' behavior comprehensively. Numerical results show MARL enables government agents to balance productivity, equality, and carbon emissions. Our project is available at https://github.com/xwanghan/Carbon-Simulator.
7.1LGApr 15, 2025
Interpretable Hybrid-Rule Temporal Point ProcessesYunyang Cao, Juekai Lin, Hongye Wang et al.
Temporal Point Processes (TPPs) are widely used for modeling event sequences in various medical domains, such as disease onset prediction, progression analysis, and clinical decision support. Although TPPs effectively capture temporal dynamics, their lack of interpretability remains a critical challenge. Recent advancements have introduced interpretable TPPs. However, these methods fail to incorporate numerical features, thereby limiting their ability to generate precise predictions. To address this issue, we propose Hybrid-Rule Temporal Point Processes (HRTPP), a novel framework that integrates temporal logic rules with numerical features, improving both interpretability and predictive accuracy in event modeling. HRTPP comprises three key components: basic intensity for intrinsic event likelihood, rule-based intensity for structured temporal dependencies, and numerical feature intensity for dynamic probability modulation. To effectively discover valid rules, we introduce a two-phase rule mining strategy with Bayesian optimization. To evaluate our method, we establish a multi-criteria assessment framework, incorporating rule validity, model fitting, and temporal predictive accuracy. Experimental results on real-world medical datasets demonstrate that HRTPP outperforms state-of-the-art interpretable TPPs in terms of predictive performance and clinical interpretability. In case studies, the rules extracted by HRTPP explain the disease progression, offering valuable contributions to medical diagnosis.