*Appendix A.1. Model Description*

This study adopts a dynamic linear programming framework in power generation first developed by Turvey and Anderson [27] and later adapted by Chang and Tay [28] and Chang and Li [6]. In the latest study by Chang and Li [6], significant extensions of the original models were made. A new country dimension was added to allow an international framework with cross-border electricity trade. The new model also added the cost of crossborder power transmission as well as transmission loss into account. Carbon emissions from power generation as well as the carbon cost of power generation were explicitly considered. The model was solved using General Algebraic Modelling System (GAMS).

This section documents how the capital expenditure (CAPEX) and operational expenditure (OPEX) of a certain type of power generation is represented in the model and how carbon emissions and cross-border transmission cost are explicitly represented in the

model. Following this, it presents the objective function and various constraints to make the power trade model work.
