Abstract: An oligopolistic model, including the energy saving and emission reduction constraints, was proposed. The locational marginal prices associated with generator buses are composed by four components: the marginal energy cost, the capacity opportunity cost, the energy saving and emission reduction opportunity cost and the ramp rate opportunity cost. As illustrated by the case study, in the oligopolistic environment, the GenCos with high energyconsumption rate and high emission rate have to reduce their bidding prices to obtain more revenues, while the GenCos with low energy rates and low emission rates can obtain more revenues by increasing the bidding prices. Besides, in the multiperiods scenario, the energy consumption amount (emission amount) often shift from the valley load periods to the peak load periods.