Smart grid refers to the next generation of electrical grid, which attempts to intelligently predict and respond to the behavior and actions of all entities in the grid in order to efficiently deliver reliable, economic, and sustainable electricity services. Due to the extra grid intelligence as well as new ways of generating, transporting, storing, and using energies, there are many new challenging resource allocation and economic issues to be resolved. Our current research focuses on smart grid include: (1) we look at the economics of vehicle-to-grid (V2G) service, and study how to incentivize electrical vehicle owners to provide ancillary services (e.g., frequency regulation) to the smart grid; and (2) we study how the smart grid should integrate the renewable energy generation (e.g., wind power) through proper pricing mechanisms and demand side management.