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Inspired from recent insights into the common ground of machine learning, optimization and decision-making, this paper proposes an easy-to-implement, but effective procedure to enhance both the quality of renewable energy forecasts and the…

Optimization and Control · Mathematics 2020-01-17 Miguel Á. Muñoz , Juan M. Morales , Salvador Pineda

Quantifying the uncertainty of forecasting models is essential to assess and mitigate the risks associated with data-driven decisions, especially in volatile domains such as electricity markets. Machine learning methods can provide highly…

Machine Learning · Computer Science 2025-07-22 Arkadiusz Lipiecki , Bartosz Uniejewski

Increasing the adoption of alternative technologies is vital to ensure a successful transition to net-zero emissions in the manufacturing sector. Yet there is no model to analyse technology adoption and the impact of policy interventions in…

General Economics · Economics 2023-04-21 Tom Savage , Antonio del Rio Chanona , Gbemi Oluleye

We develop a computational framework for deriving Pareto-improving and constrained optimal carbon tax rules in a stochastic overlapping generations (OLG) model with climate change. By integrating Deep Equilibrium Networks for fast policy…

General Economics · Economics 2025-07-03 Felix Kübler , Simon Scheidegger , Oliver Surbek

We develop a Quantile Bayesian Vector Autoregression (QBVAR) to forecast real oil prices across different quantiles of the conditional distribution. The model allows predictor effects to vary across quantiles, capturing asymmetries that…

Econometrics · Economics 2026-04-15 Hilde C. Bjornland , Nicolas Hardy , Dimitris Korobilis

Trading a financial asset pushes its price as well as the prices of other assets, a phenomenon known as cross-impact. We consider a general class of kernel-based cross-impact models and investigate suitable parameterisations for trading…

Trading and Market Microstructure · Quantitative Finance 2021-07-20 Mathieu Rosenbaum , Mehdi Tomas

Bond prices are a reflection of extremely complex market interactions and policies, making prediction of future prices difficult. This task becomes even more challenging due to the dearth of relevant information, and accuracy is not the…

Statistical Finance · Quantitative Finance 2017-05-04 Swetava Ganguli , Jared Dunnmon

There is much disagreement concerning how best to control global carbon emissions. We explore quantitatively how different control schemes affect the collective emission dynamics of a population of emitting entities. We uncover a complex…

Physics and Society · Physics 2011-07-12 Zhenyuan Zhao , Dan Fenn , Pak Ming Hui , Neil F. Johnson

While the field of electricity price forecasting has benefited from plenty of contributions in the last two decades, it arguably lacks a rigorous approach to evaluating new predictive algorithms. The latter are often compared using unique,…

Applications · Statistics 2022-04-07 Jesus Lago , Grzegorz Marcjasz , Bart De Schutter , Rafał Weron

Commodity price time series possess interesting features, such as heavy-tailedness, skewness, heteroskedasticity, and non-linear dependence structures. These features pose challenges for modeling and forecasting. In this work, we explore…

Applications · Statistics 2023-01-10 Sven Pappert , Antonia Arsova

Research on crude oil price forecasting has attracted tremendous attention from scholars and policymakers due to its significant effect on the global economy. Besides supply and demand, crude oil prices are largely influenced by various…

Machine Learning · Computer Science 2021-11-18 Jiangwei Liu , Xiaohong Huang

In the context of whether investors are aware of carbon-related risks, it is often hypothesized that there may be a carbon premium in the value of stocks of firms, conferring an abnormal excess value to firms' shares as a form of…

Pricing of Securities · Quantitative Finance 2024-01-31 Namasi G. Sankar , Suryadeepto Nag , Siddhartha P. Chakrabarty , Sankarshan Basu

How does dynamic price information flow among Northern European electricity spot prices and prices of major electricity generation fuel sources? We use time series models combined with new advances in causal inference to answer these…

Applications · Statistics 2011-10-26 Egil Ferkingstad , Anders Løland , Mathilde Wilhelmsen

Estimating quantiles of an outcome conditional on covariates is of fundamental interest in statistics with broad application in probabilistic prediction and forecasting. We propose an ensemble method for conditional quantile estimation,…

Methodology · Statistics 2023-10-31 Herbert Susmann , Antoine Chambaz

Probabilistic forecasting of electricity load curves is of fundamental importance for effective scheduling and decision making in the increasingly volatile and competitive energy markets. We propose a novel approach to construct…

Methodology · Statistics 2020-11-16 Xiuqin Xu , Ying Chen , Yannig Goude , Qiwei Yao

Time variation and persistence are crucial properties of volatility that are often studied separately in energy volatility forecasting models. Here, we propose a novel approach that allows shocks with heterogeneous persistence to vary…

General Finance · Quantitative Finance 2024-07-09 Jozef Barunik , Lukas Vacha

Electricity price forecasting (EPF) plays a major role for electricity companies as a fundamental entry for trading decisions or energy management operations. As electricity can not be stored, electricity prices are highly volatile which…

Applications · Statistics 2024-05-27 Grégoire Dutot , Margaux Zaffran , Olivier Féron , Yannig Goude

Under the guidance of the dual-carbon target, the development of the carbon financial system is of great significance to compensate for the gap between green and low-carbon investment. Considering the current state of the development of…

General Economics · Economics 2025-02-26 Yedong Zhang , Han Hua

This paper initiates a study into the century-old issue of market predictability from the perspective of computational complexity. We develop a simple agent-based model for a stock market where the agents are traders equipped with simple…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 James Aspnes , David F. Fischer , Michael J. Fischer , Ming-Yang Kao , Alok Kumar

The social cost of carbon is the damage avoided by slightly reducing carbon dioxide emissions. It is a measure of the desired intensity of climate policy. The social cost of carbon is highly uncertain because of the long and complex…

General Economics · Economics 2023-10-20 Richard S. J. Tol
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