Related papers: Strategic Investment to Mitigate Transition Risks
We develop a complete analysis of a general entry-exit-scrapping model. In particular, we consider an investment project that operates within a random environment and yields a payoff rate that is a function of a stochastic economic…
For a given carbon budget over several decades, different transformation rates for the energy system yield starkly different results. Here we consider a budget of 33 GtCO2 for the cumulative carbon dioxide emissions from the European…
In this study, we have developed a dynamic asset allocation investment strategy using reinforcement learning techniques. To begin with, we have addressed the crucial issue of incorporating non-stationarity of financial time series data into…
The transition towards carbon-neutral chemical production is challenging due to the fundamental reliance of the chemical sector on petrochemical feedstocks. Electrolysis-based manufacturing, powered by renewables, is a rapidly evolving…
Recent events, including the pandemic, geopolitical conflicts, supply chain disruptions, and climate change impacts, have exposed the critical need to ensure energy security and resilience in energy systems. We review existing definitions…
The mitigation of climate change requires a fundamental transition of the energy system. Affordability, reliability and the reduction of greenhouse gas emissions constitute central but often conflicting targets for this energy transition.…
The demand for electricity is undergoing considerable spatial and temporal change. With the uptake of efficient technologies and increased electrification, a better understanding of how potential changes in demand patterns can affect…
This integrated assessment modeling research analyzes what Korea's 2050 carbon neutrality would require for the national energy system and the role of the power sector concerning the availability of critical mitigation technologies. Our…
This work introduces the category of Power System Transition Planning optimization problem. It aims to shift power systems to emissions-free networks efficiently. Unlike comparable work, the framework presented here broadly applies to the…
Given the increasing importance of environmental, social and governance (ESG) factors, particularly carbon emissions, we investigate optimal proportional portfolio insurance (PPI) strategies accounting for carbon footprint reduction. PPI…
In recent years environmental and energy conservation issues have taken the central theme in the global business arena. The reality of rising energy cost and their impact on international affairs coupled with the different kinds of…
Current research challenges in sustainability science require us to consider nonlinear changes e.g. shifts that do not happen gradually but can be sudden and difficult to predict. Central questions are therefore how we can prevent harmful…
This paper introduces a comprehensive framework aimed at advancing research and policy development in the realm of decarbonization within electric power systems. The framework focuses on three key aspects: carbon accounting, carbon-aware…
This paper examines the impact of climate shocks on 13 European economies analysing jointly business and financial cycles, in different phases and disentangling the effects for different sector channels. A Bayesian Panel Markov-switching…
The decarbonization of the power sector plays a pivotal role in economy-wide decarbonization to set the world on track to limit warming to 1.5{\deg}C by 2050. Carbon emission markets can play a significant role in this transition by putting…
We examine the relationship among photovoltaic (PV) investments, energy production, and environmental impact using a dynamic optimization model. Our findings show that increasing investment in renewables supports both energy generation and…
The carbon-reducing effect of attention is scarcer than that of material resources, and when the government focuses its attention on the environment, resources will be allocated in a direction that is conducive to reducing carbon. Using…
This paper introduces and defines a novel concept in sustainable investing, termed crosswashing, and explore its impact on ESG (Environmental, Social, and Governance) ratings through quantitative analysis using a Multi-Criteria Decision…
We study the problem of asset liquidation in financial systems. During financial crises, asset liquidation is often inevitable but can lead to substantial losses if a significant amount of illiquid assets are sold simultaneously at…
Like ESG investing, climate change is an important concern for asset managers and owners, and a new challenge for portfolio construction. Until now, investors have mainly measured carbon risk using fundamental approaches, such as with…