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This paper explores stochastic control models in the context of decarbonization within the energy market. We study three progressively complex scenarios: (1) a single firm operating with two technologies-one polluting and one clean,(2)two…

综合金融 · 定量金融 2025-06-18 Benhao Du , Thomas Treillard , Francois Wang

We investigate the impact of a regulation policy imposed on an agent exploiting a possibly renewable natural resource. We adopt a principal-agent model in which the Principal looks for a contract, i.e. taxes/compensations, leading the Agent…

概率论 · 数学 2019-06-06 Idris Kharroubi , Thomas Lim , Thibaut Mastrolia

Despite the success of demand response programs in retail electricity markets in reducing average consumption, the random responsiveness of consumers to price event makes their efficiency questionable to achieve the flexibility needed for…

最优化与控制 · 数学 2019-05-28 René Aïd , Dylan Possamaï , Nizar Touzi

The focus on Renewable Energy Communities (REC) is fastly growing after the European Union (EU) has introduced a dedicated regulation in 2018. The idea of creating local groups of citizens, small- and medium-sized companies, and public…

综合经济学 · 经济学 2025-03-11 Almendra Awerkin , Paolo Falbo , Tiziano Vargiolu

This paper characterises optimal incentive schemes for ESG disclosure in a continuous-time principal-agent setting. We model a risk-averse principal (e.g., a platform or standard-setter) contracting with a team of heterogeneous agents whose…

综合经济学 · 经济学 2026-04-28 Imen Ben Tahar , Dylan Possamaï , Xiaolu Tan

As electrical generation becomes more distributed and volatile, and loads become more uncertain, controllability of distributed energy resources (DERs), regardless of their ownership status, will be necessary for grid reliability. Grid…

系统与控制 · 电气工程与系统科学 2024-10-22 Adam Lechowicz , Joshua Comden , Andrey Bernstein

The impact of energy production significantly affects system sustainability, which has enabled a shift towards renewable energy sources. Thus, producer behavior is crucial in electricity markets to achieve sustainability goals. In this…

系统与控制 · 电气工程与系统科学 2024-07-03 Mohammad Reza Karimi Gharigh , Lamia Varawala , Mohammad Reza Hesamzadeh , György Dán

Uncertainties in renewable generation and demand dynamics challenge day-ahead scheduling. To enhance renewable penetration and maintain intra-day balance, we develop a multi-agent reinforcement learning framework for self-interested…

多智能体系统 · 计算机科学 2026-04-13 Junhao Ren , Honglin Gao , Lan Zhao , Qiyu Kang , Gaoxi Xiao , Yajuan Sun

In this work we investigate the inefficiency of the electricity system with strategic agents. Specifically, we prove that without a proper control the total demand of an inefficient system is at most twice the total demand of the optimal…

计算机科学与博弈论 · 计算机科学 2015-09-10 Carlos Barreto , Eduardo Mojica-Nava , Nicanor Quijano

Recent technology advances have enabled firms to flexibly process and analyze sophisticated employee performance data at a reduced and yet significant cost. We develop a theory of optimal incentive contracting where the monitoring…

理论经济学 · 经济学 2019-11-22 Anqi Li , Ming Yang

Principal agent games are a growing area of research which focuses on the optimal behaviour of a principal and an agent, with the former contracting work from the latter, in return for providing a monetary award. While this field…

数理金融 · 定量金融 2022-06-28 Dena Firoozi , Arvind V Shrivats , Sebastian Jaimungal

Motivated by the recent studies on the green bond market, we build a model in which an investor trades on a portfolio of green and conventional bonds, both issued by the same governmental entity. The government provides incentives to the…

数理金融 · 定量金融 2021-01-05 Bastien Baldacci , Dylan Possamaï

We propose to study electricity capacity remuneration mechanism design through a Principal-Agent approach. The Principal represents the aggregation of electricity consumers (or a representative entity), subject to the physical risk of…

综合经济学 · 经济学 2020-09-02 Clémence Alasseur , Heythem Farhat , Marcelo Saguan

We develop a continuous-time model of incentives for carbon emissive firms to exit the market based on a compensation payment identical to all firms. In our model, firms enjoy profits from production modeled as a simple geometric Brownian…

综合经济学 · 经济学 2025-05-08 René Aïd , Xiangying Pang , Xiaolu Tan

We address the challenge of promoting sustainable practices in production forests managed by strategic entities (agents) that harvest agricultural commodities under concession agreements. These entities engage in activities that either…

最优化与控制 · 数学 2024-12-24 Rohit Parasnis , Saurabh Amin

This paper investigates the role of a transmission system operator within a carbon footprint reduction strategy incorporating carbon taxes and renewable energy generation subsidies in the decentralised energy market. This is achieved via an…

最优化与控制 · 数学 2024-04-03 Nikita Belyak , Steven A. Gabriel , Nikolay Khabarov , Fabricio Oliveira

This paper develops incentive mechanisms for promoting eco-driving with the overarching goal of minimizing emissions in transportation networks. The system operator provides drivers with energy-efficient driving guidance throughout their…

计算机科学与博弈论 · 计算机科学 2025-10-15 M. Umar B. Niazi , Jung-Hoon Cho , Munther A. Dahleh , Roy Dong , Cathy Wu

We study a principal-agent team production model. The principal hires a team of agents to participate in a common production task. The exact effort of each agent is unobservable and unverifiable, but the total production outcome (e.g. the…

计算机科学与博弈论 · 计算机科学 2025-05-27 Shiliang Zuo

We consider an exchange who wishes to set suitable make-take fees to attract liquidity on its platform. Using a principal-agent approach, we are able to describe in quasi-explicit form the optimal contract to propose to a market maker. This…

交易与市场微观结构 · 定量金融 2019-11-27 Omar El Euch , Thibaut Mastrolia , Mathieu Rosenbaum , Nizar Touzi

As the share of renewable energy sources in the present electric energy mix rises, their intermittence proves to be the biggest challenge to carbon free electricity generation. To address this challenge, we propose an electricity pricing…

信号处理 · 电气工程与系统科学 2020-03-11 Filip Tolovski
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