Slow-Developing Catastrophic Risks (SDCRs) refer to risks, the development of which, though hardly discernible at first or by non-experts, may lead to critical transitions (or regime shifts). As a result, SDCRs can have catastrophic consequences in terms of fatalities or economic losses. Because...

Demand response (or demand-side response) involves temporary changes in electricity consumption, typically in response to price signals or other financial incentives, or in reaction to grid conditions, is expected to cost-effectively contribute to the much needed power system flexibility, and...

Demand response (DR) is a set of demand-side activities that provide an array of grid balancing services, including equilibrating demand and grid losses with supply. Because DR can facilitate the integration of renewable energy sources, marked by intermittency, there is also widespread consensus...

The paper describes the mainstream energy scenarios and modelling approaches to illustrate the state of the art, and to stimulate thinking as to how these approaches can be used and improved for better assessment of energy demand. It suggests that there is a need for more sophisticated energy...

Rational economics and finance surmise that choices decree from a conscious arbitration between alternatives based on decision-theoretically computed values. Implicit in the computation of these option values are the perception and integration of different mathematical components (e.g.,...

The triple transition — decarbonization, decentralization and digitalization — is rendering obsolete traditional power sector value chains. Value networks are emerging, which will significantly alter the power sector’s landscape and call into question the long-term viability of the...

Against the backdrop of numerous evidence that variable renewable generation decreases electricity prices and increases price volatility, this paper assesses the drivers of electricity prices in spot and futures markets, focusing on the German electricity markets. We take into account...

The excessive volatility of prices in financial markets is one of the most pressing puzzles in social science. It has led many to question economic theory, which attributes beneficial effects to markets in the allocation of risks and the aggregation of information. In exploring its causes, we...

Financial decision making under time pressure, though ubiquitous, is poorly understood; classical and behavioral finance are silent about the time required for a decision to be made. In an experiment, calibrating allowable decision times to 1, 3, and 5 s, we find that classical moment-based...

Transition to low-carbon power systems is in progress, fuelled by policy-driven accelerated deployment of new renewable electricity generation technologies (wind and solar), smart electrification, prosumerisation and digitisation. Largely occurring against a background of an ongoing process of...