Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs
<p>The emergence of local multi-carrier energy systems (LMCESs) and their participation in upstream energy markets as virtual power plants represent significant advancements toward a more sustainable energy society. Traditional economic models used in the LMCES self-scheduling problem often as...
محفوظ في:
| المؤلف الرئيسي: | |
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| مؤلفون آخرون: | |
| منشور في: |
2025
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| الموضوعات: | |
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إضافة وسم
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| _version_ | 1864513543212105728 |
|---|---|
| author | Sobhan Dorahaki (20545670) |
| author2 | S.M. Muyeen (15746160) |
| author2_role | author |
| author_facet | Sobhan Dorahaki (20545670) S.M. Muyeen (15746160) |
| author_role | author |
| dc.creator.none.fl_str_mv | Sobhan Dorahaki (20545670) S.M. Muyeen (15746160) |
| dc.date.none.fl_str_mv | 2025-06-16T12:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1016/j.energy.2025.136968 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Dynamic_loss_aversion_and_hyperbolic_time-weighted_decision-making_in_short-term_self-scheduling_of_local_multi-carrier_energy_systems_with_environmental_sustainability_programs/29655308 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Economics Applied economics Engineering Engineering practice and education Behavioral economic Local multi-carrier energy system (LMCES) Modified loss aversion Modified prospect theory Self-scheduling |
| dc.title.none.fl_str_mv | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p>The emergence of local multi-carrier energy systems (LMCESs) and their participation in upstream energy markets as virtual power plants represent significant advancements toward a more sustainable energy society. Traditional economic models used in the LMCES self-scheduling problem often assume purely rational decision-making. To address this, the present study proposes an advanced behavioral economic-environmental model based on a modified Prospect Theory framework. The model integrates hyperbolic time discounting to capture temporal preferences in valuing future monetary outcomes and incorporates dynamic loss aversion to better reflect the operator's changing sensitivity to different loss levels. The behavior of the LMCES operator in response to price volatility is modeled using two distinct price scenarios, each assigned a specific probability, enabling the framework to capture how operators subjectively distort probabilities when making decisions under risk. Furthermore, the model incorporates environmental sustainability considerations by enabling participation in emission reduction programs through incentive-based schemes. The effectiveness of the proposed approach is demonstrated by comparison with both traditional Prospect Theory and Expected Theory. Results show that integrating behavioral biases and environmental preferences into the self-scheduling process leads to more robust and sustainable operational decisions.</p><h2>Other Information</h2> <p> Published in: Energy<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.energy.2025.136968" target="_blank">https://dx.doi.org/10.1016/j.energy.2025.136968</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_96f2ef3ce66dcc353755c042a6f74ded |
| identifier_str_mv | 10.1016/j.energy.2025.136968 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/29655308 |
| publishDate | 2025 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programsSobhan Dorahaki (20545670)S.M. Muyeen (15746160)EconomicsApplied economicsEngineeringEngineering practice and educationBehavioral economicLocal multi-carrier energy system (LMCES)Modified loss aversionModified prospect theorySelf-scheduling<p>The emergence of local multi-carrier energy systems (LMCESs) and their participation in upstream energy markets as virtual power plants represent significant advancements toward a more sustainable energy society. Traditional economic models used in the LMCES self-scheduling problem often assume purely rational decision-making. To address this, the present study proposes an advanced behavioral economic-environmental model based on a modified Prospect Theory framework. The model integrates hyperbolic time discounting to capture temporal preferences in valuing future monetary outcomes and incorporates dynamic loss aversion to better reflect the operator's changing sensitivity to different loss levels. The behavior of the LMCES operator in response to price volatility is modeled using two distinct price scenarios, each assigned a specific probability, enabling the framework to capture how operators subjectively distort probabilities when making decisions under risk. Furthermore, the model incorporates environmental sustainability considerations by enabling participation in emission reduction programs through incentive-based schemes. The effectiveness of the proposed approach is demonstrated by comparison with both traditional Prospect Theory and Expected Theory. Results show that integrating behavioral biases and environmental preferences into the self-scheduling process leads to more robust and sustainable operational decisions.</p><h2>Other Information</h2> <p> Published in: Energy<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.energy.2025.136968" target="_blank">https://dx.doi.org/10.1016/j.energy.2025.136968</a></p>2025-06-16T12:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.energy.2025.136968https://figshare.com/articles/journal_contribution/Dynamic_loss_aversion_and_hyperbolic_time-weighted_decision-making_in_short-term_self-scheduling_of_local_multi-carrier_energy_systems_with_environmental_sustainability_programs/29655308CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/296553082025-06-16T12:00:00Z |
| spellingShingle | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs Sobhan Dorahaki (20545670) Economics Applied economics Engineering Engineering practice and education Behavioral economic Local multi-carrier energy system (LMCES) Modified loss aversion Modified prospect theory Self-scheduling |
| status_str | publishedVersion |
| title | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| title_full | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| title_fullStr | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| title_full_unstemmed | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| title_short | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| title_sort | Dynamic loss aversion and hyperbolic time-weighted decision-making in short-term self-scheduling of local multi-carrier energy systems with environmental sustainability programs |
| topic | Economics Applied economics Engineering Engineering practice and education Behavioral economic Local multi-carrier energy system (LMCES) Modified loss aversion Modified prospect theory Self-scheduling |