From systemic financial risk to grid resilience: Embedding stress testing in electric utility investment strategies and regulatory processes

IF 2.7 Q2 ENGINEERING, CIVIL

Sustainable and Resilient Infrastructure Pub Date : 2022-07-21 DOI:10.1080/23789689.2021.2015833

M. DeMenno, R. Broderick, Robert Jeffers

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引用次数: 1

Abstract

ABSTRACT In response to major system disruptions, policymakers have prioritized enhancing the resilience of the financial services and energy sectors, with a particular focus on banking and electricity regulation. In both sectors, ‘regulating for resilience’ requires bridging system-level policy goals and institution-level policy instruments as well as tailoring institutional requirements to firms’ idiosyncratic risk profiles. Stress testing has enabled financial regulators to partially overcome these analytical and governance challenges, resulting in better capitalized and managed banks, increased attentiveness to systemic risk, and a more resilient financial system. Recognizing the opportunity for translation across sectors and disciplines, this article develops a novel methodology and an actionable policy framework for embedding stress testing in electric utility investment strategies and regulatory processes. It demonstrates how stress testing could enhance the resilience and sustainability of the U.S. electric grid and explores opportunities for regulatory coordination in multi-sector analyses of climate-related risk and resilience.

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从系统性金融风险到电网弹性：在电力投资策略和监管流程中嵌入压力测试

摘要为应对重大系统中断，政策制定者已将提高金融服务和能源部门的弹性列为优先事项，特别关注银行和电力监管。在这两个部门，“弹性监管”需要将系统级政策目标和机构级政策工具联系起来，并根据企业的特殊风险状况调整机构要求。压力测试使金融监管机构能够部分克服这些分析和治理挑战，从而使银行资本化和管理更好，对系统性风险的关注度更高，金融体系更具弹性。认识到跨部门和跨学科翻译的机会，本文开发了一种新的方法和可操作的政策框架，用于将压力测试嵌入电力公司投资战略和监管流程。它展示了压力测试如何提高美国电网的弹性和可持续性，并探索了在气候相关风险和弹性的多部门分析中进行监管协调的机会。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Sustainable and Resilient Infrastructure ENGINEERING, CIVIL-

CiteScore

7.60

自引率

10.20%

发文量

期刊介绍： Sustainable and Resilient Infrastructure is an interdisciplinary journal that focuses on the sustainable development of resilient communities. Sustainability is defined in relation to the ability of infrastructure to address the needs of the present without sacrificing the ability of future generations to meet their needs. Resilience is considered in relation to both natural hazards (like earthquakes, tsunami, hurricanes, cyclones, tornado, flooding and drought) and anthropogenic hazards (like human errors and malevolent attacks.) Resilience is taken to depend both on the performance of the built and modified natural environment and on the contextual characteristics of social, economic and political institutions. Sustainability and resilience are considered both for physical and non-physical infrastructure.