Abstract
Under the assumptions that the main goal of a regulatory agency is the optimization of the socioeconomic welfare added to society by the electricity sector, developing a regulatory, economic market model of such market is fundamental. Then, it becomes possible to: evaluate the economic flows among the market agents; calculate the optimal capital investments, minimal costs, and optimal tariffs yet preserving the capital yield to investors; simulate actions using agent-based models to reduce energy and financial losses due to energy theft; identify the most effective public policies to reduce energy poverty and inequalities and their impacts on the Gini index, and more. A stochastic regulatory economic model of the smart electricity market can predict returns and risks to a more fare, free, and sustainable society. All these functions are, therefore, related to different philosophic dimensions or normative aspects previously discussed, such as social aspect: flourishing of the community, fight against inequalities; economic aspect: dealing with scarcity of energy and integration of new sources; justice or juridical aspect: accessibility and fight against energy poverty; moral aspect: care for society and care for the natural environment, sustainability.
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Arango, H. et al. (2022). Economics, Regulatory Aspects, and Public Policies. In: Zambroni de Souza, A.C., Verkerk, M.J., Ribeiro, P.F. (eds) Interdisciplinary and Social Nature of Engineering Practices. Studies in Applied Philosophy, Epistemology and Rational Ethics, vol 61. Springer, Cham. https://doi.org/10.1007/978-3-030-88016-3_8
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