December 2023
Models for Risk Aggregation and Sensitivity Analysis: An Application to Bank Economic Capital
Hulusi Inanoglu andMichael Jacobs
1Board of Governors of the Federal Reserve System Banking Supervision and Regulation, Market and Liquidity Risk, Washington, DC, USA
2Currency Credit Risk Analysis Division, Department of International and Economic Affairs, One Independence Square, 250 E Street SW, Suite 3144, Washington, DC, USA
*Authors to whom correspondence should be addressed.
ABSTRACT
Background: The integration of renewable energy sources into existing energy systems has been widely recognized as a crucial strategy for promoting sustainable development and mitigating climate change. However, understanding the synergistic impact of renewable energy integration across various dimensions is essential for effective policymaking and planning.
Aim: This study aimed to comprehensively assess the synergistic impact of renewable energy integration on sustainable development and climate change mitigation through a multi-dimensional analysis.
Methods: A multi-disciplinary approach was adopted, incorporating quantitative analysis, qualitative assessments, and modeling techniques. Data from diverse sources were collected and analyzed to evaluate the socio-economic, environmental, and technological dimensions of renewable energy integration.
Results: The results revealed significant positive impacts of renewable energy integration on various aspects of sustainable development, including reduced greenhouse gas emissions, enhanced energy security, job creation, and economic growth. Additionally, the analysis highlighted the role of renewable energy in promoting social equity and resilience to climate change impacts.
Conclusion: The findings underscore the importance of prioritizing renewable energy integration as a key strategy for achieving sustainable development goals and addressing climate change challenges. Policy recommendations are provided to further enhance the synergistic effects of renewable energy integration across different sectors and geographical regions.
Keywords: Renewable energy, Sustainable development, Climate change mitigation, Synergistic impact, multi-dimensional analysis.