IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i9p2978-d796958.html
   My bibliography  Save this article

A Hybrid MCDM Model for Evaluating the Market-Oriented Business Regulatory Risk of Power Grid Enterprises Based on the Bayesian Best-Worst Method and MARCOS Approach

Author

Listed:
  • Zhuola Zhang

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Shiyuan Lin

    (State Grid Fujian Electric Power Economic and Technology Research Institute, Fuzhou 350012, China)

  • Yingjin Ye

    (State Grid Fujian Electric Power Economic and Technology Research Institute, Fuzhou 350012, China)

  • Zhao Xu

    (State Grid Energy Research Institute Co., Ltd., Beijing 102209, China)

  • Yihang Zhao

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Huiru Zhao

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Jingqi Sun

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

As a result of the deepening of China’s power system reform, the market-oriented business development of power grid enterprises is in full swing. However, most of the existing research has focused on the regulatory risks of the regulatory business for power grid enterprises, while ignoring the regulatory risks faced by market-oriented businesses. In order to promote the sustainable development of market-oriented business, a comprehensive regulatory risk assessment framework was constructed for the market business of power grid enterprises. First, the risk assessment index system was constructed from the perspectives of policy risk, business isolation risk, market risk, and safety risk. Then, a novel hybrid multi-criteria decision-making (MCDM) model based on the Bayesian best-worst method and the measurement alternatives and ranking according to the compromise solution approach, was adopted. Finally, eight market-oriented businesses were selected as case studies. The result indicates that organizational isolation risk and operational security risk are the key regulatory risks of the market-oriented business for power grid enterprises. Compared with two other MCDM models, the proposed hybrid MCDM model has good applicability and effectiveness for risk evaluation of the regulatory business. The results of this research can provide support for power enterprises to deal with market-oriented business supervision, and can also provide a reference for power industry regulators.

Suggested Citation

  • Zhuola Zhang & Shiyuan Lin & Yingjin Ye & Zhao Xu & Yihang Zhao & Huiru Zhao & Jingqi Sun, 2022. "A Hybrid MCDM Model for Evaluating the Market-Oriented Business Regulatory Risk of Power Grid Enterprises Based on the Bayesian Best-Worst Method and MARCOS Approach," Energies, MDPI, vol. 15(9), pages 1-17, April.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:9:p:2978-:d:796958
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/9/2978/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/9/2978/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shuai Zhang & Fan Zhang & Chengxin Wang & Zhaohan Wang, 2020. "Assessing the resilience of the belt and road countries and its spatial heterogeneity: A comprehensive approach," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-18, September.
    2. Stefano Battiston & Antoine Mandel & Irene Monasterolo & Franziska Schütze & Gabriele Visentin, 2017. "A climate stress-test of the financial system," Nature Climate Change, Nature, vol. 7(4), pages 283-288, April.
    3. Ganhammar, Kajsa, 2021. "The effect of regulatory uncertainty in green certificate markets: Evidence from the Swedish-Norwegian market," Energy Policy, Elsevier, vol. 158(C).
    4. He, Qing & Fang, Cai, 2019. "Regulatory sanctions and stock pricing efficiency: Evidence from the Chinese stock market," Pacific-Basin Finance Journal, Elsevier, vol. 58(C).
    5. Li, Honglian & Huang, Jin & Hu, Yao & Wang, Shangyu & Liu, Jing & Yang, Liu, 2021. "A new TMY generation method based on the entropy-based TOPSIS theory for different climatic zones in China," Energy, Elsevier, vol. 231(C).
    6. Wenjin Li & Bingkang Li & Rengcun Fang & Peipei You & Yuxin Zou & Zhao Xu & Sen Guo, 2021. "Risk Evaluation of Electric Power Grid Enterprise Related to Electricity Transmission and Distribution Tariff Regulation Employing a Hybrid MCDM Model," Mathematics, MDPI, vol. 9(9), pages 1-23, April.
    7. Li, Cun-bin & Lu, Gong-shu & Wu, Si, 2013. "The investment risk analysis of wind power project in China," Renewable Energy, Elsevier, vol. 50(C), pages 481-487.
    8. Daisuke Sasaki & Mikiyasu Nakayama, 2016. "Risk Management in an Electricity Transmission Project between Iceland and the UK," International Journal of Social Science Studies, Redfame publishing, vol. 4(2), pages 17-23, February.
    9. Rezaei, Jafar, 2015. "Best-worst multi-criteria decision-making method," Omega, Elsevier, vol. 53(C), pages 49-57.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Changzheng Gao & Xiuna Wang & Dongwei Li & Chao Han & Weiyang You & Yihang Zhao, 2023. "A Novel Hybrid Power-Grid Investment Optimization Model with Collaborative Consideration of Risk and Benefit," Energies, MDPI, vol. 16(20), pages 1-23, October.
    2. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    3. Himanshu Gupta & Manjeet Kharub & Kumar Shreshth & Ashwani Kumar & Donald Huisingh & Anil Kumar, 2023. "Evaluation of strategies to manage risks in smart, sustainable agri‐logistics sector: A Bayesian‐based group decision‐making approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4335-4359, November.
    4. Weijie Wu & Dongwei Li & Hui Sun & Yixin Li & Yining Zhang & Mingrui Zhao, 2024. "Building a Sustainable Future: A Three-Stage Risk Management Model for High-Permeability Power Grid Engineering," Energies, MDPI, vol. 17(14), pages 1-23, July.
    5. Xin Zhao & Qiushuang Li & Wanlei Xue & Yihang Zhao & Huiru Zhao & Sen Guo, 2022. "Research on Ultra-Short-Term Load Forecasting Based on Real-Time Electricity Price and Window-Based XGBoost Model," Energies, MDPI, vol. 15(19), pages 1-11, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alptekin Ulutaş & Ayşe Topal & Dragan Pamučar & Željko Stević & Darjan Karabašević & Gabrijela Popović, 2022. "A New Integrated Multi-Criteria Decision-Making Model for Sustainable Supplier Selection Based on a Novel Grey WISP and Grey BWM Methods," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    2. James J. H. Liou & Perry C. Y. Liu & Huai-Wei Lo, 2020. "A Failure Mode Assessment Model Based on Neutrosophic Logic for Switched-Mode Power Supply Risk Analysis," Mathematics, MDPI, vol. 8(12), pages 1-19, December.
    3. Lamperti, Francesco & Bosetti, Valentina & Roventini, Andrea & Tavoni, Massimo & Treibich, Tania, 2021. "Three green financial policies to address climate risks," Journal of Financial Stability, Elsevier, vol. 54(C).
    4. Junnan Wu & Xin Liu & Dianqi Pan & Yichen Zhang & Jiquan Zhang & Kai Ke, 2023. "Research on Safety Evaluation of Municipal Sewage Treatment Plant Based on Improved Best-Worst Method and Fuzzy Comprehensive Method," Sustainability, MDPI, vol. 15(11), pages 1-15, May.
    5. Weth, Mark A. & Baltzer, Markus & Bertram, Christoph & Hilaire, Jérôme & Johnston, Craig, 2024. "The scenario-based equity price impact induced by greenhouse gas emissions," Discussion Papers 30/2024, Deutsche Bundesbank.
    6. Serhan Cevik, 2024. "Climate change and energy security: the dilemma or opportunity of the century?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 26(3), pages 653-672, July.
    7. Cortez, Maria Céu & Andrade, Nuno & Silva, Florinda, 2022. "The environmental and financial performance of green energy investments: European evidence," Ecological Economics, Elsevier, vol. 197(C).
    8. Jin, Xin & Zhang, Zhaolong & Shi, Xiaoqiang & Ju, Wenbin, 2014. "A review on wind power industry and corresponding insurance market in China: Current status and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1069-1082.
    9. Zarei, Esmaeil & Khan, Faisal & Abbassi, Rouzbeh, 2021. "Importance of human reliability in process operation: A critical analysis," Reliability Engineering and System Safety, Elsevier, vol. 211(C).
    10. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    11. Paul, Ananna & Shukla, Nagesh & Trianni, Andrea, 2023. "Modelling supply chain sustainability challenges in the food processing sector amid the COVID-19 outbreak," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    12. Lane, Philip R., 2019. "Climate Change and the Irish Financial System," Economic Letters 1/EL/19, Central Bank of Ireland.
    13. Liang, Fuqi & Brunelli, Matteo & Rezaei, Jafar, 2020. "Consistency issues in the best worst method: Measurements and thresholds," Omega, Elsevier, vol. 96(C).
    14. Pushparenu Bhattacharjee & Syed Abou Iltaf Hussain & V. Dey & U. K. Mandal, 2023. "Failure mode and effects analysis for submersible pump component using proportionate risk assessment model: a case study in the power plant of Agartala," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1778-1798, October.
    15. Dilupa Nakandala & Yung Po Tsang & Henry Lau & Carman Ka Man Lee, 2022. "An Industrial Blockchain-Based Multi-Criteria Decision Framework for Global Freight Management in Agricultural Supply Chains," Mathematics, MDPI, vol. 10(19), pages 1-23, September.
    16. Simon Dikau & Nick Robins & Matthias Täger, 2019. "Building a sustainable financial system: the state of practice and future priorities," Financial Stability Review, Banco de España, issue Autumn.
    17. Martín-García, Jaime & Gómez-Limón, José A. & Arriaza, Manuel, 2024. "Conversion to organic farming: Does it change the economic and environmental performance of fruit farms?," Ecological Economics, Elsevier, vol. 220(C).
    18. Zeng, Shouzhen & Zhou, Jiamin & Zhang, Chonghui & Merigó, José M., 2022. "Intuitionistic fuzzy social network hybrid MCDM model for an assessment of digital reforms of manufacturing industry in China," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    19. Salimi, Negin & Rezaei, Jafar, 2018. "Evaluating firms’ R&D performance using best worst method," Evaluation and Program Planning, Elsevier, vol. 66(C), pages 147-155.
    20. Željko Stević & Irena Đalić & Dragan Pamučar & Zdravko Nunić & Slavko Vesković & Marko Vasiljević & Ilija Tanackov, 2019. "A new hybrid model for quality assessment of scientific conferences based on Rough BWM and SERVQUAL," Scientometrics, Springer;Akadémiai Kiadó, vol. 119(1), pages 1-30, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:9:p:2978-:d:796958. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.