arXiv Machine Learning

Learning Principal-Agent Contracts for Equitable Smallholder Carbon Farming under Moral Hazard and Adverse Selection

The paper investigates how a single pooled contract offered by an aggregator to heterogeneous smallholder farmers can be designed to maximize profit while addressing private adoption costs and unobserved effort over multiple seasons. Using a POMDP framework and reinforcement learning, the authors find that profit‑maximizing contracts disproportionately favor large farms, achieving 87.7% of possible adoption on large farms versus only 8.2% on smallholdings, largely due to higher measurement, reporting, and verification costs on smaller plots. The study suggests that adjusting MRV cost structures could reduce this disparity and help scale carbon farming to smallholders.

arXiv Machine Learning
Jun 29

Non-Linear Model-Based Sequential Decision-Making in Agriculture

arXiv:2509. 01924v4 Announce Type: replace-cross Abstract: Agricultural decision-making faces a dual challenge: sustaining high yields to meet global food security needs while reducing the environmental impacts of input use, including fertilizer losses and other agrochemical applications such as herbicides, insecticides, and fungicides.

By Sakshi Arya, Wentao Lin
arXiv AI
Jun 26

Power Couple? AI Growth and Renewable Energy Investment

arXiv:2603. 26678v2 Announce Type: replace-cross Abstract: AI and renewable energy are increasingly framed as a "power couple," on the premise that surging AI demand will accelerate clean-energy investment, yet concerns persist that AI will entrench fossil-fuel carbon lock-in.

By Luyi Gui, Tinglong Dai
arXiv AI
Sep 7

Reinforcement Learning for Sequential Solar PV Policy Design under Uncertainty: An Agent-Based Approach

The paper presents a reinforcement learning framework for designing solar PV adoption policies under uncertainty, integrating RL with a stochastic agent‑based model to simulate yearly adoption over a 16‑year horizon. Policymakers can choose annual incentives such as grants, subsidised loans, and feed‑in tariffs, and the study evaluates three RL algorithms—PPO, SAC, and TD3—within a scalarised reward framework that balances adoption gains against costs. Results show clear trade‑off patterns, with TD3 yielding the highest adoption at higher cost, PPO achieving the lowest cost with fewer adopters, and a balanced PPO policy offering a middle ground, all outperforming static baseline policies.

By Iias Faiud, Jonaid Shianifar, Michael Schukat, Karl Mason
arXiv AI
Jul 15

Constraint-Aware Aggregation for Federated Reinforcement Learning in Microgrid Energy Coordination

arXiv:2607. 12763v1 Announce Type: cross Abstract: Federated Reinforcement Learning (FedRL) enables coordination of distributed energy resources without sharing raw local data, but standard aggregation methods such as FedAvg do not account for system-level constraints, often leading to unsafe global behavior.

By Usman Haider, Karl Mason
arXiv Computation and Language
Sep 3

Grounded, Compute-Efficient LLM Policy Agents for Energy-Poverty Equity in Physically-Constrained Peer-to-Peer Energy Markets

The paper introduces EqGrid, a closed‑loop simulation that uses a low‑frequency, open‑weight LLM policy agent to set price, carbon limits, and subsidies for a community of empirically‑grounded household personas, while high‑frequency multi‑agent RL traders clear a continuous double auction on a physically constrained IEEE‑33‑bus grid. It demonstrates that the LLM can reduce energy‑poverty inequality—lowering the Gini of energy burden from 0.351 to 0.305 and mean burden by 28%—without increasing net grid cost, and that a compressed sub‑1B model retains 92–95% of this benefit at dramatically lower inference energy. The study also establishes a compute‑efficiency frontier and a decoupled‑safety design that eliminates grid violations. whyItMatters":"By showing that a lightweight LLM can effectively manage energy markets to reduce poverty and inequality while staying energy‑efficient, the work offers a practical, low‑carbon AI solution for humanitarian energy‑poverty interventions."

By Kunal Jadhav, Siddhesh More
arXiv AI
Aug 14

EU-ETS under attack? The impact of carbon price suppression on the decarbonization of the power sector

arXiv:2608. 12363v1 Announce Type: cross Abstract: European countries are debating policies to mitigate the increased energy costs caused by renewed geopolitical tensions, while pursuing decarbonization and electrification.

By Javier Gonzalez-Ruiz, Carlos Rodriguez-Pardo, Alice Di Bella, Paolo Mastropietro, Jose Pablo Chavez-Avila, Massimo Tavoni
arXiv AI
4d ago

Learning to Harvest Without Collapse in a Regenerative Commons: A Lagrangian Framework

The paper introduces a Lagrangian framework for managing a regenerative commons, framing the problem as a constrained Markov game with a specified depletion budget. It constructs policy sequences from unconstrained solutions, extending time‑average concepts to reset episodes with discounted rewards and terminal costs, and provides theoretical guarantees such as reward‑independent feasibility, cooperative feasibility, and approximate optimality. Experiments on a fishery model using constrained IPPO and MAPPO illustrate how depletion budgets influence stock retention, harvest rewards, and price adaptation.

By Jose Tupayachi, Xueping Li, Soham Das