S.E.R.G. Working Paper Series – Three New 2026 Papers

We are pleased to announce the release of three new working papers by S.E.R.G. members, now available in the S.E.R.G. Working Paper Series : https://www.serg.paris/working-papers

Equity-based additional downstream allocation methods for Scope 3 emissions
Marine Kohler & David Lowing
This paper proposes new equity-based methods for allocating upstream emission reduction responsibilities across supply chains. Combining an axiomatic framework with reconstructed multi-tier supply chains, it highlights how different fairness principles affect the distribution of mitigation efforts.

Strategic behavior of Virtual Power Plants (VPP) in EU balancing markets: exploring the impact of control
Diego Cebreros, Julien Ancel & Yannick Perez
This paper examines how increasing control over distributed energy resources may change the incentives of Virtual Power Plants in European balancing markets. It shows that greater controllability can encourage strategic imbalance creation, raising important regulatory challenges.

Financial Twins: Adapting Long-term Contract Designs to New Electricity Systems
Louis Soumoy, Ibrahim Abada, Andreas Ehrenmann & Olivier Massol
This paper introduces Financial Twins, a new class of long-term financial contracts designed to better allocate risks in electricity systems with high shares of renewables and storage. Using a stochastic equilibrium model, the authors show how these contracts can improve investment incentives and market efficiency.