This paper sought to analyze the moderating effect of clean energy innovation on the relationship between corporate carbon footprint and corporate profits in fossil fuel intensive industrial sectors in which it is “hard to abate” CO₂e emissions. We used a longitudinal design consisting of a panel study with a structural equation modeling (SEM) method, based on partial least squares. For the analysis of longitudinal moderation, this paper employed a Bayesian multiple-indicator latent growth curve model (B-LGC model). A global sample was used, consisting of 7827 firm-year observations between 2015 and 2021 for 167 international firms. The results showed that the corporate carbon footprint had a very significant impact on corporate profits and that innovations in clean energy—measured as renewable energy consumption—positively moderate the relationship between Scope 3 value chain greenhouse gas emissions (according to the Greenhouse Gas (GHG) Protocol) and the gross profit margin obtained. In addition to the academic contributions made by the moderating effect of clean energy innovation, these findings imply that a more detailed understanding of total value chain emissions (Scope 3 CO₂e) among executives and managers at high CO₂e-emitting companies offers an effective mechanism for obtaining higher profits and creating competitive advantages, while at the same time achieving a net zero emissions strategy. More importantly, public policymakers will be able to use these results to revise CO₂e-related policies, paying closer attention to the Scope 3 CO₂e emissions produced by these companies to design regulatory and control mechanisms that stimulate clean energy innovation.

In Perú today, fossil fuels including petroleum, diesel fuel and natural gas are used to produce electrical energy for oil field extraction purposes. Due to their remote geographic locations, oil and gas fields are not linked to the national interconnected electricity system (Sistema Eléctrico Interconectado Nacional or SEIN). Therefore, high investment costs are required to produce electricity in their remote locations. Wind power generation is a mature technology used worldwide. Perú has a substantial potential to produce electricity using wind turbine generators. Evidence of this includes the county's 164 MW of installed capacity, distributed among four operating wind farms that provide power to the electricity market. In 2018, three additional wind parks are expected to be commissioned. They will add another 162 MW of pollution-free energy, in total representing 3.8% of the power supplied to Perú's national power grid. The purpose of this article is to present the research that assessed the implementation of a hybrid wind-thermal natural gas system to provide electrical power for the Block X-Talara oil field and estimate the reductions in fuel consumption and CO₂ gas emissions.

This paper completes the ledger of systemic effects of variable renewable energy in Peru's national interconnected system. A prior study established three of them — a positive merit-order effect, a neutral secondary-frequency-reserve cost, and a firmness deficit attributable to variable wind and solar generation — and reported a positive qualitative balance, leaving two open. The first is wind curtailment from network constraint, quantified for the Ica cluster (870.55 MW, about 85 per cent of national wind capacity) between January 2025 and May 2026 using only the limitation episodes the system operator declares, which dispenses with a modelled meteorological counterfactual. Curtailed energy reaches 8.38 GWh, worth US$ 0.27 million; the shadow price of the constraint, measured as the price decoupling across the single evacuation link, values the energy the cluster does place some US$ 3.26 million below the load centre, twelve times that loss. Delimiting windows by link congestion rather than by declared plant limitation would overstate curtailment by about a third, which quantifies what the identification strategy buys. The second item is the gas-hedge value. On a monthly panel over 2016─2025, higher penetration reduces the conditional variance of the short-run marginal cost by an order of 23 per cent; and the March 2026 pipeline disruption raised marginal cost 7.5-fold, an overcost that a linear model under-predicts by a factor of 3.3 to 6.2 out of sample, evidencing a convex system cost under which the hedge carries first-order value. The net benefit is maintained and arguably reinforced.

This paper provides the first integrated empirical evidence on three systemic externalities associated with renewable energy resources (RER) generation in Peru's National Interconnected Electricity System (SEIN) over 2016–2025, using monthly and annual panel data drawn entirely from public COES-SINAC sources. Study I estimates the Merit-Order Effect through a First-Differences model with robust standard errors (N = 119), finding that each additional percentage point of RER share in dispatch reduces the short-run marginal cost by S/. 2.72/MWh (p < 0.01; R² = 0.539), implying an annual systemic benefit of approximately S/. 600–700 million. Study II disaggregates the determinants of the Secondary Frequency Reserve (RSF) cost by technology and validates causal direction with a VAR(2), Granger tests, and impulseresponse functions (N = 95): only small hydroelectric generation (≤ 20 MW) shows a statistically significant, and reducing, effect; solar, wind, and biomass are not significant. Study III quantifies the firm-capacity deficit of solar and wind generation, which grew from 308 MW in 2016 to 1,618 MW in 2025, with an accumulated cost of S/. 130–260 million depending on the attribution scenario; the determining variable is technological composition (solar firmness factor 8.7% versus wind 25.1% in 2025), not aggregate RER penetration. The findings support the issuance of the Ancillary Services (SSCC) Regulation under Ministerial Resolution N.° 171-2026-MINEM/DM and suggest design refinements based on technology-differentiated cost-allocation factors and an articulated remuneration methodology.

The purpose of this research was to analyze the moderating effect of clean energy innovation on the relationship between corporate carbon footprint and corporate profits in those industrial sectors associated with high demand for fossil fuels in which it is "hard to abate" CO₂e emissions. It used a longitudinal research design, in particular a panel study under a structural equation modeling (SEM) approach, based on partial least squares. For the longitudinal moderation analysis, this research employed the Bayesian method by defining a multiple-indicator latent growth curve model (B-LGC model). A global sample was used consisting of 7,827 firm-year observations between 2015 and 2021 corresponding to 167 international firms. The results revealed a very significant impact of the corporate carbon footprint on corporate profits. Likewise, the results showed that innovations in clean energy, when measured as the consumption of renewable energy, positively moderates the relationship between the greenhouse gas emissions from the value chain associated with Scope 3 of the Greenhouse Gas (GHG) Protocol, and the gross profit margin obtained. Besides the academic contribution represented by the moderating effect of clean energy innovation, these findings imply that a more detailed understanding of the emissions of the entire value chain (Scope 3 CO₂e) by executives and managers of high emitting CO₂e companies represents an effective mechanism to obtain higher profits, create competitive advantages and, at the same time, achieve a net zero emissions strategy. More importantly, public policy makers will be able to use these results to revise CO₂e-related policies paying more attention to the Scope 3 CO₂e emissions produced by these companies, to formulate regulatory and control mechanisms that stimulate clean energy innovation.