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Optimizing business strategies for carbon energy management in buildings: a machine learning approach in economics and management

  • Carbon Letters
  • Abbr : Carbon Lett.
  • 2025, 35(2), pp.607~621
  • Publisher : Korean Carbon Society
  • Research Area : Natural Science > Natural Science General > Other Natural Sciences General
  • Received : May 8, 2024
  • Accepted : August 19, 2024
  • Published : June 5, 2025

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ABSTRACT

Optimizing business strategies for energy through machine learning involves using predictive analytics for accurate energy demand and price forecasting, enhancing operational efficiency through resource optimization and predictive maintenance, and optimizing renewable energy integration into the energy grid. This approach maximizes production, reduces costs, and ensures stability in energy supply. The novelty of integrating deep reinforcement learning (DRL) in energy management lies in its ability to adapt and optimize operational strategies in real-time, autonomously leveraging advanced machine learning techniques to handle dynamic and complex energy environments. The study’s outcomes demonstrate the effectiveness of DRL in optimizing energy management strategies. Statistical validity tests revealed shallow error values [MAE: 1.056 × 10(−13) and RMSE: 1.253 × 10(−13)], indicating strong predictive accuracy and model robustness. Sensitivity analysis showed that heating and cooling energy consumption variations significantly impact total energy consumption, with predicted changes ranging from 734.66 to 835.46 units. Monte Carlo simulations revealed a mean total energy consumption of 850 units with a standard deviation of 50 units, underscoring the model’s robustness under various stochastic scenarios. Another significant result of the economic impact analysis was the comparison of different operational strategies. The analysis indicated that scenario 1 (high operational costs) and scenario 2 (lower operational costs) both resulted in profits of $70,000, despite differences in operational costs and revenues. However, scenario 3 (optimized strategy) demonstrated superior financial performance with a profit of $78,500. This highlights the importance of strategic operational improvements and suggests that efficiency optimization can significantly enhance profitability. In addition, the DRL-enhanced strategies showed a marked improvement in forecasting and managing demand fluctuations, leading to better resource allocation and reduced energy wastage. Integrating DRL improves operational efficiency and supports long-term financial viability, positioning energy systems for a more sustainable future.

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