IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v349y2023ics0306261923009418.html
   My bibliography  Save this article

Operational and economy-wide impacts of compound cyber-attacks and extreme weather events on electric power networks

Author

Listed:
  • Avraam, Charalampos
  • Ceferino, Luis
  • Dvorkin, Yury

Abstract

The growing frequencies of extreme weather events and cyber-attacks give rise to a novel threat where a malicious cyber actor aims to disrupt stressed components of critical infrastructure systems immediately before, during, or shortly after an extreme weather event. In this paper, we initiate the study of Compound Cyber–Physical Threats and develop a two-stage framework for the analysis of operational disruptions in electric power networks and economy-wide impacts under three scenarios: a Heatwave, a Cyber-attack, and a Compound scenario when the Cyber-attack is timed with the Heatwave. In the first stage, we use a bilevel optimization problem to represent the adversarial rationale of a cyber-attacker in the upper level. In the lower level, we model disruptions in the electric power network using an optimal power flow model. In the second stage, we couple the disruption of electricity supply with a Computable General Equilibrium model to elucidate the impacts on all economic sectors. For the New York Independent System Operator, we find that a 9% demand increase in a Heatwave may not lead to unserved load. The cyber-attack can lead to 4% of unserved electric load in Long Island, while the Compound scenario can increase unserved electric load in Long Island to 12% and affect almost 198,000 customers. Our results show that the activity of state and local government enterprises can decrease by 37% in the Compound scenario. We conclude that the vulnerability of federal, state, and local government enterprises to electricity disruptions can affect a broad range of populations.

Suggested Citation

  • Avraam, Charalampos & Ceferino, Luis & Dvorkin, Yury, 2023. "Operational and economy-wide impacts of compound cyber-attacks and extreme weather events on electric power networks," Applied Energy, Elsevier, vol. 349(C).
  • Handle: RePEc:eee:appene:v:349:y:2023:i:c:s0306261923009418
    DOI: 10.1016/j.apenergy.2023.121577
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261923009418
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2023.121577?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Adam Rose & Gauri-Shankar Guha, 2004. "Computable General Equilibrium Modeling of Electric Utility Lifeline Losses from Earthquakes," Advances in Spatial Science, in: Yasuhide Okuyama & Stephanie E. Chang (ed.), Modeling Spatial and Economic Impacts of Disasters, chapter 7, pages 119-141, Springer.
    2. Joost R. Santos & Yacov Y. Haimes & Chenyang Lian, 2007. "A Framework for Linking Cybersecurity Metrics to the Modeling of Macroeconomic Interdependencies," Risk Analysis, John Wiley & Sons, vol. 27(5), pages 1283-1297, October.
    3. Rutherford, Thomas F. & Böhringer, Christoph, 2006. "Combining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approach," ZEW Discussion Papers 06-007, ZEW - Leibniz Centre for European Economic Research.
    4. Bessec, Marie & Fouquau, Julien, 2008. "The non-linear link between electricity consumption and temperature in Europe: A threshold panel approach," Energy Economics, Elsevier, vol. 30(5), pages 2705-2721, September.
    5. Elco E. Koks & Mark Thissen, 2016. "A Multiregional Impact Assessment Model for disaster analysis," Economic Systems Research, Taylor & Francis Journals, vol. 28(4), pages 429-449, October.
    6. Jed Cohen & Klaus Moeltner & Johannes Reichl & Michael Schmidthaler, 2018. "Effect of global warming on willingness to pay for uninterrupted electricity supply in European nations," Nature Energy, Nature, vol. 3(1), pages 37-45, January.
    7. Adam Rose & Gbadebo Oladosu & Shu‐Yi Liao, 2007. "Business Interruption Impacts of a Terrorist Attack on the Electric Power System of Los Angeles: Customer Resilience to a Total Blackout," Risk Analysis, John Wiley & Sons, vol. 27(3), pages 513-531, June.
    8. repec:dau:papers:123456789/8180 is not listed on IDEAS
    9. Pazouki, Samaneh & Naderi, Ehsan & Asrari, Arash, 2021. "A remedial action framework against cyberattacks targeting energy hubs integrated with distributed energy resources," Applied Energy, Elsevier, vol. 304(C).
    10. Edward J. Balistreri & Wendong Zhang & John Beghin, 2020. "The State-level Burden of the Trade War: Interactions between the Market Facilitation Program and Tariffs," Center for Agricultural and Rural Development (CARD) Publications apr-winter-2020-1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    11. S. Siddiqui & S. Gabriel, 2013. "An SOS1-Based Approach for Solving MPECs with a Natural Gas Market Application," Networks and Spatial Economics, Springer, vol. 13(2), pages 205-227, June.
    12. Maryia Markhvida & Brian Walsh & Stephane Hallegatte & Jack Baker, 2020. "Quantification of disaster impacts through household well-being losses," Nature Sustainability, Nature, vol. 3(7), pages 538-547, July.
    13. Ke, Xinda & Wu, Di & Rice, Jennie & Kintner-Meyer, Michael & Lu, Ning, 2016. "Quantifying impacts of heat waves on power grid operation," Applied Energy, Elsevier, vol. 183(C), pages 504-512.
    14. Bohringer, Christoph & Rutherford, Thomas F., 2008. "Combining bottom-up and top-down," Energy Economics, Elsevier, vol. 30(2), pages 574-596, March.
    15. Lai, Kexing & Illindala, Mahesh & Subramaniam, Karthikeyan, 2019. "A tri-level optimization model to mitigate coordinated attacks on electric power systems in a cyber-physical environment," Applied Energy, Elsevier, vol. 235(C), pages 204-218.
    16. Thomas F. Rutherford & Andrew Schreiber, 2019. "Tools for Open Source, Subnational CGE Modeling with an Illustrative Analysis of Carbon Leakage," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(2), pages 1-66, December.
    Full references (including those not matched with items on IDEAS)

    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. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Trond G. Husby & Elco E. Koks, 2017. "Household migration in disaster impact analysis: incorporating behavioural responses to risk," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(1), pages 287-305, May.
    3. Edward J. Oughton & Daniel Ralph & Raghav Pant & Eireann Leverett & Jennifer Copic & Scott Thacker & Rabia Dada & Simon Ruffle & Michelle Tuveson & Jim W Hall, 2019. "Stochastic Counterfactual Risk Analysis for the Vulnerability Assessment of Cyber‐Physical Attacks on Electricity Distribution Infrastructure Networks," Risk Analysis, John Wiley & Sons, vol. 39(9), pages 2012-2031, September.
    4. J. A. León & M. Ordaz & E. Haddad & I. F. Araújo, 2022. "Risk caused by the propagation of earthquake losses through the economy," Nature Communications, Nature, vol. 13(1), pages 1-11, December.
    5. Theodoridou, Ifigeneia & Papadopoulos, Agis M. & Hegger, Manfred, 2012. "A feasibility evaluation tool for sustainable cities – A case study for Greece," Energy Policy, Elsevier, vol. 44(C), pages 207-216.
    6. Jafari, Yaghoob & Engemann, Helena & Heckelei, Thomas & Hainsch, Karlo, 2023. "National and Regional Economic Impacts of changes in Germany's electricity mix: A dynamic analysis through 2050," Utilities Policy, Elsevier, vol. 82(C).
    7. Balakrishnan, Srijith & Lim, Taehoon & Zhang, Zhanmin, 2022. "A methodology for evaluating the economic risks of hurricane-related disruptions to port operations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 58-79.
    8. Meri Davlasheridze & Kayode O. Atoba & Samuel Brody & Wesley Highfield & William Merrell & Bruce Ebersole & Adam Purdue & Robert W. Gilmer, 2019. "Economic impacts of storm surge and the cost-benefit analysis of a coastal spine as the surge mitigation strategy in Houston-Galveston area in the USA," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(3), pages 329-354, March.
    9. Jan Oosterhaven & Johannes Többen, 2017. "Wider economic impacts of heavy flooding in Germany: a non-linear programming approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(4), pages 404-428, October.
    10. Gallaher, Adam & Graziano, Marcello & Fiaschetti, Maurizio, 2021. "Legacy and shockwaves: A spatial analysis of strengthening resilience of the power grid in Connecticut," Energy Policy, Elsevier, vol. 159(C).
    11. Po-Chin Wu & Chung-Chih Lee, 2018. "The non-linear impact of monetary policy on international reserves: macroeconomic variables nexus," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 165-185, February.
    12. Masato Yamazaki & Atsushi Koike & Yoshinori Sone, 2018. "A Heuristic Approach to the Estimation of Key Parameters for a Monthly, Recursive, Dynamic CGE Model," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 283-301, October.
    13. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    14. Sellevåg, Stig Rune, 2021. "Changes in inoperability for interdependent industry sectors in Norway from 2012 to 2017," International Journal of Critical Infrastructure Protection, Elsevier, vol. 32(C).
    15. Voisin, Nathalie & Dyreson, Ana & Fu, Tao & O'Connell, Matt & Turner, Sean W.D. & Zhou, Tian & Macknick, Jordan, 2020. "Impact of climate change on water availability and its propagation through the Western U.S. power grid," Applied Energy, Elsevier, vol. 276(C).
    16. Bjertnæs, Geir H. & Tsygankova, Marina & Martinsen, Thomas, 2013. "Norwegian climate policy reforms in the presence of an international quota market," Energy Economics, Elsevier, vol. 39(C), pages 147-158.
    17. Aaron B. Gertz & James B. Davies & Samantha L. Black, 2019. "A CGE Framework for Modeling the Economics of Flooding and Recovery in a Major Urban Area," Risk Analysis, John Wiley & Sons, vol. 39(6), pages 1314-1341, June.
    18. Susana Silva & Isabel Soares & Óscar Afonso, 2010. "E3 Models Revisited," FEP Working Papers 393, Universidade do Porto, Faculdade de Economia do Porto.
    19. Murphy, Frederic & Pierru, Axel & Smeers, Yves, 2019. "Measuring the effects of price controls using mixed complementarity models," European Journal of Operational Research, Elsevier, vol. 275(2), pages 666-676.
    20. Dai, Hancheng & Mischke, Peggy & Xie, Xuxuan & Xie, Yang & Masui, Toshihiko, 2016. "Closing the gap? Top-down versus bottom-up projections of China’s regional energy use and CO2 emissions," Applied Energy, Elsevier, vol. 162(C), pages 1355-1373.

    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:eee:appene:v:349:y:2023:i:c:s0306261923009418. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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.