TITLE

Option-game-based method for generation investment analysis considering uncertain carbon reduction policy in the electricity market

AUTHOR(S)
Liu, G.; Zhao, J. H.; Wen, F.; Yin, X.; Dong, Z. Y.
PUB. DATE
August 2010
SOURCE
IET Generation, Transmission & Distribution;Aug2010, Vol. 4 Issue 8, p917
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Greenhouse gas, especially CO2, emissions impact on global climate has been widely recognised. Emissions reduction has become an important issue. Efforts have been made globally in establishing emission policies and protocols. However, considering the fact that different countries have different carbon reduction schemes, and significant variations are still possible for existing schemas, future CO2 prices can be highly uncertain. The power generation sector will be significantly affected by changing policies and therefore significant uncertainties will be involved in the operation and investment processes. Moreover, investments in thermal power plants are also influenced by many other uncertain factors such as fuel prices, spot electricity prices and the investment behaviours of rival generation companies. An appropriate method is urgently needed to model these uncertainties in the investment process. A novel framework of generation investment decision-making is proposed herewith. The option game theory is employed to handle multiple uncertain factors. The investment decision making will be solved with a Barraquand–Martineau option pricing model-based method. Case studies are conducted to assess the performance of the proposed framework.
ACCESSION #
52721254

 

Related Articles

  • Emissions Offsets Must be Verified.  // C3 Views;May2008, Issue 23, p4 

    The article focuses on the importance of verifying the authenticity of offset claims, when buying or selling carbon offsets. It mentions that the process of assurance, as it is called by a growing industry of carbon offset verifiers, is still under development as the field is new. Understanding...

  • Offsets Improve Flexibility. Murray, Brian // Environmental Forum;Nov/Dec2008, Vol. 25 Issue 6, p39 

    The author reflects on the significance of environmental offsets to improve the efficiency of climate change emissions reduction in the U.S. He emphasizes that integrating a cap-and-trade internationally with a robust market for high-quality offsets will provide opportunities to meet the...

  • Emissions Mitigation Schemes in Australia--The Past, Present and Future. Cotton, Deborah; Trück, Stefan // Low Carbon Economy;Jun2013, Vol. 4 Issue 2, p80 

    Australia was one of the first countries in the world to adopt mandatory emissions trading schemes as part of its emissions mitigation program. To date there have been six states and one federal emissions mitigation schemes. Some state schemes operate in conjunction with other states or the...

  • KARBON (SERA GAZI) MUHASEBESÄ°. UYAR, Süleyman; CENGİZ, Emre // Mali Cozum Dergisi / Financial Analysis;2011, Issue 105, p47 

    The study aims to introduce carbon Exchange processes as an emerging tool for preventing global climate change and give information about the changes that the system will occur in the accounting practices. Carbon exchanges processes increase day by day and many enterprises have obligations about...

  • Advancing a Market for Zero-Energy Homes. Farhar, Barbara C. // Solar Today;Jan/Feb2008, Vol. 22 Issue 1, p24 

    The article reports that U.S. policymakers, businesses, and citizens are serious about addressing the global climate crisis through carbon-mitigation efforts. According to the Department of Energy, buildings account for 71% of electricity used in the country. The annual carbon dioxide emissions...

  • Producing a Double Dividend for the EU-27 and USA with the Macro-Economic E4M-GAIA Model: Meeting G8 80% Emissions Reduction Target Leads to Economic Growth. Dagoumas, Athanasios // Low Carbon Economy;Jun2013, Vol. 4 Issue 2, p51 

    The international negotiations concerning climate change, taken place during the UNFCCC conference in Durban at the end of year 2011, have failed to establish a new global agreement to reduce global emissions. Therefore, the G8 commitments on 80% reduction by 2050 seems to be the most realistic...

  • Getting U.S. climate policy right. Bulletin, Staff // Bulletin of the Atomic Scientists;May2009, Vol. 65 Issue 3, p1 

    Congress needs to pass strong laws to reduce carbon emissions, yet an emissions cap should be only one part of the U.S. strategy.

  • BIG REDD. Butler, Rhett // Washington Monthly;Jul/Aug2009, Vol. 41 Issue 7/8, pA6 

    The article reports on the experiment called Reducing Emissions From Deforestation and Forest Degradation which is being piloted in countries worldwide. The idea behind the experiment is that businesses or governments in wealthy countries compensate those in the developing world for preserving...

  • Carbon offset schemes compared.  // Choice;Nov2008, p30 

    The article compares carbon offset programs in Australia that are likely to result in real greenhouse has emission reductions. Carbon offsetting involves consumers paying to reduce or remove greenhouse gas emissions from the atmosphere. The five most common offset types are renewable energy,...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics