Technology Choice and Capacity Investment Under Emissions Regulation

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty

Technology Choice and Capacity Portfolios under Emissions Regulation

Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. We study the impact of emissions tax and emissions cap-and-trade regulation on a firm's long-run technology choice and capacity decisions. We study the problem...

The Impact of Budget Constraints on Flexible vs. Dedicated Technology Choice

This paper studies the flexible-versus-dedicated technology choice and capacity investment decisions of a multi-product firm under demand uncertainty in the presence of budget constraints. The firm operates under a capital budget for financing the capacity investment, and an operating budget, which is uncertain in the capacity investment stage, for financing the production. We investigate how t...

Generation capacity expansion under long-term uncertainties in the US electric market

In this paper, we deal with generation capacity expansion under long-term uncertainties regarding fuel prices and CO2 emissions regulation. We present a model based on stochastic dynamic programming which gives optimal generation investment planning for perfectly competitive power markets. It is applied to the US continuous electricity market with DOE's fuel price scenarios. We show that taking...

Regulating Externalities with Uncertainty, Investment, and Technology Spillovers

This paper analyzes optimal and non-optimal regulation of environmental externalities with investment in technology and uncertainty about the severity of environmental damages. Investment creates the potential for technology spillovers so that optimal regulation must address externalities from both emissions and investment. Despite these multiple externalities and uncertainty, we show that an o...