A real options-based CCS investment evaluation model: Case study of China's power generation sector
Zhu, L; Fan, Y
2011
Source PublicationAPPLIED ENERGY
ISSN0306-2619
Volume88Issue:12Pages:14,4320-4333
AbstractThis paper establishes a carbon capture and storage (CCS) investment evaluation model based on real options theory considering uncertainties from the existing thermal power generating cost, carbon price, thermal power with CCS generating cost, and investment in CCS technology deployment. The model aims to evaluate the value of the cost saving effect and amount of CO(2) emission reduction through investing in newly-built thermal power with CCS technology to replace existing thermal power in a given period from the perspective of power generation enterprises. The model is solved by the Least Squares Monte Carlo (LSM) method. Since the model could be used as a policy analysis tool, China is taken as a case study to evaluate the effects of regulations on CCS investment through scenario analysis. The findings show that the current investment risk of CCS is high, climate policy having the greatest impact on CCS development. Thus, there is an important trade off for policy makers between reducing greenhouse gas emissions and protecting the interests of power generation enterprises. The research presented would be useful for CCS technology evaluation and related policy-making. (C) 2011 Published by Elsevier Ltd.
KeywordCcs Technology Carbon Price Cost Saving Real Options Lsm
Subject AreaChemical ; Energy & Fuels ; Engineering
Indexed BySCI
Language英语
WOS IDWOS:000295387200008
Citation statistics
Cited Times:84[WOS]   [WOS Record]     [Related Records in WOS]
Document Type期刊论文
Identifierhttp://ir.casisd.cn/handle/190111/4253
Collection中国科学院科技政策与管理科学研究所(1985年6月-2015年12月)
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GB/T 7714
Zhu, L,Fan, Y. A real options-based CCS investment evaluation model: Case study of China's power generation sector[J]. APPLIED ENERGY,2011,88(12):14,4320-4333.
APA Zhu, L,&Fan, Y.(2011).A real options-based CCS investment evaluation model: Case study of China's power generation sector.APPLIED ENERGY,88(12),14,4320-4333.
MLA Zhu, L,et al."A real options-based CCS investment evaluation model: Case study of China's power generation sector".APPLIED ENERGY 88.12(2011):14,4320-4333.
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