Real option analysis for emission reduction investment under the sulfur emission control

2021 ◽  
Vol 45 ◽  
pp. 101055
Author(s):  
Yan Yue ◽  
Yirong Ying
Keyword(s):  
Emission Reduction ◽  
Real Option ◽  
Emission Control ◽  
Real Option Analysis ◽  
Sulfur Emission

Study on Power Generation Expansion Planning Model Based on NOx Total Emission Control and Low Carbon Economy Effect

2013 ◽  
Vol 830 ◽  
pp. 439-443 ◽  
Author(s):  
Yu Li ◽  
Chao Ci Li
Keyword(s):  
Power Generation ◽  
Energy Saving ◽  
Emission Reduction ◽  
Emission Control ◽  
Total Emission ◽  
Low Carbon ◽  
Low Carbon Economy ◽  
Generation Expansion ◽  
Total Emission Control ◽  
Carbon Economy

Acid rain and greenhouse effect are the major air pollution problems in China, and the goals for the total emission control of NOx and total energy consumption control begin to move forward in the 12th five-year plan. NOx emission reduction and energy saving of coal-fired power plants are still put in a strategic position. Accordingly, it is of great significance to carry out power planning work, considering effect of NOx emission index and energy saving on power industry. In this study, a mixed 0-1 integer linear power generation expansion model based on total emission control of NOx and low carbon economy effect is developed for the first time, which can be used for studying the change of power structure, confirming the releasing emissions of NOx from power system for development and reducing energy consumption by total amount control of power coal consumption and CO2 emission growth rate. The model is applied to the power system in Heilongjiang province and the results indicate that the proposed model not only can meet the requirement of power generation expansion management, but also can help the power industry clear the economic impact of NOx emission reduction on self-development and achieve the energy saving target.

scholarly journals A real option approach for the valuation of switching output flexibility in residential property investment

2018 ◽  
Vol 23 (2) ◽  
pp. 133-151 ◽  
Author(s):  
Kwabena Mintah ◽  
David Higgins ◽  
Judith Callanan
Keyword(s):  
Real Options ◽  
Real Option ◽  
Economic Value ◽  
Management Tool ◽  
Residential Property ◽  
Option Valuation ◽  
Content Type ◽  
Real Option Analysis ◽  
Real Option Valuation ◽  
Mixed Use

Purpose Uncertainties in residential property investment performance require that real estate assets are designed in a flexible manner to respond to impacts of market dynamics. Though estimating the cost of flexibility is straightforward, assessing the economic value of flexibility is not. The purpose of this study is to explore the potential practical application of real option analysis to determine the economic value of a switching output flexibility embedded in a residential property investment in Australia. The study involves the exploration of an optimal strategy for investment in a residential development through real option analysis and valuation of a mixed use investment. Design/methodology/approach The real option valuation model developed by McDonald and Siegel (1986) is adopted for the evaluation because the switching output flexibility is likened to a perpetual American call option with dividend payout. Findings Through real option analysis, the economic value of switching output flexibility of the mixed use building was determined to be higher than the initial upfront costs. Moreover, a payoff of about $4million was determined to be the value of the switching output flexibility, therefore justifying upfront investments in flexibility as an uncertainty and risk management tool. Practical implications This application is an important demonstration of the practical use of options pricing techniques (real options analysis) and delivers further evidence needed to support the adoption of real option valuation in practice. Flexibility can also enhance risks and uncertainty management in residential property investment better than the adjustment of discount rates. Originality/value There is limited evidence on the use of real options techniques for the valuation of switching output flexibility in practice, and this comes as an original application; both the case study and data are all initial applications of switching flexibility in the Australian property market.

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