Environmental Regulation, Investment Timing, and Technology Choice

Technology Choice and Capacity Investment Under Emissions Regulation

Investment timing and optimal capacity choice for small hydropower projects

This paper presents a method for assessing small hydropower projects that are subject to uncertain electricity prices. We present a real options-based method with continuous scaling, and we find that there is a unique price limit for initiating the project. If the current electricity price is below this limit it is never optimal to invest, but above this limit investment is made according to th...

Environmental Assessment and Strategic Technology Choice

The scale of the required changes is huge, and time is limited if we are to avoid the most severe effects of climate change. To reduce greenhouse gas emissions from road transport, several fuels and electricity originating from renewable energy sources have been proposed, all of them in different stages of development and with various and shifting environmental impacts. This thesis aims at incr...

Factor price uncertainty, technology choice and investment delay

This paper develops a theory of putty-clay investment under factor price uncertainty using a Brownian motion framework. Ex ante the 4rm faces a choice of technologies that di5er by their relative factor intensities, but ex post technologies are Leontief. The presence of competing technologies and factor price uncertainty can cause delay of pro4table investments for a monopolist 4rm facing a one...

Strategic Technology Choice and Capacity Investment Under Demand Uncertainty

This paper studies the impact of competition on a firm’s choice of technology (product-flexible or product-dedicated) and capacity investment decisions. Specifically, we model two firms competing with each other in two markets characterized by price-dependent and uncertain demand. The firms make three decisions in the following sequence: choice of technology (technology game), capacity investme...