Valuing Investments to Enhance Energy E¢ ciency
نویسنده
چکیده
This paper deals with the optimal time to invest in an energy e¢ ciency enhancement. There is a broad consensus that such investments quickly pay for themselves in lower energy bills and spared emission allowances. However, investments that at rst glance seem worthwhile usually are not undertaken. Our aim is to shed some light on this issue. In particular, we try to assess these projects from a nancial point of view so as to attract su¢ cient interest from the investment community. We consider the speci c case of a rm or utility already in place that consumes huge amounts of coal and operates under restrictions on carbon dioxide emissions. In order to reduce both coal and carbon costs the rm may undertake an investment to enhance energy e¢ ciency. We consider
منابع مشابه
The economics of energy e$ciency: insights from voluntary participation programs
This paper reviews experience with two programs sponsored by the US Environmental Protection Agency* the Green Lights and Energy Star O$ce Products programs* that promote the adoption of energy-e$cient technologies through voluntary agreements with private sector "rms. The evidence suggests that Green Lights has induced "rms to make investments in cost-saving lighting systems that "rms failed t...
متن کاملSelf-Promoting Investments
What is the impact on human capital investment when a worker’s ability and investments are observed by the labour market only when the worker invests in self-promoting activities? When ...rms pay spot market wages, high ability workers overinvest in selfpromotion. There is no employment contract that attains full e¢ciency. Constrained e¢ciency is attained when employment bonds are feasible. The...
متن کاملDynamic E ects of Information Disclosure on Investment E ciency
This paper studies how information disclosure a ects investment e ciency and investor welfare in a dynamic setting in which a rm makes sequential investments to adjust its capital stock over time. We show that the e ects of accounting disclosures on investment e ciency and investor welfare crucially depend on whether such disclosures convey information about the rm's future capital stock or abo...
متن کاملCost-bene"t analysis of domestic energy e$ciency
There are a number of driving forces behind energy e$ciency. In recent times, the Kyoto Protocol has been the most prominent in bringing energy e$ciency to the fore. In some countries, the domestic sector has been highlighted as an area which has a signi"cant potential for improvement. However, prior to the implementation of large-scale energy-e$ciency programmes, it is important to evaluate wh...
متن کاملValuing Climate Change Uncertainty Reductions for Robust Energy Portfolios**
* Corresponding author. ** The research presented in this paper was financially supported by the EC-funded project GEOBENE (http://www.geo-bene.eu/). Abstract – Climate policy uncertainty has decisive influence on energy sector strategies. Potential stranded climate-energy investments may be enormous. Remote sensing can improve our understanding of the climate system and thus better inform clim...
متن کامل