CCS Investment Decision Based on Real Options
نویسندگان
چکیده
Based on the theory of real options, this paper establishes a investment decision-making model that could evaluate the development of CCS considering some uncertainties: feed-in tariff, the clean price, carbon price, incentives and subsidies from the government and the progress of technology. This model calculates the investment value of CCS project by studying the binomial tree model of real options. It considers many details, analyzes the current situation of Chinas investment in CCS project, conducts scenario simulations and gets more accurate analysis on the value of our investment in the coming years. It gets the critical condition through calculating Chinas coal-fired power plant status and development trend. The paper will help the investment decision makers assess the development of renewable resources which may contain some uncertainties.
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