Investment in clean energy technologies under uncertainty
Number | 3143 |
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Project manager | Rolf Golombek |
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Client | Norges forskningsråd |
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Client project no. | |
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Participants | Kjell Arne Brekke Finn Førsund Simen Gaure Michal Kaut Sverre A. C. Kittelsen Stein W. Wallace |
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Period | 2006 - 2012 (ended) |
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Project description
Development of clean energy technologies is a necessity in order to reduce greenhouse
gas emissions radically without imposing excessive costs. Substantial uncertainty about
future prices and regulatory regimes make, however, such investments a risky endeavor.
Yet, with huge uncertainties analysis of energy markets disregarding uncertainties may be
seriously misleading. The purpose of the present project is to study investment
in clean energy technologies under uncertainty by developing a stochastic energy market
model. The model is then used to assess the impact of different energy and environmental
policies on investment behavior, in particular how the design of optimal instruments are
affected by uncertainty.
Publications
No registered publications