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dc.contributor.authorChronopoulos, Michail
dc.contributor.authorHagspiel, Verena
dc.contributor.authorFleten, Stein-Erik
dc.date.accessioned2017-10-24T08:00:19Z
dc.date.available2017-10-24T08:00:19Z
dc.date.created2016-01-13T12:33:44Z
dc.date.issued2016
dc.identifier.citationEnergy Journal. 2016, 37 (4), 87-108.nb_NO
dc.identifier.issn0195-6574
dc.identifier.urihttp://hdl.handle.net/11250/2461606
dc.description.abstractWe analyse how market price and policy uncertainty, in the form of random provision or retraction of a subsidy, interact to affect the optimal time of Investment and the size of a renewable energy (RE) project that can be completed in either a single (lumpy investment) or multiple stages (stepwise investment). The subsidy takes the form of a fixed premium on top of the electricity price, and, therefore, investment is subject to electricity price uncertainty. We show that the risk of a permanent retraction (provision) of a subsidy increases (decreases) the incentive to invest, yet lowers (raises) the amount of installed capacity, and that this result is more pronounced as the size of the subsidy increases. Additionally, we show that increasing the number of policy interventions lowers the expected value of a subsidy and the size of the project. Furthermore, we illustrate that, although an increase in the size of a subsidy lowers the relative value of the stepwise investment strategy, the expected value of a lumpy investment strategy is still lower than that of stepwise investment.nb_NO
dc.language.isoengnb_NO
dc.publisherInternational Association for Energy Economicsnb_NO
dc.titleStepwise Green Investment under Policy Uncertaintynb_NO
dc.typeJournal articlenb_NO
dc.typePeer reviewednb_NO
dc.description.versionacceptedVersionnb_NO
dc.source.pagenumber87-108nb_NO
dc.source.volume37nb_NO
dc.source.journalEnergy Journalnb_NO
dc.source.issue4nb_NO
dc.identifier.doi10.5547/01956574.37.4.mchr
dc.identifier.cristin1312031
dc.relation.projectNorges forskningsråd: 228811nb_NO
dc.description.localcodeCopyright © 2016 by the IAEE. All rights reserved. LOCKED until 1.10.2019 due to copyright restrictions. Final publication available at http://www.iaee.org/en/publications/ejarticle.aspx?id=2804nb_NO
cristin.unitcode194,60,25,0
cristin.unitnameInstitutt for industriell økonomi og teknologiledelse
cristin.ispublishedtrue
cristin.fulltextpostprint
cristin.qualitycode2


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