Abstract
ABSTRACTChina has promised to start the national carbon trading system in 2017. In the carbon trading system, the renewable energy projects may obtain additional benefits through the Certified Carbon Emission Reduction (CCER) trade. As the carbon price fluctuates along with the market conditions, such fluctuation enables the renewable power projects to acquire the rights of an option, i.e. it may contain an even higher value due to the uncertainties in the future. While making an investment decision, the renewable power companies may choose to make the investment immediately, or postpone the investment and accumulate more information to increase the return of investment; and for immediate investments, the return must be sufficient to exceed the potential value of a waiting option. To study the investment in renewable power projects subject to the fluctuation of carbon price, this paper adopts the trinomial tree model of real options to estimate the net present value (NPV) and real option value (ROV) of th...
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Chinese Journal of Population Resources and Environment
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
