Journal of the Operational Research Society | VOL. 72

Valuation and investment strategies of carbon capture and storage technology under uncertainties in technology, policy and market

Publication Date Feb 1, 2021


Although developing renewable energy sources is the best way to reduce carbon dioxide emissions and deal with climate change, fossil fuels are currently the most important energy sources. To counter climate change and reduce carbon dioxide emissions from fossil fuels, scientists are developing new carbon capture and storage (CCS) technologies. In this paper, we discuss existing and future CCS technologies, compare the values of three CCS investment strategies in the real options framework under uncertainties in technology, policy and market, and consider the effect of learning curves on investment values. Generally, uncertainty can increase investment valuation, but we find that uncertainty in CCS technology reduces its investment valuation. Finally, we calculate the probability that the optimal investment strategy will be implemented.

Powered ByUnsilo

Uncertainty In Technology
Carbon Capture And Storage
Uncertainties In Technology
Storage Technologies
Carbon Capture And Storage Technologies
Real Options Framework
Reduce Carbon Dioxide Emissions
Uncertainties In Policy
Investment Strategies
Optimal Investment Strategy

Introducing Weekly Round-ups!Beta

Powered by R DiscoveryR Discovery

Round-ups are the summaries of handpicked papers around trending topics published every week. These would enable you to scan through a collection of papers and decide if the paper is relevant to you before actually investing time into reading it.

Climate change Research Articles published between Aug 08, 2022 to Aug 14, 2022

R DiscoveryAug 15, 2022
R DiscoveryArticles Included:  5

Introduction: There is no consensus on the policies that should be seen as implicitly pricing carbon (see World Bank (2019a) for a discussion). The OE...

Read More

Gender Equality Research Articles published between Aug 08, 2022 to Aug 14, 2022

R DiscoveryAug 15, 2022
R DiscoveryArticles Included:  4

I would like to thank Anna Khakee, Federica Zardo and Ragnar Weilandt for their very useful comments as well as the participants of the workshop of 21...

Read More

Coronavirus Pandemic

You can also read COVID related content on R COVID-19

R ProductsCOVID-19


Creating the world’s largest AI-driven & human-curated collection of research, news, expert recommendations and educational resources on COVID-19

COVID-19 Dashboard

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 Copyright Law.