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dc.contributor.authorRoques, Fabien A.en_GB
dc.contributor.authorNuttall, William J.en_GB
dc.contributor.authorNewbery, Daviden_GB
dc.contributor.authorde Neufville, Richarden_GB
dc.date.accessioned2006-03-14T14:56:28Z
dc.date.available2006-03-14T14:56:28Z
dc.date.created2005-11en_GB
dc.date.issued2006-03-14T14:56:28Z
dc.identifier.urihttp://www.dspace.cam.ac.uk/handle/1810/131607
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/131607
dc.description.abstractHigh fossil fuel prices have rekindled interest in nuclear power. This paper identifies specific nuclear characteristics making it unattractive to merchant generators in liberalised electricity markets, and argues that non-fossil fuel technologies have an overlooked à ¢à  à  option valueà ¢à  à  given fuel and carbon price uncertainty. Stochastic optimisation estimates the company option value of keeping open the choice between nuclear and gas technologies. This option value decreases sharply as the correlation between electricity, gas, and carbon prices rises, casting doubt on whether private investorsà ¢à  à  fuel-mix diversification incentives in electricity markets are aligned with the social value of a diverse fuel-mix.en_GB
dc.format.extent238746 bytes
dc.format.mimetypeapplication/pdfen_GB
dc.format.mimetypeapplication/pdf
dc.language.isoen_GB
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectstochastic optimisation
dc.subjectfuel-mix
dc.subjectdiversification
dc.subject.classificationClassification-JEL: C15, C61, L52, L94en_GB
dc.subject.otherNuclear economicsen_GB
dc.titleNuclear Power: a Hedge against Uncertain Gas and Carbon Prices?en_GB
dc.typeWorking Paper
dc.identifier.doi10.17863/CAM.5051


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