IDEAS home Printed from https://ideas.repec.org/a/taf/tjorxx/v72y2021i2p292-303.html
   My bibliography  Save this article

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

Author

Listed:
  • Chao Huang
  • Lifei Chen
  • Pandu R. Tadikamalla
  • Mike M. Gordon

Abstract

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.

Suggested Citation

  • Chao Huang & Lifei Chen & Pandu R. Tadikamalla & Mike M. Gordon, 2021. "Valuation and investment strategies of carbon capture and storage technology under uncertainties in technology, policy and market," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(2), pages 292-303, February.
    • Handle: RePEc:taf:tjorxx:v:72:y:2021:i:2:p:292-303
    DOI: 10.1080/01605682.2019.1678402
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01605682.2019.1678402
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01605682.2019.1678402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sun, Bo & Fan, Boyang & Zhang, Yifan & Xie, Jingdong, 2023. "Investment decisions and strategies of China's energy storage technology under policy uncertainty: A real options approach," Energy, Elsevier, vol. 278(PA).
    2. Liu, Zheng & Huang, Yu-Qing & Shang, Wen-Long & Zhao, Yuan-Jun & Yang, Zao-Li & Zhao, Zhao, 2022. "Precooling energy and carbon emission reduction technology investment model in a fresh food cold chain based on a differential game," Applied Energy, Elsevier, vol. 326(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tjorxx:v:72:y:2021:i:2:p:292-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.