This paper formulates a real-options model for distributed generation system adoption decisions under multiple sources of uncertainty — regulatory, demand, and technology cost. Implications extend to the financing of climate-friendly technologies under volatile policy regimes.
Research · Sustainable Finance
Optimal Commitment Strategies for Distributed Generation Systems Under Regulation and Multiple Uncertainties
A model assessing economic and policy implications of microgrid adoption under regulatory and demand uncertainty.
Bruno G. Kamdem
·
December 1, 2017
·
Journal article
Full Citation
Kamdem, B. G., & Shittu, E. (2017). Optimal Commitment Strategies for Distributed Generation Systems Under Regulation and Multiple Uncertainties. Renewable and Sustainable Energy Reviews, 80, 1597–1612. DOI: 10.1016/j.rser.2016.12.119