Technology selection and capacity investment under uncertainty

Filomena, Tiago Pascoal; Campos-Náñez, Enrique; Duffey, Michael R.

doi:10.1016/j.ejor.2013.07.019

Cited by 23 publications

(13 citation statements)

References 32 publications

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“…Historically, electricity has been generated and distributed in markets regulated by public utility commissions. In the regulated markets, vertically integrated utilities own the electricity supply chain from Jing- Yuan and Smeers (1999), Younes and Ilic (1999), Lavigne et al (2000), Boucher and Smeers (2001), Schuler (2001), Bessembinder and Lemmon (2002), Bunn and Oliveira (2003), Bushnell (2003), Garcia et al (2005), Rudkevich (2005), Kleindorfer (2005), de Haro et al (2007), Hobbs and Pang (2007), Hu and Ralph (2007), Wang et al (2007), Yao et al (2007Yao et al ( , 2008, Anderson and Hu (2008), Bushnell et al (2008), Wilson (2008), Holmberg (2009), Shanbhag et al (2011, Thompson (2013), Filomena et al (2014), Peura and Bunn (2015), and Ruddell et al…”

Section: Definitions and Background Informationmentioning

confidence: 99%

“…(2016) Examination of market power or implicit collusion Schuler (2001), Borenstein et al (2002), Bunn and Oliveira (2003), Bushnell (2003), Murphy and Smeers (2005), Bushnell et al (2008), Anderson and Cau (2009), Banal-Estañol and Micola (2009), Murphy and Smeers (2010), Cau (2011), Oh and, and Peura and Bunn (2015) Capacity expansion in electricity markets Murphy and Smeers (2005), , Bunn and Oliveira (2008), Murphy and Smeers (2010), Ehrenmann and Smeers (2011), Pineau et al (2011), Filomena et al (2014, Bunn and Oliveira (2016), and Oliveira and Costa (2018) Effect of transmission costs and constraints on market behavior Younes and Ilic (1999), Kattuman et al (2004), Daxhelet and Smeers (2007) (2002), Neame et al (2003), Pritchard and Zakeri (2003), Kian andCruz (2005), Triki et al (2005), Fleten and Kristoffersen (2007), Aparicio et al (2008), Beraldi et al (2008), Corchero and Heredia (2011), Kim and Powell (2011), Boomsma et al (2014), and Steeger and Rebennack (2017) Bidding behavior, auction design and implementation Mount (2001), Singer (2002, Schummer and Vohra (2003), Elmaghraby (2005), Hortacsu and Puller (2008), Meeus et al (2009), …”

Section: Definitions and Background Informationmentioning

confidence: 99%

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Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Parker

Tan

Kazan

2019

Production and Operations Management

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The electric power industry is undergoing dramatic change driven by rapid technological transformation, concern over climate change, and evolving market structures. As a result, there is a need for new models to help the industry better utilize resources in a time of increasing uncertainty and to help government policy makers better understand the impacts of their regulatory decisions. We provide a structured review of the operations research and management science literatures to describe the current operational and policy issues in the electric power industry, with a particular focus on issues surrounding electricity market design, renewable integration, effects of climate policy on electric power infrastructure, rise of electric powered vehicles, energy storage, and the growing interdependence between natural gas and electric power sectors. We identify the current research frontier and classify the existing research into clusters with respect to managerial issues addressed. We offer a forecast for where the electric power industry is going and describe some important public policy issues. Finally, we highlight research opportunities and discuss how the management science community can contribute by considering the interaction between operational considerations and electric power policy.

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Section: Definitions and Background Informationmentioning

confidence: 99%

Section: Definitions and Background Informationmentioning

confidence: 99%

Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Parker

Tan

Kazan

2019

Production and Operations Management

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“…In particular, the formulation of our electricity market model as a Nash-equilibrium game is based on production (e.g. Leibowicz, 2015) and investment capacity decision models (e.g Filomena et al, 2014;Genc and Sen, 2008;Murphy and Smeers, 2005) Another possible classification among Nash-equilibrium models depends basically on the type and scope of decisions, and market power of the different agents. On one hand, Nash-Cournot models are more easy to represent and are suitable for markets in which it is assumed that all players have market power, and then, take decisions simultaneously.…”

Section: Literature Related To Oligopolistic Market Models and Marketmentioning

confidence: 99%

Strategic investment decisions under the nuclear power debate in Belgium

Cachorro

Willeghems

Buysse

2019

Resource and Energy Economics

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In view of the current nuclear power debate in Belgium, we analyze how uncertainty about a nuclear phase-out, coupled with the implementation of renewable energy subsidies and nuclear taxes, affects investment capacity and productivity decisions by Belgian electricity suppliers. To achieve this goal, considering the key characteristics of the Belgian market, we build a Stackelberg closed-loop (two-stage) equilibrium model in which investment decisions are made in a first stage under uncertainty regarding a nuclear phase-out, and productivity decisions are subsequently made in a second stage in a certainty environment. Our analysis indicates that, regardless of subsidies, an increase in the probability of nuclear license extension results in lower levels of investment-primarily in renewable energy-, lower total production and a higher electricity price. We also show that the implementation of renewable energy subsidies reduces the effect of an increase in probability of nuclear license extension on producer's decisions regarding expanded capacity and on total profits in the market.

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“…Furthermore, current research usually regards green improvement as a decision on the amount of emission reduction or investment. As a matter of fact, with the development of green manufacturing technologies, the more valuable decision for the generating company may be the choice of different green technologies [11] . Our research in this paper aims at meeting these needs by focusing on the issues related to green manufacturing technology choice, product pricing, production planning with green consumption considered under different C&T conditions of allocating absolute and relative emission allowance.…”

Section: Introductionmentioning

confidence: 99%

Allocating absolute or relative emission allowance under cap-and-trade scheme? A nonlinear model with customer choice behavior considered

Pan

Zhu

Wen

et al. 2014

2014 11th International Conference on Service Systems and Service Management (ICSSSM)

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To reduce carbon emission, Cap-and-Trade (C&T) is regarded as one of the effective environmental regulations around the world, which brings huge challenges to generating companies. In this paper, a non-linear programming model considering market drive of green consumption is proposed to make decisions of green improvement, production planning, product pricing and carbon trading for the generating companies. Policies allocating absolute and relative emission allowance are also analyzed through numerical experiments. Our research results show that the consumers' factors such as the environmental awareness can be as important as the government regulations in emission reduction. The system performance of generating companies performs better when carbon price fluctuates and the consumers' environmental awareness improves if relative emission allowance policy is implemented.

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Technology selection and capacity investment under uncertainty

Cited by 23 publications

References 32 publications

Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Electric Power Industry: Operational and Public Policy Challenges and Opportunities

Strategic investment decisions under the nuclear power debate in Belgium

Allocating absolute or relative emission allowance under cap-and-trade scheme? A nonlinear model with customer choice behavior considered

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