Article ID Journal Published Year Pages File Type
7405266 Energy Policy 2013 9 Pages PDF
Abstract
► This study focused on the risks associated with the uncertainty of future CER value in CDM projects. ► A real option-based model was developed for both parties in CDM to have fair share of profit and risk. ► Key variables and boundary conditions were identified for application of real option to CDM. ► The model allowed both parties to own options, which have an identical value. ► Hydropower plant projects in Indonesia were used to illustrate the implementation of the model.
Keywords
Related Topics
Physical Sciences and Engineering Energy Energy Engineering and Power Technology
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A real option-based model for promoting sustainable energy projects under the clean development mechanism
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