Financial valuation of investments in future power generation technologies: nuclear fusion and CCS in an emissions trading system

摘要: This paper outlines a model approach for the financial valuation of future power generation technologies, such as nuclear fusion or carbon capture and storage (CCS) under an emissions trading regime. Since on imperfect markets, interdependencies between decisions inhibit isolated investment, we use simultaneous calculation optimal production, sales investment programs; these are subject to constraints conditions characteristic investments in low- zero-carbon technologies CCS. Duality theory allows derive, identify economically interpret determinants price ceiling (corrected) net present values. Sensitivity analysis shows how changes technical specification environmental policies affect maximum payable price. Particularly, tradable permits have several effects low-carbon do not always encourage CO 2 abatement. While zero-emissions technology like profits from tightened scheme, CCS—in particular cases—this may even be counterproductive economic well point view.