We report results from an economic experiment where two markets institutions for controlling water pollution are compared. In the status quo institution, permit trades between point and nonpoint sources are subject to a trading ratio. In the alternative, nonpoint abatements are converted into...

The battery size of a Plug-in Hybrid Electric Vehicle (PHEV) is decisive for the pure electrical range of the vehicle and crucial for the cost-effectiveness of this particular vehicle concept. Based on the energy consumption of a conventional reference car and a PHEV, we introduce a...

In this paper we study the economic feasibility of constructing a 560 MW coal-fired power plant in Turkey, using real options theory [1]. We start from a short review of the Turkish electricity market as well as the literature on real options theory and power plant investment. We then...

This paper investigates whether coal- or biomass-fired Integrated Gasification Combined-Cycle (IGCC) power plants can serve as an economically viable future technology for providing clean electricity and heat in Germany. In the context of CO2 emission reduction in power generation, energy...

We analyze the structure of bilateral communication links among consumers in virtual communities by a game-theoretic model of network formation. First, link specificity is incorporated, meaning that the more direct links somebody has to maintain with others, the less she is able to specify her...

In this paper we analyze how development of the economics related to CCS technology in coal-fired power plants affects market diffusion. Specifically, we (1) show the (significant) variance in economic expectations for commercial-grade CCS hard coal power plants observed in selected recent...

We compare two tradable permit markets in their ability to meet a stated environmental target at least cost when some polluters have stochastic and non-measurable emissions. The environmental target is of the safety-first type, which requires probabilistic emissions control. One market is built...

The Integrated Energy and Climate Protection Program of the German government includes the political target of doubling the share of combined heat and power generation (CHP) in Germany from currently about 12% to 25% by 2020. In order to reach this goal, a new CHP law was enacted to improve the...

In this paper, we model the economic feasibility of compressed air energy storage (CAES) to improve wind power integration. The Base Case is a wind park with 100 MW of installed capacity and no storage facility. In Variant 1 we add a central CAES system with 90 MW of compressor and 180 MW of...

In this paper we introduce HECTOR, a new and advanced long-term electricity market model that simulates market behavior bottom-up through opportunistic, variable cost-based bidding of individual power plants into auction-based national markets with international interconnection capacities....