Tseng, Chung-Li; Zhu, Wei; Dmitriev, Alexandre - In: Energy Economics 31 (2009) 6, pp. 888-896
This paper discusses generation asset valuation in a framework where capital utilization decisions are endogenous. We use real options approach for valuation of natural gas fueled turbines. Capital utilization choices that we explore include turning on/off the unit, operating the unit at...