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Decision making in the emissions-market under uncertainty

In: Emissions Trading and Business

Author

Listed:
  • Gorden Spangardt

    (Fraunhofer Institute for Environmental)

  • Michael Lucht

    (Fraunhofer Institute for Environmental)

  • Christian Wolf

    (Fraunhofer Institute for Environmental)

  • Christian Horn

    (Fraunhofer Institute for Environmental)

Abstract

In this paper a stochastic optimization model for decision making in the emissions market under uncertain boundary conditions is presented. This model aims at finding a strategy for profit optimal emissions trading/emissions reduction. The uncertainties in the emissions market are modelled via a scenario approach considering the price risk in the emissions market as well as the project risk of a potential emissions reduction project.

Suggested Citation

  • Gorden Spangardt & Michael Lucht & Christian Wolf & Christian Horn, 2006. "Decision making in the emissions-market under uncertainty," Springer Books, in: Ralf Antes & Bernd Hansjürgens & Peter Letmathe (ed.), Emissions Trading and Business, pages 119-132, Springer.
    • Handle: RePEc:spr:sprchp:978-3-7908-1748-5_9
    DOI: 10.1007/3-7908-1748-1_9
    as

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