Valuing carbon assets for high-tech with application to the wind energy industry

Liyan Han, Yang Liu, Qiang Lin and Gubo Huang

Energy Policy, 2015, vol. 87, issue C, 347-358

Abstract: In contrast to the traditional methods for high-tech evaluation, we introduce a new, more active idea for considering the carbon asset effect, in addition to the economic and technological considerations for strategic significance. The method proposed in this paper considers a reduced amount of carbon emissions, less than that of the current industry baseline, to be an asset that is beneficial to a firm that adopts a new technology. The measured carbon asset values vary across different technologies, in different industries and over time. The new method is applied to the valuing of wind energy technology and uses the Weibull distribution to estimate the wind energy capacity and a concrete sensitivity analysis. These applications support the validity of the new method and show that the impact of the fluctuations of carbon sinks on the values of carbon assets is significantly greater than that of volatility in the production output. The paper also presents some policy recommendations based on the results.

Keywords: Carbon assets; Value assessment; High-tech; Carbon emissions; Wind energy; Weibull distribution (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:87:y:2015:i:c:p:347-358

DOI: 10.1016/j.enpol.2015.09.025

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