Investment decisions and emissions trading

Heinz Eckart Klingelhöfer ()
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Heinz Eckart Klingelhöfer: Lehrstuhl für Allgemeine Betriebswirtschaftslehre und Betriebliche Finanzwirtschaft insbesondere Unternehmensbewertung

A chapter in Emissions Trading, 2008, pp 149-164 from Springer

Abstract: Abstract The presented model offers a general approach to valuating investments with special regard to tradable emissions permits and uncertainty. By deriving the payments required for a financial valuation from production theory and production planning and by applying duality theory, it is possible to identify the determinants of the price ceiling for an investment. Certain discrete option pricing models can be derived as special cases. Sensitivity analysis shows that tradable permits have several effects on an investment and do not always encourage environmentally beneficial investments – in particular cases they even may be counterproductive.

Keywords: Emissions trading; investment decisions; price ceiling; (corrected) net present value; sensitivity analysis (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-0-387-73653-2_10

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DOI: 10.1007/978-0-387-73653-2_10

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