Assessing the feasibility of cofiring wood pellets with coal for electricity generation: A real option analysis

Hui Xian, Gregory Colson, Bin Mei and E. Wetzstein Wetzstein

No 162484, 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas from Southern Agricultural Economics Association

Abstract: Real options is employed for investigating the lack of incentives for U.S. coal-power plants to cofire wood pellets. Results indicate that despite a thriving U.S. wood-pellet industry to supply EU demand, the price differential between wood pellets and coal and the muted level of fuel volatility renders U.S. cofiring unsupportable.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 21
Date: 2014-01
New Economics Papers: this item is included in nep-ene
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Related works:
Journal Article: Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea14:162484

DOI: 10.22004/ag.econ.162484

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