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dc.contributor.authorAdkins, Roger*
dc.contributor.authorPaxson, D.*
dc.date.accessioned2017-03-06T13:05:12Z
dc.date.available2017-03-06T13:05:12Z
dc.date.issued2016-02-23
dc.identifier.citationAdkins R and Paxson D (2016) Subsidies for Renewable Energy Facilities under Uncertainty. The Manchester School. 84(2): 222-250.en_US
dc.identifier.urihttp://hdl.handle.net/10454/11544
dc.descriptionYesen_US
dc.description.abstractWe derive the optimal investment timing and real option value for a facility with price and quantity uncertainty, where there might be a government subsidy proportional to production quantity. Where the subsidy is proportional to the multiplication of the price and quantity, dimensionality can be reduced. Alternatively, we provide quasi-analytical solutions for different quantity subsidy arrangements: permanent (policy is certain); retractable; suddenly permanent; and suddenly retractable. Whether policy uncertainty acts as a disincentive for early investment depends on the type of subsidy arrangement. The greatest incentive for early investment is an actual retractable subsidy, a ‘flighty bird in hand’.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttp://dx.doi.org/10.1111/manc.12093en_US
dc.rights© 2016 Wiley. This is the peer reviewed version of the following article: Adkins R and Paxson D (2016) Subsidies for Renewable Energy Facilities under Uncertainty. The Manchester School. 84(2): 222-250, which has been published in final form at http://dx.doi.org/10.1111/manc.12093. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
dc.subjectRenewable energy; Subsidies; Investment incentives; Real optionsen_US
dc.titleSubsidies for Renewable Energy Facilities under Uncertaintyen_US
dc.status.refereedYesen_US
dc.date.Accepted2014-09-29
dc.date.application2015-02-20
dc.typeArticleen_US
dc.type.versionAccepted manuscripten_US
refterms.dateFOA2018-07-26T09:38:07Z


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