• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
  •   Home
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

The effects of changes in EU emission trading scheme on the value of a gas fired power plant in Norway

Henrichsen, Kristian Marø
Master thesis
Thumbnail
View/Open
Henrichsen 2011.pdf (1.972Mb)
URI
http://hdl.handle.net/11250/169075
Date
2011
Metadata
Show full item record
Collections
  • Master Thesis [4207]
Abstract
The purpose of this thesis was to study how changes in the carbon market influences the present value of the gas fired power plant operated by Naturkraft AS. The changes in focus here are the ones introduced in EU’s Emission Trading Scheme after 2012, for instance higher prices on emissions and no more free emission allowances to the power generating industry.

Based on secondary data, I used a binomial real option’s model that I programmed with Microsoft Visual Basic 6.5.

The principal conclusion was that the present value is only slightly affected by an increase in the price of emissions (3.8% reduction in PV in the highest price scenario), but much more so by the removal of free emission allowances (34% reduction in PV). Interestingly, I also found that the present value of the plant actually increases with higher prices of emission allowances given that the plant still receives free emission allowances.

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit