Real Options-Based Framework for Hydropower Plant Adaptation to Climate Change
| Autor: | Seongdeok Bang, Hyoungkwan Kim, Kyeongseok Kim, Taeil Park |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
010504 meteorology & atmospheric sciences
business.industry Natural resource economics 020209 energy Strategy and Management Environmental resource management General Engineering Economic feasibility Climate change 02 engineering and technology Building and Construction Management Science and Operations Research Investment (macroeconomics) 01 natural sciences Investment decisions Industrial relations 0202 electrical engineering electronic engineering information engineering Environmental science Production (economics) business Adaptation (computer science) Productivity Hydropower 0105 earth and related environmental sciences |
| Zdroj: | Journal of Management in Engineering. 33 |
| ISSN: | 1943-5479 0742-597X |
| DOI: | 10.1061/(asce)me.1943-5479.0000496 |
| Popis: | The economic feasibility of hydropower depends on the level of energy production, which in turn depends on weather conditions. Changes in runoff volumes directly influence energy production. Therefore, decision makers should take into account different climate change scenarios when making investment decisions for existing hydropower plants. The authors propose a real options-based framework to assess economic benefit of adapting hydropower plants to climate change. The framework enables evaluation of climate change impacts to hydropower. A case study of South Korea shows that investment on adaptation projects creates additional benefit in the regions with increasing precipitation under future climate scenarios. The findings suggest that adaptation projects prevent energy spilling and improve the productivity of hydropower. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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