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27 August 2020 Analysis of Investment Decision of Coastal Clean Energy Project Based on Market Connection
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Abstract

Zou, X.H.; Zhu, C.; Ling, M.S.; Chang, X.Z., and Du, J.S., 2020. Analysis of investment decision of coastal clean energy project based on market connection. In: Bai, X. and Zhou, H. (eds.), Advances in Water Resources, Environmental Protection, and Sustainable Development. Journal of Coastal Research, Special Issue No. 115, pp. 383-386. Coconut Creek (Florida), ISSN 0749-0208.

Nuclear power project is one of clean energy in coastal areas, it's investment decisions are affected by a variety of uncertainties. This paper proposes a real option decision model. The model considers the investment cost of nuclear power projects, project fixed costs, on-grid electricity prices and carbon dioxide prices. The market linkage is added to the model, considering the value of nuclear power investment under market linkage, modeling and analyzing the value of nuclear investment in enterprises. The accuracy and effectiveness of the model are verified by scenario analysis. The results of the study show that the nuclear power plant under the option is the most valuable when considering carbon dioxide trading. When considering carbon dioxide trading, the abandoned path is as high as 25.99%. Considering carbon dioxide trading can avoid mistakes in investment decisions, and it is beneficial for companies to make correct decisions when investing in nuclear power projects. The research results provide a certain reference for investment decisions in energy projects.

©Coastal Education and Research Foundation, Inc. 2020
Xiaohua Zou, Chuan Zhu, Mingsheng Ling, Xingzhi Chang, and Junshu Du "Analysis of Investment Decision of Coastal Clean Energy Project Based on Market Connection," Journal of Coastal Research 115(sp1), 383-386, (27 August 2020). https://doi.org/10.2112/JCR-SI115-110.1
Received: 15 January 2020; Accepted: 28 May 2020; Published: 27 August 2020
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