Journal
ENERGY POLICY
Volume 45, Issue -, Pages 691-703Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.enpol.2012.03.022
Keywords
Renewable energy financing; Revenue bond; Environmental credits
Funding
- National Science Foundation [0903597, 1142379]
- Direct For Education and Human Resources
- Division Of Graduate Education [0903597] Funding Source: National Science Foundation
- Directorate For Engineering
- Div Of Civil, Mechanical, & Manufact Inn [1733695] Funding Source: National Science Foundation
- Directorate For Engineering
- Div Of Civil, Mechanical, & Manufact Inn [1142379] Funding Source: National Science Foundation
Ask authors/readers for more resources
Renewable energy systems depend on large financial incentives to compete with conventional generation methods. Market-based incentives, including state-level REC markets and international carbon markets have been proposed as solutions to increase renewable energy investment. In this paper we introduce and formulate a carbon revenue bond, a financing tool to complement environmental credit markets to encourage renewable energy investment. To illustrate its use, we value the bond by predicting future revenue using stochastic processes after analyzing historical price data. Three illustrative examples are presented for renewable energy development in three different markets: Europe, Australia and New Jersey. Our findings reveal that the sale of a carbon revenue bond with a ten year maturity can finance a significant portion of a project's initial cost. (C) 2012 Elsevier Ltd. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available