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Using Ex Post Data ...
Using Ex Post Data to Estimate the Hurdle Rate of Abatement Investments - An Application to the Swedish Pulp and Paper Industry and Energy Sector
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- Löfgren, Åsa, 1972 (författare)
- Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik, Enheten för miljöekonomi,Department of Economics, Environmental Economics Unit
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Millock, K. (författare)
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Nauges, C (författare)
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(creator_code:org_t)
- Göteborg : Göteborg University, 2007
- Engelska.
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Serie: Working Papers in Economics (online), 1403-2465 ; 249
- Relaterad länk:
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https://gup.ub.gu.se...
Abstract
Ämnesord
Stäng
- We propose a method for estimating hurdle rates for firms’ investments in pollution abatement technology, using ex post data. The method is based on a structural option value model where the future price of polluting fuel is the major source of uncertainty facing the firm. The econometric procedure is illustrated using a panel of firms from the Swedish pulp and paper industry, and the energy and heating sector from 2000 to 2003. The results indicate a hurdle rate of investment of almost 3 in the pulp and paper industry and almost 4 in the energy and heating sector.
Ämnesord
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Nyckelord
- option value
- fuel price uncertainty
- investment decision
- pollution abatement
- JEL C33
- D81
- O33
- Q48
- Q53
Publikations- och innehållstyp
- vet (ämneskategori)
- rap (ämneskategori)