Improving Long-Term Investment Decisions under Uncertainty: Applications for the Swedish Energy Sector

• Assumptions about future conditions (e.g. fuel prices) are more or less uncertain. Since energy investments projects most often are characterized by hihg costs and a planned long term uitilization, misallocation of resources may be very expensive. Using the MARKAL model, a number of stylized examples are provided in order to illustrate the economic consequences of misjudgments. Furthermore, possible guidelines for decision-making under uncertainty are illustrated. Finally the boundaries of this analytical approach are highlighted.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Investment under uncertainty

Fuel prices

MARKAL-model

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)