Research on CCS project investment incentive based on real option theory
HE Shimiao
Abstract：In order to promote China's coal-fired power plants to invest in CCS(carbon dioxide capture and storage)projects,based on the perspective of coal-fired power plants and based on real options,an investment incentive model for CCS projects is constructed.This paper analyzes the real option characteristics of CCS technology in coal-fired power plants from the aspects of investment irreversibility,income uncertainty and investment opportunity selectivity,and establishes the relationship with critical carbon price from carbon tax,clean electricity price subsidy and government investment subsidy,and compares the incentive effects of carbon tax,investment subsidy and clean electricity price subsidy.Through the research,we know that among the carbon capture and storage technologies,the government's cost subsidy to power producers is the most effective,even if the subsidy is very low,it can greatly promote the investment in carbon capture and storage technology.
Keywords：CCSreal optionproject investment incentivecritical carbon pricecoal-fired power plantcarbon taxinvestment subsidyclean electricity price subsidy
Publication Date：2024-04-20
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：7( 88-94 )