Should a lower discount rate be used for evaluating a tolling agreement than used for a renewable energy contract?

Chi Keung WOO, Brian HORII, Michele CHAIT, Ira HOROWITZ

Research output: Contribution to journalArticles

1 Citation (Scopus)

Abstract

Should a lower discount rate be used for evaluating a tolling agreement than used for a renewable energy contract? The California Energy Commission seems to think so. An analysis suggests that a risk-adjusted discount rate is inappropriate. A correct approach should quantify the effect of risk on a contract's financial performance, thereby providing useful information for decision-making. Copyright © 2008 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)35-40
JournalElectricity Journal
Volume21
Issue number9
DOIs
Publication statusPublished - Nov 2008

Citation

Woo, C. K., Horii, B., Chait, M., & Horowitz, I. (2008). Should a lower discount rate be used for evaluating a tolling agreement than used for a renewable energy contract? The Electricity Journal, 21(9), 35-40. doi: 10.1016/j.tej.2008.10.002

Fingerprint Dive into the research topics of 'Should a lower discount rate be used for evaluating a tolling agreement than used for a renewable energy contract?'. Together they form a unique fingerprint.