Policy Implications of Production Tax Credit (PTC) and Renewable Portfolio Standard (RPS) on Electric Power Industry:The Case of Negative Correlation between the Fuel Price and PTC Level

摘要：

In this paper we construct and analyze a meanvariance utility maximization model for a risk-averse electric power producer who wishes to determine the optimal capacity levels from a single conventional fuel source and the wind energy subject to the state renewable portfolio standard (RPS). We assume that the fuel price and the federal wind power production tax credit (PTC) are random variables and investigate the case when they are negatively correlated. Throughout this study we show that how vastly different arguments and claims for the PTC and RPS policy issues can be accommodated within a single model framework. Interesting and relevant managerial insights and policy implications are also presented.

关键词： generation expansion planning production tax credit renewable portfolio standard wind power

作者: Chenlu Lou K. Jo Min

作者单位: Industrial and Manufacturing Systems Engineering Iowa State University Ames, USA

会议类型: 国际会议

会议名称: 2011 International Conference on Economics, Business and Marketing Management(EBMM 2011)(2011年经济、商业和营销管理国际会议)

会议地点: 上海

会议语种:英文

页码: 451-455

在线出版日期: 2011-03-11（万方平台首次上网日期，不代表论文的发表时间）