Leach, Andrew; Doucet, Joseph; Nickel, Trevor - In: Energy Policy 39 (2011) 7, pp. 4007-4015
This paper examines the impact of government policy on the risk profile of a small ethanol production facility. We derive four key results from a simulation model. First, we show that commodity price risk may discourage investment in a project, despite a positive expected rate of return. Second,...