This paper studies irreversible investment decisions of a risl neutral regulated firm which has costs of production and of investment known with certainty and constant over time, but subject to uncertainty on exogenous shocks to demand. These shocks follow a geometric Brownian motion. No...

This paper studies optimal investment in different types of electric plants. Neither future fuel prices nor future demand are known. Furthermore, we take into account explicitly the problems of management of the peak load and of the decrease of efficiency of plants used for long periods. A two...

This paper extends the theory of irreversible investment under uncertainty to incorporate capacity constraints and uncertainty on the input price. In addition, no restriction on the demand elasticity value is imposed. Assuming input price follows a geometric Brownian motion, the optimal...

L'objectif de ce papier est de construire un modele d'evaluation des investissements optimaux a realiser dans les centrales electriques thermiques qui opereront en 2005 en Allemagne. Un autre but de ce papier est d'evaluer, sous l'angle economique, les arguments qui ont pu ou peuvent pousser...