The purpose of this paper is to examine empirically the real options to shutdown, startup, and abandon existing production assets using detailed information for 1,121 individual power plants for the period 2001--2009, a total of 8,189 plant-year observations. We find strong evidence of real...

We study the effect of the Reliability Pricing Mechanism (RPM) capacity market on coal-fired electric power generator retirements in PJM Interconnection L.L.C. (PJM). We provide evidence that RPM acts as a channel through which environmental regulations affect the supply mix. Increases in RPM...