We analyse the decision of an agent to invest and engage in industrial activities that are characterized by two forms of uncertainty: market size uncertainty and competitive effect uncertainty. We apply our model on the bioenergy industries. We compare the case of an ambiguity neutral agent with...

We analyze production and investment decisions of an agent in industrial activities that are characterized by two forms of uncertainty: demand uncertainty (in terms of number of buyers) and competitive effect uncertainty (in terms of other energy resource). We apply our model on the bioenergy...

Reduction in energy dependancy and emissions of CO2 via renewables target in the European Union energy mix and taxation system might trigger bioenergy production and competition for biomass utilization. Pretreated biomass could be used to produce second generation biofuels to replace some of the...

We analyse the decision of an agent to invest in industrial activities characterized by two forms of uncertainty: market size uncertainty and price uncertainty. We use bioenergy industries for an application of the model. Indeed, the sector is confronted to both, an uncertainty in relation to...