Bottom-up optimization models neglect the inclusion of investment behavior We introduce three investor types that differ in their investment cost specifications, financing costs, and discounting. This leads to a substantially different pace and rate of adoption for specific generation...

Policymakers misjudge results of technology-rich optimization models because those models specify investment cost differently and thus are not equally sensitive towards changing financing cost and discount rates. We apply an intertemporally optimizing power market model to analyze three...

Policymakers misjudge results of technology-rich optimization models with high spatial and temporal resolutions because such models specify investment cost differently and thus are not equally sensitive to changing financing cost and discount rates. We apply an intertemporally optimizing power...