There is an ongoing debate on how providing a subsidy for one energy source affects the investment level of other sources. To investigate this issue, we study a capacity investment problem for a utility firm that invests in renewable and conventional energy, with a consideration of two critical...

We investigate the impact of pricing policies (i.e., flat pricing versus peak pricing) on the investment levels of a utility firm in two competing energy sources (renewable and conventional), with a focus on the renewable investment level. We consider generation patterns and intermittency of...

The U.S. Congress needs to determine subsidies for wind energy before they expire at the end of this year. Traditionally, the government has allowed each wind investor to choose its preferred subsidy among two types of subsidies: First is the investment subsidy which reduces the initial...