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Effect of regulation on power-plant operation and investment in the South East Europe Market: An analysis of two cases |
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| Affiliation: | 1. Gilat Research Center, Agricultural Research Organization, Ministry of Agriculture, Mobile Post Negev 85280, Israel;2. Institute of Biochemistry, Food Science and Nutrition, The Robert H. Smith Faculty of Agriculture, Food and Environment, The Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100, Israel;3. Department of Postharvest Science, Agricultural Research Organization, Ministry of Agriculture, P.O. Box 6, Bet Dagan 50250, Israel;4. Department of Entomology, Newe Ya’ar Research Center, Agricultural Research Organization, Ministry of Agriculture, P.O. Box 1021, Ramat Yishay 30095, Israel;1. United States Military Academy, West Point, NY, USA;2. University of California, Los Angeles, CA, USA;1. Departament de Fisiologia i Immunologia, Universitat de Barcelona (UB), Avda. Diagonal 643, Edifici Ramon Margalef 3A, E-08028, Barcelona, Spain;2. Department of Sport Science, University of Innsbruck, Innsbruck, Austria |
| Abstract: | This paper analyses the differences between investment decisions for coal-fired power plants in Croatia and in Bosnia and Herzegovina (BiH). The long-run marginal cost (LRMC) of each plant is calculated based on a technical analysis that accounts for the important influences on overall project costs by combining a mathematical model and a simulation model. The former was used to calculate annual costs and the latter to predict power plant performance on the electricity market. This research offers insights about potential risks associated with power-plant investment with a particular focus on the regulatory framework and the relevance of participation in the European Union Emissions Trading Scheme (EU ETS) for costs, prices, and environmental impacts. |
| Keywords: | South East Europe Regulatory Framework Emission Trading Scheme European energy policy |
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