AcidRainPreview

AcidRainPreview - Cap and Trade Model Firm level regulatory...

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Cap and Trade Model Firm level regulatory response evaluation
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Analytical methods and markets (SO 2 permit market) ……. ..to support sustainability Will help us understand the emerging CO 2 markets. Case Objectives
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Objectives Acid Rain Case Least cost alternative problem Cash Flow analysis Capital Budgeting (NPV) Analysis How much would we have to deposit now to cover…. . Internal Rate of return is negative Viability of assumptions in the analysis Key assumption, expected price of permits Spread sheets are helpful with sensitivity analysis Qualitative items that can not be included in the analysis
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Bowen Plant Tons of sulfur dioxide emitted from the plant. 30, 720 and 266,650 tons per hour, day and year respectively Emissions allowed phase 1: 254,580; phase 2: 122,198 Emission allowance price starts at $250/ton and increases 10% per year
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Option 1 Burn High-Sulfur Coal w/out Scrubbers; Purchase Allowances Assume baseline revenue, operating cost
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AcidRainPreview - Cap and Trade Model Firm level regulatory...

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