Dynamic Capacity Investment with Two Competing Technologies

References

• Aflaki S, Netessine S (2011) Strategic investment in renewable energy source. Working paper, INSEAD, Fontainebleau, France.Google Scholar
• Ambec S, Crampes C (2010) Electricity production with intermittent sources of energy. Working paper, University of Toulouse, Toulouse, France.Google Scholar
• Bessembinder H, Coughenour JF, Seguin PJ, Smoller MM (1995) Mean reversion in equilibrium asset prices: Evidence from the futures term structure. J. Finance 50(1):361–75.Crossref, Google Scholar
• Chao H (1983) Peak load pricing and capacity planning with demand and supply uncertainty. Bell J. Econom. 14(1):179–190.Crossref, Google Scholar
• Chao X, Chen H, Zheng S (2009) Dynamic capacity expansion for a service firm with capacity deterioration and supply uncertainty. Oper. Res. 57(1):82–93.Link, Google Scholar
• Clewlow L, Strickland C (2000) Energy Derivatives: Pricing and Risk Management (Lacima Group, Houston).Google Scholar
• Crew MA, Kleindorfer PR (1976) Peak load pricing with a diverse technology. Bell J. Econom. 7(1):207–231.Crossref, Google Scholar
• Ding Q, Dong L, Kouvelis P (2007) On the integration of production and financial hedging decisions in global markets. Oper. Res. 55(3):470–489.Link, Google Scholar
• Dixit A (1997) Investment and employment dynamics in the short run and the long run. Oxford Econom. Papers 49(1):1–20.Crossref, Google Scholar
• Dixit AK, Pindyck RS, Davis GA (1994) Investment Under Uncertainty (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• Drake D, Kleindorfer PR, Van Wassenhove LN (2010) Technology choice and capacity investment under emissions regulation. Working paper, INSEAD, Fontainebleau, France.Google Scholar
• Eberly JC, Van Mieghem JA (1997) Multi-factor dynamic investment under uncertainty. J. Econom. Theory 75(2):345–387.Crossref, Google Scholar
• Garcia A, Alzate JM, Barrera J (2012) Regulatory design and incentives for renewable energy. J. Regulatory Econom. 41(3):315–336.Crossref, Google Scholar
• Guo X, Kaminsky P, Tomecek P, Yuen M (2011) Optimal spot market inventory strategies in the presence of cost and price risk. Math. Methods Oper. Res. 73(1):109–137.Crossref, Google Scholar
• Hahn WJ, Dyer JS (2008) Discrete time modeling of mean-reverting stochastic processes for real option valuation. Eur. J. Oper. Res. 184(2):534–548.Crossref, Google Scholar
• Huchzermeier A, Cohen MA (1996) Valuing operational flexibility under exchange rate risk. Oper. Res. 44(1):100–113.Link, Google Scholar
• Jaffe AB, Newell RG, Stavins RN (2003) Technological change and the environment. Mäler K-G, Vincent JR, eds. Handbook of Environmental Economics, Vol. 1 (Elsevier Science B.V., Amsterdam), 461–516.Google Scholar
• Kazaz B, Dada M, Moskowitz H (2005) Global production planning under exchange-rate uncertainty. Management Sci. 51(7):1101–1119.Link, Google Scholar
• Kleindorfer P, Neboian A, Roset A, Spinler S (2012) Fleet renewal with electric vehicles at La Poste. Interfaces 42(5):465–477.Link, Google Scholar
• Kleindorfer PR, Fernando CS (1993) Peak-load pricing and reliability under uncertainty. J. Regulatory Econom. 5(1):5–23.Crossref, Google Scholar
• Luss H (1982) Operations research and capacity expansion problems: A survey. Oper. Res. 30(5):907–947.Link, Google Scholar
• Manne AS (1961) Capacity expansion and probabilistic growth. Econometrica: J. Econometric Soc. 29(4):632–649.Crossref, Google Scholar
• Nelson DB, Ramaswamy K (1990) Simple binomial processes as diffusion approximations in financial models. Rev. Financial Stud. 3(3):393–430.Crossref, Google Scholar
• Pindyck RS (1986) Irreversible Investment, Capacity Choice, and the Value of the Firm (National Bureau of Economic Research Cambridge, MA).Crossref, Google Scholar
• Plambeck EL, Taylor TA (2011) On the flexibility to adapt to co-fluctuations in feedstock costs and output prices. Working paper, Stanford University, Stanford, CA.Google Scholar
• Rajagopalan S (1998) Capacity expansion and equipment replacement: A unified approach. Oper. Res. 46(6):846–857.Link, Google Scholar
• Rajagopalan S, Singh MR, Morton TE (1998) Capacity expansion and replacement in growing markets with uncertain technological breakthroughs. Management Sci. 44(1):12–30.Link, Google Scholar
• Stokey NL, Lucas RE, Prescott EC (1989) Recursive Methods in Economic Dynamics (Harvard University Press, Cambridge, MA).Crossref, Google Scholar
• Tol RSJ (2005) The marginal damage costs of carbon dioxide emissions: An assessment of the uncertainties. Energy Policy 33(16):2064–2074.Crossref, Google Scholar
• U.S. Environmental Protection Agency (2008) Direct emissions from mobile combustion sources. Climate Leaders: Greenhouse Gas Inventory Protocol Core Module Guidance EPA430-K-08-004, Office of Air and Radiation, Washington, DC.Google Scholar
• Van Mieghem JA (2003) Capacity management, investment, and hedging: Review and recent developments. Manufacturing Service Oper. Management 5(4):269–302.Link, Google Scholar