How Does Flexibility Affect Environmental Performance? Evidence from the Power Generation Industry

References

• Aflaki S, Netessine S (2017) Strategic investment in renewable energy sources: The effect of supply intermittency. Manufacturing Service Oper. Management 19(3):489–507.Link, Google Scholar
• Al-Gwaiz M, Chao X, Wu OQ (2017) Understanding how generation flexibility and renewable energy affect power market competition. Manufacturing Service Oper. Management 19(1):114–131.Link, Google Scholar
• Ata B, Duran AS, Islegen O (2018) An analysis of time-based pricing in retail electricity markets. Preprint, submitted June 14, https://dx.doi.org/10.2139/ssrn.2826055.Google Scholar
• Benitez LE, Benitez PC, Van Kooten GC (2008) The economics of wind power with energy storage. Energy Econom. 30(4):1973–1989.Crossref, Google Scholar
• Boyce MP (2012) Combined cycle power plants. Combined Cycle Systems for Near-Zero Emission Power Generation (Woodhead Publishing, Sawston, UK), 1–43.Google Scholar
• Breeze P (2011) Efficiency vs. flexibility: Advances in gas turbine technology. Power Engrg. Internat. 19(3):30–34.Google Scholar
• Bright Hub Engineering (2010) The efficiency of power plants of different types. Accessed June 11, 2022, https://www.brighthubengineering.com/power-plants/72369-compare-the-efficiency-of-different-power-plants/#:∼:text=Gas%20turbines%20in%20the%20simple%20cycle%20mode%2C%20only,materials%20and%20aerodynamics%20has%20efficiencies%20upto%2038%20%25.Google Scholar
• Brinkman G, Lew D, Denholm P (2012) Impacts of renewable generation on fossil-fuel unit cycling: Costs and emissions. Proc. 11th Internat. Workshop Large-Scale Integration Wind Power Power Systems.Google Scholar
• C2ES (2020) Global manmade greenhouse gas emissions by sector. Retrieved June 1, 2020, https://www.c2es.org/content/international-emissions/.Google Scholar
• Cachon GP, Gallino S, Olivares M (2018) Does adding inventory increase sales? Evidence of a scarcity effect in U.S. automobile dealerships. Management Sci. 65(4):1469–1485.Google Scholar
• Cameron AC, Trivedi PK (2009) Microeconometrics Using Stata (Stata Press, College Station, TX).Google Scholar
• Chod J, Rudi N (2005) Resource flexibility with responsive pricing. Oper. Res. 53(3):532–548.Link, Google Scholar
• Corbett CJ, Klassen RD (2006) Extending the horizons: Environmental excellence as key to improving operations. Manufacturing Service Oper. Management 8(1):5–22.Link, Google Scholar
• Crew MA, Kleindorfer PR (1976) Peak load pricing with a diverse technology. Bell J. Econom. 7(1):207–231.Crossref, Google Scholar
• Crew MA, Fernando CS, Kleindorfer PR (1995) The theory of peak-load pricing: A survey. J. Regulatory Econom. 8(3):215–248.Crossref, Google Scholar
• Darling SB, You F, Veselka T, Velosa A (2011) Assumptions and the levelized cost of energy for photovoltaics. Energy Environment. Sci. 4(9):3133–3139.Crossref, Google Scholar
• Department of Energy (2022) Demand response. Retrieved February 19, 2022, https://www.energy.gov/oe/activities/technology-development/grid-modernization-and-smart-grid/demand-response.Google Scholar
• Deng SJ, Oren SS (2003) Incorporating operational characteristics and start-up costs in option-based valuation of power generation capacity. Probability Engrg. Inform. Sci. 17(2):155–181.Crossref, Google Scholar
• Dhanorkar S, Donohue K, Linderman K (2015) Repurposing materials and waste through online exchanges: Overcoming the last hurdle. Production Oper. Management 24(9):1473–1493.Crossref, Google Scholar
• Dhanorkar S, Siemsen E, Linderman K (2017) Promoting change from the outside: Directing managerial attention in the implementation of environmental improvements. Management Sci. 64(6):2535–2556.Link, Google Scholar
• Drake DF (2018) Carbon tariffs: Effects in settings with technology choice and foreign production cost advantage. Manufacturing Service Oper. Management 20(4):667–686.Link, Google Scholar
• Drake DF, Spinler S (2013) OM forum—Sustainable operations management: An enduring stream or a passing fancy? Manufacturing Service Oper. Management 15(4):689–700.Link, Google Scholar
• Drake DF, Kleindorfer PR, Van Wassenhove LN (2016) Technology choice and capacity portfolios under emissions regulation. Production Oper. Management 25(6):1006–1025.Crossref, Google Scholar
• EIA (2013) Homes show greatest seasonal variation in electricity use. Retrieved June 9, 2020, https://www.eia.gov/todayinenergy/detail.php?id=10211.Google Scholar
• EIA (2019) International energy outlook 2019 with projections to 2050. Retrieved February 6, 2022, https://www.eia.gov/outlooks/ieo/pdf/ieo2019.pdf.Google Scholar
• Fu W, Kalkanci B, Subramanian R (2019) Are hazardous substance rankings effective? An Empirical investigation of information dissemination about the relative hazards of chemicals and emissions reductions. Manufacturing Service Oper. Management 21(3):602–619.Link, Google Scholar
• George SO, George H, Nguyen SV (2010) Effect of wind intermittency on the electric grid: Mitigating the risk of energy deficits. Preprint, submitted February 10, https://arxiv.org/abs/1002.2243.Google Scholar
• Gerwin D (1993) Manufacturing flexibility: A strategic perspective. Management Sci. 39(4):395–410.Link, Google Scholar
• Glensk B, Madlener R (2019) The value of enhanced flexibility of gas-fired power plants: A real options analysis. Appl. Energy 251:113125.Crossref, Google Scholar
• Gonzalez-Salazar MA, Kirsten T, Prchlik L (2018) Review of the operational flexibility and emissions of gas- and coal-fired power plants in a future with growing renewables. Renewable Sustainable Energy Rev. 82(1):1497–1513.Crossref, Google Scholar
• Goyal M, Netessine S (2007) Strategic technology choice and capacity investment under demand uncertainty. Management Sci. 53(2):192–207.Link, Google Scholar
• Goyal M, Netessine S (2011) Volume flexibility, product flexibility, or both: The role of demand correlation and product substitution. Manufacturing Service Oper. Management 13(2):180–193.Link, Google Scholar
• Goyal M, Netessine S, Randall T (2012) Deployment of manufacturing flexibility: An empirical analysis of the North American automotive industry. Preprint, submitted June 5, https://dx.doi.org/10.2139/ssrn.2077659.Google Scholar
• Graves SC, Tomlin BT (2003) Process flexibility in supply chains. Management Sci. 49(7):907–919.Link, Google Scholar
• Hair JF, Black WC, Babin BJ, Anderson RE, Tatham RL (2006) Multivariate Data Analysis, 6th ed. (Pearson/Prentice-Hall, Upper Saddle River, NJ).Google Scholar
• Hopp WJ, Iravani SM, Xu WL (2010) Vertical flexibility in supply chains. Management Sci. 56(3):495–502.Link, Google Scholar
• Hu S, Souza GC, Ferguson ME, Wang W (2015) Capacity investment in renewable energy technology with supply intermittency: Data granularity matters! Manufacturing Service Oper. Management 17(4):480–494.Link, Google Scholar
• Huang X, Tan T, Toktay LB (2021) Carbon leakage: The impact of asymmetric regulation on carbon‐emitting production. Production Oper. Management 30(6):1886–1903.Crossref, Google Scholar
• International Renewable Energy Association (2017) Renewable power: Sharply falling generation costs. Retrieved July 10, 2024, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2017/Nov/%20IRENA_Sharply_falling_costs_2017.pdf.Google Scholar
• Ivanova P, Sauhats A, Linkevics O, Balodis M (2016) Combined heat and power plants toward efficient and flexible operation. Proc. IEEE 16th Internat. Conf. Environ. Electr. Engrg. (IEEE, New York).Google Scholar
• Jacobs BW, Singhal VR, Subramanian R (2010) An empirical investigation of environmental performance and the market value of the firm. J. Oper. Management 28(5):430–441.Crossref, Google Scholar
• Jordan WC, Graves SC (1995) Principles on the benefits of manufacturing process flexibility. Management Sci. 41(4):577–594.Link, Google Scholar
• Kaffine DT, McBee BJ, Lieskovsky J (2013) Emissions savings from wind power generation in Texas. Energy J. 34(1):155–176.Crossref, Google Scholar
• Kaps C, Marinesi S, Netessine S (2023) When should the off-grid sun shine at night? Optimum renewable generation and energy storage investments. Management Sci. 69(12):7633–7650.Google Scholar
• Kekre S, Srinivasan K (1990) Broader product line: A necessity to achieve success? Management Sci. 36(10):1216–1232.Link, Google Scholar
• Kesavan S, Staats BR, Gilland W (2014) Volume flexibility in services: The costs and benefits of flexible labor resources. Management Sci. 60(8):1884–1906.Link, Google Scholar
• Klassen RD, McLaughlin CP (1996) The impact of environmental management on firm performance. Management Sci. 42(8):1199–1214.Link, Google Scholar
• Kök AG, Shang K, Yücel Ş (2020) Investments in renewable and conventional energy: The role of operational flexibility. Manufacturing Service Oper. Management 22(5):925–941.Link, Google Scholar
• Kroes J, Subramanian R, Subramanyam R (2012) Operational compliance levers, environmental performance, and firm performance under cap and trade regulation. Manufacturing Service Oper. Management 14(2):186–201.Link, Google Scholar
• Lew D, Brinkman G, Ibanez E, Florita A, Heaney M, Hodge BM, Hummon M, et al. (2013) Western Wind and Solar Integration Study Phase 2 (NREL, Golden, CO).Google Scholar
• Loveless M (2012) Energy storage: The key to a reliable, clean electricity supply. Retrieved February 6, 2022, https://www.energy.gov/articles/energy-storage-key-reliable-clean-electricity-supply.Google Scholar
• Mani V, Muthulingam S (2019) Does learning from inspections affect environmental performance? Evidence from unconventional well development in Pennsylvania. Manufacturing Service Oper. Management 21(1):177–197.Link, Google Scholar
• Mohler D, Sowder D (2017) Energy storage and the need for flexibility on the grid. Renewable Energy Integration (Academic Press, New York), 309–316.Crossref, Google Scholar
• Moreno A, Terwiesch C (2015) Pricing and production flexibility: An empirical analysis of the US automotive industry. Manufacturing Service Oper. Management 17(4):428–444.Link, Google Scholar
• Motyka M, Slaughter A, Amon C (2018) Global renewable energy trends: Solar and wind move from mainstream to preferred. Retrieved February 6, 2022, https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/global-renewable-energy-trends.html.Google Scholar
• National Conference of State Legislatures (2021) State renewable portfolio standards and goals. https://www.ncsl.org/energy/state-renewable-portfolio-standards-and-goals.Google Scholar
• Nevo A (2001) Measuring market power in the ready-to-eat cereal industry. Econometrica 69(2):307–342.Google Scholar
• Nevo A, Wolfram C (2002) Why do manufacturers issue coupons? An empirical analysis of breakfast cereals. RAND J. Econom. 319–339.Google Scholar
• NREL (2012) Renewable Electricity Futures Study: Bulk Electric Power Systems Operations and Transmission Planning (NREL, Golden, CO).Google Scholar
• NREL (2016) Energy Storage: Possibilities for Expanding Electric Grid Flexibility (NREL, Golden, CO).Google Scholar
• NREL (2017) The open PV project. Accessed November 13, 2018, https://openpv.nrel.gov/search.Google Scholar
• NREL (2022a) Utility-scale battery storage. Annual technology baseline. Retrieved February 9, 2022, https://atb.nrel.gov/electricity/2021/utility-scale_battery_storage.Google Scholar
• NREL (2022b) A year in review: Advancing energy storage and conversion research. Retrieved February 9, 2022, https://www.nrel.gov/news/program/2022/energy-storage-year-in-review.html.Google Scholar
• Peng X, Wu OQ, Souza G (2021) Renewable, flexible, and storage capacities: Friends or foes? Preprint, submitted December 15, https://dx.doi.org/10.2139/ssrn.3983678.Google Scholar
• Pettersson F, Söderholm P, Lundmark R (2012) Fuel switching and climate and energy policies in the European power generation sector: A generalized Leontief model. Energy Econom. 34(4):1064–1073.Crossref, Google Scholar
• Plambeck EL (2013) OM forum—Operations management challenges for some “cleantech” firms. Manufacturing Service Oper. Management 15(4):527–536.Link, Google Scholar
• Plumer B (2022) How spiking energy prices complicate the fight against global warming. Retrieved June 19, 2023, https://www.nytimes.com/2022/02/02/climate/oil-gas-prices-climate-change.html.Google Scholar
• Porteus AH, Rammohan SV, Lee HL (2015) Carrots or sticks? Improving social and environmental compliance at suppliers through incentives and penalties. Production Oper. Management 24(9):1402–1413.Google Scholar
• Rajaram K, Corbett C (2002) Achieving environmental and productivity improvements through model-based process redesign. Oper. Res. 50(5):751.Link, Google Scholar
• Rawley E, Godart FC, Shipilov A (2018) How and when do conglomerates influence the creativity of their subsidiaries? Strategic Management J. 39(9):2417–2438.Google Scholar
• Sethi AK, Sethi SP (1990) Flexibility in manufacturing: A survey. Internat. J. Flexible Manufacturing Systems 2(4):289–328.Crossref, Google Scholar
• Söderholm P (2001) Fossil fuel flexibility in West European power generation and the impact of system load factors. Energy Econom. 23(1):77–97.Crossref, Google Scholar
• Statista (2021) Installed electricity capacity worldwide in 2020, by source. Retrieved February 6, 2022, https://www.statista.com/statistics/267358/world-installed-power-capacity/.Google Scholar
• Stigler G (1939) Production and distribution in the short run. J. Political Econom. 47(3):305–327.Crossref, Google Scholar
• Taibi E, Nikolakakis T, Gutierrez L, Fernandez C, Kiviluoma J, Rissanen S, Lindroos TJ (2018) Power System Flexibility for the Energy Transition: Part 1 (VTT Technical Research Centre of Finland, Espoo).Google Scholar
• Tan TF, Netessine S (2014) When does the devil make work? An empirical study of the impact of workload on worker productivity. Management Sci. 60(6):1574–1593.Link, Google Scholar
• Tang C, Tomlin B (2008) The power of flexibility for mitigating supply chain risks. Internat. J. Production Econom. 116(1):12–27.Crossref, Google Scholar
• U.S. Department of Energy (2016) WindExchange: US installed and potential wind power capacity and generation. Accessed December 13, 2018, https://windexchange.energy.gov/maps-data/321.Google Scholar
• Van Mieghem J (1998) Investment strategies for flexible resources. Management Sci. 44(8):1071–1078.Link, Google Scholar
• Van Ruijven B, Van Vuuren DP (2009) Oil and natural gas prices and greenhouse gas emission mitigation. Energy Policy 37(11):4797–4808.Google Scholar
• Vokurka RJ, O’Leary-Kelly SW (2000) A review of empirical research on manufacturing flexibility. J. Oper. Management 18(4):485–501.Crossref, Google Scholar
• Wooldridge J (2002) Econometric Analysis of Cross Section and Panel Data, 2nd ed. (MIT Press, Cambridge, MA).Google Scholar