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ENERGY EFFICIENCY, RENEWABLE ENERGY, AND EMISSIONS REDUCTION

Carbon Capture by Fossil Fuel Power Plants: An Economic Analysis

Published Online:

Management Science

    Abstract
    For fossil fuel power plants to be built in the future, carbon capture and storage (CCS) technologies offer the potential for significant reductions in carbon dioxide (CO2) emissions. We examine the break-even value for CCS adoptions, that is, the ...
Optimal Energy Commitments with Storage and Intermittent Supply

Published Online:

Operations Research

    Abstract
    We formulate and solve the problem of making advance energy commitments for wind farms in the presence of a storage device with conversion losses, mean-reverting price process, and an autoregressive energy generation process from wind. We derive an ...
Operational Compliance Levers, Environmental Performance, and Firm Performance Under Cap and Trade Regulation

Published Online:

M&SOM

    Abstract
    Cap and trade programs impose limits on industry emissions but offer individual firms the flexibility to choose among different operational levers toward compliance, including inputs, process changes, and the use of allowances to account for emissions. In ...
Engaging Supply Chains in Climate Change

Published Online:

M&SOM

    Abstract
    Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated ...
Double Counting in Supply Chain Carbon Footprinting

Published Online:

M&SOM

    Abstract
    Carbon footprinting is a tool for firms to determine the total greenhouse gas (GHG) emissions associated with their supply chain or with a unit of final product or service. Carbon footprinting typically aims to identify where best to invest in emission ...
Energy Efficiency in Small and Medium-Sized Manufacturing Firms: Order Effects and the Adoption of Process Improvement Recommendations

Published Online:

M&SOM

    Abstract
    In many manufacturing operations, profitable energy efficiency opportunities remain unexploited. Although previous studies have tried to explain the underinvestment, we focus on how the way in which a portfolio of opportunities is presented in a list ...
Curtailing Intermittent Generation in Electrical Systems

Published Online:

M&SOM

    Abstract
    Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using ...
Dynamic Capacity Investment with Two Competing Technologies

Published Online:

M&SOM

    Abstract
    With the recent focus on sustainability, firms making adjustments to their production or distribution capacity levels often have the option of investing in newer technologies with lower carbon footprints and/or energy consumption. These more sustainable ...
Joint Planning of Energy Storage and Transmission for Wind Energy Generation

Published Online:

Operations Research

    Abstract
    Regions with abundant wind resources usually have no ready access to the existing electric grid. However, building transmission lines that instantaneously deliver all geographically distributed wind energy can be costly. Energy storage (ES) systems can ...
Capacity Investment in Renewable Energy Technology with Supply Intermittency: Data Granularity Matters!

Published Online:

M&SOM

    Abstract
    We study an organization’s one-time capacity investment in a renewable energy-producing technology with supply intermittency and net metering compensation. The renewable technology can be coupled with conventional technologies to form a capacity portfolio ...
The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption

Published Online:

Management Science

    Abstract
    This paper studies government subsidies for green technology adoption while considering the manufacturing industry’s response. Government subsidies offered directly to consumers impact the supplier’s production and pricing decisions. Our analysis expands ...
Electricity Trading and Negative Prices: Storage vs. Disposal

Published Online:

Management Science

    Abstract
    Electricity cannot yet be stored on a large scale, but technological advances leading to cheaper and more efficient industrial batteries make grid-level storage of electricity surpluses a natural choice. Because electricity prices can be negative, it is ...
Efficient Feed-In-Tariff Policies for Renewable Energy Technologies

Published Online:

Operations Research

    Abstract
    Feed-in-tariff (FIT) policies aim at driving down the cost of renewable energy by fostering learning and accelerating the diffusion of green technologies. Under FIT mechanisms, governments purchase green energy at tariffs that are set above market price. ...
Allocating Emissions Among Co-Products: Implications for Procurement and Climate Policy

Published Online:

M&SOM

    Abstract
    Co-production (simultaneous production of multiple outputs) occurs in some emission-intensive basic material and agricultural industries. This paper is motivated by ones in which a supplier sells its primary product to a buyer that incurs an emissions ...
Understanding How Generation Flexibility and Renewable Energy Affect Power Market Competition

Published Online:

M&SOM

    Abstract
    We study supply function competition among conventional power generators with different levels of flexibility and the impact of intermittent renewable power generation on the competition. Inflexible generators commit production before uncertainties are ...
Strategic Investment in Renewable Energy Sources: The Effect of Supply Intermittency

Published Online:

M&SOM

    Abstract
    To analyze incentives for investing in the capacity to generate renewable electricity, we model the trade-off between renewable (e.g., wind) and nonrenewable (e.g., natural gas) technology. Renewable technology has a higher investment cost and yields only ...
Carbon Tariffs: Effects in Settings with Technology Choice and Foreign Production Cost Advantage

Published Online:

M&SOM

    Abstract
    Emissions regulation is a policy mechanism intended to address the threat of climate change. However, the stringency of emissions regulation varies across regions, raising concerns over carbon leakage—an outcome where stringent regulation in one region ...
Third-Party Ownership Business Models and the Operational Performance of Solar Energy Systems

Published Online:

M&SOM

    Abstract
    The nonresidential solar energy market has grown rapidly in the United States. Companies considering the adoption of solar energy have an important choice: whether to purchase the system (direct ownership, or DO) or opt for an agreement with a service ...
Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions

Published Online:

Management Science

    Abstract
    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 ...
Consumer Subsidies with a Strategic Supplier: Commitment vs. Flexibility

Published Online:

Management Science

    Abstract
    Governments use consumer incentives to promote green technologies (e.g., solar panels and electric vehicles). Our goal in this paper is to study how policy adjustments over time will interact with production decisions from the industry. We model the ...
Strategic Commitment to a Production Schedule with Uncertain Supply and Demand: Renewable Energy in Day-Ahead Electricity Markets

Published Online:

Management Science

    Abstract
    We consider a day-ahead electricity market that consists of multiple competing renewable firms (e.g., wind generators) and conventional firms (e.g., coal-fired power plants) in a discrete-time setting. The market is run in every period, and all firms ...
Are Hazardous Substance Rankings Effective? An Empirical Investigation of Information Dissemination About the Relative Hazards of Chemicals and Emissions Reductions

Published Online:

M&SOM

    Abstract
    Problem definition: Whether information dissemination about chemical hazards drives managers at facilities to undertake corresponding environmental actions, remains an open question that has not been adequately examined in the literature. Academic/...
The Effects of Ecolabels and Environmental Regulation on Green Product Development

Published Online:

M&SOM

    Abstract
    Problem definition: We develop a framework for studying the impact of voluntary ecolabels and mandatory environmental regulation on green product development among competing firms. Academic/practical relevance: We contribute to the academic literature on ...
Pollution Regulation of Competitive Markets

Published Online:

Management Science

    Abstract
    We develop a model of oligopolistic firms that produce partially differentiated products and generate pollution as a byproduct. We analyze and compare two types of pollution regulation: Cap-and-Trade and Taxes. Firms can respond to regulation by any ...
Investments in Renewable and Conventional Energy: The Role of Operational Flexibility

Published Online:

M&SOM

    Abstract
    Problem definition: There is an ongoing debate on how providing a subsidy for one energy source affects the investment level of other sources. Academic/practical relevance: To investigate this issue, we study a capacity investment problem for a utility ...
Promoting Solar Panel Investments: Feed-in-Tariff vs. Tax-Rebate Policies

Published Online:

M&SOM

    Abstract
    Problem definition: Governments have adopted various subsidy policies to promote investment in renewable energy sources such as rooftop solar panels. The German government uses a feed-in-tariff policy that provides a guaranteed stream of payments for each ...
Incentives and Emission Responsibility Allocation in Supply Chains

Published Online:

Management Science

    Abstract
    Because greenhouse-gas (GHG) emissions from the supply chains of just the 2,500 largest global corporations account for more than 20% of global emissions, rationalizing emissions in supply chains could make an important contribution toward meeting the ...
Net-Metered Distributed Renewable Energy: A Peril for Utilities?

Published Online:

Management Science

    Abstract
    Electricity end-users have been increasingly generating their own electricity via rooftop solar panels. We study the impact of such distributed renewable energy (DRE) on utility profits and social welfare under net metering, which is a widespread policy ...
A Classification of Carbon Abatement Opportunities of Global Firms

Published Online:

M&SOM

    Abstract
    Problem definition: Carbon abatement opportunities are diverse, making it difficult to classify them. Do latent classes of carbon abatement opportunities exist and is there a type that is financially and environmentally superior? Methodology/results: In ...
Carbon Offsetting with Eco-Conscious Consumers

Published Online:

Management Science

    Abstract
    In this paper, we model a firm that can reduce its carbon footprint in the presence of a segment of eco-conscious consumers, who consider the product’s carbon footprint when making purchasing decisions. The firm can reduce its controllable emissions at ...
Is Price Commitment a Better Solution to Control Carbon Emissions and Promote Technology Investment?

Published Online:

Management Science

    Abstract
    Recent years have seen considerable debate about the practicability of a global quantity/price commitment to control carbon emissions and tackle environmental issues. In this paper, we study the impact of the cap-and-trade policy (quantity commitment) and ...
Environment and Energy? The Impact of Environmental Management Systems on Energy Efficiency

Published Online:

M&SOM

    Abstract
    Problem definition: Despite the widespread adoption of environmental management systems (EMS), their relationship with energy efficiency remains unclear. This study investigates whether and how EMS adoption lowers energy efficiency and, if so, how to ...
Meeting Corporate Renewable Power Targets

Published Online:

Management Science

    Abstract
    Several corporations have committed to procuring a percentage of their electricity demand from renewable sources by a future date. Long-term financial contracts with renewable generators based on a fixed strike price, known as virtual power purchase ...
Design of Electricity Demand-Response Programs

Published Online:

Management Science

    Abstract
    During a heat wave on a summer afternoon, a utility firm may face unusually high demand and procurement cost for electricity. Under such conditions, a demand-response event occurs, and the firm asks residential customers to reduce their demand. Such a ...
That’s Not Fair: Tariff Structures for Electric Utilities with Rooftop Solar

Published Online:

M&SOM

    Abstract
    Problem definition: Utility regulators are grappling to devise compensation schemes for customers who sell rooftop solar generation back to the grid, balancing environmental interests and the financial interests of utilities, solar system installers, and ...
Curbing Emissions: Environmental Regulations and Product Offerings Across Markets

Published Online:

M&SOM

    Abstract
    Problem definition: In the U.S. auto market, the California Air Resources Board (CARB) implements a stricter fuel economy standard in California than the federal standard implemented by the U.S. Environmental Protection Agency (EPA). The Trump ...
Rethinking Salt Supply Chains: Cost and Emissions Analysis for Coproduction of Salt and Fresh Water from U.S. Seawater

Published Online:

Management Science

    Abstract
    Is it feasible to build desalination plants for the coproduction of salt and fresh water from U.S. seawater that could lead to a restructuring of supply chains for salt imports? As it is predicted that climate change will increase water stress worldwide, ...
What if buildings created energy instead of consuming it?

TED Talk

Ksenia Petrichenko

Published Online: October 2022

A new economic model for protecting tropical forests

TED Talk

Nat Keohane

Published Online: October 2021

Teaching case: Patagonia’s Path to Carbon Neutrality by 2025

Daniel M. Kammen, Paul Hendricks, Seren Pendleton-Knoll, Vincent Stanley, Robert Strand

Published Online: April 1, 2018
Harvard Business Publishing

Teaching case: Allbirds: Decarbonizing Fashion

Michael W. Toffel, Ken Pucker, Eren Kuzucu

Published August 29, 2021
Harvard Business Publishing

Teaching case: Driving Decarbonization at BMW

Shirley Lu, George Serafeim, Michael W. Toffel

Published: October, 2022
Harvard Business Publishing

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