Abstract

A methodology for simulating the decision process of an investor deciding between alternative energy systems is presented. The approach assumes the investor bases his decision on cost (or rate of return) and risk. Risk is treated directly in the model and not reduced to a certainty equivalent. The rate of return-risk characteristics of many system combinations allows them to be eliminated as viable choices to the investor without reference to his personal attitude toward risk.

Meeting Name

2nd Annual UMR-MEC Conference on Energy (1975: Oct. 7-9, Rolla, MO)

Document Type

Article - Conference proceedings

Session

Economics of Energy

Document Version

Final Version

File Type

text

Language(s)

English

Rights

© 1976 University of Missouri--Rolla, All rights reserved.