Oil and Gas Economics and Management
Pedram Edalat; Gholam Reza Salehi; Shahab Shahriari
Abstract
The economics of two different power generation systems for an offshore complex installed in the Persian Gulf is considered. The base case defines the present condition in which the total power demand of the complex is supplied by burning the associated natural gas extracted from the platform on board ...
Read More
The economics of two different power generation systems for an offshore complex installed in the Persian Gulf is considered. The base case defines the present condition in which the total power demand of the complex is supplied by burning the associated natural gas extracted from the platform on board in its thermal power plant. The purposed scenario considers a wind farm located near Bardekhun in Bushehr province to be connected to the complex power network and shares its power generated by renewable resources with the platform. The average wind speed and the wind turbine power generation are considered to have uncertainty. Thus, Monte Carlo simulation (MCS) is used to consider the uncertainties in the average wind speed and the wind turbine power generation. The purposed scenario is found obviously more beneficial with some conservative assumptions. The results show an about 30% reduction in pollution and a profit of $3 million in a year
Oil and Gas Economics and Management
Asghar Mir-Mohammad Tabar; Asgar Khademvatani; Vahid Mohammadi; Hamid Reza Hosseinimehr
Abstract
Expanding use of renewable energies (RE) around the world is a critical mission to reach to global environmental policies. Largest share of global energy mix relates to deployable and carbon-intensive fossil fuels. So, it is necessary to create proper incentives for investors to invest in RE in order ...
Read More
Expanding use of renewable energies (RE) around the world is a critical mission to reach to global environmental policies. Largest share of global energy mix relates to deployable and carbon-intensive fossil fuels. So, it is necessary to create proper incentives for investors to invest in RE in order to move toward low carbon economy. In this regard, one of the implemented policies is imposing tax on using deployable energies which includes tax on both energy consumption and motor vehicle transportation. This paper investigates impact of environmental tax policy on investors’ behavior for 13 leading selected developed and developing countries during the period 2004-2016. Based on economic theory, investment, particularly in capital-intensive energy industries would have a long gestation period. To capture this feature and evaluate dynamic relations of investments in RE, a partial-adjustment dynamic model is applied and estimated using Generalized Method of Moments (GMM) method. The results show that imposing tax on fossil fuel energy consumption and transportation systems, in particular that use fossil fuels, has a significant negative and positive impact on investing in RE, respectively. Also, empirical results demonstrate that there is a significant negative relation between interest rate (IR) and Investments in Renewable Energies (IRE).
