Pollutant versus not pollutant generation technologies: A CML-analogous analysis

• Type: Article in International Conference Proceedings Book
• Date: 2017

Authors

Martinez Fernandez, P (Author) Other; deLlano Paz, F (Author) Other; Calvo Silvosa, A (Author) Other; Soares, I (Author) FEP

Conference proceedings International

Title: PROCEEDINGS OF THE 3RD INTERNATIONAL CONFERENCE ON ENERGY AND ENVIRONMENT (ICEE 2017)

Pages: 468-474

3rd Internacional Conference on Energy and Environment (ICEE) - Bringing Together Economics and Engineering

Porto, PORTUGAL, JUN 29-30, 2017

Indexing

ISI Web of Knowledge - 0 Citations

Other information

Authenticus ID: P-00P-QK8

Abstract (EN): In this work we apply the Modern Portfolio Theory (MPT) and the Capital Assets Pricing Model (CAPM) to a CO2 emitting generation technologies portfolio under diverse scenarios. We will build the efficient in the sense of minimum risk for a given level of emissions-portfolios frontier. The Capital Market Line (CML) is the place where all the possible combinations of a specific efficient portfolio and a pollution-free portfolio -made up with nuclear and renewable generation technologies-lie. In Finance, that specific efficient portfolio is called the market portfolio but we will see that in our case it lacks an evident meaning like in Finance. So we will explain which should be the reference portfolio for power generation planning analysis. Anyway, the fact is that those combinations are less pollutant than the portfolios in the efficient frontier. Thus, a policy-maker can analyse which is their effect on emissions reduction. We will start analysing the efficient pollutant generation portfolios. Then we will introduce the CML-analogous line to allow the possibility of reducing emissions by combining an efficient portfolio with a non-pollutant portfolio -emissions-free and risk-free-.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 7