Title :
An optimal electricity consumption decision with a limited carbon emission concept
Author :
Lin, Tyrone T. ; Hui-Chen Lan
Author_Institution :
Dept. of Int. Bus., Nat. Dong Hwa Univ., Hualien, Taiwan
Abstract :
This paper aims to explore the strategy of electricity-using industries´ optimal electricity selection by using the binomial option pricing model to analyze the values of various stages in the process. Due to variable electricity using and the worldwide regulation of carbon emissions, this paper tries to investigate the hedge behavior of conservative and adventure energy-using industries´ carbon emission strategy and build a maximum financial model for decision-making and the flexible approach of strategy management. How to provide the policymakers of enterprises with a reference of planning the optimal electricity consumption in every decision-making time is the most important. This paper contributes to increase the eco-economic value of enterprises under the restriction of carbon emissions.
Keywords :
decision making; environmental economics; power consumption; pricing; adventure energy using industry; binomial option pricing; conservative energy using industry; decision making; eco-economic value; enterprise policymakers; hedge behavior; limited carbon emission concept; maximum financial model; optimal electricity consumption decision; strategy management; Carbon dioxide; Companies; Decision making; Electricity; Industries; Planning; Pricing; binomial options; carbon emissions; expected net present value; optimal electricity selection;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2014 IEEE International Conference on
DOI :
10.1109/IEEM.2014.7058592