Investments in Renewable and Conventional Energy: The Role of Operational Flexibility

  title={Investments in Renewable and Conventional Energy: The Role of Operational Flexibility},
  author={A. G{\"u}rhan K{\"o}k and Kevin Huei-Min Shang and Safak Y{\"u}cel},
  journal={Manuf. Serv. Oper. Manag.},
There is an ongoing debate among energy experts on how providing a subsidy for one energy source affects the investment in other sources. To explore this issue, we study capacity investments of a utility firm in renewable and conventional sources. Specifically, conventional sources are categorized into two groups as inflexible (e.g., nuclear and coal-fired plants) and flexible (e.g., natural gas), based on operational flexibility, i.e., whether or not the output of a source can be ramped up or… Expand
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