Valuation of Wind Energy Projects: A Real Options Approach

We address the valuation of an operating wind farm and the finite-lived option to invest in it under different reward/support schemes: a constant feed-in tariff, a premium on top of the electricity market price (either a fixed premium or a variable subsidy such as a renewable obligation certificate or ROC), and a transitory subsidy, among others. Futures contracts on electricity with ever longer maturities enable market-based valuations to be undertaken. The model considers up to three sources of uncertainty: the electricity price, the level of wind generation, and the certificate (ROC) price where appropriate. When analytical solutions are lacking, we resort to a trinomial lattice combined with Monte Carlo simulation; we also use a two-dimensional binomial lattice when uncertainty in the ROC price is considered. Our data set refers to the UK. The numerical results show the impact of several factors involved in the decision to invest: the subsidy per MWh generated, the initial lump-sum subsidy, the maturity of the investment option, and electricity price volatility. Different combinations of variables can help bring forward investments in wind generation. One-off policies, e.g., a transitory initial subsidy, seem to have a stronger effect than a fixed premium per MWh produced.

Biological Analysis of Two Management Options for the Atlantic Menhaden Fishery

Biological implications of two managment options (the closed corridor and the recommended shortened season (Option 7) options) for the Atlantic menhaden, Brevoortia tyrannus, fishery are reported based on purse-seine landings and port sampling data from 1970 to 1984 and captain's daily fishing reports from 1978 to 1982. Large catches of age-O menhaden raise concern for growth overfishing. Area-specific yield-per-recruit analyses are used to investigate the biological consequences of these management options. The closed corridor option indicates coastwide gains in yield-per-recruit ranging from 0.3 to 7.2% depending on changes in fishing activity with most areas showing gains. The shortened fishing season indicates coastwide gains in yield per recruit ranging from O. 4 to 10.2% depending onf ishing year with most geographic areas showing gains. The shortened fishing season option offers the greatest gains when large numbers ofy oung menhaden would be caught late in the fishing year, while gains from the closed corridor option depend on how the fishing fleet responds to that management plan. The shortened season offers greater potential coastwide gains to the fishery, but also may result in greater losses to the North Carolina fall fishery. The analytical approach is applicable to the management of other coastal migratory fish stocks that fall under the Atlantic States Marine Fisheries Commission or other interstate management groups.

The Feasibility of Enhancing Red Sea Urchin, Strongylocentrotus iranciscanus, Stocks in California: An Analysis of the Options

The California fishery for red sea urchins, Strongylocentrotus franciscanus, has undergone explosive growth in recent years and is approaching full exploitation. Thus, there is considerable interest in enhancing stocks to maintain a high rate of landings. Fishable stocks of red sea urchins in different areas appear to be limited at three stages in their life history: By the availability of larvae, by the survival of newly settled to mid-sized animals, and by the food available to support growth and reproduction of larger animals. Here I review other efforts, notably the extensive Japanese work, to enhance fishable stocks of benthic marine invertebrates, and consider the potential options for red sea urchins at different points of limitation. These include collecting or culturing seed for outplanting, physical habitat improvement measures, improving the food supply, and conservation measures to protect existing stocks until alternate methods are proven and in place. The options are compared in terms of biological feasibility, capital and labor requirements, and potential implications for change in the structure of the fishing industry.

Ghana coastal fisheries governance dialogue: developing options for a legal framework for fisheries co-management in Ghana

The Third National Fisheries Governance Dialogue was a direct follow up on the Second National Fisheries Governance Dialogue held in Elmina in April 2012. It was agreed at the Second dialogue that co-management was the way forward for sustaining Ghana’s fisheries and that its success would depend on a supportive legal framework. The two day dialogue meeting consisted of four key presentations focusing on: the current status of fisheries in Ghana; co-management as a fresh approach to fisheries; outcomes from the regional stakeholder consultations on co-management structure; and outcomes from the research on the legal framework. The presentations were followed by four breakout groups that generated ideas for co-management structures for different species namely pelagic fish or Sardinella, near shore demersal, Volta lake, and lagoons and estuaries. Key elements for co-management structures and elements of a co-management legal framework were later identified during plenary discussions.

Options for achieving a 50% cut in industrial carbon emissions by 2050.

Carbon emissions from industry are dominated by production of goods in steel, cement plastic, paper, and aluminum. Demand for these materials is anticipated to double at least by 2050, by which time global carbon emissions must be reduced by at least 50%. To evaluate the challenge of meeting this target the global flows of these materials and their associated emissions are projected to 2050 under five technical scenarios. A reference scenario includes all existing and emerging efficiency measures but cannot provide sufficient reduction. The application of carbon sequestration to primary production proves to be sufficient only for cement The emissions target can always be met by reducing demand, for instance through product life extension, material substitution, or "light-weighting". Reusing components shows significant potential particularly within construction. Radical process innovation may also be possible. The results show that the first two strategies, based on increasing primary production, cannot achieve the required emissions reductions, so should be balanced by the vigorous pursuit of material efficiency to allow provision of increased material services with reduced primary production.

Harmful algal blooms in coastal waters: options for prevention, control and mitigation

This report is the product of a panel of experts in the science of blooms of unicellular marine algae which can cause mass mortalities in a variety of marine organisms and cause illness and even death in humans who consume contaminated seafood. These phenomena are collectively termed harmful algal blooms or HABs for short. As a counterpart to recent assessments of the priorities for scientific research to understand the causes and behavior of HABs, this assessment addressed the management options for reducing their incidence and extent (prevention), actions that can quell or contain blooms (control), and steps to reduce the losses of resources or economic values and minimize human health risks (mitigation). This assessment is limited to an appraisal of scientific understanding, but also reflects consideration of information and perspectives provided by regional experts, agency managers and user constituencies during three regional meetings. The panel convened these meetings during the latter half of 1996 to solicit information and opinions from scientific experts, agency managers and user constituencies in Texas, Washington, and Florida. The panel's assessment limited its attention to those HABs that result in neurotoxic shellfish poisoning, paralytic shellfish poisoning, brown tides, amnesic shellfish poisoning, and aquaculture fish kills. This covers most, but certainly not all, HAB problems in the U.S.