Juárez-Luna, David (2019): Power generation portfolios: A parametric formulation of the efficient frontier.
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Abstract
The Portfolio Theory has been extensively used as a planning tool for power generation diversification. However, no one of the existing papers provide a detailed explanation on how the efficient frontier of the Power Generation Portfolio (PGP) is costructed. We provide a parametric formulation of the efficient frontier of PGP of up to 5 technologies. The analysys takes advantages of the fact that the risk of the PGP is a convex function of the shares of the different technologies. The parametric formulation of the efficient frontier of the PGP constitutes a powerfull policy tool for power generation policy-makers.
Item Type: | MPRA Paper |
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Original Title: | Power generation portfolios: A parametric formulation of the efficient frontier |
English Title: | Power generation portfolios: A parametric formulation of the efficient frontier |
Language: | English |
Keywords: | Portfolio, Power Generation, Efficient Frontier, Risk, NPV. |
Subjects: | D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q49 - Other |
Item ID: | 95983 |
Depositing User: | Dr. David Juárez-Luna |
Date Deposited: | 12 Sep 2019 15:26 |
Last Modified: | 27 Sep 2019 13:12 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/95983 |
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Power generation portfolios: A parametric formulation of the efficient frontier. (deposited 04 Jul 2019 06:19)
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