A Model of Technology Selection by Cost Minimizing Producers

A set of microeconomic assumptions are presented that lead to a model of the technology choices made by producers of a homogenous energy product. Under these assumptions it is possible to model the technology selection decision as being made solely to minimize product cost. Since the cost of producing energy using a particular technology will be different for different producers, a number of technologies will be adopted in the market rather than a single, “least-cost” technology.

• 저널Management Science · 28(4) · 418–424
• 토픽Capital Investment and Risk Analysis · Finance
• DOI10.1287/mnsc.28.4.418
• 저자D.W. Boyd, Robert L. Phillips, S.G. Regulinski