publication . Article . Research . 2019

Strategic Investment Decisions Under the Nuclear Power Debate in Belgium

J. de Frutos Cachorro; Gwen Willeghems; Jeroen Buysse;
Open Access
  • Published: 01 Jan 2019 Journal: SSRN Electronic Journal (eissn: 1556-5068, Copyright policy)
  • Publisher: Elsevier BV
Abstract
Abstract In view of the current nuclear power debate in Belgium, we analyze how uncertainty about a nuclear phase-out, coupled with the implementation of renewable energy subsidies and nuclear taxes, affects investment capacity and productivity decisions by Belgian electricity suppliers. To achieve this goal, considering the market shares of the Belgian market, we build a Stackelberg two-step equilibrium model in which investment decisions are made in a first step under uncertainty regarding a nuclear phase-out, and productivity decisions are subsequently made in a second step for different investment possibilities found in the first step. Our analysis indicates...
Subjects
free text keywords: Energia nuclear, Energia elèctrica, Energies renovables, Subvencions, Bèlgica, Nuclear energy, Electric power, Renewable energy sources, Subsidies, Belgium, Investment decisions, Renewable energy, business.industry, business, License, Industrial organization, Stackelberg competition, Subsidy, Electricity market, Market share, Nuclear power debate
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