Evaluating CCS Investment of China by a Novel Real Option-Based Model

Table 2

Scenarios setting and description.

Scenarios unit	Configuration setup
Scenario  1: initial cases	Case  1.1: four initial carbon prices are considered with CO2 price drift parameter and volatility parameter
	Case  1.2: CO2 price drift parameter compared with Case  1.1
	Case  1.3: CO2 price volatility parameter compared with Case  1.1
Scenario  2: cost reductions cases	Case  2.1: initial CO2 price is 100 yuan/ton, operations management cost process with exponential parameter , and investment cost process is calculated by relevant setting, and other parameters are the same as Case  1.1
	Case  2.2: initial CO2 price is 125 yuan/ton compared with Case  3.1
	Case  2.3: for operations management cost reduction compared with Case  2.2
Scenario  3: subsidies cases	Case  3.1: initial CO2 price is 100 yuan/ton, generating subsidy is 30 yuan/MWh, and investment subsidy is calculated by relevant setting, and other parameters are the same as Case  1.1
	Case  3.2: initial CO2 price is 125 yuan/ton compared with Case  3.1
	Case  3.3: generating subsidy is 15 yuan/MWh compared with Case  3.2