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Energy Options

  • David G. CarmichaelEmail author
Chapter
Part of the Management in the Built Environment book series (MABUEN)

Abstract

Economic, supply and demand, and external factors affect the price of energy. The price exhibits uncertainty, high volatility, seasonality, and spikes. One way of dealing with risk (Civ Eng Environ Syst 33(3):177–198, [1]) associated with energy prices, is through hedging with energy options. The value of energy options depends on the underlying price of energy.

References

  1. 1.
    Carmichael DG (2016) Risk—a commentary. Civ Eng Environ Syst 33(3):177–198MathSciNetCrossRefGoogle Scholar
  2. 2.
    Deng SJ, Oren SS (2006) Electricity derivatives and risk management. Energy 31(6–7):940–953CrossRefGoogle Scholar
  3. 3.
    Deng SJ, Johnson B, Sogomonian A (2001) Exotic electricity options and the valuation of electricity generation and transmission assets. Decis Support Syst 30(3):383–392CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.School of Civil and Environmental EngineeringUNSW AustraliaSydneyAustralia

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