Cost-effectiveness Analysis of Investment Decision-making for Environment Protection by Power Plants

Abstract

The coal-fired electric power plants usually are faced with the problems of both the external diseconomy, namely its contamination to the environment, and the restriction policy from the government, and must choose most economical investment decision to meet restriction. Based on drawing out a stochastic model that contains interrelated influential factors, discussing the solving method of this model and its numerical results, the cost-benefit characteristic of this investment problem in view of technique economy and internal relationship between different investment strategies are thus discussed. The purpose is to establish best scientific decision-making guide for relational decision-make