End effects in capacity expansion models with finite horizons
✍ Scribed by F. H. Murphy; A. L. Soyster
- Publisher
- John Wiley and Sons
- Year
- 1986
- Tongue
- English
- Weight
- 467 KB
- Volume
- 33
- Category
- Article
- ISSN
- 0894-069X
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✦ Synopsis
Capacity expansion models are typically formulated in the context of some finite horizon.
Because the f m lasts longer than the horizon, a bias can enter into the optimal solution from the model horizon chosen. Recently, Grinold [8] has proposed a "dual-equilibrium method" for ameliorating possible distortions. Although the dual-equilibrium method has superior analytical properties to other methods, it is conceptually more complex. In this paper it is shown that there are situations where the "primal-equilibrium" approach of Manne [ 151 provides equivalent results and that the use of annualized capital costs in the objective function, although somewhat less efficient, results in a similar model.