Journal of

Marketing Development and Competitiveness

Scholar Gateway

Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF APPLIED BUSINESS AND ECONOMICS

A Monte Carlo Model of a Wind Power Generation Investment

Author(s): Irina Khindanova

Citation: Irina Khindanova, (2013) "A Monte Carlo Model of a Wind Power Generation Investment," Journal of Applied Business and Economics, Vol. 15, Iss. 1, pp. 94-106

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper conducts a Monte Carlo analysis of a wind power generation investment using EViews. The

analysis is based on modeling of the electricity price and costs uncertainties as stochastic variables and

simulating Net Present Values (NPV) of the project. A generated NPV distribution enables a much deeper

investment assessment comparing to a single point estimate of NPV or a collection of scenarios outputs. It

allows users to estimate several informative risk measures: standard deviation, skewness, behavior in the

distribution tails, and probabilities of extreme NPV values. The described Monte Carlo analysis can be

useful for assessment of alternative power generation technologies.