The development of coal mine methane (CMM) projects is subject to various kinds of risk, one of these being their highly variable methane content. In this study, a new methodology is proposed to reflect the impact of this uncertainty on a negotiated Certified Emission Reduction (CER) price, which is based on the available information. To simulate a process of price negotiation the Rubinstein-Ståhl bargaining game is utilized, where a buyer’s discount factor is unknown. It is assumed that a buyer’s willingness to accomplish price negotiations depends on the CER uncertainty. The bargaining model has been extended by introducing dependence of its three parameters on the probability of a failure to fulfil the contracted CER amount.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/feature-article/pricing-uncertain-certified-emission-reductions-chinese-coal-mine-methane-project
[2] http://admin.indiaenvironmentportal.org.in/category/author/xiangyang-xu
[3] http://admin.indiaenvironmentportal.org.in/category/author/joanna-horabik
[4] http://admin.indiaenvironmentportal.org.in/category/author/zbigniew-nahorski
[5] http://admin.indiaenvironmentportal.org.in/category/journal/climatic-change
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/mining
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/climate-change
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/methane
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/china
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/coal
[11] http://admin.indiaenvironmentportal.org.in/category/thesaurus/certified-emission-reduction
[12] http://admin.indiaenvironmentportal.org.in/category/thesaurus/kyoto-protocol
[13] http://admin.indiaenvironmentportal.org.in/category/thesaurus/clean-development-mechanism-cdm
