This case is designed for graduate-level quantitative analysis, economics and management, environment and sustainability, and global economics courses. Students must consider the trade-offs between still running an old coal plant and purchase emission allowances (EAs) to upgrade to pollution control wet or dry scrubbers. Reducing emissions creates the possibility of selling the investment of surplus EAs (which probably increase in price). Choosing a wet or dry scrubber requir … Read more »

This case is designed for graduate-level quantitative analysis, economics and management, environment and sustainability, and global economics courses. Students must consider the trade-offs between still running an old coal plant and purchase emission allowances (EAs) to upgrade to pollution control wet or dry scrubbers. Reducing emissions creates the possibility of selling the investment of surplus EAs (which probably increase in price). Choosing a wet or dry scrubber requires considering installation cost and construction time, variable costs and SO2 removal efficiency. Ideally, the investment should pay off over time, but management believes some net investment could be justified. However, this complete analysis of both economic and environmental perspectives are required. An additional table is available to accompany the case (UVA-S-QA-0726).
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Anton Ovchinnikov
Source: Darden School of Business
9 sides.
Release Date: 31, December 2008. Prod #: UV1474-PDF-ENG
C Energy Red Hill Plant: Meeting the SO2 Challenge HBR case solution

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