Combined generation of process steam and electric power in coal-fired industrial power plants is examined, and a rate of return on various investments of this type is estimated. The effect on these rates of return of a 20% investment tax credit is calculated, which appears to be slight. We note that positive incentives such as investment tax credits allow the firm to face lower energy prices and could result in more energy intensive operation at the level of the firm.
ASJC Scopus subject areas
- Civil and Structural Engineering
- Building and Construction
- Mechanical Engineering
- Industrial and Manufacturing Engineering
- Electrical and Electronic Engineering