This instance is suitable for graduate-level quantitative analysis, company and authorities, environment and sustainability, and global economics courses. Pupils must consider the tradeoffs between continuing to run an old coal-burning plant and buying emissions allowances (EAs) versus updating to emissions-reducing wet or dry scrubbers. Reducing emissions creates the possibility of selling the plant's surplus EAs (which are likely to grow in price).
Choosing a dry or wet scrubber needs contemplating SO2 removal efficiency and construction time, variable cost, and installment cost. Ideally, the investment should repay over time, but management believes some net investment could also be warranted. For that, nonetheless, entire evaluations from both economical and environmental standpoints are demanded.
PUBLICATION DATE: December 31, 2008 PRODUCT #: UV1474-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE