Fortnightly Magazine - December 2007

Carbon Wargames

U.S. utilities gain strategic insights by playing out a carbon-constraint scenario.

Uncertainties over natural-gas prices, carbon regulation, and clean-technology alternatives are inhibiting investment in new power plants. An emissions “wargame” from Booz, Allen & Hamilton shows how companies might react to large, multidimensional changes in the generation landscape. The exercise raises strategic questions about competitive positions on the climate battlefront.

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