RT Journal Article SR Electronic T1 The Positive Effects of Natural Capital and Tax Shifting on Cogeneration Project Economics Related to Greenhouse Gas Emissions JF The Journal of Structured Finance FD Institutional Investor Journals SP 40 OP 46 DO 10.3905/jsf.2003.320310 VO 9 IS 2 A1 Joseph M. Franceschi A1 James Condela A1 Stephen Eber YR 2003 UL https://pm-research.com/content/9/2/40.abstract AB A cogeneration or a combined heat and power (CHP) plant as a distributed energy source provides many benefits over centralized power generation to facility owners, the environment, and the public at large. Some of the benefits include energy savings, increased energy efficiencies through heat recovery, increased power quality and reliability, elimination of transmission and distribution losses associated with centralized power generation, emission offsets (SOx and NOx), and greenhouse gas reductions (CO2). In an attempt to quantify the environmental benefits of CHP, this article presents the potential economic benefits of emission offsets and greenhouse gas reductions and how they affect the discounted cash flows of an actual CHP project presently under analysis. Although the financial benefit to CHP from NOx and CO2 emission credits and/or tax shifting is not a major return-on-investment decision driver, it may have merit to global companies that have adopted “green” or “sustainability” goals as part of their corporate visions and long-range plans. This added qualitative benefit could turn a “no go” project into a reality. The authors hope this analysis will provide industry support to fully price the benefits of CHP applications in the future.