In this paper we investigate the channel capacity of intensity modulated direct detection (IM/DD) wireless optical communication systems for an AWGN channel with a limit on the average transmitted optical power. It has recently been shown that asymmetrically clipped optical orthogonal frequency division multiplexing (ACO-OFDM) is more efficient in terms of optical power than conventional optical modulation techniques such as pulse position modulation (PPM). When ACO-OFDM is used, the transmitted signal has a clipped Gaussian probability distribution. We calculate the channel capacity for systems using transmitted signals with exponential and clipped Gaussian distributions, and for an ACO-OFDM system. For practical signal to noise ratios, ACO-OFDM has a slightly lower capacity than the other distributions, due to the correlation between samples caused by the ACO-OFDM modulation process. ACO-OFDM has many practical advantages including its tolerance to multipath distortion. This paper shows that it also makes efficient use of the available power and bandwidth.
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Li et al. (2007) studied this question.