The market value of forest concessions in the Brazilian Amazon: A real option approach
The real option approach
works better than business case calculations in unpredictable situations, but it still requires some understanding about the future.
Wei, "A novel modeling based real option approach
for CCS investment evaluation under multiple uncertainties," Applied Energy, vol.
An obvious drawback to the Option approach
is that there could be a lack of urgency on behalf of the developer, even if there are obligations to avoid this included in the agreement.
Renewable energy investments under different support schemes: A real option approach
In contrast to the traditional approach that uses expected cash-flows to value investment projects, the real option approach
takes into account the entire distribution of cash-flows, allowing the firm to react/respond during the course of the investment.
In addition to these three approaches, the real option approach
has become the latest (Boer 2004).
The value of management flexibility--a real option approach
to investment evaluation.
However, investment in liquid reserves resulting from speculative demand for money may be assessed by usage a call option approach
In 2005, Philips LightLabs and university researchers decided to develop a new option approach
through "learning by doing," alternating between theory and application.
Leviakangas and Lahesmaa (2002) suggested the option approach
is a useful valuation tool for intelligent transport system investments.
Despite the merits of the public option approach
, the transition to a new system, even if Congress were to enact it, would not be easy.