Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry
Investment analysis is a crucial process for any investment’s success. This process can be supported by both the discounted cash flow analysis and the real options analysis. Many researchers have point out restrictions for the first one, in cases of uncertainty in the entrepreneurial environment. Th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-03-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8233/imfi_2017_01_Kinias.pdf |
| _version_ | 1818759858627805184 |
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| author | Ioannis Kinias Ioannis Tsakalos Nikolaos Konstantopoulos |
| author_facet | Ioannis Kinias Ioannis Tsakalos Nikolaos Konstantopoulos |
| author_sort | Ioannis Kinias |
| collection | DOAJ |
| description | Investment analysis is a crucial process for any investment’s success. This process can be supported by both the discounted cash flow analysis and the real options analysis. Many researchers have point out restrictions for the first one, in cases of uncertainty in the entrepreneurial environment. The main types of uncertainty, concerning the wind energy sector, include uncertainties related to the price of electriticity by RES, the public policy regulatory policies, the demand, the initial capital costs, the technological progress, the weather conditions, the political and economical situations and generally the RES market structure. In this paper, we try to find the optimal investment strategy in a liberalized global electricity market, where the price of electricity is uncertain while the other parameters are configured separately in each country. The authors consider about the factors of the time for investment and the electricity’s price level, in wind energy by using the real options theory. The authors select a variety of data for the wind energy industry from different countries in several continents, and also create a model for the investment analysis in this entrepreneurial sector. |
| first_indexed | 2024-12-18T06:49:24Z |
| format | Article |
| id | doaj.art-4de14395c02a46af94596d1e6c479079 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-12-18T06:49:24Z |
| publishDate | 2017-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-4de14395c02a46af94596d1e6c4790792022-12-21T21:17:23ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582017-03-011419610310.21511/imfi.14(1).2017.108233Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industryIoannis Kinias0Ioannis Tsakalos1Nikolaos Konstantopoulos2Department of Business Administration, Business School, University of the AegeanDepartment of Business Administration, Business School, University of the AegeanDepartment of Business Administration, Business School, University of the AegeanInvestment analysis is a crucial process for any investment’s success. This process can be supported by both the discounted cash flow analysis and the real options analysis. Many researchers have point out restrictions for the first one, in cases of uncertainty in the entrepreneurial environment. The main types of uncertainty, concerning the wind energy sector, include uncertainties related to the price of electriticity by RES, the public policy regulatory policies, the demand, the initial capital costs, the technological progress, the weather conditions, the political and economical situations and generally the RES market structure. In this paper, we try to find the optimal investment strategy in a liberalized global electricity market, where the price of electricity is uncertain while the other parameters are configured separately in each country. The authors consider about the factors of the time for investment and the electricity’s price level, in wind energy by using the real options theory. The authors select a variety of data for the wind energy industry from different countries in several continents, and also create a model for the investment analysis in this entrepreneurial sector.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8233/imfi_2017_01_Kinias.pdfinvestment analysisreal optionsuncertaintywind energy |
| spellingShingle | Ioannis Kinias Ioannis Tsakalos Nikolaos Konstantopoulos Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry Investment Management & Financial Innovations investment analysis real options uncertainty wind energy |
| title | Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry |
| title_full | Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry |
| title_fullStr | Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry |
| title_full_unstemmed | Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry |
| title_short | Investment evaluation in renewable projects under uncertainty, using real options analysis: the case of wind power industry |
| title_sort | investment evaluation in renewable projects under uncertainty using real options analysis the case of wind power industry |
| topic | investment analysis real options uncertainty wind energy |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8233/imfi_2017_01_Kinias.pdf |
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