Real options valuation of fusion energy R&amp;D programme

Bednyagin, D.; Gnansounou, Edgard

doi:10.1016/j.enpol.2010.09.019

Cited by 28 publications

(11 citation statements)

References 30 publications

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“…In addition to the Teisberg (1993) study, ROA is employed to evaluate solar-and wind-energy projects (Lee and Shih, 2010;Lima et al, 2013;Monjas-Barroso and Balibrea-Inlasta, 2013;Muñoz et al, 2009), paper mill cogeneration (Costantino et al, 2012), conversion of cropland for energy crops (Gazheli and Di Corato, 2013;Song et al, 2011), investment decisions among combined-cycle (steam and gas) power plants, coal-fired, and nuclear plants (Bednyagin and Gnansounou, 2011;Zambujal-Oliveira, 2013), clean-energy mix policy (Cheng et al, 2011), staged commercialization of alternative energy technologies (Siddiqui and Fleten, 2010), and investment strategies of energy-saving equipment Huang, 2010, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis

et al. 2015

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Section: Literature Reviewmentioning

confidence: 99%

Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis

et al. 2015

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“…The FPOM has also previously been used in the analysis of renewable energy investments (Kozlova et al, 2016) and other applications of the method include, e.g., energy and oil investments (Bednyagin and Gnansounou, 2011;Borges et al, 2018), R&D project selection (Hassanzadeh et al, 2012;Collan and Luukka, 2014), patent portfolio management (Collan et al, 2013), valuation of large irreversible investments (Collan, 2011). Most of the previous applications have similarities to RE policy alternative analysis and comparison.…”

Section: Results and Visualizationmentioning

confidence: 99%

Analyzing Renewable Energy Policies – Using the Pay-Off Method to Study the Finnish Auction-Based Renewable Energy Policy

Hietanen¹,

Kozlova²,

Collan³

2020

J ENVIRON INFORM LET

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Design of support-mechanisms is an important component of renewable energy policy. In order to be able to choose desirable designs one must have a good understanding of the most likely outcomes from different policy designsthis calls for proper before-implementation policy analysis and especially for analysis the results of which are intuitively understandable for the decisi onmakers. We propose a simple process, based on the fuzzy pay-off method, for the purpose of analyzing renewable energy support designs in the context of auction-based support mechanism implementation. A numerical case from Finland is used to illustrate the proposed process. The results show that the process is relatively simple to use and able to produce intuitively understandable relevant information for design selection.

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“…Despite the limitation enclosed within the ROA (i.e. estimation of r and σ), this method takes into account the influence of market uncertainties (as also claimed by Bednyagin and Gnansounou (2011) and Goldenberg and Linton (2012)) on patent evaluation. Within this tutorial, the authors have analysed the possibility of making several kinds of choices about a specific patent; thus, not only the choices of investment, deferral investment, abandon and deferral abandon treated as single decisions that a company can make have been analysed; but even the choice of choosing (considering the deferral of the choice option) among the previous alternatives considered together.…”

Section: Discussionmentioning

confidence: 99%

“…As stated by Bednyagin and Gnansounou (2011) and Goldenberg and Linton (2012), compound options are able to offer a "managerial flexibility" about the possibility either of proceeding or stopping an investment program (particularly in R&D projects, which are characterized by a large use of knowledge resources and assets) even by considering possible changes in the economic environment. Thus, following the above-mentioned reasons it is necessary to evaluate this case.…”

Section: Choice Optionmentioning

confidence: 99%

The Valuation of a Patent through the Real Options Approach: A Tutorial

Iazzolino

Migliano

2015

Journal of Business Valuation and Economic Loss Analysis

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The importance of knowledge and other intangible activities for the success of an enterprise have been broadly recognized over the last few years. In this paper a tutorial is illustrated on the valuation of a patent through the real options approach (ROA), since the use of the discounted cash flow (DCF) methods, such as the net present value (NPV), seems to show issues when evaluating opportunities, such as the ones offered by intangible activities. The logic underlying ROA is tightly based on financial options and, in this sense, uncertainty can be seen as an opportunity, and not necessarily as a threat and its effect on the value of an activity can become positive. The patent analysed (registered in 2009) is a patent by the Alfa Group (this is not the real name of the firm but is used here for privacy reasons), which is a worldwide leader in the production of Getters, metallic elements that, through a chemical absorption process, keep the devices in which they are embedded in vacuum status. Such equipment is used in lightning systems, monitor screens, flat screen TVs, etc. In this tutorial, an ROA has been developed in order to demonstrate how the value of intangible assets can be estimated by using an Italian case study that can be useful for further studies and uses.

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Real options valuation of fusion energy R&D programme

Cited by 28 publications

References 30 publications

Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis

Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis

Analyzing Renewable Energy Policies – Using the Pay-Off Method to Study the Finnish Auction-Based Renewable Energy Policy

The Valuation of a Patent through the Real Options Approach: A Tutorial

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