La valorisation du projet nucléaire EPR par la méthode des options réelles
Real options theory makes it possible to cost investments which offer flexibility but whose returns are uncertain, such as the construction in 2000 of an EPR prototype; this prototype will enable the European pressurised-water reactor (EPR) to be used to renew EDF's nuclear power stations in 2020 (flexibility) but its economic worth will then depend on the cost of the competing gas-fired power plants (uncertain return). Options theory shows that investing in EPR technology in 2000 provides sufficient flexibility in 2020 to be considered cost-effective, even though use of EPRs is unlikely by that date. The investment made in 2000 to develop EPR technology therefore actually plays the part of an option or, in other words, insurance (against the risk of high gas prices).
Volume (Year): 149 (2001)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-economie-et-prevision.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James L. Paddock & Daniel R. Siegel & James L. Smith, 1988. "Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases," The Quarterly Journal of Economics, Oxford University Press, vol. 103(3), pages 479-508.
- Bar-Ilan, Avner & Strange, William C, 1996. "Investment Lags," American Economic Review, American Economic Association, vol. 86(3), pages 610-622, June.
- Brennan, Michael J & Schwartz, Eduardo S, 1985. "Evaluating Natural Resource Investments," The Journal of Business, University of Chicago Press, vol. 58(2), pages 135-157, April.
- Anne Épaulard & Stéphane Gallon, 2001.
"La valorisation du projet nucléaire EPR par la méthode des options réelles,"
Economie & Prévision,
La Documentation Française, vol. 149(3), pages 29-50.
- Anne Epaulard & Stéphane Gallon, 2001. "La valorisation du projet nucléaire EPR par la méthode des options réelles," Économie et Prévision, Programme National Persée, vol. 149(3), pages 29-50.
- Robert McDonald & Daniel Siegel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 707-727.
When requesting a correction, please mention this item's handle: RePEc:cai:ecoldc:ecop_149_0029. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.