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Theoretical Approches Regarding The Evaluation Of Investment Projects For Green Energy Based On Real Options Analysis

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  • MAFTEI DANIEL

    (INSTITUTE OF NATIONAL ECONOMY, ROMANIAN ACADEMY, BUCHAREST, ROMANIA)

Abstract

This article considers real options and their importance as an alternative assessment for green energy infrastructure investments. Article foregrounds methodology of real options and financial options theory as a tool frequently useful. Based on the concept of choice, the article deals with investments through the concept of option and argue their usefulness. Furthermore, the paper summarizes the advantages and disadvantages of real options and the risks involved in strategic planning context; It proposes ways to address and simulation models.

Suggested Citation

  • Maftei Daniel, 2014. "Theoretical Approches Regarding The Evaluation Of Investment Projects For Green Energy Based On Real Options Analysis," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 88-91, October.
    • Handle: RePEc:cbu:jrnlec:y:2014:v:5:p:88-91
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    References listed on IDEAS

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    1. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    2. Constantinides, George M, 1978. "Market Risk Adjustment in Project Valuation," Journal of Finance, American Finance Association, vol. 33(2), pages 603-616, May.
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