Long-term risk management of nuclear waste : a real options approach
In this paper, we investigate the optimal timing for deep geological disposal of nuclear waste. Our model is based on the real options approach to investment under uncertainty. In this context, the problem is similar to the optimal exercise policy for a perpetual American spread option. The potential usefulness of such a model for actual decision-making on a sensitive issue is illustrated by some numerical simulations.
|Date of creation:||01 Apr 2001|
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- repec:tpr:qjecon:v:101:y:1986:i:4:p:707-27 is not listed on IDEAS
- Margrabe, William, 1978. "The Value of an Option to Exchange One Asset for Another," Journal of Finance, American Finance Association, vol. 33(1), pages 177-86, March.
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