R&D investment decision on smart cities: Energy sustainability and opportunity
| Autor: | Giovanni Villani, Marta Biancardi, Antonio Di Bari |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Flexibility (engineering)
business.industry General Mathematics Applied Mathematics General Physics and Astronomy Statistical and Nonlinear Physics Environmental economics Investment (macroeconomics) Net present value Renewable energy Task (project management) Smart city Value (economics) Business Valuation (finance) |
| Zdroj: | Chaos, Solitons & Fractals. 153:111554 |
| ISSN: | 0960-0779 |
| Popis: | Public administrations frequently tend to make communities as much sustainable as possible pursuing smart city goals. Solar energy investments represent a valid opportunity to support smart cities and consequently the sustainable economic development. The valuation of these projects is not a simple task considering their sequential nature and riskiness. This article proposes a compound Real Options Approach (ROA) as a tool for potential investors to make a conscious R&D renewable investment decision on smart cities. In this sense, we fit the compound ROA with the framework of a typical smart city project in solar energy field. We also provide a case study to make a comparison between classical Expected Net Present Value (ENPV) approach and compound ROA. The results show that ENPV underestimates the project value, whereas compound ROA allows to obtain a more attractive valuation of the project by embedding in the analysis the managerial flexibility value. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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