Investment Timing, Capacity Choice and Optimal Floors and Ceilings

2021 ◽  
Author(s):  
Dean Paxson ◽  
Paulo Pereira ◽  
Artur Rodrigues
Keyword(s):  
Investment Timing ◽  
Capacity Choice

scholarly journals Investment Timing and Capacity Choice under Uncertainty

2014 ◽  
Vol 2014 ◽  
pp. 1-9
Author(s):  
Xiumei Lv ◽  
Shiqin Xu ◽  
Xiaoling Tang
Keyword(s):  
Real Option ◽  
Investment Decisions ◽  
Value Functions ◽  
Market Demand ◽  
Strategic Investment ◽  
Investment Timing ◽  
Choice Under Uncertainty ◽  
Capacity Choice ◽  
The Face ◽  
Stochastic Market

This paper examines strategic investment between two firms that compete not only for investment timing but also for capacity under stochastic market demand. The value functions of real option for the follower, the dominant leader, and the preemptive leader are derived and their investment decisions are investigated. It finds that both firms will delay investment and the delayed margin of the follower will surpass that of the leader under greater uncertainty. Furthermore, both firms will provide more outputs in the face of increasing uncertainty and the growth rate of the follower’s capacity will exceed that of the leader’s. In addition, this paper finds that the follower will end up with a larger capacity than the leader.

Optimal Investment Decision for Wind Power Projects under Renewable Portfolios Standards in China

2014 ◽  
Vol 521 ◽  
pp. 782-785
Author(s):  
Yi Sun ◽  
Hai Feng Huang ◽  
Jie Han
Keyword(s):  
Wind Power ◽  
Investment Decision ◽  
Optimal Investment ◽  
Electricity Prices ◽  
Policy Makers ◽  
Investment Timing ◽  
Sources Of Uncertainty ◽  
Real Options Approach ◽  
Proposed Model ◽  
Capacity Choice

China government will introduce the Renewable Portfolios Standards (RPS) to promote the wind power accommodation. As a result, investors face three sources of uncertainty, namely, investment costs, electricity prices and subsidies. This paper adopts a real options approach to analyze investment timing and capacity choice for wind power projects considering these uncertainties under RPS. Simulation results indicate that lower investment costs encourage earlier investment, and higher electricity prices and subsidies create incentives for earlier investment and larger capacity of wind power projects. Besides, the proposed model can be used by policy makers to make appropriate policies.

scholarly journals Investment timing and optimal capacity choice for small hydropower projects

2008 ◽  
Vol 190 (1) ◽  
pp. 255-267 ◽  
Author(s):  
Thor Bøckman ◽  
Stein-Erik Fleten ◽  
Erik Juliussen ◽  
Håvard J. Langhammer ◽  
Ingemar Revdal
Keyword(s):  
Small Hydropower ◽  
Investment Timing ◽  
Optimal Capacity ◽  
Capacity Choice

scholarly journals Optimal investment timing and capacity choice for pumped hydropower storage

2013 ◽  
Vol 5 (2) ◽  
pp. 285-306 ◽  
Author(s):  
Emily Fertig ◽  
Ane Marte Heggedal ◽  
Gerard Doorman ◽  
Jay Apt
Keyword(s):  
Optimal Investment ◽  
Investment Timing ◽  
Capacity Choice

scholarly journals Investment timing and capacity choice under rate-of-return regulation for renewable energy support

Energy ◽  
2019 ◽  
Vol 174 ◽  
pp. 591-601 ◽  
Author(s):  
Mariia Kozlova ◽  
Stein-Erik Fleten ◽  
Verena Hagspiel
Keyword(s):  
Renewable Energy ◽  
Rate Of Return ◽  
Investment Timing ◽  
Capacity Choice ◽  
Return Regulation

The Study on Investment Timing of Transportation Infrastructure Constructions in Cities

2002 ◽  
Author(s):  
Zhuangzhi Sun ◽  
Siji Hu ◽  
Jun Zhu ◽  
Hongfei Jia
Keyword(s):  
Transportation Infrastructure ◽  
Investment Timing

Dynamic Capacity Choice, Dynamic Capital Structure, and Credit Risk

2011 ◽  
Author(s):  
Andrea Gamba ◽  
Mamen Maria Aranda ◽  
Alessio Saretto
Keyword(s):  
Capital Structure ◽  
Credit Risk ◽  
Dynamic Capacity ◽  
Capacity Choice ◽  
Dynamic Capital Structure

Investment Timing with Costly Search for Financing

2017 ◽  
Author(s):  
Samuel Antill
Keyword(s):  
Investment Timing

Investment Timing Theory – A Single Firm Model

2020 ◽  
Author(s):  
Sandeep Rao
Keyword(s):  
Investment Timing ◽  
Firm Model
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