scholarly journals Groundwater Extraction in the South Korea’s Jeju Island: A Real Options Game Approach under Price Uncertainty

2021 ◽  
Vol 13 (6) ◽  
pp. 3431
Author(s):  
Jaehyung Lee ◽  
Heesun Jang
Keyword(s):  
Real Options ◽  
Sustainable Use ◽  
Development Project ◽  
Jeju Island ◽  
Water Price ◽  
Price Uncertainty ◽  
Groundwater Extraction ◽  
Quota System ◽  
Sequential Game ◽  
Policy Measures

This paper uses a standard non-cooperative sequential game with two homogeneous players to analyze investment options of groundwater development project in South Korea’s Jeju island. The model is constructed as an option game taking the uncertainty of water price and the irreversibility of investment into account. The results show that the threshold water price of follower increases with the investment scale of both the leader and the follower while the threshold water price for the leader decreases as the investment scale of the leader increases. This makes the leader choose strategies to maximize the amount of groundwater extraction regardless of the follower’s strategy. Based on the results, it is recommended for policymakers to manage sustainable use of groundwater based on the policy measures such as the groundwater extraction quota system.

scholarly journals Conservation, Restoration, and Sustainable Use of Biodiversity Based on Habitat Quality Monitoring: A Case Study on Jeju Island, South Korea (1989–2019)

Land ◽  
2021 ◽  
Vol 10 (8) ◽  
pp. 774
Author(s):  
Hyun-Jung Hong ◽  
Choong-Ki Kim ◽  
Hyun-Woo Lee ◽  
Woo-Kyun Lee
Keyword(s):  
South Korea ◽  
Habitat Quality ◽  
Sustainable Use ◽  
Habitat Type ◽  
Biodiversity Loss ◽  
Well Being ◽  
Jeju Island ◽  
Natural Habitats ◽  
Invest Model ◽  
Aichi Biodiversity Targets

Biodiversity loss is progressing despite biodiversity being essential for human survival, prosperity, and well-being. Conservation, restoration, and sustainable use of the habitat, given that its change is the most prominent factor causing the deterioration of biodiversity, represents a highly effective way of securing biodiversity. Therefore, we assessed and monitored habitat quality as a proxy for biodiversity with habitat quantity in Jeju Island, South Korea. We used an InVEST model with data on the habitat type, suitability, sensitivity, accessibility, and threat factors. Natural habitats throughout Jeju had rapidly decreased in area by 24.9% from 1989 to 2019, and this change contributed to the degradation of habitat quality by 15.8%. We provided significant evidence on the critical degradation of habitat for a long period of over 30 years and highlighted the urgent need for policies and behaviors that enhance biodiversity. We proposed appropriate strategies to prompt people to conserve better, restore effectively, and use biodiversity sustainably. We expect that our findings will provide scientific and evidence-based guidance for policy-making on biodiversity enhancement and will further support achievement of the Sustainable Development Goals and Aichi Biodiversity Targets, in addition to compliance with the New Deal for Nature and People.

Real options approach to explore the effect of organizational change on IoT development project

2016 ◽  
Vol 11 (5) ◽  
pp. 995-1011 ◽  
Author(s):  
Zhiping Zhou ◽  
Xinbao Liu ◽  
Jun Pei ◽  
Panos M. Pardalos ◽  
Lin Liu ◽  
...  
Keyword(s):  
Organizational Change ◽  
Real Options ◽  
Development Project ◽  
Real Options Approach

scholarly journals Water quota system in China: problems and countermeasures

2021 ◽  
Author(s):  
Ziyang Zhao ◽  
Hongrui Wang ◽  
Shuxin Gong ◽  
Cheng Wang
Keyword(s):  
Water Resources ◽  
Water Conservation ◽  
Sustainable Use ◽  
Water Shortage ◽  
Social Progress ◽  
Practical Significance ◽  
Quota System ◽  
Water Shortages ◽  
Conservation Policies ◽  
Data Validity

Abstract Water resources are the foundation of economic development, social progress and ecological security, and water shortage is the primary problem facing China. Water quotas have great practical significance for the resolution of water shortages to achieve sustainable use of water resources and sustainable development of the national economy. In this study, to analyse the problems and countermeasures of the water quota system in China, the water quota system progress domestically and abroad, the water quotas problem in China, and the countermeasures for the water quota problem are summarized. The data validity test, spatial correlation test and consistency test are used to test the rationality of water use quota. And the specific countermeasures are presented: improving the water quota system, defining its concept, and revising its scheme, etc. This study provides the support to standardize water quotas and implement the effective water conservation policies of China.

scholarly journals Staging option application to residential development: real options approach

2018 ◽  
Vol 11 (1) ◽  
pp. 101-116 ◽  
Author(s):  
Kwabena Mintah ◽  
David Higgins ◽  
Judith Callanan ◽  
Ron Wakefield
Keyword(s):  
Real Options ◽  
Real Option ◽  
Scenario Planning ◽  
Residential Development ◽  
Development Project ◽  
Option Valuation ◽  
Content Type ◽  
Real Option Valuation ◽  
Feasibility Evaluation ◽  
Fuzzy Payoff

Purpose Real option valuation is capable of accounting for uncertainties in residential development projects but still lacks practical adoption due to limited evidence to support application of the theory in practice. The purpose of this paper is to use option valuation to value staging option embedded in residential projects and compare with results from DCF to determine which of the two methods delivers superior results. Design/methodology/approach The fuzzy payoff method (FPOM), a real options model that uses scenario planning approach to generate a range of figures, from which a single-numerical value is computed for decision-making. Findings The results showed that the use of a range of figures was able to represent uncertainties to a higher degree of accuracy than the static DCF. As a result, the FPOM was able to capture about 3 per cent of the value of the project that was missed by the DCF. The staging option offers an opportunity to abandon unprofitable phases of a project, thereby limiting downside losses. Thus, real option models are practically applicable to cases in property sector. Practical implications Residential property developers must consider flexibility in financial feasibility evaluation of development because of the embedded value in uncertain property projects. It is important to account for optionality in financial evaluation of property projects for value maximisation. Originality/value The FPOM has been used for the first time to evaluate a horizontal phasing of a residential development project.

scholarly journals The issue of sustainable urban development in a neoliberal age. Discursive entanglements and disputes

2013 ◽  
Vol 6 (1) ◽  
Author(s):  
Joar Skrede
Keyword(s):  
Sustainable Development ◽  
Cultural Heritage ◽  
Cultural Policy ◽  
Sustainable Use ◽  
Development Project ◽  
Sustainable Urban Development ◽  
Economic Sustainability ◽  
Form Of Government ◽  
Urban Waterfront ◽  
The City

The city of Oslo, the Norwegian capital, is in the midst of executing a huge urban waterfront project in Bjørvika. This project has triggered several years of public debate. A key concept in the development project is “sustainable development”, but it is unclear what the concept implies. Several interests are involved which emphasise different goals and different values. In this article, a discourse analysis of the concept, in this particular context, is conducted. Five discourses are identified, which overlap as well as collide. Special attention is paid to how the respective discourses are related to a neoliberal form of government, and as part of the analysis, a discussion of how cultural heritage is used to increase the city’s attractiveness is undertaken. This article concludes that planning for a sustainable use of cultural heritage should imply establishing a reflective cultural policy not subsumed under economic sustainability.

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