Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Real options and sustainable transport

Real options and sustainable transport

Salahaldin-L

Paperback

Series: Omn.Univ.Europ.

Business GeneralLiterary Criticism

ISBN10: 6131553610
ISBN13: 9786131553615
Publisher: Ed Universitaires Europeennes
Published: Feb 28 2018
Pages: 252
Weight: 0.82
Height: 0.57 Width: 6.00 Depth: 9.00
Language: French
In this book, we study the problem of investing in sustainable transport to relieve air pollution. In such a case, the growth of the city population is the major source of uncertainty, as a high population density increases pollution and, on the other hand, makes a big transportation project necessary. Using the real options method, we show how to maximize inter-generational utility when the population grows stochastically. In a second step, we study the same problem of investing in sustainable transport under both population-growth and investment cost uncertainties. In such a case, the growth of the city population increases the demand for a sustainable transport by increasing pollution, and, in the same time, the investment cost is decreasing stochastically with time. This corresponds to a hydrogen fuel infrastructure construction, whose cost is stochastically decreasing due to the worldwide R&D effort. Using the real options method, we show how to maximize inter-generational utility by choosing the optimal time to invest.

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