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Real options and sustainable transport

by Salahaldin-L
Save 17% Save 17%
Current price ₹8,514.00
Original price ₹10,217.00
Original price ₹10,217.00
Original price ₹10,217.00
(-17%)
₹8,514.00
Current price ₹8,514.00

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Book cover type: Paperback
  • ISBN13: 9786131553615
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Omniscriptum
  • Publisher Imprint: Omniscriptum
  • Publication Date:
  • Pages: 252
  • Original Price: GBP 67.0
  • Language: French
  • Edition: N/A
  • Item Weight: 372 grams
  • BISAC Subject(s): General

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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