Evaluating coal bed methane investment in China based on a real options model

被引：23
|
作者：
Fan, Ying [1 ]
Mo, Jian-Lei [1 ]
Zhu, Lei [1 ]
机构：
[1] Chinese Acad Sci, Inst Policy & Management, Ctr Energy & Environm Policy Res, Beijing 100190, Peoples R China
来源：
RESOURCES POLICY | 2013年 / 38卷 / 01期
关键词：
Coal bed methane; China; Policy assessment; Real option; PRICES;
D O I：
10.1016/j.resourpol.2012.08.002
中图分类号：
X [环境科学、安全科学];
学科分类号：
08 ; 0830 ;
摘要：
In this paper, a real options based binominal lattices model for the investment of coal bed methane (CBM) is conducted. CBM prices and market demand are incorporated into the model as the predominant uncertain factors and it is solved by using the bidimensional binominal lattices approach. Then the model is employed to evaluate the investment in CBM projects in China, and the effect of related policies is analyzed. The empirical results demonstrate that the model can be used to offer a better explanation of why the CBM industry has developed slowly in China from an investment perspective. It is found that the current policy environment is not positive enough to attract investment in the CBM industry. Among various factors, CBM prices yield the most significant effect on stimulating investment in CBM development. Increasing the price subsidy is also an effective policy to stimulate investment and promote the development of the CBM industry in China. (C) 2012 Elsevier Ltd. All rights reserved.
引用
收藏
页码：50 / 59
页数：10
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