Research on Investment Valuation of New Energy Projects based on Real Option Model

Pengbo Yang, Rong Gao

Abstract: Based on the real option theory, this paper identifies the option characteristics of the new energy project investment, establishes the B-S option pricing model of the new energy project investment, and evaluates the investment value by empirical analysis. The study finds that the real option approach considers the uncertainty in the new energy project investment, and it can better evaluate the decision value of new energy projects.

Keywords: real option, new energy, investment valuation, B-S model