Optimizing the level of renewable electric R&D expenditures using real options analysis

By Graham A. Davis, Brandon Owens. 2003

190 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3bc25de231c4be169823758c0c093727f4ae8d29

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Citations in the corpus

How to Proceed with Competing Alternative Energy Technologies: a Real Options Analysis (2010, methodology): “A recent paper uses the real options framework to quantify the optimal level of US federal R&D funding for a RE technology under uncertain fossil fuel prices and technical risk [Davis and Owens, 2003].”
The use of real options approach in energy sector investments (2011, methodology): “Davis and Owens 2003 Renewable energy technologies R&D program Pde [60]”
What Should We Expect from Innovation? A Model-Based Assessment of the Environmental and Mitigation Cost Implications of Climate-Related R&D (2010, background): “Also, the limited analysis available of R&D investments required to comply with climate stabilisation objectives (Shock et al 1999, Davis and Owens 2003, Nemet and Kammen 2007) has been carried out mostly outside the realm of general equilibrium models.”
U.S. energy research and development: Declining investment, increasing need, and the feasibility of expansion (2007, background): “Davis and Owens (2003) found that the option value of energy R&D justifies increasing spending to four times the present level.”
Real options valuation of US federal renewable energy research, development, demonstration, and deployment (2005, methodology): “The Davis and Owens (2003) results confirm that a deterministic DCF approach to RD3 evaluation would significantly underestimate the value of RE RD3 investments.”
The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China (2016, background): “, 2013), improving the value of renewable power technologies (Davis and Owens 2003), promoting the market diffusion of a niche renewable energy technology (Bointner, 2014) and increasing international trades and domestic R&D (Kim and Kim, 2015).”
A real options–based CCS investment evaluation model: Case study of China’s power generation sector (2011, background): “Previous research all applied geometric Brownian motion to describe the motion process for the fossil fuel generating cost [31,32,35], and this was also suggested by Pindyck [50] who thought that although long-run energy prices were mean-reverting, since their rate of mean reversion was low, the geo”
Optimal subsidy estimation method using system dynamics and the real option model: Photovoltaic technology case (2015, background): “It is appropriate for short-term estimation with certainty; however, it is not appropriate for long-term estimation with severe uncertainties [17].”