We proposed the study on the timing of investment and option value for green energy company. Considering various paremeters that can affect this investment, such as the discount rate, the is investment cost, the mean reversion speed, the mean reversion level, the uncertainty parameter, etc; the simulation study was conducted and the optimal investment time for the company was found and it is better to invest just at the time where the price of fuel becomes low even when considering the subsidies and lower taxes that can be made dependind on regime switching.
Keywords: Investment; Real options; Optimal stopping; Option value; Ambiguity
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