Using Real Option Pricing to Value the Public R&D Investment on the Deep Seabed Manganese Nodule Project

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: 최효연 유승훈 곽승준
• 간행물 정보: 『한국재정학회 학술대회 논문집』2014년도 추계학술대회 논문집, 1~14쪽, 전체 14쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2014.10.20

영문 초록

This paper attempted to measure the monetary value of technical development on the deep seabed manganese nodule, by applying the compound option model (COM). The COM is appropriate for the project in terms of its decision-making structure and embedded uncertainty. From the estimation results it is shown that deep seabed mining project has more economic potential than the previously obtained results from the discounted cash flow (DCF) analysis. In addition, it is reasonable to invest to the project taking the various uncertainty factors into consideration; for the ratio of the value to the cost of the project is far higher than one. This information can be utilized in decision-makings in national ocean policy

목차

1. Introduction

2. Real option pricing approach

3. Application to R&D project for deep seabed mining

4. Conclusion

References

키워드

real option pricing compound option model technology valuation deep seabed manganese nodule project