Investment strategy for shallow geothermal resource based on real option model

• Shallow geothermal resource has been considered as a new and promising form for clean heating in some areas in China, such as Xiong'an New Area. In this paper, a real option model is established to explore the optimal investment timing and investment scale of shallow geothermal resources. According to numerical results, we found that in the reference scenario the critical value of marginal revenue is 4.30 yuan / m 2 , and the optimal investment scale is 1.28 million square meters. Simultaneously, the investors are advised to invest after 1.05 years and they will get the unit investment return of 39.34 yuan / m 2

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Energiteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Energy Engineering (hsv//eng)

Nyckelord

Investment strategy

Real option theory

Shallow geothermal resource

Economics

Geothermal fields

Strategic planning

Geothermal resources

Investment returns

Numerical results

Optimal investment timing

Optimal investments

Real option models

Investments

Publikations- och innehållstyp

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