Real Option Based Appraisal of Environmental Investments - An Assessment of NO¿ Emission Control Techniques in Large Combustion Plants
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Environmental investments, such as emission control measures hardly gain profit but are enforced by policy. Such investments can be expected to be delayed as much as legally feasible. Yet, if increasing expenditures for the same investment in the future are likely to occur, an advanced investment may be favorable. A cost calculation methodology for NOx control techniques and a real option based decision support model for investments not gaining economic profit is presented in the book.
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