TY - JOUR
T1 - A real options approach to environmental R&D project evaluation
AU - Managi, Shunsuke
AU - Zhang, Zheng
AU - Horie, Shinya
N1 - Publisher Copyright:
© 2016, Society for Environmental Economics and Policy Studies and Springer Japan.
PY - 2016/7/1
Y1 - 2016/7/1
N2 - With the immense evolution of technology and consumers’ maturing anticipations, novel products’ development becomes the primary way that companies adapt to survive in the growing international contention. Creation or innovation can allow the organization to stand one step forward of the competition and to conduct the competition in the direction it selects. We examined the evaluation system of real options approach to a biomimicry R&D project together with conventional R&D and environmental R&D projects. This model considers uncertainties of investment cost and cash flow of the new product in each project. We find that investment on environmental and biomimicry technologies will achieve promising expectations in Asian area when certain environmental demands increase.
AB - With the immense evolution of technology and consumers’ maturing anticipations, novel products’ development becomes the primary way that companies adapt to survive in the growing international contention. Creation or innovation can allow the organization to stand one step forward of the competition and to conduct the competition in the direction it selects. We examined the evaluation system of real options approach to a biomimicry R&D project together with conventional R&D and environmental R&D projects. This model considers uncertainties of investment cost and cash flow of the new product in each project. We find that investment on environmental and biomimicry technologies will achieve promising expectations in Asian area when certain environmental demands increase.
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U2 - 10.1007/s10018-016-0147-4
DO - 10.1007/s10018-016-0147-4
M3 - Article
AN - SCOPUS:84960377587
VL - 18
SP - 359
EP - 394
JO - Environmental Economics and Policy Studies
JF - Environmental Economics and Policy Studies
SN - 1432-847X
IS - 3
ER -