Consulta: creatorFacets:"Di Corato,   Luca"
Registros recuperados: 8
Data/hora: 06/06/2024 10:10:03

Investing in Biogas: Timing, Technological Choice and the Value of Flexibility from Inputs Mix
Provedor de dados: 31
Autores: Di Corato,   Luca; Moretto,   Michele.
In a continuous-time framework we study the technology and investment choice problem of a continuous co-digestion biogas plant dealing with randomly fluctuating relative convenience of input factor costs. Input factors enter into the productive process together mixed according to a given initial rule. Being inputs relative convenience stochastically evolving, a successive revision of the initial rule may be desirable. Hence, when the venture starts the manager may or may not install a flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule.
Tipo: Working or Discussion Paper
Palavras-chave: Factor Proportions; Technological Choice; Flexibility; Real Options; Alternative Energy Source; Environmental Economics and Policy; C61; D24; Q42.
Ano: 2009
URL: http://purl.umn.edu/55283

Profit Sharing under the Threat of Nationalization
Provedor de dados: 31
Autores: Di Corato,   Luca.
A government bargains a mutually convenient agreement with a multinational corporation to extract a natural resource. The corporation bears the initial investment and earns as a return a share on the profits. The host country provides access and guarantee conditions of operation. Being the investment totally sunk, the corporation must account in its plan not only for uncertainty on market conditions but also for the threat of nationalization. In a real options framework where the government holds an American call option on nationalization we show under which conditions a Nash bargaining is feasible and leads to attain a cooperative agreement maximizing the joint venture surplus. We find that the threat of nationalization does not affect the investment time...
Tipo: Working or Discussion Paper
Palavras-chave: Real Options; Nash Bargaining; Expropriation; Natural Resources; Foreign Direct Investment; Financial Economics; C7; D8; K3; F2; O1.
Ano: 2010
URL: http://purl.umn.edu/59378

Optimal Conservation Policy under Imperfect Intergenerational Altruism
Provedor de dados: 31
Autores: Di Corato,   Luca.
In this paper we study the optimal forest conservation policy by a hyperbolically discounting society. Society comprises a series of non-overlapping imperfectly altruistic generations each represented by its own government. Under uncertainty about future pay-offs we determine, as solution of an intergenerational dynamic game, the optimal timing of irreversible harvest. Earlier harvest occurs and the option value attached to the forest clearing decision is eroded under both the assumptions of naïve and sophisticated belief about future time-preferences. This results in a bias toward the current generation gratification which affects the intergenerational allocation of benefits and costs from harvesting and conserving a natural forest.
Tipo: Conference Paper or Presentation
Palavras-chave: Imperfect altruism; Real Options; Hyperbolic Discounting; Time Inconsistency; Natural Resources Management; Resource /Energy Economics and Policy; D81; C70; Q23; Q58.
Ano: 2011
URL: http://purl.umn.edu/114440

Land Conversion Pace under Uncertainty and Irreversibility: too fast or too slow?
Provedor de dados: 31
Autores: Di Corato,   Luca; Moretto,   Michele; Vergalli,   Sergio.
In this paper stochastic dynamic programming is used to investigate land conversion decisions taken by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We study the impact of uncertainty on the optimal conversion policy and discuss conversion dynamics under different policy scenarios on the basis of the relative long-run expected rate of deforestation. Interestingly, we show that uncertainty, even if it induces conversion postponement in the short-run, increases the average rate of...
Tipo: Working Paper
Palavras-chave: Optimal Stopping; Deforestation; Payments for Environmental Services; Natural Resources Management; Risk and Uncertainty; C61; D81; Q24; Q58.
Ano: 2011
URL: http://purl.umn.edu/119107

Land-use Change and Solar Energy Production: A Real Option Approach
Provedor de dados: 31
Autores: Ardjan,   Gazheli; Di Corato,   Luca.
In this paper a real option model is developed to examine the critical factors affecting the decision to lease agricultural land to a company installing a PV power plant. The leasing payment is certain while the net revenues from agriculture are uncertain. We identify the profit values at which the farmer decides to lease his plot vs. continue farming it. By applying the model to the province of Bologna (Italy), we illustrate the possible land-use change scenarios in this area. We conclude by discussing the importance of PV energy production as a source of income for farmers and its implications from a social perspective.
Tipo: Working Paper
Palavras-chave: Land Allocation; Real Options; Renewable Energy; Solar farm; Uncertainty; Resource /Energy Economics and Policy; C61; D81; Q24; Q42.
Ano: 2011
URL: http://purl.umn.edu/120041

Optimal Conservation Policy Under Imperfect Intergenerational Altruism
Provedor de dados: 31
Autores: Di Corato,   Luca.
In this paper we study the optimal forest conservation policy by a hyperbolically discounting society. Society comprises a series of non-overlapping imperfectly altruistic generations each represented by its own government. Under uncertainty about future pay-offs we determine, as solution of an intergenerational dynamic game, the optimal timing of irreversible harvest. Earlier harvest occurs and the option value attached to the forest clearing decision is eroded under both the assumptions of naïve and sophisticated belief about future time-preferences. This results in a bias toward the current generation gratification which affects the intergenerational allocation of benefits and costs from harvesting and conserving a natural forest.
Tipo: Working Paper
Palavras-chave: Imperfect Altruism; Real Options; Hyperbolic Discounting; Time Inconsistency; Natural Resources Management; Research Methods/ Statistical Methods; D81; C70; Q23; Q58.
Ano: 2011
URL: http://purl.umn.edu/120022

Profit Sharing under the Threat of Nationalization
Provedor de dados: 31
Autores: Di Corato,   Luca.
A multinational corporation engages in foreign direct investment for the extraction of a natural resource in a developing country. The corporation bears the initial investment and earns as a return a share of the profits. The host country provides access and guarantees conditions of operation. Since the investment is totally sunk, the corporation must account in its plan not only for uncertainty in market conditions but also for the threat of nationalization. In a real options framework, where the government holds an American call option on nationalization, we show under which conditions a Nash bargaining leads to a profit distribution maximizing the joint venture surplus. We find that the threat of nationalization does not affect the investment threshold...
Tipo: Working or Discussion Paper
Palavras-chave: Real Options; Nash Bargaining; Expropriation; Natural Resources; Foreign Direct Investment; International Relations/Trade; Resource /Energy Economics and Policy; C7; D8; K3; F2; O1.
Ano: 2010
URL: http://purl.umn.edu/58292

Farmer Participation in the Conservation Reserve Program and Bio-fuel Production under Uncertainty and Irreversibility
Provedor de dados: 31
Autores: Di Corato,   Luca; Mandal,   Maitreyi; Lagerkvist,   Carl Johan.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop Production/Industries; Land Economics/Use; Resource /Energy Economics and Policy.
Ano: 2011
URL: http://purl.umn.edu/103701