Research Article
Flexible Investment Decision of BIPV Project Considering Green Certificate Policy
@INPROCEEDINGS{10.4108/eai.23-2-2024.2345893, author={Lianjie Jiang and Yuhan Zou and Chunyan Dai}, title={Flexible Investment Decision of BIPV Project Considering Green Certificate Policy}, proceedings={Proceedings of the 4th International Conference on Informatization Economic Development and Management, IEDM 2024, February 23--25, 2024, Kuala Lumpur, Malaysia}, publisher={EAI}, proceedings_a={IEDM}, year={2024}, month={5}, keywords={green certificate; flexible investment decision; bipv}, doi={10.4108/eai.23-2-2024.2345893} }- Lianjie Jiang
Yuhan Zou
Chunyan Dai
Year: 2024
Flexible Investment Decision of BIPV Project Considering Green Certificate Policy
IEDM
EAI
DOI: 10.4108/eai.23-2-2024.2345893
Abstract
Promoting the investment and construction of BIPV projects is a non-negligible issue in the field of low-carbon buildings in the future. This paper investigates a flexible investment decision process problem for BIPV projects considering the green certificate policy, treating the investment opportunity as an American call option valid in a certain discrete time, and simulating it using least squares Monte Carlo simulation method with project data from Chongqing, China. The results show that the green certificate mechanism can significantly increase the project revenue, the project value considering the flexible investment decision is higher than that of the fixed investment decision, and the project value varies in the same direction with the volatility of the market price of electricity and the price of green certificates, and inversely with the volatility of the investment cost.