Proceedings of the 4th International Conference on Informatization Economic Development and Management, IEDM 2024, February 23–25, 2024, Kuala Lumpur, Malaysia

Research Article

Flexible Investment Decision of BIPV Project Considering Green Certificate Policy

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  • @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
Lianjie Jiang1, Yuhan Zou1, Chunyan Dai1,*
  • 1: Chongqing Technology and Business University
*Contact email: daichunyan@ctbu.edu.cn

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.