Real Option in Urban Rapid Rail Transit PPP Project

Chao Wang; Wei Liang; Shou Qing Wang

doi:10.4028/www.scientific.net/AMM.505-506.437

Paper Titles

Research on Parking Demand Model of Colleges and Universities Based on Shared Parking
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Rent Pricing in Urban Rail Transit SBOT Projects under Uncertainties
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Study on Taxi Quantity Model Based on Dual-Satisfaction
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Evaluation of Traffic Organization Scheme during the Construction of Urban Subway Station Based on TransCAD
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Real Option in Urban Rapid Rail Transit PPP Project
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The Waterway Service Level Research of Xijiang Waterway in Zhaoqing Area
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Study on Hub-and-Spoke Organization of Container Shipping in the Yangtze River
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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vols. 505-506Real Option in Urban Rapid Rail Transit PPP...

Real Option in Urban Rapid Rail Transit PPP Project

Abstract:

To address a real issue in Beijing Urban Rail PPP project, an Excel model is built to solve the decision making problem of car park scale using real option theory. The model calculates the expected NPV of different options of building scale with real option embedded, avoiding the trouble of option pricing. The results show that real option can significantly optimize the decision making process of PPP projects. Especially when dealing with the problems raised by uncertainty in the process of negotiation, decision making and execution of a PPP project, real option can be more useful as it not only offers a way to improve the rationality of a decision, but also helps both of the private and the public sectors to reach an agreement.

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Periodical:

Applied Mechanics and Materials (Volumes 505-506)

Pages:

437-442

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.505-506.437

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Online since:

January 2014

Authors:

Chao Wang*, Wei Liang, Shou Qing Wang

Keywords:

PPP, Public-Private-Partnership (PPP), Real Option, Uncertainty, Urban Rapid Rail Transit

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* - Corresponding Author

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