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http://dx.doi.org/10.7838/jsebs.2019.24.2.125

Analysis of Investment Time for a Residential Photovoltaic Power System in China and Thailand Applying a Real Option Model and SAM Data  

Moon, Yongma (College of Business Administration, University of Seoul)
Publication Information
The Journal of Society for e-Business Studies / v.24, no.2, 2019 , pp. 125-141 More about this Journal
Abstract
This paper provides economic analysis for a residential photovoltaic (PV) power system of 5 districts in China and Thailand, using SAM (System Advisor Model) data. Unlike existing literature, the analysis is conducted from the investment timing perspective, as applying to a real option model which can incorporate the cost uncertainty of the PV system and a resident's option to delay the investment. This study shows that the gap of optimal investment times between a real option model and a generally used net present value model ranges from about 6 to 14 years. Also, we found a contracting result for a particular district that, while the investment is appropriate according to the net present value model, it is more reasonable to delay the PV system investment in terms of the real option model.
Keywords
Photovoltaic Power; Real Option; Optimal Timing; Resident; System Advisor Model (SAM);
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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