Fuzzy real options and shared savings: Investment appraisal for green shipping technologies

Author(s):  
Daniel Metzger ◽  
Orestis Schinas
Author(s):  
Daniel Metzger

AbstractIn the strategy on the reduction of greenhouse gas (GHG) emission of the International Maritime Organization (IMO), market-based measures (MBMs) are considered feasible mid-term measures. Thus, the relevance of MBMs for the shipping industry can be expected to grow in the future and, consequently, carbon and other GHG emissions will impact the investment appraisal for greening technologies. This paper illustrates the impact of carbon pricing on the valuation of greening technologies (especially wind-assisted propulsion technologies) and on the relevant decision-making. In this regard, the straightforward approach of a direct acquisition and installation of the respective technology is considered and compared against innovative financing models, such as shared savings. Hence, the Fuzzy Pay-Off Method (FPOM) is applied in order to visualize the risks and chances linked to MBMs. Due to the economic life of greening technologies, the results are already relevant for today’s investment appraisals, even though carbon pricing has not been enforced so far.


2018 ◽  
Vol 23 (09) ◽  
pp. 17-17
Keyword(s):  

Das Unternehmen Optimedis ist in Deutschland vor allem durch das „Gesunde Kinzigtal“ bekannt geworden.


10.1596/27376 ◽  
2011 ◽  
Author(s):  
Odin K. Knudsen ◽  
Pasquale L. Scandizzo

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