Real Options Analysis for Smart Grid: The Role of Information Technology and Public Policy

Real Options Analysis for Smart Grid: The Role of Information Technology and Public Policy

Report

Real Options Analysis for Smart Grid: The Role of Information Technology and Public Policy

Smart cities depend on smart grid for resilient energy delivery and improved energy efficiencies. This paper employs the real option approach (ROA) to study the investment decision of information technology innovation in the case of smart grid adoption under uncertainty. We argue that investing in smart grid is analogous to having the option rights in a financial (American) call option.

  • Use cases, geography and tags
  • Organizations that created, adopted or are mentioned
  • Ecosystem position
  • Link to the original asset
  • Comments and reactions