Valuing Research And Case Study On Infrastructure Concession Projects Based On Real Options

It is vital for the development of society to ensure the infrastructure and economy increasing harmoniously. Since the reforming and opening, China has invested much in infrastructure but still cannot fulfill the needing of the speedy economic development, so the concession projects granted by government to draw in the non-public capital is an effective way of solving this problem. The government has enacted a serial of policy and laws to support the infrastructure concession projects and many good experiments have been conducted in highway, water and electricity, etc. There are also problems on technical issues and policy, especially on how to estimate the value of infrastructure concession projects correctly.The thesis analyses the current status and character of infrastructure and concession projects, sums up the common methods for estimating the value of infrastructure concession projects and innovatively applies Real Option to this problem with a case study to prove the conclusion that Real Option method can solve the uncertainty effect on infrastructure concession projects and is a good perfection to the traditional methods. The thesis also pays attention to the application problems in practice and puts forwards the directions for future research.