Study On The Green Development And Project Investment Decision Of China’s Electronic Information Manufacturing Industry

The environmental problems such as PM2.5, hazedouse substances and water pollution have become hot topics. So, people are paying more and more attention to ways of environmental protection and methods to achieve "low carbon"."Green and Sustainable Development" has become the agenda for the whole world, especially for developing countries. Meanwhile, manufacturing sector, particularly for electronic products, has become one of the areas with rapid climbing energy consumptions. It’s high time for this sector to change traditional manufacturing mode. At present, many developed countries have issued a series of Green Acts to regulate the adoption of hazadous substances and polution emission in manufacturing sector. However, the legislation for green development in China is much later than rest of the world, and manufacturers are facing sever challenges when the government is accelerating the legislationDuring the process of green development, electronic information manufacturing industry needs to do analysis on return of investment (ROI) before making decision on new products. Meanwhile, investment analysis is also needed on laying out the strategy of green projects. The goal of green analysis on investment decision is to consider the environment cost that could be decreased or even avoided. With the help of proper appraisal approach, enterprise management will be able to make more practical decision.This paper is using green development and real options theory, to analyze the necessity of green development of electronic information manufacturing industry. It also provides the outlook for green development in the future, and analyzes the cost effectiveness of electronic information manufacturing industry when implementing green development. Green investment decisions-real options approach was derived. By analyzing the traditional investment decision-making method, taking into account the characteristics of the uncertainty of the green investment decisions, three-dimensional selection and management initiative, the author introduces the real options method to do the feasibility analysis for green investment decisions. This paper also summarizes various green investment real options, real options pricing model, and precautions of using real option method for green investment decisions. Finally, by using the case study on green investment analysis, the author proves real options method is suitable for the green investment decision-making of the electronic information manufacturing industry projects.