The Research Of The Energy Projects Investment Value Under The Condition Of The Internalization Of External Costs

With the energy sector opening to private capital deeper and deeper,private capital investment activity in the energy sector will become more active.External costs generated by energy development is huge,the internalization of external costs is an important way to achieve the goal of sustainable development,so external costs will become another important factor which affect the value of energy investment projects;In addition,the energy industry is a high-risk industry,using appropriate valuation method to evaluate the value of uncertain energy projects will be the key factor.In this paper,based on the existing research results.we analyzed the commonly used valuation methods contrastively,pointing out their own characteristics and the scope of application.Secondly,we used the method of marginal analysis to analyze the logical basis of the external costs generated by coal projects,furthermore,we stated the driving force of the internalization of external costs under the perspective of the stakeholders.Again,through the analysis of the characteristics of coal investment projects,we pointed out that the complexity of decision-making process allows investors to seize the initiative and flexibility,which is the basis of the value of options generated in an investment project.Finally,we analyzed the value composition of coal projects under the concept of real options, then we explained the transmission mechanism which explains how the internalization of external costs will affect the value evaluation,and quantitatively analyzed the investment value of coal project combined with actual cases.The case analysis results show that,for the coal investment projects,if deciding immediately,investors can achieve the value of100,136,600yuan,while252,961,800yuan can be obtained if investors postpone their decision according to the changes in the coal market,in which the value of flexibility is152,825,200yuan,and the value of flexibility has exceeded the value of the project itself,which shows that the value of options can not be ignored in the investment management process,thus indicating that real options valuation method is more appropriate for uncertain investment projects;The internalization of external costs can affect the investment value of coal project through production costs,price volatility and investment costs,in the case of large external costs,the internalization of external costs may make the project which had the investment value originally becomes unprofitable.Therefore,on the basis of the internalization of external costs,applying real options theory to re-examine the value of energy investment projects has a positive meaning,also this forward-thinking can help investors avoid future risks.