Flexible Use of Diesel or Biodiesel: an approach via Real Options

Edson Gonçalves and Leonardo Leandro Ferreira
Additional contact information
Leonardo Leandro Ferreira: PETROBRAS

Brazilian Business Review, 2008, vol. 5, issue 3, 218-232

Abstract: Our main goal is to study the development of biodiesel as a renewable energy source in Brazilian reality. Specifically, we shall discuss the flexibility between traditional diesel and biodiesel. It will be evaluated the option pricing of a diesel-run device where it is possible to use diesel or biodiesel. The evaluation will be done by means of a Real Options Approach, where the choice is modeled on a European options sequence. We also comment on the added gains for a country like Brazil.

Keywords: investment under uncertainty; real options; flexibility; renewable energy sources. (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://bbronline.com.br/index.php/bbr/article/download/393/600 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bbz:fcpbbr:v:5:y:2008:i:3:p:218-232

Access Statistics for this article

Brazilian Business Review is currently edited by Emerson Mainardes

More articles in Brazilian Business Review from Fucape Business School Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES. Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Lasso ( this e-mail address is bad, please contact ).