Long-term risk management of nuclear waste: a real options approach

Marc Chesney (), Henri Loubergé and Stephane Villeneuve

No 767, HEC Research Papers Series from HEC Paris

Abstract: In this paper, we investigate the optimal timing for deep geological disposal of nuclear waste. Our model is based on the real options approach to investment under uncertainty. In this context, the problem is similar to the optimal exercise policy for a perpetual American spread option. The potential usefulness of such a model for actual decision-making on a sensitive issue is illustrated by some numerical simulations.

Keywords: risk management; optimal stopping; real and American options (search for similar items in EconPapers)
JEL-codes: C53 D81 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2001-04-01
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Long-term risk management of nuclear waste: a real options approach (2002)
Working Paper: Long-Term Risk Management of Nuclear Waste: A Real Options Approach (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:0767

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