EconPapers    
Economics at your fingertips  
 

Information Gains of the Policy Maker Option Value of Major Public Infrastructure Projects

Gains d'information du décideur public et valeur d'option des grands projets d'infrastructure

Laurent Denant-Boèmont and Sabrina Hammiche ()
Additional contact information
Sabrina Hammiche: UBO - Université de Brest, LET - Laboratoire d'économie des transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper analyses the risk of dynamic irreversibility for major public infrastructure projects using the theory of quasi-option value (Henry, 1974; Arrow, Fisher, 1974) in cost-benefit analysis. The case study compares two competing public infrastructure projects: an irreversible motorway project and a flexible rail project. The latter allows the motorway investment decision to be deferred. Quasi-option value is then applied for a risk environment in which information increases over time, changing the balance between the two projects. The monetised value of the environmental externalities, upon which today's transport policy tends to focus, might then be viewed as secondary to projects' irreversibility costs.

Keywords: Valeur d'Option Séquentielle; choix d'investissement de transport; méthode d'évaluation; analyses coûts-avantages; modèle de choix d'investissement (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations:

Published in Economie et Prévision, 2000, Fait partie d'un numéro thématique : Economie de l'environnement et des ressources naturelles, sous la direction de Pierre Malgrange, Michel Moreaux et Michel Mougeot, 143 (2), pp.139-153. ⟨10.3406/ecop.2000.6097⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:halshs-01356848

DOI: 10.3406/ecop.2000.6097

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:journl:halshs-01356848