Long-Term Risk Management of Nuclear Waste: A Real Options Approach

Henri Loubergé, Stephane Villeneuve and Marc Chesney
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Marc Chesney: HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales

Working Papers from HAL

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)
Date: 2002
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Citations: View citations in EconPapers (8)

Published in 2002

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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 (2001)
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