A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Circular Economy and Value Creation: Sustainable Finance with a Real Options Approach
This paper presents a methodological proposal that integrates the circular economy concept and financial valuation through real options analysis. The Value Hill model of a circular economy provides a representation of the course followed by the value of an asset. Specifically, after the primary use, the life of an asset may be extended by going through four phases: the 4R phases (Reuse, Refurbish, Remanufacture and Recycle). Financial valuation allows us to quantify value creation from firms’ asset circularity under uncertainty, modelled by binomial trees. Furthermore, the 4R phases are valued as real options by applying no-arbitrage opportunity arguments. The major contribution of this paper is to provide a quantitative approach to the value of circularity in a general context that is adaptable to firms’ specific situations. This approach is also useful for translating relevant information for stakeholders and policy makers into something with economic and financial value.
Circular Economy and Value Creation: Sustainable Finance with a Real Options Approach
This paper presents a methodological proposal that integrates the circular economy concept and financial valuation through real options analysis. The Value Hill model of a circular economy provides a representation of the course followed by the value of an asset. Specifically, after the primary use, the life of an asset may be extended by going through four phases: the 4R phases (Reuse, Refurbish, Remanufacture and Recycle). Financial valuation allows us to quantify value creation from firms’ asset circularity under uncertainty, modelled by binomial trees. Furthermore, the 4R phases are valued as real options by applying no-arbitrage opportunity arguments. The major contribution of this paper is to provide a quantitative approach to the value of circularity in a general context that is adaptable to firms’ specific situations. This approach is also useful for translating relevant information for stakeholders and policy makers into something with economic and financial value.
Circular Economy and Value Creation: Sustainable Finance with a Real Options Approach
Amalia Rodrigo-González (author) / Alfredo Grau-Grau (author) / Inmaculada Bel-Oms (author)
2021
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
Value Retention Options in Circular Economy: Issues and Challenges of LED Lamp Preprocessing
| DOAJ | 2019
Economy and Finance in Integrated Sustainable Waste Management
| British Library Conference Proceedings | 1996