We derive a new equation for the optimal investment boundary of a general irreversible investment problem under exponential Lévy uncertainty. The problem is set as an infinite time-horizon, two-dimensional degenerate singular stochastic control problem. In line with the results recently...

We consider a real options model for the optimal irreversible investment problem of a profit maximizing company. The company has the opportunity to invest into a production plant capable of producing two products, of which the prices follow two independent geometric Brownian motions. After...

In this paper, we propose a methodological framework for assessing the influence of climate uncertainty and technological innovation on renewable investments in small off-grid islands. At the core of the framework, an energy system model calculates the system performance in terms of Present...