New Book: Real Options and Energy Management
Using Options Methodology to Enhance Capital Budgeting Decisions

This webpage presents the list of papers and short comments of the new real options book published by Risk Books:
"Real Options and Energy Management - Using Options Methodology to Enhance Capital Budgeting Decisions", edited by the Professor Ehud I. Ronn.
I plan to set here some comments on some selected papers in a near future.

This new real options book presents the editor's introductory article, 21 papers and two appendixes. Most papers are practical and applied to energy sector.
There are some papers more focused in oil and gas projects, in the section 1 and mainly in section 3, with known authors from real options in petroleum literature such us Gordon Sick and Larry Chorn. There are even papers on environmental evaluation, general issues, and mathematical introductory material.
However, electric power generation and transmission valuation are the main focus of this book with many interesting papers.

Press-Release, List of Papers and Editor Bios

A multi-author title that focuses on both the fundamentals of real options, and the very latest practical approaches for their application in the energy industry. Real Options and Energy Management has been written to specifically aid investment decision-making within the energy industry.

About the Editor: Ehud I. Ronn is a Professor of Finance at the University of Texas at Austin and Director of the Center for Energy Finance Education and Research at the McCombs School of Business.
He got the Ph.D. in Finance title from Stanford University. He has published articles on investments, interest rate-sensitive instruments and energy derivatives in the academic and practitioner literature, including Journal of Finance, Journal of Business, American Economic Review and Energy & Power Risk Management. Dr. Ronn served also as Vice President, Trading Research Group at Merrill Lynch & Co. in the 90's.

List of Papers (ToC)

Introduction - Ehud Ronn

Section 1. Options from Options: Financial Options Meet Real Options

Section 2. Real Options and the Energy Industry: Applying Real Option Valuation to Power Generation and Ancillary Services

Section 3. Primary Inputs: Gas and Oil

Section 4. Strategy and Environmental Issues in Electric Power

Section 5. Case Studies


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Back to Contents (the main page)