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- Title
ESG-Driven Investment Decisions in Photovoltaic Projects.
- Authors
Wei, Ruolan; Ma, Yunlong; Bi, Huina; Dong, Qi
- Abstract
As global climate change intensifies and environmental awareness increases, investing in renewable energy has become a primary economic and social development priority. Photovoltaic (PV) projects, as a clean and sustainable energy technology, have garnered significant attention due to their notable environmental and economic benefits. However, traditional investment evaluation methods such as net present value (NPV) analysis fail to adequately capture the flexibility and future uncertainties inherent in PV project investments. This paper presents a case study analysis proposing a delay option model that incorporates environmental, social, and governance (ESG) factors, providing a more scientific and flexible investment decision framework for PV projects. The case study results indicate that considering ESG factors significantly enhances the investment value of PV projects. This model not only provides comprehensive support for PV project investment decisions but also underscores the importance of establishing stringent carbon trading markets and policy incentive mechanisms to promote the widespread adoption and sustainable development of renewable energy projects.
- Subjects
PHOTOVOLTAIC power generation; ENERGY development; ENVIRONMENTAL, social, &; governance factors; NET present value; CLEAN energy; CARBON offsetting
- Publication
Energies (19961073), 2024, Vol 17, Issue 16, p4117
- ISSN
1996-1073
- Publication type
Article
- DOI
10.3390/en17164117