Market uncertainty, project specifity and policy effects on bioenergy investments: A real options approach

While renewable energy is considered as an indispensable component of the energy mix from the political and societal perspective, its economic relevance remains questionable. Especially bioenergy production from agricultural crops and its promotion have generated a highly emotional and controversial debate. Indeed, the currently very small global share of crop-based bioenergy is opposed by the disproportionately high macroeconomic and social costs of its production. Thus, it is unsurprising that this topic continues to attract much research attention. [...]