The basic idea of real options analysis is that flexibility has value. Increasing the flexibility of investmentprojects may therefore substantially increase their value. Ignoring the value of flexibility implies that erroneously investmentprojects without much flexibility may be preferred to...

Changes in the climate will have a major impact on the Dutch economy and environment. According to official Dutch climate scenario’s, at the end of the century the sea level will have increased by between 35 and 85 cm. This paper investigates major policy options for the IJsselmeer-area to...