An Investment Decision Model for Underground Urban Utility Tunnel Based on MIVES and Real Option Theory from a Sustainable Perspective

Abstract

Although the importance of urbanization, urban renewal and sustainable development have been increasingly recognized, with the accelerating process of urbanization, the urban above-ground space is no longer sufficient for the process of urbanization, and downward development of the city has become inevitable. Underground Urban Utility Tunnel (UUUT) is an effective measure to promote the sustainable development of urban underground space (UUS). However, decision makers still cannot fully consider the economic, social, environmental and technological factors, as well as the future risks of the project and the value of flexibility in management. In this paper, an investment decision model for UUUT is proposed that combines the Integrated Value Model for Sustainable Assessment (MIVES) and the real option theory, which comprehensively considers the social, economic, environmental and technological impacts, and assists the government in carrying out the investment decision analysis of UUUT from a sustainability perspective by applying the real option theory to the economic evaluation process. The primary process of this study can be divided into four steps. (1) establishment of the investment decision index system for UUUT; (2) determination of the quantitative criteria for each indicator; (3) calculation of the feasibility of UUUT; and (4) a case study to demonstrate the feasibility of the proposed model, as well as the achieved results. The proposed investment decision model can be used as an auxiliary tool in the early planning stage of UUUT, and also for the comparison and selection of different options for UUUT.

Investment decision analysis on sustainable renewable energy policy: Literature review

“…This paper discusses the need for clean, sustainable, and environmentally friendly renewable energy and the importance of renewable energy policies in addressing environmental issues and global climate change (Deng et al, 2023). The contribution of this research is to comprehensively understand the latest developments in the renewable energy sector, identify existing challenges and opportunities, and link them to investment decisions.…”

Financial Planning PT. Luxury Indah Jaya “Premium Laundry Services”

“…Based on the results of the investment feasibility analysis, the ROI value generated from Luxury Laundry for 5 years is 4% -12% with an average value of 10%, which means that this project can generate good income. The NPV value of Luxury Laundry investment is IDR 12,376 million, where in investment decisions if the NPV value of a project is above 0, then the project is recommended (Deng, He, Chai, & Wang, 2023). The IRR result on Luxury Laundry investment is 20.32%, which is quite promising in carrying out a project, because the IRR value of 20.32% is still higher compared to other business investments so that Luxury Laundry investment is more attractive to investors (Alizadeh, Tabil, Mupondwa, Li, & Cree, 2023).…”

Introducing the Comprehensive Value Function for Sustainability Full-Spectrum Assessment

“…These analyses include evaluations focused on different types of structures and materials. For example, in structural analyses, it has been applied to tunnels [5][6][7][8][9], bridges [10,11], and footbridges [12,13], industrial buildings [14][15][16] or skyscrapers [17], mass housing [18], and modular residential towers [19]. It has also been used in assessing temporary [20][21][22][23], and self-promoting housing [24], as well as in evaluating the sustainability of construction materials like wood [25,26], concrete [27], and prefabricated structures [28].…”