Kemp-Benedict, Eric (2012): The national bioenergy investment model: Technical documentation. Published in: CIFOR Working Paper No. 88
Download (2MB) | Preview
The National Bioenergy Investment Model is a scenario model that simulates the decisions of domestic and international investors on whether to invest in biofuel enterprises in a developing country. In the model, investors compare the profitability of different biofuel feedstock and fuel operations using a riskadjusted discount rate – taking market, currency, country and sector risks into account. Prices for biofuels and feedstocks are determined in part through exogenous international prices and in part through a dynamic, equilibrium-seeking price adjustment mechanism. The model is intended to be used within a participatory scenario exercise, and can be run interactively.
|Item Type:||MPRA Paper|
|Original Title:||The national bioenergy investment model: Technical documentation|
|Keywords:||disequilibrium; investment; simulation; scenario model; FDI; ICAPM; biofuel; agriculture|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
|Depositing User:||Eric Kemp-Benedict|
|Date Deposited:||09. Apr 2012 13:56|
|Last Modified:||14. Feb 2013 09:43|
Adams, S. 2009. Foreign direct investment, domestic investment, and economic growth in sub-Saharan Africa. Journal of Policy Modeling 31: 939-949.
Ahlquist, J. 2006. Economic policy, institutions, and capital flows: Portfolio and direct investment flows in developing countries. International Studies Quarterly 50: 681-704.
Akinkugbe, Oluyele. 2003. Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries. Discussion Paper. Helsinki: UNU/WIDER. http://www.wider.unu.edu/publications/working-papers/discussion-papers/2003/en_GB/dp2003-02/_files/78091724471534368/default/dp2003-02.pdf.
Asiedu, E. 2002 On the determinants of foreign direct investment to developing countries: Is Africa different? World Development 30: 107-119.
Asmussen, C.G., Benito, G.R. and Petersen, B. 2009 Organizing foreign market activities: From entry mode choice to configuration decisions. International Business Review 18: 145-155.
Baker, M.L., Hayes, D.J. and Babcock, B.A. 2008 Crop-based biofuel production under acreage constraints and uncertainty. Center for Agricultural and Rural Development, Iowa State University, USA.
Barry, P.J. 1980 Capital asset pricing and farm real estate. American Journal of Agricultural Economics 62: 549-553.
Blonigen, B.A., Davies, R.B., Waddell, G.R. and Naughton, H.T. 2007 FDI in space: Spatial autoregressive relationships in foreign direct investment. European Economic Review 51: 1303-1325.
Busse, M. and Hefeker, C. 2007 Political risk, institutions and foreign direct investment. European Journal of Political Economy 23: 397-415.
Canavari, M., Caggiati, P. and Easter, K.W. 2002. Economic studies on food, agriculture, and the environment, New York, Kluwer Academic/Plenum.
Carlesi, L., Verster, B. and Wenger, F. 2007 The new dynamics of managing the corporate portfolio. McKinsey on Finance 23: 1-8.
Chaudhuri, S. and Banerjee, D. 2010 FDI in agricultural land, welfare and unemployment in a developing economy. Research in Economics 64: 229-239.
Colman, D. and Young, T. 1989 Principles of agricultural economics: Markets and prices in less developed countries. Cambridge University Press, Cambridge, UK.
Dahlquist, M. and Robertsson, G. 2001 Direct foreign ownership, institutional investors, and firm characteristics. Journal of Financial Economics 59: 413-440.
de Wit, M., Junginger, M., Lensink, S., Londo, M. and Faaij, A. 2010 Competition between biofuels: Modeling technological learning and cost reductions over time. Biomass and Bioenergy 34: 203-217.
Dippenaar, A. 2009 What drives large South African corporations to invest in sub-Saharan Africa? CEO's perspectives and implications for FDI policies. Natural Resources Forum 33: 199-210.
Ferguson, B.S. 1998 Introduction to dynamic economic models. Manchester University Press, Manchester, UK.
Graham, J.R. and Harvey, C.R 2001 The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics 60: 187-243.
Hall, G. and Howell, S. 1985 The experience curve from the economist's perspective. Strategic Management Journal 6: 197-212.
Hallegatte, S., Ghil, M., Dumas, P. and Hourcade, J. 2008 Business cycles, bifurcations and chaos in a neo-classical model with investment dynamics. Journal of Economic Behaviour and Organization 67: 57-77.
Hennart, J. and Park, Y. 1993 Greenfield vs. acquisition: The strategy of Japanese investors in the United States. Management Science 39: 1054-1070.
Hosier, R.H. 1993 Urban energy systems in Tanzania: A tale of three cities. Energy Policy 21: 510-523.
Hosier, R.H. 2004 Energy ladder in developing nations. In: Encyclopedia of energy, 423-435, Elsevier, New York, NY, USA.
Jenkins, R and Edwards, C. 2006 The economic impacts of China and India on sub-Saharan Africa: Trends and prospects. Journal of Asian Economics 17: 207-225.
Jinjarak, Y. 2007 Foreign direct investment and macroeconomic risk. Journal of Comparative Economics 35: 509-519.
Kennedy, P. 2003 A guide to econometrics. MIT Press, Cambridge, MA, USA.
Kinda, T. 2010 Investment climate and FDI in developing countries: Firm-level evidence. World Development 38: 498-513.
Klier, D.O. 2009 Managing diversified portfolios: What multi-business firms can learn from private equity. Physica-Verlag, Heidelberg, Germany.
Kogut, B. and Nath, R. 1988 The effect of national culture on the choice of entry mode. Journal of International Business Studies 19: 411-432.
Li, J. and Rugman, A.M. 2007 Real options and the theory of foreign direct investment. International Business Review 16: 687-712.
Li. Q. and Sherali, H.D. 2003 An approach for analyzing foreign direct investment projects with application to China's Tumen River Area development. Computers and Operations Research 30: 1467-1485.
Li, S. and Filer, L. 2007 The effects of the governance environment on the choice of investment mode and the strategic implications. Journal of World Business 42: 80-98.
Lim, S. 2008 How investment promotion affects attracting foreign direct investment: Analytical argument and empirical analyses. International Business Review 17: 39-53.
Moosa, I.A. 2002 Foreign direct investment: Theory, evidence, and practice. Palgrave, Houndmills, UK.
Nocke, V. and Yeaple, S. 2007 Cross-border mergers and acquisitions vs. greenfield foreign direct investment: The role of firm heterogeneity. Journal of International Economics 72: 336-365.
Pompian, M.M. 2006 Behavioral finance and wealth management: How to build optimal portfolios that account for investor biases. Wiley, Hoboken, NJ, USA.
Quandt, R.E. 1988 The econometrics of disequilibrium. Blackwell, New York, NY, USA.
Sadorsky, P. 2012 Modeling renewable energy company risk. Energy Policy 40: 39-48.
Sethi, D., Guisinger, S., Ford, D.L. and Phelan, S.E. 2002 Seeking greener pastures: A theoretical and empirical investigation into the changing trend of foreign direct investment flows in response to institutional and strategic factors. International Business Review 11: 685-705.
Solnik, B.H. 2000 International investments. Addison-Wesley, Reading, MA, USA,.
Tepe, F.S. 2010 Biofuel policy and stock price in imperfectly competitive markets. MS Thesis, Iowa State University, Ames, IA, USA.
Walker, D.A. 1987 Walras's theories of tatonnement. The Journal of Political Economy 95: 758-774.
White, C. and Fan, M. 2006 Risk and foreign direct investment. Palgrave MacMillan, Houndmills, UK.
Wilson, C., and Featherstone, A., 2006 Adjusting the CAPM for threshold effects: An application to food and agribusiness stocks. Working Paper 06-08, Purdue University, College of Agriculture, Department of Agricultural Economics, West Lafayette, IN, USA.