Zoeken
Zoeken kan via de modus 'eenvoudig zoeken' (één veld) of uitgebreid via 'geavanceerd zoeken' (meerdere velden). Zo kan je bv. zoeken op een combinatie van een auteursnaam (auteur), een jaartal (jaar) en een documenttype.
Boekenmand
Nuttige resultaten kan je aanvinken en toevoegen aan een mandje. De inhoud hiervan kan je exporteren of afdrukken (naar bv. PDF).
RSS
Op de hoogte blijven van nieuw toegevoegde publicaties binnen uw interessegebied? Dit kan door een RSS-feed (?) te maken van jouw zoekopdracht.
nieuwe zoekopdracht
Optimal investment and location decisions of a firm in a flood risk area using impulse control theory
Grames, J.; Grass, D.; Kort, P.M.; Prskawetz, A. (2019). Optimal investment and location decisions of a firm in a flood risk area using impulse control theory. Central European Journal of Operations Research 27(4): 1051-1077. https://dx.doi.org/10.1007/s10100-018-0532-0
In: Central European Journal of Operations Research. Springer: New York. ISSN 1435-246X; e-ISSN 1613-9178
|   |
| Author keywords |
Optimal investment; Location choice; Flood; Socio-hydrology; Impulsecontrol theory; Sustainability |
| Auteurs | | Top |
- Grames, J.
- Grass, D.
- Kort, P.M.
- Prskawetz, A.
|
|
|
| Abstract |
Flooding events can affect businesses close to rivers, lakes or coasts. This paper provides an economic partial equilibrium model, which helps to understand the optimal location choice for a firm in flood risk areas and its investment strategies. How often, when and how much are firms willing to invest in flood risk protection measures? We apply Impulse Control Theory and develop a continuation algorithm to solve the model numerically. We find that, the higher the flood risk and the more the firm values the future, i.e. the more sustainable the firm plans, the more the firm will invest in flood defense. Investments in productive capital follow a similar path. Hence, planning in a sustainable way leads to economic growth. Sociohydrological feedbacks are crucial for the location choice of the firm, whereas different economic settings have an impact on investment strategies. If flood defense is already present, e.g. built up by the government, firms move closer to the water and invest less in flood defense, which allows firms to generate higher expected profits. Firms with a large initial productive capital surprisingly try not to keep their market advantage, but rather reduce flood risk by reducing exposed productive capital. |
IMIS is ontwikkeld en wordt gehost door het VLIZ.
