The study aims to analyze economic of biogas plant in transition of recognition that waste resources has become renewable energy. The traditional investment valuation method using the NPV or IRR has a limitation in a sense that uncertainty of the future is not reflected. Hence, the purpose of this paper is to assess the value of the business by taking advantage of the real option. Biogas plant simulation is applied to the case of Garak Market using the binomial options among a variety of real options. With this analysis, it is assessed that operational expand option is the largest of the value of the binomial options.

• 오성환(고려대학교 기후환경학과) | Sung-Hwan Oh
• 박호정(고려대학교 식품자원경제학과) | Ho-Jeong Park Corresponding author