Abstract Based on the theory of real options, this paper establishes a policy benefit model that can be used to evaluate the development of wind power considering four uncertain factors: thermal power generating cost, wind power generating cost, carbon price, incentives and subsidies from the government. By setting different coefficients of subsidy, the paper analyzes its effects on the total decisional value and achieves the optimal investment timing under various situations. The research helps the government assess the projects of renewable resources, which may contain some uncertainties and make relevant policies.
2013, Vol. 10 
