| Budget Amount *help |
¥3,640,000 (Direct Cost: ¥2,800,000、Indirect Cost: ¥840,000)
Fiscal Year 2015: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
Fiscal Year 2014: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
Fiscal Year 2013: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
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| Outline of Final Research Achievements |
This study was conducted to characterize domestic and diplomatic difficulties of countries planning to commence trading of electricity. Iceland and Tajikistan are examined to highlight particular difficulties. Findings from this study suggest that governments should (a) clarify to the public what benefits might be secured by electricity trade, (b) not politicize electricity trade with foreign countries, and (c) not victimize any country in the region.
Real options were introduced in the form of risk hedges, and we attempted to estimate the hedge cost. Through qualitative analysis we also identified the presence of geopolitical risks. We also found a certain degree of demand risk exists. Therefore, when evaluating project feasibility, the hedge cost of these risks should be considered.
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