Energy Investments

An Adaptive Approach to Profiting from Uncertainties

  • Ricardo G. Barcelona

Table of contents

  1. Front Matter
    Pages i-xxix
  2. Decision Context

    1. Front Matter
      Pages 1-1
    2. Ricardo G. Barcelona
      Pages 3-23
    3. Ricardo G. Barcelona
      Pages 25-54
    4. Ricardo G. Barcelona
      Pages 55-76
    5. Ricardo G. Barcelona
      Pages 77-96
  3. Managerial Flexibility and Competition

    1. Front Matter
      Pages 97-97
    2. Ricardo G. Barcelona
      Pages 99-120
    3. Ricardo G. Barcelona
      Pages 121-150
    4. Ricardo G. Barcelona
      Pages 151-174
    5. Ricardo G. Barcelona
      Pages 175-203
  4. Energy Markets and Regulatory Actions

    1. Front Matter
      Pages 205-205
    2. Ricardo G. Barcelona
      Pages 207-235
    3. Ricardo G. Barcelona
      Pages 237-265
  5. Financing and Portfolio Management

    1. Front Matter
      Pages 267-267
    2. Ricardo G. Barcelona
      Pages 269-304
    3. Ricardo G. Barcelona
      Pages 305-333
    4. Ricardo G. Barcelona
      Pages 335-356
  6. Analytical Foundation and Methodologies

    1. Front Matter
      Pages 357-357
    2. Ricardo G. Barcelona
      Pages 359-393
    3. Ricardo G. Barcelona
      Pages 395-454
    4. Ricardo G. Barcelona
      Pages 455-472
  7. Reflections and What Next

    1. Front Matter
      Pages 473-473
    2. Ricardo G. Barcelona
      Pages 475-485
  8. Back Matter
    Pages 487-496

About this book


‘Ricardo Barcelona addresses the thornier issues of energy strategy. In this book he moves from the certainties assured by financial modelling to explore the tough questions that astute practitioners ask themselves – why do things never turn out as they were projected? Is energy strategy always going to be a tale of unfulfilled promises? His research findings and his insights make a must read for anyone in this field.’

Patrick H. “Paddy” Miller, Author, Innovation as Usual, Hong Kong


The book offers rigour, depth, and relevance in tackling approaches that prove sustainable and transformational for business and society.’

Juan Miranda, Managing General Director, Asian Development Bank


‘The book is timely in that it provides good insights on how to address the uncertainty and volatility facing today's energy markets. A good read for anyone involved in the energy sector.’

Stephen A. Paradies, Board Director, Union Bank, and former Chief Financial Officer, Aboitiz Equity Ventures, Philippines


‘Containing original insights into the financing and economics of the energy industry, this book should be read by those working in and studying the future of the energy sector.’

David Parker, Emeritus Professor of Economics, Cranfield University School of Management, and former member, Competition Commission, United Kingdom

This book examines what lies behind the uncertainties surrounding the fuel and power markets. Exploring the role of renewables and how they potentially disrupt or create opportunities, it challenges widely accepted wisdoms in investment. The author asks questions such as: Are “business as usual” strategies that favour fossil fuels the best route to future prosperity? What prospects do firms face when their competitors diversify into renewables? Why do generous subsidies to renewables often fail to achieve wide-scale deployment? Illustrating how real options and option games reasoning yield vastly different insights from those gained from NPVs, Energy Investments offers case studies and simulations to demonstrate how firms can benefit from the methods it showcases.  


fuel investment option games reasoning fossil fuel economics energy industry Investment Analysis Decisions under uncertainties flexibility real options option games capital budgeting subsidies energy portfolio

Authors and affiliations

  • Ricardo G. Barcelona
    • 1
  1. 1.IESE Business SchoolUniversity of NavarraBarcelonaSpain

Bibliographic information

  • DOI
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2017
  • Publisher Name Palgrave Macmillan, London
  • eBook Packages Business and Management
  • Print ISBN 978-1-137-59138-8
  • Online ISBN 978-1-137-59139-5
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking