Evaluating Infrastructure Projects under Risk and Uncertainty: A Checklist of Issues. (March 2014)

• Record Type: Journal Article
• Authors: Clarke, Harry
• Is Part Of: Australian economic review. Volume 47:Number 1(2014:Mar.)
• Page Start: 147
• Page End: 156
• Publication Date: 2014-03
• Subjects: Economics -- Periodicals; Australia -- Economic conditions -- Periodicals; Australia -- Economic policy -- Periodicals; Australia -- Economic conditions -- 1945-; Économie politique -- Périodiques; Australie -- Conditions économiques -- Périodiques; Australie -- Politique économique -- Périodiques; Australie -- Conditions économiques -- 1945- -- Périodiques; 330.994005
• DOI: 10.1111/1467-8462.12047
• Languages: English
• ISSNs: 0004-9018

Abstract

<abstract abstract-type="main" xml:lang="en"> <title>Abstract</title> <sec id="aere12047-sec-0001" sec-type="section"> <p> <italic>The implications of risk, investment irreversibility and learning for infrastructure project assessment are considered, using investment in desalination as a case study. Both qualitative insights from 'real options</italic>' <italic>approaches and arguments based on policy‐maker risk aversion to investment appraisal are summarised. A checklist of key issues is presented. Remarks are also made about how pure uncertainty and gross ignorance can influence policy determination</italic>.</p> </sec> </abstract>