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Table 7 Option value based on MRM
From: Consumer value of fuel choice flexibility - a case study of the flex-fuel car in Sweden
Results | |
|---|---|
Discounted costs for gasoline | 178 729 SEK |
Discounted costs for ethanol | 173 385 SEK |
Discounted costs for min[gasoline, ethanol] | 171 234 SEK |
Value of Switching option | 7 495 SEK |
Option value − option price (flex-fuel premium) | = (7 495–6000) = 1 495 SEK |
Net value + plus subsidy | = (1 495 + 10 000) = 11 948 SEK |