Research on Growth Option-Based Value of Government Multi-period Franchise Granting Promise

摘要

In the financing model of multi-participation of urban infrastructure supply, Governments can improve the enthusiasm of other participators involved in the urban infrastructure supply, by providing franchise granting promise to other participants. As a result of the regulation of the maximum period of franchise in China's policy, practical projects often appear to the situation of franchise grant ing by two or more periods, so, in this paper the growth option theory of real option theory has been introduced to establish the option pricing model of Government's multi-period franchise granting promise in the infrastructure project, and provide a systematic method to determine the value of the Government's multi-period franchise granting promise. Finally, an analysis of example shows the results that, on one hand the Government's multi-period franchise granting promise can improve efficiency, quality and stability of infrastructure supply; on the other hand, it can raise the project company's future income, maybe change its initial investment decision, and eventually raise the level of public benefit.