Explaining Investment Decisions in the South African Biofuels Industry: A Game Theoretic Approach
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
The production of biofuels and the establishment of a biofuels industry in South
Africa have largely been hampered by the structure, procedures and requirements as
set out in the Industrial Biofuel Strategy. This article sketches the industry by means
of a game theoretic representation. A model is developed that represents the rational
strategies of various role players in the industry with respect to investor decision
making. In reality this did not occur and the article develops and documents a
variable, σ, which in turn helps to represent the current state of affairs. The study
explains why current investment decisions in the industry have been made and why
certain role players remain indifferent towards any commitment.