In the present paper we derive the optimal investment policy of investment in the high speed rail (HSR) project, under uncertainty, using the real options analysis (ROA) framework. We assume that the HSR demand, the main source of uncertainty, follows a geometric brownian motion with random jumps, complying with abrupt change of level caused by random events. The occurrence of such events is ca...

Reduced travel time, regional cohesion, economic development and environmental benefits were some of the reasons given to develop the High Speed network in Spain, the largest in Europe. Ever since the opening of the first High Speed line in 1992, High Speed Rail (HSR) have become a new travelling experience despite the fact that in the recent years several voices have raised concerns over a lac...

The development of High Speed Rail (HSR) in Europe has been encouraged and financially supported by the European Commission. Several lines are in operation, and many others under construction or waiting for approval. HSR technology is presented as a solution to congested roads and airports. Besides, rail transport is generally regarded as more environmentally friendly than other modes. However,...