Real options for real urban projects.

This interdisciplinary project aims to develop an innovative, approach for planning, design and decision making in complex spatial projects – e.g. transport infrastructure, urban development – and (urban) planning based on the real options theory from economics and finance. Contrary to the static rational model and "predict and control" approach, the real options approach offers a flexible way for coping with uncertainties through flexibility options that allow for project adjustments, making projects more adaptive to a dynamic and ever changing environment. However, a current theory-practice gap between real options theory and planning and design practice limits its practical value, accessibility, and applicability due to quantitative complexity and a lack of interference with real-life decision-making. Through the involvement of stakeholders and the use of pilot projects for the application of real options in Flanders, I will research the appropriate methods to tailor the real options theory to the needs of decision makers, planners, project managers, designers, etc. Throughout this project, (I) the research results will address several knowledge gaps in the existing literature on adaptive planning and design, real options theory and complex spatial projects; and (II) an accessible real options based framework (theories, tools, methods, models) will be developed to be used as a more flexible and adaptive approach in planning, design and decision-making.

Keywords:PROJECT MANAGEMENT, URBAN PLANNING

Disciplines:Project management, Public policy, Urban and regional geography