Effect of Diversification of Operation Cost on Infrastructure BOT Project Investment Decision and Analysis of Option Game

According to the option characteristic of environmental protection infrastructure build-operate-transfer (BOT) project, this paper sets the concession term as the government's decision variable and adopts option game method to analyze the investment behavior of the project company under the condition that the government makes the concession term certain, and establishes the decision-making models both for the concession term and the investment cost of environmental protection infrastructure. The result shows that to introduce the growth option makes the concession term more reasonable, and the project company enhances the investment in construction cost to benefit itself. Consequently, the time of government operating the environmental protection infrastructure will be lengthened.