Optimal Investment Timing and Size of a Logistics Park: A Real Options Perspective

Table 2

Input parameters for model application.

Parameter	Definition	Baseline value
	Parameters of scale economic effect	0.900
	Parameters in the service charge	0.800
	The sensitivity of the service charge to the size of logistic park	6.000
	Government subsidy (million RMB/million tons)	0.580
	Growth rate of logistics demand	0.011
	The volatility rate of logistics demand	0.190
	Unit construction cost (million RMB/million tons)	15.000
	Unit operating cost (million RMB/million tons)	4.500
	Construction duration (years)	5.000
	Discount rate	0.060

(Source. Data adapted from Li et al. [10] and Zhang et al. [3]).