scholarly journals The Feasibility of Lowering Energy Costs Through Reduced Delivery Frequency

1980 ◽  
Vol 9 (1) ◽  
pp. 13-15
Author(s):  
James G. Beierlein ◽  
Robert J. Campbell
Keyword(s):  
Net Present Value ◽  
Energy Savings ◽  
Transportation Costs ◽  
Energy Costs ◽  
Present Value ◽  
Fuel Price ◽  
Fuel Prices ◽  
Price Increases ◽  
Net Revenue ◽  
The Cost

The feasibility of reducing delivery frequency as a means of lowering energy and transportation costs is examined. Four reduced delivery situations are examined using a net present value criteria. While substantial energy savings are possible the cost of equipment necessary to accommodate these reductions outweighs the energy savings at current fuel prices. Substantial fuel price increases are required before such reductions are worthwhile. Good management requires examination of the net effect of energy savings on net revenue.

scholarly journals Evaluation of the Cost-Effectiveness of the Installation of Heat-Cost Allocators in Multifamily Buildings in Croatia

Energies ◽  
2019 ◽  
Vol 12 (3) ◽  
pp. 507 ◽  
Author(s):  
Sunčana Slijepčević ◽  
Davor Mikulić ◽  
Kristijan Horvat
Keyword(s):  
Energy Consumption ◽  
Cost Effectiveness ◽  
Net Present Value ◽  
Energy Savings ◽  
Heat Energy ◽  
Energy Prices ◽  
Present Value ◽  
Improve Energy Efficiency ◽  
Before And After ◽  
The Cost

In order to improve energy efficiency, the Croatian government introduced an individual metering obligation for all district heat network users. The purpose of the research was to evaluate this policy measure regarding its effects on tenants’ behavior and energy savings, but also from the perspective of cost-effectiveness. The sample includes approximately 20% of all Croatian users of district heat energy. Energy savings related to the installation of heat cost allocators are calculated by comparing the specific heat energy consumption, corrected for the number of heating degree days, in periods before and after the installation of the heat cost allocators. The cost-effectiveness assessment is based on the concept of the net present value. The transition to individual metering in Croatia resulted in significant energy savings averaged from 20 to 35%. However, low heat energy prices in cities with a dominant share of heat energy consumption did not ensure a positive net present value of investment for all buildings.

scholarly journals APPLYING CLASSICAL FOREST REGULATION METHODS TO SMALLHOLDINGS WITH COOPERATIVE CONSTRAINTS

CERNE ◽  
2016 ◽  
Vol 22 (2) ◽  
pp. 197-206 ◽  
Author(s):  
Rafael Rode ◽  
Helio Garcia Leite ◽  
Daniel Henrique Breda Binoti ◽  
Carlos Antonio Álvares Soares Ribeiro ◽  
Agostinho Lopes Souza ◽  
...  
Keyword(s):  
Mathematical Programming ◽  
Net Present Value ◽  
Programming Models ◽  
Baseline Scenario ◽  
Present Value ◽  
Regulation Process ◽  
Net Revenue ◽  
The Cost ◽  
Regulation Costs ◽  
Individual Regulation

ABSTRACT This study aims to assess the cooperative regulation process of forestry producers in comparison to the traditional individual regulation of properties. Twenty (20) forest properties are studied as examples of the development of three forest regulation scenarios: 1) individual regulation, 2) group regulation, and 3) cooperative regulation. The Net Present Value (NPV) of each of the scenarios is optimized according to mathematical programming models and compared to a baseline scenario without forest regulation. According to the proposed cooperative regulation, properties had a proportion factor for annual net revenue distribution calculated from results of the baseline scenario. By comparing the NPV maximization results from scenarios 1 and 3 with the non-regulation scenario, the cost for individual regulation is on average 25%, while being only 11% for cooperative regulation, that is, a 14% reduction in property regulation costs. Additionally, cooperative regulation had the advantage of dividing properties into fewer areas when compared to individual regulation.

scholarly journals The Effect of Increasing Transportation Costs on Florida's Cattle Feeding Industry: An Extension Application

1981 ◽  
Vol 13 (2) ◽  
pp. 141-148
Author(s):  
James R. Simpson ◽  
Forrest E. Stegelin
Keyword(s):  
Large Scale ◽  
Structural Changes ◽  
Potential Effect ◽  
Transportation Costs ◽  
Fuel Price ◽  
Finishing Cattle ◽  
Fuel Prices ◽  
Price Increases ◽  
Cattle Feeding ◽  
Economies Of Size

Rapid fuel price increases in 1979 and early 1980, along with concern about further rises, have led to speculation that Florida, a net calf exporter but net importer of finished cattle and beef, will be increasingly competitive in finishing cattle to slaughter weight. This hypothesis is strengthened by recognition of significant structural changes in the Florida cattle feeding industry since the late 1960s, as large-scale feedlots were developed and smaller-scale feeders declined in importance (Simpson and Baker). Furthermore, yield improvements and new techniques, such as the use of bagasse for silage and feeding of high-moisture corn, have been adopted in the production of Florida feedstuff s. There is no crucial evidence showing differences in investment or operating costs between Florida and the major cattle feeding areas because of the relatively large size feedlots in Florida that allow them to take advantage of substantial economies of size (Simpson, et al.). This paper evaluates the potential effect that increased transportation costs, as a result of higher fuel prices, might have on Florida's competitive cattle feeding position.

scholarly journals A Scorecard to Detect Financial Leverage Profitability

2018 ◽  
Vol 13 (3) ◽  
pp. 244
Author(s):  
Laura Broccardo ◽  
Luisa Tibiletti ◽  
Pertti Vilpas
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Weighted Average ◽  
Cost Of Debt ◽  
Corporate Management ◽  
External Financing ◽  
Present Value ◽  
Financial Decisions ◽  
Proposed Model ◽  
The Cost

This study investigates how balancing internal and external financing sources can create economic value. We set a financial scorecard, consisting of the Cost of Debt (COD), Return on Investment (ROI), and the Cost of Equity (COE). We show that COE should be a cap for COD and a floor for ROI in order to increase the Net Present Value at Weighted Average Cost of Capital and the Adjusted Present Value of the levered investment. However, leverage should be carefully monitored if COD and ROI go off the grid. Situations where leverage has the opposite effect on value creation and the Equity Internal Rate of Return are also discussed. Illustrative examples are given. The proposed model aims to help corporate management in financial decisions.

Fuel price increase, subsidies, overcapacity, and resource sustainability

2008 ◽  
Vol 65 (6) ◽  
pp. 832-840 ◽  
Author(s):  
Ussif Rashid Sumaila ◽  
Louise Teh ◽  
Reg Watson ◽  
Peter Tyedmers ◽  
Daniel Pauly
Keyword(s):  
Price Increase ◽  
Positive Aspect ◽  
Significant Component ◽  
Fuel Price ◽  
Fuel Prices ◽  
Resource Sustainability ◽  
Price Increases ◽  
Fishing Sector ◽  
Fuel Subsidies ◽  
Fuel Costs

Abstract Sumaila, U. R., Teh, L., Watson, R., Tyedmers, P., and Pauly, D. 2008. Fuel price increase, subsidies, overcapacity, and resource sustainability. – ICES Journal of Marine Science, 65: 832–840. Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing. However, government fuel subsidies to the fishing sector reduce, if not completely negate, this positive aspect of increasing fuel costs. Here, we explore the theoretical basis for the expectation that the increasing fuel prices faced by fishing enterprises will reduce fishing pressure. Next, we estimate the amount of fuel subsidies to the fishing sector by governments globally to be in the range of US$4.2–8.5 billion per year. Hence, depending on how much of this subsidy existed before the recent fuel price increases, fishing enterprises, as a group, can absorb as much as this amount of increase in their fuel budget before any conservation benefits occur as a result of fuel price increases.

scholarly journals Studi Kelayakan Ekonomis Rencana Pembangunan Pelabuhan Sungai Liong Desa Berancah Kabupaten Bengkalis

2019 ◽  
Vol 3 (2) ◽  
pp. 146
Author(s):  
Nur Rahmani ◽  
Akmal Lazuardy
Keyword(s):  
Net Present Value ◽  
Payback Period ◽  
Economic Feasibility ◽  
Rate Of Return ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Present Value ◽  
The Government ◽  
The Cost

The fish shelter port (TPI) is a need that needs to be prepared by local village officials and the government for every coastal village in Bengkalis Regency. This research was conducted in the Berancah village of Bantan District. The analysis in this study describes the economic feasibility mathematically for the construction of a fish storage port (TPI) by calculating the cost ratio (B / C ratio) benefit analysis, payback period (PP), net present value (NPV), and internal rate of return ( IRR). The results obtained from the NPV value (3,661,267,645), BCR value (0.943), IRR value of 10.01%, and PP are in the period of 30 years. Taken as a whole by standardizing the calculations, it can be concluded that the planned construction of a fish shelter in Berancah village is considered not economically feasible, but economic analysis is not merely a benchmark for feasibility, reviewed for the future many benefits will be received by the community around the location of the development plan so that it can improve the welfare of the community in Berancah village.

scholarly journals Reinvestment Bias When Analyzing Mutually Exclusive Assets

2011 ◽  
Vol 2 (3) ◽  
pp. 71
Author(s):  
Robert J. Sweeney
Keyword(s):  
Net Present Value ◽  
Capital Budgeting ◽  
Cash Flows ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate ◽  
Current Period ◽  
The Cost ◽  
Flows Over Time

Capital budgeting decisions generally involve the commitment of resources in the current period to secure positive cash flows over time that generate a rate of return in excess of the cost of the funds invested. The most common techniques used to perform this analysis are the Net Present Value (NPV) and the Internal Rate of Return (IRR).Conceptually, these two techniques are substitutable; i.e. the resulting decision from a NPV analysis is identical to the decision from an IRR analysis. In practice, however, the NPV and the IRR can, on occasion, produce conflicting decisions. Specifically, when analyzing mutually exclusive assets the Net Present Value can support one asset while the Internal Rate of Return supports the other. The purpose of this paper is twofold; first, to highlight structural deficiencies in the conventional application of the NPV and the IRR, and second, to demonstrate a procedure to correct for these structural errors.

Creating continuous areas of old forest in long-term forest planning

2000 ◽  
Vol 30 (11) ◽  
pp. 1817-1823 ◽  
Author(s):  
Karin Öhman
Keyword(s):  
Net Present Value ◽  
Problem Formulation ◽  
Core Area ◽  
Northern Sweden ◽  
Present Value ◽  
The Core ◽  
Long Range Planning ◽  
The Cost

Harvest activities tend often to create landscapes where the old forest is fragmented into isolated patches that provide marginal conditions for species that inhabit forest interiors. This paper presents a long-range planning model designed to maximize the net present value and to create continuous patches of old forest. In this model, the spatial structure of old forest is controlled by core area and edge habitats. Core area is defined as the area of old forest that is free of edge effects from surrounding habitats. The core area requirement is set to a fixed value for each of a number of time periods, whereas the area of edge habitats, which should be as small as possible, is weighted against the net present value. The model is applied in a case study to an actual landscape consisting of 755 stands of forest in northern Sweden and solved using simulated annealing. The results show that distinct continuous patches of old forest are created when both a core area requirement and consideration of the amount of edge habitats are included in the problem formulation. The cost of creating continuous areas of old forest was found to be significant.

scholarly journals VIABILIDADE ECONÔMICA DA PRODUÇÃO DE CARVÃO VEGETAL EM DOIS SISTEMAS PRODUTIVOS

FLORESTA ◽  
2014 ◽  
Vol 44 (1) ◽  
pp. 143 ◽  
Author(s):  
Aylson Costa Oliveira ◽  
Thiago Taglialegna Salles ◽  
Bárbara Luísa Corradi Pereira ◽  
Angélica De Cássia Oliveira Carneiro ◽  
Camila Soares Braga ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Net Present Value ◽  
Production Systems ◽  
Planning Horizon ◽  
Economic Viability ◽  
Present Value ◽  
Charcoal Production ◽  
Average Annual Production ◽  
The Cost ◽  
Benefit Cost

O objetivo deste trabalho foi analisar a viabilidade econômica da produção de carvão vegetal em dois sistemas produtivos: oito fornos de superfície acoplados a uma fornalha para queima de gases e dez fornos do tipo “rabo-quente” sem sistema de queima de gases. Para análise econômica, definiu-se uma produção anual média igual a 1.571 metros cúbicos de carvão (mdc) e horizonte de planejamento de 12 anos, sendo propostos 2 cenários. No primeiro cenário, após a colheita da madeira, realiza-se o plantio de uma nova floresta, permanecendo o custo da madeira constante em todo o planejamento; no segundo cenário, após a colheita, considerou-se a condução da brotação, reduzindo os custos na 2ª rotação e consequentemente os custos da madeira. A análise econômica foi realizada através da determinação dos seguintes indicadores: Valor Presente Líquido (VPL), Valor Anual Equivalente (VAE), Razão Benefício/Custo (B/C) e Lucratividade. Os indicadores calculados demonstraram a viabilidade dos dois sistemas produtivos avaliados em ambos os cenários propostos, porém o sistema fornos-fornalha apresentou melhores valores para os indicadores. Conclui-se que a produção de carvão vegetal nos sistemas avaliados foram viáveis economicamente, com o sistema fornos-fornalha gerando maior lucro ao produtor de carvão.Palavras-chave: Fornos de alvenaria; análise determinística; valor presente líquido. Abstract Economic viability of charcoal production in two production systems. The objective of this study was to analyze the economic viability of charcoal production in two conversion technologies: eight surface kilns coupled to a furnace for burning gases (kilns-furnace system) and ten "rabo-quente" or traditional charcoal kilns without burning gases system. An average annual production of 1571 cubic meters of charcoal (mdc) was used to perform the economic analysis. A planning horizon of 12 years and two scenarios were proposed. In the first scenario, after harvesting the wood, the planting of a new forest was performed, and the cost of wood remained constant throughout the planning horizon. In the second scenario, after the harvest, the conduction of shooting was considered, which reduced costs in the second rotation and consequently the cost of wood. The economic analysis was performed by determining the following indicators: Net Present Value (NPV), Equivalent Annual Value (EAV) and Benefit - Cost Reason (B/C). Calculated indicators demonstrated the viability of producing charcoal in the two production systems in both scenarios proposed, but kilns-furnace system presented better values. As conclusion, production of charcoal in the evaluated systems were economically viable. Kilns-furnace system was able to generate more profit to charcoal producer.Keywords: Kilns; deterministic analysis; net present value.

Technical-Economic Study of the Esterification Process of Used Vegetable Oils (UVOs) Using Heat Exchange Networks (HENs)

2016 ◽  
Vol 1139 ◽  
pp. 40-45
Author(s):  
María Fernanda Laborde ◽  
Medardo Serna Gonzalez ◽  
Ana María Pagano ◽  
María Cristina Gely
Keyword(s):  
Heat Exchange ◽  
Vegetable Oils ◽  
Net Present Value ◽  
Energy Savings ◽  
Evaluation Process ◽  
Point Of View ◽  
Economic Study ◽  
Exchange Networks ◽  
Simulation Tools ◽  
The Cost

The objective in this study was to conduct a technical-economic study of the esterification process of used vegetable oils (UVOs) for the production of biodiesel from the point of view of energy savings achieved by implementing heat exchange networks (HENs). Used vegetable oils (UVOs) can be employed as an input in the production of biodiesel by catalytic transesterification. But, previously it is necessary to reduce its level of free fat acids (FFA) by the acid-catalyzed esterification process in order to prevent undesirable saponification reaction. To carrying out an optimal design of the technology required in the process, simulation tools have an important role for process engineering and optimization of resources. Computer programs such as Aspen PlusTM and Aspen Energy AnalyzerTM provide an environment to perform process modeling and network design optimal heat exchange. In this paper, from the Aspen PlusTM simulation of the process of catalytic esterification in acid medium of UVOs, the technical-economic evaluation process was conducted with and without network of heat exchange in order to analyze the different investment options. The comparison of the two projects (with and without the implementation of HENs) was performed by determining the net present value (NPV). On the scale set for the project, the total cost of the equipment of heat exchange for the esterification process designed with HENs was US$ 4,782.50 higher than the corresponding to the process without HENs application. However, it should be noted that the cost of services decreased by 30% annually, and on the other hand, comparing the process, it was observed that the NPV of the HENs process was 29.5% higher, which leads to the conclusion that the project which includes heat exchange networks is technically and economically feasible.

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