scholarly journals Evaluating the economic and ecological effects of investment projects: A new model and its application to smartphone manufacturing in Europe

2021 ◽  
Vol 18 (4) ◽  
pp. 252-265
Author(s):  
Viktoriia Apalkova ◽  
Sergiy Tsyganov ◽  
Tetiana Chernytska ◽  
Nataliia Meshko ◽  
Nadiia Tsyganova

Despite market volatility in 2020 due to the COVID-19 pandemic and a decline in global investment flows to 2005 levels, sustainable development funds continued to grow. These data indicate a change in development vectors: now leading investors are guided by technologies for sustainable growth. The purpose of this paper is to determine the optimal model for evaluating investment projects in terms of their economic and environmental effects on the development of the region. The proposed technique is being tested for an investment project aimed at developing the production of mobile phones in Europe. As shown, the analysis of the location of the production of smartphones in Europe for subsequent implementation in the European market has a number of advantages and is more beneficial in terms of environmental and economic effects for the region. First, from an economic point of view, this leads to an increase in the volume of attracted investments, a decrease in operating costs for international logistics, the creation of new jobs and qualifications for the population. In addition, it is important to be able to actively implement circular business models that will reuse lithium-ion phone batteries, which will lead to a decrease in the need for cobalt as a raw material, as well as lead to an increase in the level of recycling of e-waste and the circularity of the European economy. Also, such investment projects open up great opportunities for manufacturers from a marketing point of view, creating bonuses for a positive image and preferences for a “local green producer”.

1996 ◽  
Vol 5 (3) ◽  
pp. 377-385 ◽  
Author(s):  
Lauri Kettunen

In the assessment of the economic effects of climate change, changes in returns and costs have to be taken into consideration. Changes in returns are mainly caused by changes in the yield level. Costs are determined by various factors. Harvesting conditions may improve as the temperatures are higher. However, an increasing need for disease and pest control results in higher costs. Various extensive studies have indicated that rising temperatures with the CO2 fertilizing effect increase the crop potential in Finland. From the economic point of view an increase in yield level is highly significant, because the increase in costs remains quite small, A 10% increase in the yield level raises the farm income by about 6%. Because agriculture is supported in many ways either directly or indirectly, the rise in income level may be offset by lowering the support. Consequently, farmers may not benefit from an increase in the yield level, but the benefit will go to the state economy. However, an increase in the yield level resulting from rising temperatures is advantageous to the national economy, regardless of whether the benefit goes to the farmers or to the state.


Author(s):  
N. Koshevsky

The introduction provides a brief review of the literature on methods for assessing the effectiveness of investment projects, based on which the choice of optimal sources of financing is made. In the main part of the work, various scenarios for the implementation of an investment project are disclosed: sources of financing that are alternative to the baseline scenario are attracted. In the final part of the work, the considered scenarios are assessed and conclusions are drawn.For each enterprise, improving the financial and economic efficiency of its activities is one of the priority tasks. These tasks include the need to increase the return on capital, the choice of funding sources that have a positive effect on economic efficiency. This paper examines the ways of choosing the optimal, from the point of view of the impact on economic efficiency, instruments for financing an investment project. A practical case of project financing with an assessment of the effectiveness of the implementation of an investment project is considered. To analyze the alternatives, a financial business model was developed, which allows you to quickly make changes, update performance indicators and make decisions about the required capital structure. It is concluded that the optimal capital structure with the highest NPV indicator and that when assessing the efficiency parameters, it is necessary to make an adjustment for the possible presence in the company's capital structure of funding sources that distort the comparability of the project in relation to projects without such sources (for example, budget grants).


1989 ◽  
Vol 102 (3) ◽  
pp. 473-483 ◽  
Author(s):  
A. Carducci ◽  
C.M. Avio ◽  
M. Bendinelli

SUMMARYA mathematical model has been developed which allows estimation of the epidemiological and economic effects of different tetanus vaccination strategies. The model was used to simulate the epidemiology of tetanus in italy from 1955 to 1982, and then applied to a district of Tuscany by utilizing data obtained from a seroepidemiological survey carried out in the same area. For this district we simulated vaccination programmes designed to reach, within 1 or 10 years, coverages of 60 or 90% of the population aged over 10 years who had not been exposed to the neonatal vaccination programme. The most effective strategy, from both the epidemiological and economic point of view, seems to be 90% coverage reached in 1 year's time. Benefits would be increased by improving the reliability of vaccinal anamnesis.


Author(s):  
Tetiana Gorokhova

The article considers to the aspects of identifying key directions that determine the successful functioning of an organization in the context of the digital economy development. The key areas of business transformation have been identified, allowing flexible restructuring of the company management process. Methods and techniques for assessing digital transformation in organizations that are tested for both quantitative and qualitative indicators have been considered. It has been proven that considering digital transformation is advisable not only in the context of studying business models in the development of digital technologies, but also from the point of view of what economic effects are achieved through digital transformation and how justified it.


Author(s):  
Olena Suhina

Valuation of natural resources, in particular ecosystem resources, occupies one of the leading places in modern economic theory. It should be noted that all methodological and methodical approaches used in world practice to determine the value of natural resources, in their economic essence evaluate each object of using the nature as a commodity that can be bought, sold, leased, etc. This approach is based on an economic point of view and does not take into account the ecological properties of this resource (for example, forest is evaluated exclusively as wood – raw material for the woodworking industry, and its assimilative and oxygen-producing properties are not taken into account). In the article we propose a methodological approach to the valuation of ecosystem assets of territorial communities that provide assimilation and oxygen production services to society, which is based on the ecological-economic point of view. The essence of this method is that the valuation of ecosystem resources is determined by the cost of their ecosystem services that they provide to society throughout its life cycle. Moreover, when carrying out a summary valuation of various ecosystem assets (forest, water, land), the latter must be valued by the same (identical) method. The paper proposes an algorithm and a specific mathematical apparatus that allows to determine the value of any ecosystem resource and on its basis to determine the complex value of ecosystems owned by local communities. Tables of data on the volumes of carbon dioxide absorption by plants of Ukraine, which most intensively assimilate carbon dioxide, on indicators of oxygen release by plants and on the duration of the life cycle of certain species of trees and shrubs. It is these indicators can be used as performance characteristics in the proposed mathematical apparatus in the valuation of ecosystem assets. It is noted that the availability of valuation of ecosystem assets will allow, both at the state and local levels, to make appropriate management decisions on their effective use.


Author(s):  
Mariusz Maciejczak ◽  
Tadeusz Filipiak

The primary objective of this paper was to identify the economic, social and environmental impacts of plants and their beneficial microorganism interactions. As a plant example, the potato (Solanum tuberosum) has been chosen due to its worldwide nutritional and economic importance. Based on a systematic literature review, high importance effects were identified. From an economic point of view these were an increase in plant immunity and yield along with cost reductions and a reduction of abiotic and biotic stresses. From a social point of view, the importance of healthier food, a cleaner environment and resistant ecosystem were identified. From an environmental perspective, the effects of the increase of soil fertility and biodiversity as well as bioremediation opportunities were found to be important. The cross impact analysis of the identified effects indicate the primary importance of the economic effects, however their occurrence is determined by social effects, while the environmental ones are in a supporting position. It is argued, therefore, that the successful implementation of innovative products and technologies in potato production based on the plant – beneficial microorganism interactions will require economic empirical evidence and will be driven by social tension.


Author(s):  
Sandra Santa-Cruz ◽  
Ernesto Heredia-Zavoni

Real options models are currently available as one of the best tools for the assessment of investment projects. This is so mainly due to the capability of the real options models to: (1) account for uncertainties in financial variables that are crucial to the investment project; and (2) quantify the value of the possibility to make a decision on whether to defer, abandon, expand or reduce the project at one or several points along time. Recently, some researchers have proposed the use of real options models for the assessment of infrastructure projects for hydrocarbon exploitation from an economics point of view. The objective of this work is to develop real options models for decision making regarding inspection, maintenance and decommissioning of offshore facilities taking into account the financial and technical aspects of the project. In all cases it is considered that at some point in the future, within the service lifetime of the structure, the decision maker will have an option to carry or not an inspection, and take or not a maintenance or decommissioning action, which will determine the structural and financial performance of the project for its remaining lifetime. The in-service times with no structural failure and the rehabilitation times are modeled as random variables. The cash flows are modeled as stochastic processes considering interruption of operation due to repairs after failure. Analytical expressions are derived for the computation of structural reliability and availability depending upon maintenance actions. An example is given for a jacket platform subjected to fatigue deterioration and damage. Simple and compound options of maintenance and decommissioning options are analyzed. The value of the project is computed by means of an approach similar to that of Black and Scholes for financial options [2]. The results are compared to those obtained under the traditional Net Present Value approach.


2018 ◽  
Vol 2 (2) ◽  
pp. 14-19
Author(s):  
Jéssica Gonçalves Souza Lima ◽  
Bianca Aparecida De Marco ◽  
Hérida Regina Nunes Salgado

Secnidazole is a medicine widely used in the treatment of bacterial and protozoal diseases. The free sale of this drug allows its easy access to the population and for this reason, the studies that involve the analysis of the quality control of this drug are extremely important to keep the results safe and reliable. Considering the great pharmacotherapeutic application of secnidazole and the great importance of developing new analytical methods that contribute to the environmen, the study was based on the development and validation of a new sustainable analytical method by Fourier-transform infrared spectroscopy (FT-IR) to identify and quantify secnidazole tablets. The method was duly validated according to the ICH guidelines, presenting precision, accuracy, selectivity, robustness and linearity in the concentration range of 0.5-1.3 mg/pellet. The application of this method in addition to being safe and reliable is highly favorable from an economic point of view since there is a significant reduction in the use of production costs as solvents and raw material, being fast and simple and can also be applied to other medicines.


2016 ◽  
Vol 10 (1) ◽  
pp. 113-123
Author(s):  
Евгений Цыщук ◽  
Evgeniy Tsyshchuk ◽  
Галина Цыщук ◽  
Galina Tsyshchuk

The article discusses the issues associated with developing strategic project decisions in the field of rural tourism based on effective business models. Business models development of investment projects in rural tourism is an integral part of investment planning of tourist areas and development of investment proposals. The structure of the investment proposals at the macro level consists of investment declaration of a rural settlement, investment passport of a rural settlement, which includes the list of investment sites and projects, draft agreements with potential investors. Macro level of investment proposals presented by business plan, feasibility study or investment project passport. The content of these documents is determined by a business model that is used to describe the basic principles of design, development and successful project implementation. The article describes the key elements of a business model, considers a stepwise development algorithm, and determines interconnection between the content of its key elements and strategic project decisions for the development of tourist areas of rural settlement. The authors analyze the main types of business models, most widespread in the Russian Federation: "Cooperation", "Specialization", "Diversification" and examine the key risks associated with the implementation and promotion of tourist products. The business model is an effective tool not only for the formation of a unique value proposition and determination of principles of construction and development of a successful project, but also for the development of investment decisions at micro-level that meet the investment policy and socio-economic development strategies of rural settlement in general. Within the framework of the development of investment proposals, which are mainly the result of investment planning of territories, optimum ratio (interconnection) should be defined between strategic project decisions at macro-level and key elements of the business model of a particular investment project.


2016 ◽  
Vol 30 (2) ◽  
pp. 113-133 ◽  
Author(s):  
Hans Weigand

ABSTRACT Meeting changing customer demands and business opportunities in a connected world makes it necessary for organizations to constantly innovate by means of value-creating collaborations. The goal of value modeling is to support the exploration of new business models from an economic point of view. The e3value approach to value modeling is based on an explicit ontology and supported by a graphical tool. This paper provides a structured overview and evaluation of e3value, and discusses two important issues. The first issue concerns the difference between a value co-creation perspective and an exchange value perspective. It shows that with some extensions, e3value can support both. The second issue is model quality. It argues that an ontology is not complete without model quality features and, as far as e3value is concerned, proposes to use the notion of “value cycle” as a soundness feature and as a replacement of the scenario concept.


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