scholarly journals Citizen Participation to Finance PV Power Plants Focused on Self-Consumption on Company Roofs—Findings from an Austrian Case Study

Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 738
Author(s):  
Matthias Linhart ◽  
Valerie Rodin ◽  
Simon Moser ◽  
Andrea Kollmann
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Citizen Participation ◽  
Power Plants ◽  
Economies Of Scale ◽  
Net Present Value ◽  
Small Scale ◽  
Industrial Parks ◽  
Financial Benefits ◽  
Joint Purchase

Despite large amounts of available roof space, long pay-back periods for investments in photovoltaic (PV) power plants often hinder PV installations in industrial parks. Photovoltaic citizen participation initiatives (PV-CPI) are an alternative way of financing PV power plants that add non-financial benefits to these investments. This paper analyzed the feasibility of the installation of PV power plants focused on high rates of self-consumption financed by citizen participation initiatives on the roofs of five companies located in the Austrian Ennshafen industrial business park based on the net present value and the discounted pay-back period and compared it to a standard financing scheme, assuming a predetermined interest rate for participants as well as economies of scale with respect to the specific installation costs due to a joint purchase of the PV power plants. To calculate the feasibility, site-specific data and literature input have been used. The results show that despite an interest rate above the current interest rates of conservative forms of investments provided to (small-scale) investors, a payback-period of 17–23 years can be reached while the joint purchase can lead to a competitive feasibility of the PV-CPI compared to an individual purchase of PV power plants.

Economics of harvesting boreal uneven-aged mixed-species forests

2015 ◽  
Vol 45 (8) ◽  
pp. 1102-1112 ◽  
Author(s):  
Janne Rämö ◽  
Olli Tahvonen
Keyword(s):  
Steady State ◽  
Interest Rate ◽  
Interest Rates ◽  
Norway Spruce ◽  
Net Present Value ◽  
Single Species ◽  
Mixed Species ◽  
Volume Yield ◽  
Gradient Based ◽  
The Interest Rate

The subject of this study is the economics of harvesting boreal uneven-aged mixed-species forests consisting of Norway spruce (Picea abies (L.) Karst.), Scots pine (Pinus sylvestris L.), birch (Betula pendula Roth and B. pubescens Ehrh.), and other broadleaves. The analysis is based on an economic description of uneven-aged forestry, applying a size-structured model. The optimization problem is solved in its general dynamic form using gradient-based interior point methods. When volume yield is maximized, the optimal steady state is a nearly pure Norway spruce stand at all site types, producing slightly higher yields than single-species stands. After including sawlog and pulpwood prices, the net present value of stumpage revenues is maximized using 1%, 3%, and 5% interest rates and a 15-year harvesting interval. At less productive sites, the stands are nearly pure Norway spruce stands, regardless of the interest rate. At more productive sites, increasing the interest rate increases the species diversity, with optimal steady states consisting of both Norway spruce and birch. In some cases, rather small changes in relative prices change the optimal steady state into a birch-dominated stand. Optimal solutions converge to the same steady-state solutions, independent of the initial stand state. If other broadleaves without commercial value are not harvested, they will eventually dominate the stand.

scholarly journals Commercial Real Estate at the ZLB

2018 ◽  
Vol 13 (1) ◽  
pp. 32-53
Author(s):  
Bjørnar Karlsen Kivedal ◽  
Trond Arne Borgersen
Keyword(s):  
Interest Rate ◽  
Real Estate ◽  
Interest Rates ◽  
Systemic Risk ◽  
Net Present Value ◽  
Weighted Average ◽  
Commercial Real Estate ◽  
Federal Funds Rate ◽  
Evaluation Models ◽  
The Difference

This paper analyses the implications of a low interest rate environment (the zero lower bound – ZLB) for the demand of commercial real estate. The main intention of the paper is to track any asymmetry between evaluation models at ZLB relative to more “normal” interest rate levels. First we apply a conventional net-present value (NPV) approach, where the weighted average cost of capital (WACC) and the capital asset pricing model (CAPM) are used for evaluation. Considering the invariance level of systemic risk we find WACC to be an alternative to CAPM for offensive and defensive investments when interest rates are “normal”. However, at the ZLB, WACC is an alternative for investments that carry the same risk as the market and beta-values are close to one. Second, we simulate our models using US data to see how the WACC shortcut performs across different interest rate levels, and especially at ZLB, in this economy. We see differences between the period preceding the financial crisis and the period after 2010, even though the Federal Funds rate is close to zero in both periods. We relate this to the difference in systemic risk between the two periods, and show how the result in the latter period is quite equal across evaluation models.

scholarly journals Economic effects of grouse-friendly forest management

Silva Fennica ◽  
2021 ◽  
Vol 55 (3) ◽  
Author(s):  
Arto Haara ◽  
Juho Matala ◽  
Markus Melin ◽  
Janne Miettinen ◽  
Kari Korhonen ◽  
...  
Keyword(s):  
Forest Management ◽  
Interest Rate ◽  
Interest Rates ◽  
Management Practices ◽  
Net Present Value ◽  
Economic Effects ◽  
Negative Effects ◽  
Management Guidelines ◽  
Thinning Intensity ◽  
Management Approaches

Traditional timber production may have negative effects on other ecosystem services. Therefore, new forest management guidelines have been developed in order to enhance a habitat suitable for wildlife. In Finland, a recent example of this is grouse-friendly forest management (GFFM) which emphasises the preservation of grouse species (Tetronidae) habitats. This study aimed to analyse the economic effects of these guidelines. An analysis was made on how the application of GFFM affected the Net Present Value (NPV) in a 30-year simulation of forest management of four large forest holdings located from south to north in Finland. In the simulations, traditional forest management practices were compared to two levels of GFFM. Five levels of interest rate were used, namely 1, 2, 3, 4, and 5%. In most of the simulations, the NPV was reduced by about 1% or less due to the application of GFFM in comparison to the traditional reference forest management. Only in one case with more intensive GFFM, was the reduction of NPV more than 5%. The interest rates had an impact on the differences between the management approaches. For example, a low interest rate resulted in a higher thinning intensity in GFFM in comparison to traditional forest management, which lead to a higher NPV in GFFM. To sum up, it seems that it would be possible to manage forest holdings in a grouse-friendly manner with minor effects on the economics.

scholarly journals Expected Rates of Value Growth for Individual Sugar Maple Crop Trees in the Great Lakes Region: A Reply to John E. Wagner's Comment

2009 ◽  
Vol 26 (4) ◽  
pp. 145-147 ◽  
Author(s):  
James B. Pickens ◽  
Dean L. Johnson ◽  
Blair D. Orr ◽  
David D. Reed ◽  
Charles E. Webster ◽  
...  
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Risk Adjustment ◽  
Sugar Maple ◽  
Net Present Value ◽  
Rate Of Return ◽  
Great Lakes Region ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Value Growth

Abstract This article is a reply to the comment of Wagner (2009) concerning our article in this issue (Webster et al. 2009). We believe that our use of rate of value growth (RVG), which is analogous to internal rate of return, is acceptable and even preferred for the situation we address. We agree with Wagner that maximization of net present value (NPV) is generally a preferred criterion if certain general conditions exist. As documented in the article, we recommend calculating the RVG and then comparing that value to the relevant threshold interest rate, as selected by the decisionmaker, to make the decision whether to retain a high-quality sugar maple crop tree for another cutting cycle. It is the threshold interest rate that is a true interest rate and that includes, among other things, a risk adjustment premium appropriate for this investment; the RVG was not represented as an interest rate in Webster et al. (2009). We believe RVG is a more appropriate criterion for several reasons: it is widely used by practitioners, closely related previous literature relied on similar measures, take and leave decisions are identical to the NPV criterion for interest rates 4% and above, and the perfect capital markets assumption that leads to NPV being the superior criterion is not satisfied.

ARBITRAGE-FREE VALUATION OF BILATERAL COUNTERPARTY RISK FOR INTEREST-RATE PRODUCTS: IMPACT OF VOLATILITIES AND CORRELATIONS

2011 ◽  
Vol 14 (06) ◽  
pp. 773-802 ◽  
Author(s):  
DAMIANO BRIGO ◽  
ANDREA PALLAVICINI ◽  
VASILEIOS PAPATHEODOROU
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Default Risk ◽  
Net Present Value ◽  
Credit Spread ◽  
Counterparty Risk ◽  
Put Option ◽  
Underlying Risk Factor ◽  
Credit Valuation Adjustment ◽  
Future Work

The purpose of this paper is introducing rigorous methods and formulas for bilateral counterparty risk credit valuation adjustment (CVA) on interest-rate portfolios. In doing so, we summarize the general arbitrage-free valuation framework for counterparty risk adjustments in presence of bilateral default risk, including the default of the investor. We illustrate the symmetry in the valuation and show that the adjustment involves a long position in a put option plus a short position in a call option, both with zero strike and written on the residual net present value of the contract at the relevant default times. We allow for correlation between the default times of the investor and counterparty, and for correlation of each with the underlying risk factor, namely interest rates. We also analyze the often neglected impact of credit spread volatility. We include close-out netting rules in our examples, although other agreements, such as periodic margining or collateral posting, are left for future work.

Economic effects of monetary policy in Russia: What do large datasets tell us?

2020 ◽  
pp. 31-53 ◽  
Author(s):  
Anna A. Pestova ◽  
Natalia A. Rostova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Economic Effects ◽  
Theoretical Concepts ◽  
Empirical Estimates

Is the Bank of Russia able to control inflation and, at the same time, manage aggregate demand using its interest rate instruments? In other words, are empirical estimates of the effects of monetary policy in Russia consistent with the theoretical concepts and experience of advanced economies? This paper is aimed at addressing these issues. Unlike previous research, we employ “big data” — a large dataset of macroeconomic and financial data — to estimate the effects of monetary policy in Russia. We focus exclusively on the period after the 2008—2009 global financial crisis when the Bank of Russia announced the abandoning of its fixed ruble exchange rate regime and started to gradually transit to an interest rate management. Our estimation results do not confirm standard responses of key economic activity and price variables to tightening of monetary policy. Specifically, our estimates do not reveal a statistically significant restraining effect of the Bank of Russia’s policy of high interest rates on inflation in recent years. At the same time, we find a significant deteriorating effect of the monetary tightening on economic activity indicators: according to our conservative estimates, each of the key rate increases occurred in March and December 2014 had led to a decrease in the industrial production index by about 0.2 percentage points within a year.

DETERMINAN INFLASI DI INDONESIA PERIODE 1980-2015

2016 ◽  
Vol 21 (1) ◽  
pp. 1-7
Author(s):  
Risna Risna
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Government Spending ◽  
Positive Impact ◽  
Secondary Data ◽  
Quantitative Approach ◽  
State Spending ◽  
Factors Affecting ◽  
The Interest Rate

This study aims to determine the effect of government spending, the money supply, the interest rate of Bank Indonesia against inflation.This study uses secondary data. Secondary data were obtained directly from the Central Bureau of Statistics and Bank Indonesia. It can be said that there are factors affecting inflationas government spending, money supply, and interest rates BI. The reseach uses a quantitative approach to methods of e-views in the data. The results of analysis of three variables show that state spending significantand positive impact on inflationin Indonesia, the money supply significantand negative to inflationin Indonesia, BI rate a significantand positive impact on inflation in Indonesia

FAKTOR DETERMINAN PENYALURAN KREDIT BANK PERSERO

2018 ◽  
Vol 23 (1) ◽  
pp. 60-71
Author(s):  
Wigiyanti Masodah
Keyword(s):  
Interest Rate ◽  
Linear Regression ◽  
Interest Rates ◽  
Regression Models ◽  
Linear Regression Models ◽  
Negative Impacts ◽  
Main Activity ◽  
The Impact ◽  
The Given ◽  
Multiple Linear Regression Models

Offering credit is the main activity of a Bank. There are some considerations when a bank offers credit, that includes Interest Rates, Inflation, and NPL. This study aims to find out the impact of Variable Interest Rates, Inflation variables and NPL variables on credit disbursed. The object in this study is state-owned banks. The method of analysis in this study uses multiple linear regression models. The results of the study have shown that Interest Rates and NPL gave some negative impacts on the given credit. Meanwhile, Inflation variable does not have a significant effect on credit given. Keywords: Interest Rate, Inflation, NPL, offered Credit.

scholarly journals Pareto Efficient Auctions with Interest Rates

2019 ◽  
Vol 33 ◽  
pp. 1989-1995
Author(s):  
Gagan Goel ◽  
Vahab Mirrokni ◽  
Renato Paes Leme
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Utility Functions ◽  
Limited Access ◽  
Incentive Compatible ◽  
Pareto Efficient ◽  
Available Resources

We consider auction settings in which agents have limited access to monetary resources but are able to make payments larger than their available resources by taking loans with a certain interest rate. This setting is a strict generalization of budget constrained utility functions (which corresponds to infinite interest rates). Our main result is an incentive compatible and Pareto-efficient auction for a divisible multi-unit setting with 2 players who are able to borrow money with the same interest rate. The auction is an ascending price clock auction that bears some similarities to the clinching auction but at the same time is a considerable departure from this framework: allocated goods can be de-allocated in future and given to other agents and prices for previously allocated goods can be raised.

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