scholarly journals Discounting and the Green Transition: District Heating in Denmark

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Mark C. Freeman ◽  
Frikk Nesje ◽  
Daniel Møller Sneum ◽  
Emilie Rosenlund Soysal
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
District Heating ◽  
Social Discount Rate ◽  
Present Value ◽  
Electricity Prices ◽  
The Core ◽  
Intergenerational Welfare ◽  
Heating Plant

Taking Aalborg as the basis for a case study, we consider the discount rates, annuity rates and costs of capital that were used in recent socio-economic and financial Net Present Value (NPV) analyses of a proposed geothermal district heating plant. While the core NPV analysis applied a real social discount rate of 4 percent, in keeping with Danish government guidance, emissions and electricity prices were based on costs of capital that differed from this rate, as did the annuity rate applied in the financial analysis of the project. While the different rates are carefully justified in each setting, we question whether there is consistency in the approach taken to intergenerational welfare across different steps of the analysis. The use of high corporate rates in some contexts potentially makes it more difficult for Green Transition projects to meet the legal requirement of being evaluated as socio-economically optimal.

scholarly journals Analisis Perencanaan Investasi Jaringan Tenaga Listrik

2020 ◽  
Vol 1 (2) ◽  
pp. 1-5
Author(s):  
Dwi Ajiatmo
Keyword(s):  
Net Present Value ◽  
Low Voltage ◽  
Financial Analysis ◽  
Well Being ◽  
Payback Period ◽  
Internal Rate Of Return ◽  
Social Discount Rate ◽  
Investment Planning ◽  
Present Value ◽  
The Social

Electricity is able to make a positive change and contribution to people's lives and well-being. This study aims to assess the feasibility of investment in the construction of low voltage electricity networks. The method used with project evaluation analysis is based on financial analysis. The criteria used to analyze activities carried out for 10 years use payback period (PP) analysis, net present value (NPV), internal rate of return (IRR), and profitability index (IP). The results showed that the analysis of investment planning can be carried out with the consequence of the results obtained in the form of not so large returns. PP results show the investment value with the payback period method will Return in the 9th year, while the positive NPV value is still above zero while the IRR value shows the value of 11% below the social discount rate as well as the IP value showing the value of 0.90. The feasibility of investment in terms of economic-financial analysis by looking at per criteria shows that investment is still feasible to be carried out with minimal profit levels.

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 Analisis Kelayakan Pendirian Unit Produksi di Universitas (Studi Kasus Industri Minyak Atsiri)

2010 ◽  
Vol 3 (1) ◽  
pp. 12
Author(s):  
Ahmad, Mubin
Keyword(s):  
Financial Management ◽  
Net Present Value ◽  
Financial Analysis ◽  
Raw Material ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Business Units ◽  
High Investment ◽  
The Subject

The establishment of production unit requires fairly high investment, therefore to avoid the investment connducted which in fact will be unprofitable in the future, before implementing such investment, the comprehensive analysis or feasibility study is required, concerning marketing, technical financial management, and social-economyn alysis.From the result of feasibilitiy studythe level of feasibility for the establishment of production or business units is determined. In this case study, the subject of study is production of essential oil that serves as raw material for food, pharmacy, and parfume manufactures. Based on the analysis result of market and marketing aspects, as well as technical and Technology aspects, it was  ndicated that the proposal of production unitestablishment feasible to beaccepted. Likewise, the result of financial analysis with the methods of Net present value, Profitability Index(B /C ratio), Internal Rate of Return and payback period,indicated that the proposal of production unitestablishmeint is feasibleto be accepted.

scholarly journals ANALISIS KELAYAKAN FINANSIAL INDUSTRI SIRUP KALAMANSI DI KOTA BENGKULU (STUDI KASUS PADA UNIT USAHA SEGAR ASRI DI KELURAHAN PADANG SERAI, KECAMATAN KAMPUNG MELAYU, KOTA BENGKULU)

2021 ◽  
Vol 9 (2) ◽  
pp. 78
Author(s):  
Adelia Putri Ayunisa ◽  
Wan Abbas Zakaria ◽  
Eka Kasymir
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Payback Period ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Net Benefit ◽  
Benefit Cost Ratio ◽  
Benefit Cost

The purpose of this research was to analyze financial feasibility and sensitivity of calamansi syrup industry in Segar Asri, Padang Serai Village, Kampung Melayu Sub-district, Bengkulu City. This research is a case study conducted in April - May 2019. The location of the research is chosen purposively. Data were obtained from the interview process using a questionnaire. The analytical method used in this research is investment criteria (Internal Rate of Return, Net Present Value, Gross Benefit Cost Ratio, Net Benefit Cost Ratio and Payback Period). The results showed that the financial analysis carried out at Segar Asri, Padang Serai Village, Kampung Melayu Sub-district, Bengkulu City was profitable and feasible to continue. Sensitivity analysis of calamansi syrup industry in Segar Asri, Padang Serai Village, Kampung Melayu Sub-District, Bengkulu City is feasible to continue if there is a decrease in calamansi syrup production by 10%, 20%, and 30%.Key words: Calamansi, feasibility, financial, sensitivity, syrup

Undersaturated Hydrocarbon Reservoir Waterflooding: A simulation Approach to Performance Assessment

2021 ◽  
Author(s):  
Adekunle Tirimisiyu Adeniyi ◽  
Miracle Imwonsa Osatemple ◽  
Abdulwahab Giwa
Keyword(s):  
Oil Recovery ◽  
Net Present Value ◽  
Oil Production ◽  
Base Case ◽  
Present Value ◽  
Sweep Efficiency ◽  
Recovery Method ◽  
Solution Approach ◽  
Hydrocarbon Reservoir

Abstract There are a good numbers of brown hydrocarbon reservoirs, with a substantial amount of bypassed oil. These reservoirs are said to be brown, because a huge chunk of its recoverable oil have been produced. Since a significant number of prominent oil fields are matured and the number of new discoveries is declining, it is imperative to assess performances of waterflooding in such reservoirs; taking an undersaturated reservoir as a case study. It should be recalled that Waterflooding is widely accepted and used as a means of secondary oil recovery method, sometimes after depletion of primary energy sources. The effects of permeability distribution on flood performances is of concerns in this study. The presence of high permeability streaks could lead to an early water breakthrough at the producers, thus reducing the sweep efficiency in the field. A solution approach adopted in this study was reserve water injection. A reverse approach because, a producing well is converted to water injector while water injector well is converted to oil producing well. This optimization method was applied to a waterflood process carried out on a reservoir field developed by a two - spot recovery design in the Niger Delta area of Nigeria that is being used as a case study. Simulation runs were carried out with a commercial reservoir oil simulator. The result showed an increase in oil production with a significant reduction in water-cut. The Net Present Value, NPV, of the project was re-evaluated with present oil production. The results of the waterflood optimization revealed that an increase in the net present value of up to 20% and an increase in cumulative production of up to 27% from the base case was achieved. The cost of produced water treatment for re-injection and rated higher water pump had little impact on the overall project economy. Therefore, it can conclude that changes in well status in wells status in an heterogenous hydrocarbon reservoir will increase oil production.

Economics of a nest-box program for the conservation of an endangered species: a reappraisal

2001 ◽  
Vol 31 (11) ◽  
pp. 1992-2003 ◽  
Author(s):  
Daniel A Spring ◽  
Michael Bevers ◽  
John OS Kennedy ◽  
Dan Harley
Keyword(s):  
Net Present Value ◽  
Population Recovery ◽  
Optimal Management ◽  
Present Value ◽  
Eucalyptus Regnans ◽  
Nest Boxes ◽  
Mountain Ash ◽  
Local Abundance ◽  
Leadbeater's Possum

An optimization model is developed to identify timing and placement strategies for the installation of nest boxes and the harvesting of timber to meet joint timber–wildlife objectives. Optimal management regimes are determined on the basis of their impacts on the local abundance of a threatened species and net present value (NPV) and are identified for a range of NPV levels to identify production possibility frontiers for abundance and NPV. We apply the model to a case study focusing on an area of commercially productive mountain ash (Eucalyptus regnans F. Muell.) forest in the Central Highlands region of Victoria, Australia. The species to be conserved is Leadbeater's possum (Gymnobelideus leadbeateri McCoy), which is locally limited by a scarcity of nesting hollows. The modeling is exploratory but indicates that nest boxes may offer a promising population recovery tool if consideration is taken of their placement and areal extent through time.

Increasing ewe genetic fecundity improves whole-farm production and reduces greenhouse gas emissions intensities: 2. Economic performance

2014 ◽  
Vol 54 (9) ◽  
pp. 1248 ◽  
Author(s):  
C. K. M. Ho ◽  
T. Jackson ◽  
M. T. Harrison ◽  
R. J. Eckard
Keyword(s):  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Net Present Value ◽  
Stocking Rate ◽  
Present Value ◽  
Gas Emissions ◽  
High Fecundity ◽  
Farm Profit ◽  
Baseline System

Ewes with the fecundity Booroola (FecB) gene produce more lambs per ewe on average than ewes without the gene and offers a potential way to decrease greenhouse gas emissions (net and per unit animal product) without reducing lamb production if the lambs can be reared to market weights. Using a case study farm in south-west Victoria, a biophysical modelling study has previously showed that increased ewe fecundity from 1 to 1.5 lambs per ewe increased production by 27% and reduced net farm emissions by 21% for the same long-term stocking rate. In this study, a whole-farm economic analysis was used to investigate the relative merit of the same case study farm, with high-fecundity ewes, compared with a baseline system that represented a typical prime lamb enterprise in the region. An additional system comprising ewes with high fecundity at a lower stocking rate than the case study farm was also examined. The analysis was undertaken to establish which farm systems represented the most economically efficient use of all the resources that are employed over a run of years, and involved estimating the net present value of annual profits earned by the farm in each scenario, taking into account the total value of capital used. The potential revenue from the sale of carbon credits through the Carbon Farming Initiative was also investigated. After accounting for the additional costs involved, increasing ewe fecundity resulted in an increase in annual whole-farm profit compared with the baseline system, but risk, considered as the variability in farm profit, also increased. Decreasing stocking rate for the high-fecundity system reduced annual operating profit and net present value at a 5% discount rate, but had less risk compared with the higher stocking rate system. While both systems that incorporated high-fecundity ewes reduced greenhouse gas emissions, revenue from the sale of carbon credits was small compared with revenue from the sale of lambs, wool and culled ewes. Despite this, and assuming the required increases in fertility and weaning rates could be achieved consistently on-farm, ewes with high fecundity may offer producers the opportunity to increase production and profit as well as decrease greenhouse gas emissions.

SYLVER: Modelling the Impact of Silviculture on Yield, Lumber Value, and Economic Return

1988 ◽  
Vol 64 (2) ◽  
pp. 127-131 ◽  
Author(s):  
Kenneth J. Mitchell
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Wood Properties ◽  
Growth And Yield ◽  
Present Value ◽  
Silvicultural Treatments ◽  
Intensive Forest Management ◽  
Product Value ◽  
Analysis System ◽  
The Impact

Intensive forest management requires an understanding of the effect that silvicultural treatments have on wood properties, standing yield, log quality, product value, and net present value. These needs are addressed by a system of models (SYLVER) which includes the Tree and Stand Simulator (TASS), Root Rot Simulator (ROTSIM), Sawmill Simulator (SAWSIM), and the new Financial Analysis System (FAN$Y). The latter will be used by field foresters to compare the merits of candidate treatments for specific stands. Key words: Silviculture, growth and yield, juvenile wood, log quality, end-product value, net present value, Pseudotsuga menziesii, Phellinus weirii, modelling, TASS, ROTSIM, SAWSIM, FAN$Y, SYLVER.

Economic analysis of a hypothetical bamboo-biochar plant in Zhejiang province, China

2017 ◽  
Vol 35 (12) ◽  
pp. 1220-1225 ◽  
Author(s):  
Tao Zhang ◽  
Fang Liang ◽  
Wanhe Hu ◽  
Xiaomeng Yang ◽  
Hongzhong Xiang ◽  
...  
Keyword(s):  
Small Businesses ◽  
Large Scale ◽  
Net Present Value ◽  
Economic Benefits ◽  
Zhejiang Province ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Good Market ◽  
Forestry Industry

Significant quantities of bamboo waste are generated in Zhejiang province, China. Many small businesses in this area convert this waste to biochar for use as a cooking fuel (in residential barbecues). This case study was conducted to evaluate the potential economic benefits of building and operating an industrial-sized plant in this province, yielding 500 tonnes per year. The researchers developed a conceptual design for a hypothetical biochar plant and then calculated net present value (NPV), investment payback period (PBP), internal rate of return (IRR), and sensitivity analysis. Results show that the static investment PBP would be 2.58 years, the IRR would be 38.8%, and the NPV would be US$ 486,700. The IRR would be higher than the forestry industry benchmark (11%), indicating that a production line of bamboo-biochar with the stated yield not only could generate higher profits, but also could achieve a better return on investment. Thus, this study indicates that there are good market prospects for the bamboo-biochar industry in this region. The influence of sales prices on the IRR was more than that of operational costs, indicating that a large-scale plant should be designed to produce a high-quality bamboo-biochar. Supply chain issues such as transportation distances between locations where bamboo wastes are generated and the biochar plant should be considered in advance when siting new bamboo-biochar plants. The results from this research provide guidance to those considering development of bamboo-biochar plants in other parts of China.

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