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Citizen-driven approaches are promising to overcome the challenges in the energy transition of geographical islands. However, the economic profitability of related activities must be ensured to achieve the intrinsic and sustainable uptake of related solutions in an island's communities. Here, we investigate the long-term (2020–2054) economic profitability of solar-based prosumption on islands belonging to the European Union (EU), soft-linking energy system modelling and actor-related cash-flow analysis. This combination considerably extends common assessments of the profitability of renewable energy technology and long-term projections of island energy systems. We base our case study on the French overseas territory of Mayotte, discussing household affordability and the socio-economic impact of prosumerism. These topics are relevant to transferability on non-EU islands. The profitability of investments in PV depends on (i) the size of the PV system, with larger systems (>9 kWp) profiting from lower specific investment costs compared to smaller systems; (ii) the time of investment, with more profitable investments to be expected in early periods; (iii) the level of decarbonization of the entire energy sector, with an ongoing decarbonization reducing the compensation or energy-saving possibilities; and (iv) the market behavior, with the practice of feeding in all electricity produced rather than self-consuming energy offering a higher expected return on investment under current feed-in-tariff (FiT) compensation schemes. We introduce various policy measures to improve solar rooftop PV profitability and discuss their trade-offs and effectiveness. While indirect subsidies via FiT are generally effective in improving PV profitability, they undermine efforts to incentivize decentralized self-consumption. From the perspective of harmonizing efforts in the energy transition of African and European islands, we recommend a careful evaluation of the trade-offs in relevant regulations required for the economic incentivization of prosumers to achieve compatibility with the principles of a citizen-driven and just energy transition. Particular attention must be paid to context-specific socio-economic characteristics, including low access to financial resources and non-financial access barriers, including legal status. [ABSTRACT FROM AUTHOR]

Solar energy is a source of energy that can meet a significant part of the demand for heat and electricity. However, its acquisition is associated with high variability both during the year and on individual days. The construction of installations due to changes in tariff systems, investment costs and subsidy programs raises doubts as to their profitability. The aim of this study was to assess the profitability of photovoltaic investments for households, considering public financial support. This study used RetScreen Expert software 8.1.2.13 to perform the entire analysis and performance cost, risk and sensitivity simulations. Climate data were imported from ground monitoring stations or from NASA global satellite or analytical data. The conducted research showed the profitability of investments in photovoltaics, even without state support. Differences between regions were insignificant. However, the support system has changed, extending the period of return on investment. [ABSTRACT FROM AUTHOR]

Renewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state funding, the possibilities of which are limited. The potential of attracting private investments depends directly on their impact on companies' profitability indicators, and the uncertainty regarding the return on investments is one of the main barriers affecting investors' decision-making. Based on a vector autoregressive model for analysing the stationary time series, the paper explores the impact of long-term investments and research and development costs in renewable energy technologies on the financial performance of ten of the largest companies operating in this field. The study's results showed that investments and spending on research and development positively affect such companies' profitability indicators as earnings before interest, taxes, depreciation and amortisation, earnings before interest and tax, net income, and return on investment. The obtained results can be used to substantiate the economic effectiveness of investments in developing and improving renewable energy technologies when forming the companies' financial policies to support them. [ABSTRACT FROM AUTHOR]

In 2017, the 19th CPC National Congress proposed to "establish a sound economic system of green, low-carbon and circular development", which indicates the direction of high-quality economic development in the new era of China. Clean power investment is a powerful way to promote high-quality economic development by adopting non-fossil-energy utilization and low-emission technologies, as well as creating new jobs. Meanwhile, large-scale investment and a long investment return period result in negative effects on local economies. To better understand the effect of clean power investment, this paper selects panel data of thirty provinces in China from 2010 to 2019 to establish a spatial Durbin model to explore the impact of clean power investment on regional high-quality economic development. The results show that inter-regional high-quality economic development shows significant spatial auto-correlation characteristics. Clean power investment has not only a positive direct effect on high-quality economic development but also generates positive spatial spillover effects. Human capital, degree of government intervention, and urbanization rate have positive effects on regional high-quality economic development, while they play a suppressed role on neighboring regions. [ABSTRACT FROM AUTHOR]

Chinese overcapacity in the steel and coal industry has been on the rise since 2013, which leads to the misallocation of resources and decreases in production efficiency. In 2015, the Chinese central government adopted a series of de-capacity policies to resolve excess capacity and improve corporate profitability. However, there is scant evidence on the impacts of de-capacity policies on the firm profitability. Based on the data from Chinese listed companies in the steel and coal industry, this study constructs the difference-in-difference (DID) method to investigate the effects of the de-capacity policy on the profitability of listed companies in the steel and coal industry empirically. The results show that the de-capacity policy significantly increases the return on equity (ROE) of the experimental group, which is higher than that of the control group by 12.4%. That is partially because of the improvement in gross profit margin, management efficiency, and return on manpower due to the de-capacity policy. This study offers new evidence on the efficiency of China's de-capacity policy toward the steel and coal industries through data at the enterprise level. [ABSTRACT FROM AUTHOR]

Energy return on investment (EROI) is a ratio of the energy obtained in relation to the energy used to extract/produce it. The EROI of fossil fuels is globally decreasing. What do the declining EROIs of energy sources imply for society as a whole? We answer this question by proposing a novel EROI measure that describes, through one parameter, the efficiency of a society in managing energy resources over time. Our comprehensive societal EROI measure was developed by (1) expanding the boundaries of the analysis up to the useful stage; (2) estimating the amount of energy embodied in the energy-converting capital; (3) considering non-conventional sources such as the muscle work of humans and draught animals; and (4) considering the influence of imported and exported energy. We computed the new EROI for Portugal as a case study. We find a considerably lower EROI value, at around 3, compared to those currently available, which is stable over a long-time range (1960–2014). This suggests an independence of EROI from economic growth. When estimated at the final stage, using conventional methods (i.e., without applying the four novelties here introduced), we find a declining societal EROI. Therefore, our results imply that the production of new and more efficient final-to-useful energy converting capital has historically kept societal EROI around a stable value by offsetting the effects of the changing returns of energy sources at the primary and final stages. This will be crucial in the successful transition to renewables. [ABSTRACT FROM AUTHOR]

Insufficient rainfall in the dry season and scarcity of surface water has resulted in firms' reliance on groundwater for agriculture in the northern part of Bangladesh. Most irrigation systems in the country are diesel or electric, which raises the cost and demand for energy and pollutes the environment. Utilizing the abundant sunshine and disseminating solar-based irrigation systems is expected to be a fittingly rewarding experience for irrigation purposes. Therefore, this study identifies the factors influencing the adoption of solar irrigation facilities (SIFs) and the impacts of their adoption on irrigation cost, return on investment (ROI), and production costs, using survey data collected from 405 rice farmers of Dinajpur district. The study employed three treatment effect estimators, namely inverse probability weighting (IPW), regression adjustment (RA), and inverse probability weighted regression adjustment (IPWRA), to address the potential selection bias issue. The results revealed that farming experience, knowledge, environmental awareness, soil fertility, and irrigation machinery ownership significantly influenced adoption decisions. The treatment effect model result indicated that farmers who adopted this method could minimize irrigation costs by 1.88 to 2.22%, obtain 4.48 to 8.16% higher ROI, and reduce total production cost by 0.06 to 0.98% compared to non-adopters. Our findings suggested that policy interventions targeting scaling up SIFs should consider focusing on government and stakeholders' greater attention on designing more appropriate schemes through experimentation and multiple iterations. [ABSTRACT FROM AUTHOR]

The exploitation of technologies with which to harness the energy from ocean currents will have considerable possibilities in the future thanks to their enormous potential for electricity production and their high predictability. In this respect, the development of methodologies for the economic viability of these technologies is fundamental to the attainment of a consistent quantification of their costs and the discovery of their economic viability, while simultaneously attracting investment in these technologies. This paper presents a methodology with which to determine the economic viability of tidal energy projects, which includes a technical study of the life-cycle costs into which the development of a tidal farm can be decomposed: concept and definition, design and development, manufacturing, installation, operation and maintenance and dismantling. These cost structures are additionally subdivided by considering their sub-costs and bearing in mind the main components of the tidal farm: the nacelle, the supporting tidal energy converter structure and the export power system. Furthermore, a technical study is developed in order to obtain an estimation of the annual energy produced (and, consequently, the incomes generated if the electric tariff is known) by considering its principal attributes: the characteristics of the current, the ability of the device to capture energy and its ability to convert and export the energy. The methodology has been applied (together with a sensibility analysis) to the particular case of a farm composed of first generation tidal energy converters in one of the Channel Island Races, the Alderney Race, in the U.K., and the results have been attained by means of the computation of engineering indexes, such as the net present value, the internal rate of return, the discounted payback period and the levelized cost of energy, which indicate that the proposed project is economically viable for all the case studies. [ABSTRACT FROM AUTHOR]

Oil sands, as unconventional oil, are so essential to both Canada and the world that special attention should be paid to their extraction status, especially their energy efficiency. One of the most commonly used methods to evaluate energy efficiency is the Energy Return on Investment (EROI) analysis. This paper focuses on EROI analysis for both in situ oil sands and mining oil sands over the period of 2009 to 2015. This time period represents an extension to periods previously considered by other analyses. An extended Input-Output model is used to quantify indirect energy input, which has been ignored by previous analyses of oil sands extraction. Results of this paper show that EROI of both mining oil sands (range of value: 3.9–8) and in situ oil sands (range of value: 3.2–5.4) display an upward trend over the past 7 years; EROI of mining oil sands is generally higher, but is more fluctuating than the EROI of in situ oil sands. Compared with EROI of other hydrocarbons, the EROI of oil sands is still quite low, despite the fact that it is increasing gradually. [ABSTRACT FROM AUTHOR]

Concerns have been raised that declining energy return on energy investment (EROI) from fossil fuels, and low levels of EROI for alternative energy sources, could constrain the ability of national economies to continue to deliver economic growth and improvements in social wellbeing while undertaking a low-carbon transition. However, in order to test these concerns on a national scale, there is a conceptual and methodological gap in relation to calculating a national-level EROI and analysing its policy implications. We address this by developing a novel application of an Input-Output methodology to calculate a national-level indirect energy investment, one of the components needed for calculating a national-level EROI. This is a mixed physical and monetary approach using Multi-Regional Input-Output data and an energy extension. We discuss some conceptual and methodological issues relating to defining EROI for a national economy, and describe in detail the methodology and data requirements for the approach. We obtain initial results for the UK for the period 1997-2012, which show that the country's EROI has been declining since the beginning of the 21st Century. We discuss the policy relevance of measuring national-level EROI and propose avenues for future research. [ABSTRACT FROM AUTHOR]

How do we know which energy technologies or resources are worth pursuing and which aren't? One way to answer that question is to compare the energy return of a certain technology-i.e., how much energy is remaining after accounting for the amount of energy expended in the production and delivery process. Such energy return ratios (the most famous of which is energy return on investment (EROI)) fall within the field of net energy analysis (NEA), and provide an easy way to determine which technology is "better"; i.e., higher Energy Return Ratios (ERRs) are, certeris paribus, better than lower ERRs. Although useful as a broad measure of energy profitability, comparisons can also be misleading, particularly if the units being compared are different. For example, the energy content of electricity produced from a photovoltaic cell is different than the energy content of coal at the mine-mouth, yet these are often compared directly within the literature. These types of inconsistencies are common within the NEA literature. In this paper, we offer life cycle assessment (LCA) and the LCA methodology as a possible solution to the persistent methodological issues within the NEA community, and urge all NEA practitioners to adopt this methodology in the future. [ABSTRACT FROM AUTHOR]

I use energy cost share to characterize the role of energy in the economy. Specifically, I use an estimate of monetary expenditures for primary energy on an annualized basis for forty-four countries from 1978 to 2010 for natural gas, coal, petroleum, and electricity. I show that global energy cost share is significantly correlated to a one-year lag in the change in gross domestic product as well as measures of total factor productivity. Given the historical reduction in the relative cost of energy (including food and fodder for animate power) since the start of the Industrial Revolution, combined with a global energy cost share estimate, I conclude that the turn of the 21st Century represents the time period with the cheapest energy in the history of human civilization (to date). This potential historical nadir for energy expenditures around 2000 has important ramifications for strategies to solve future social, economic, and environmental problems such as reducing annual emissions of greenhouse gases (GHGs). Rapidly decreasing annualGHGemissions while internalizing their costs into the economy might feedback to increase energy expenditures to such a degree as to prevent economic growth during that transition. [ABSTRACT FROM AUTHOR]

We translate between biophysical and economic metrics that characterize the role of energy in the economy. Specifically, using data from the International Energy Agency, we estimate the energy intensity ratio (EIR), a price-based proxy for a power return ratio (PRR ~ Pout/Pinvested). The EIR is a useful metric, because for most countries and energy commodities, it can indicate the biophysical trends of net energy when data are too scarce to perform an original net energy analysis. We calculate EIR for natural gas, coal, petroleum and electricity for forty-four countries from 1978 to 2010. Global EIR values generally rise from 1978 to 1998, decline from 1998 to 2008 and then slightly rebound. These trends indicate one interpretation of the net energy of the world economy. To add perspective to our recent, but short, time series, we perform the same calculations for historical England and United Kingdom energy prices to demonstrate that a given energy price translates to different PRRs (EIR in this case) depending on the structure of the economy and technology. We review the formulation of PRRs and energy return ratios (ERR ~ Eout/Einvested) to indicate why PRRs translate to (the inverse of) energy prices and ERRs translate to (the inverse of) energy costs. We show why for any given value of an ERR or PRR, there is not a single corresponding energy cost or price, and vice versa. These principles in turn provide the basis to perform better modeling of future energy scenarios (e.g., low-carbon transition) by considering the relationship between economic metrics (cost and price) and biophysical metrics (energy and power return ratios) based on energy, material and power flows. [ABSTRACT FROM AUTHOR]

We translate between energetic and economic metrics that characterize the role of energy in the economy. Specifically, we estimate monetary expenditures for the primary energy and net external power ratio (NEPRdirect; NEPR, net external power ratio), a power return ratio of annual energy production divided by annual direct energy inputs within the energy industry. We estimate these on an annualized basis for forty-four countries from 1978 to 2010. Expressed as a fraction of gross domestic product (GDP), fe,GDP, the forty-four country aggregate (composing >90% world GDP) worldwide expenditures on energy decreased from a maximum of 10.3% in 1979 to a minimum of 3.0% in 1998 before increasing to a second peak of 8.1% in 2008. While the global fe,GDP fluctuates significantly, global NEPRdirect declined from a value of 34 in 1980 to 17 in 1986 before staying in a range between 14 and 16 from 1991 to 2010. In comparing both of these metrics as ratios of power output over power input, one economic ( f-1 e,GDP) and one biophysical (NEPRdirect), we see that when the former divided by the latter is below unity, the world was in a low-growth or recessionary state. [ABSTRACT FROM AUTHOR]

Elevated prices and lack of proper legislation and government incentives have been the main barriers in the development of the photovoltaic market in Brazil. In an attempt to overcome those barriers, a microgrid model was proposed and simulated. In the proposed microgrids, residential consumers are connected to each other to maximize the investment return by trading the surplus of generated energy among them. Different topologies and scenarios were studied from electrical energy and economic standpoints. Stochastic data of solar radiation were simulated for the city of Viçosa, Minas Gerais, Brazil, for the period of one year, considering the statistical behavior of a series over 20 years. The system output power and energy balance were calculated considering a model for photovoltaic generators and the radiation simulated data. By determining the generated energy and electrical needs of the microgrid members, the cash flow and economic feasibility were calculated. Sensitivity analyses were performed by varying economic parameters to determine situations where investment becomes feasible. This paper shows that microgrid contributes to improve the economics and the initial investments. The number of participants in a microgrid, the electricity and the equipment costs are important parameters to speed up the economic and technical feasibility process. [ABSTRACT FROM AUTHOR]

Currently, there are considerable discrepancies between China's central government and some local governments in attitudes towards coal to liquids (CTL) technology. Energy return on investment (EROI) analysis of CTL could provide new insights that may help solve this dilemma. Unfortunately, there has been little research on this topic; this paper therefore analyses the EROI of China's Shenhua Group Direct Coal Liquefaction (DCL) project, currently the only DCL commercial project in the world. The inclusion or omission of internal energy and by-products is controversial. The results show that the EROIstnd without by-product and with internal energy is 0.68-0.81; the EROIstnd (the standard EROI) without by-product and without internal energy is 3.70-5.53; the EROIstnd with by-product and with internal energy is 0.76-0.90; the EROIstnd with by-product and without internal energy is 4.13-6.14. Furthermore, it is necessary to consider carbon capture and storage (CCS) as a means to control the CO2 emissions. Considering the added energy inputs of CCS at the plant level, the EROIs decrease to 0.65-0.77, 2.87-3.97, 0.72-0.85, and 3.20-4.40, respectively. The extremely low, even negative, net energy, which may be due to high investments in infrastructure and low conversion efficiency, suggests CTL is not a good choice to replace conventional energy sources, and thus, Chinese government should be prudent when developing it. [ABSTRACT FROM AUTHOR]

We examined data on fuel consumption and costs for the years 1950 through 2013, along with economic and population data, to determine the percent of U.S. gross domestic product (GDP) spent each year on fuels, including fossil fuels and nuclear ore, and the growth of the economy. We found that these variables are inversely correlated. This suggests that the availability and cost of energy is a significant determinant of economic performance. We believe this relation is consistent with analyses based on the energy return on investment (EROI) concept in that increasingly scarce, and hence expensive, fuels are a drag on economic growth. The best-fitting linear equation relating the percent of GDP (energy cost share) and year-over-year (YoY) GDP change variables suggests that a threshold exists in the vicinity of 4%; if the percent of GDP spent on fuels is greater than this, poorer economic performance has been likely. Currently, about 5% of GDP is spent on fuels; most of this is for liquids. Continued weak economic performance appears likely unless improvements in energy efficiency, on the order of a factor of 3 for liquid fuels, and/or a more rapid adoption of renewable or nuclear energy sources can be achieved, provided that the EROI of these new sources proves to be sufficiently high. [ABSTRACT FROM AUTHOR]

Interest has rapidly grown in the use of unconventional resources to compensate for depletion of conventional hydrocarbon resources ("easy hydrocarbon") that are produced at relatively low cost from oil and gas fields with large proven reserves. When one wants to ensure the prospects for development of unconventional resources that are potentially vast in terms of their energy potential, it is essential to determine the quality of that energy. Here we consider the development of shale gas, an unconventional energy resource of particularly strong interest of late, through analysis of its energy return on investment (EROI), a key indicator for qualitative assessment of energy resources. We used a Monte Carlo approach for the carbon footprint of U.S. operations in shale gas development to estimate expected ranges of EROI values by incorporating parameter variability. We obtained an EROI of between 13 and 23, with a mean of approximately 17 at the start of the pipeline. When we incorporated all the costs required to bring shale gas to the consumer, the mean value of EROI drops from about 17 at the start of the pipeline to 12 when delivered to the consumer. The shale gas EROI values estimated in the present study are in the initial stage of shale gas exploitation where the quality of that resource may be considerably higher than the mean and thus the careful and continuous investigation of change in EROI is needed, especially as production moves off the initial "sweet spots". [ABSTRACT FROM AUTHOR]

One key approach to analyzing the feasibility of energy extraction and generation technologies is to understand the net energy they contribute to society. These analyses most commonly focus on a simple comparison of a source's expected energy outputs to the required energy inputs, measured in the form of energy return on investment (EROI). What is not typically factored into net energy analysis is the influence of output variability. This omission ignores a key attribute of biological organisms and societies alike: the preference for stable returns with low dispersion versus equivalent returns that are intermittent or variable. This biologic predilection for stability, observed and refined in academic financial literature, has a direct relationship to many new energy technologies whose outputs are much more variable than traditional energy sources. We investigate the impact of variability on net energy metrics and develop a theoretical framework to evaluate energy systems based on existing financial and biological risk models. We then illustrate the impact of variability on nominal energy return using representative technologies in electricity generation, with a more detailed analysis on wind power, where intermittence and stochastic availability of hard-to-store electricity will be factored into theoretical returns. [ABSTRACT FROM AUTHOR]

Modern economies are dependent on fossil energy, yet as conventional resources are depleted, an increasing fraction of that energy is coming from unconventional resources such as tar sands. These resources usually require more energy for extraction and upgrading, leaving a smaller fraction available to society, and at a higher cost. Here we present a calculation of the energy return on investment (EROI) for all Canadian oil and gas (including tar sands) over the period 1990-2008, and also for tar sands alone (1994-2008). We used energy production and energy use data from Statistics Canada's Material and Energy Flow Accounts (MEFA). We were able to quantify both direct and indirect energy use, the latter from Statistics Canada's energy input-output model. We found that since the mid-1990s, total energy used (invested) in the Canadian oil and gas sector increased about 63%, while the energy production (return) increased only 18%, resulting in a decrease in total EROI from roughly 16:1 to 11:1. We also found (although with less certainty) that the EROI for tar sands alone has fluctuated around 4:1 since 1994, with only a slight increasing trend. Finally, we analyzed underlying factors possibly influencing these trends. [ABSTRACT FROM AUTHOR]

This paper aims to investigate whether the environmental, social and corporate governance (ESG) score of companies operating in the energy sector is associated with their corporate financial performance (CFP). The research covered data from eight companies with a dominant position in the Polish energy sector. The research used the comparative analysis between ESG performance and accounting-based measures of profitability: return on equity (ROE), return on assets (ROA) and return on sales (ROS). Additionally, reference was also made to the DuPont model. The acquired results do not reveal repetitive dependencies that would facilitate the discovery of a pattern of the impact of the factors of ESG on the financial performance of enterprises. Despite indicating the cases of correlations between the ESG scores and CFP at a high level, indeed sometimes at a very high level, the particular case studies significantly differ from each other. This may be caused by the fact that Polish enterprises from the energy sector illustrate far-reaching specifics, among others, with regard to the key significance of the entities with a prevalent state ownership and strict administrative regulations, which are subject to the energy market, state of development and structure of the whole sector in Poland. Thus, this is also why the mechanisms or dependencies, whose existence it is possible to expect in conditions of free competition, may be weakened or even eliminated in Polish conditions. [ABSTRACT FROM AUTHOR]

For some time, renewable solar energy generations using cellular photovoltaic panels have stood out among the options, especially in the segment of micro and small companies, where the return on investment is usually higher. In this context, when micro and small companies do not have the capital for the enterprises, several others, mainly small ones, have emerged to finance. However, significant difficulties occur for financiers in selecting investment portfolios, especially when considering the trade-off between return and risk and the covariations of return on investment, which are very common. In this type of selection, the Capital Asset Pricing Model criteria using the Gini risk can help significantly because this one is a more robust risk coefficient for assessments of non-normal probability distributions. However, searches for methods that meet the selection needs using the adjacent criteria are unsuccessful. Thus, this work seeks to help minimize the gap by presenting a new method for selection using the criteria. Historical and simulations data stochastic evaluations indicate that the portfolios selected by the method are attractive options for implementations. These portfolios have reasonable probabilistic expectations and satisfactory protection to avoid mistakes caused for not considering covariations in return on investment, which indicates a significant advance on the current knowledge frontier and will likely allow the increased use of the concept. The method also presents theoretical contributions in adaptations of the benchmark models, which help to minimize the adjacent literary gap of similar methods. [ABSTRACT FROM AUTHOR]

The efficiencies of energy extraction and conversion systems are typically expressed using energy return ratios (ERRs) such as the net energy ratio (NER) or energy return on investment (EROI). A lack of a general mathematical framework prevents inter-comparison of NER/EROI estimates between authors: methods used are not standardized, nor is there a framework for succinctly reporting results in a consistent fashion. In this paper we derive normalized mathematical forms of four ERRs for energy extraction and conversion pathways. A bottom-up (process model) formulation is developed for an n-stage energy harvesting and conversion pathway with various system boundaries. Formations with the broadest system boundaries use insights from life cycle analysis to suggest a hybrid process model/economic input output based framework. These models include indirect energy consumption due to external energy inputs and embodied energy in materials. Illustrative example results are given for simple energy extraction and conversion pathways. Lastly, we discuss the limitations of this approach and the intersection of this methodology with "top-down" economic approaches. [ABSTRACT FROM AUTHOR]

Corporate social responsibility (CSR) is one of the main drivers of corporate reputation. Many studies show that CSR can positively affect financial performance (FP) and vice versa. However, the relationship between FP and CSR depends on the type of industry in which the company operates, and there is little research regarding the energy sector in this area. The basis of empirical research in this study is slack resource theory which argues that financial performance is the cause of corporate social performance. This paper aims to analyze if financial performance affects corporate social responsibility adoption in energy sector companies. In order to achieve this goal, the study specifically examines the relationship between selected financial performance indicators and CSR adoption. Analyzing an international sample of 219 companies from thirty-two countries for 2020, we observed the statistically significant relations between financial performance and the implementing of the CSR strategy of the energy industry companies. The Return on Assets measure (ROA) and the Earnings Before Interest and Taxes measure (EBIT) were significantly higher among companies implementing the CSR strategy. The Enterprise Value to earnings before interest, taxes, depreciation, and amortization ratio (EV EBITDA) was lower among companies that adopted CSR. We did not confirm that the Return on Equity measure (ROE), Beta coefficient, and EBITDA per Share correlated with CSR adoption. Our research had implications for firms' investment policies in social initiatives and highlighted the relation between the financial performance and CSR initiatives of the energy sector companies. [ABSTRACT FROM AUTHOR]

Using a cross-country dataset covering 9265 observations on 1785 firms representing 53 countries over the period 2004–2019, this study investigates the relation between carbon emissions reduction and corporate financial performance (CFP). We perform OLS regressions with fixed effects. We found that carbon emissions reduction increases the return on assets, the return on equity, and the return on sales, whereas it has no effect on the Tobin's Q and the current ratio. The positive relationship with the return on assets is stronger for firms with a higher responsibility score. We study country characteristics by modeling GDP growth, overall emissions within a country, and the presence of carbon emissions legislation. Our results indicate that the overall carbon emissions of a country and the presence of carbon emissions legislation are related to both corporate carbon emissions reduction and CFP. Moderating effects of the country's overall emissions and the presence of carbon emissions legislation do not affect the relationship between carbon emissions reduction and CFP. Despite the further understanding gained, the issue of whether it "pays to be green" can still not be resolved well. [ABSTRACT FROM AUTHOR]

Taxation exerts pressure on the economic activities of all companies, including economic entities that operate in the energy industry. This study examined the degree to which fiscal pressure influenced the financial performance of 88 publicly listed companies from the energy industry during a time frame of 16 years (2005Q1–2020Q3). By modelling financial data from the oil, gas and electricity sectors with panel data techniques, our results showed that fiscal pressure had a significant effect on the evolution of company financial performance measured by return on assets, return on equity and return on investment. The study revealed that fiscal pressure had a more positive impact on the financial performance of energy companies than a negative impact. This conclusion is important for overall taxation in the energy industry since corporate taxes, excise duties and mandatory labor contributions are basic resources for state budgets. Our empirical results imply important research directions on the prospect of analyzing company performance. [ABSTRACT FROM AUTHOR]

In this paper we analyzed the link between companies' performance, in terms of cash and income, and the labor productivity or management rates, in case of the companies from the energy sector listed on the Bucharest Stock Exchange. We focused on the energy sector because of the impact that its expansion has on the evolution of economies around the world and because of its dynamics in the sense of gradually shifting to the use of energy from renewable sources. We have used panel regression models to analyze the operating cash flow and the profitability rates and the determination of a causal or dependency relationship with labor productivity or management rates. The results of this study show a significant negative correlation between operating cash flows and the average duration of stock rotation, and no correlation between productivity and the operating cash flow. Instead, the average duration of stock turnover does not at all influence the profitability rates, and productivity is always significant for the return on assets, ie forthe return on equitywith a positive coefficient, as expected. The gap between the average duration of payment of suppliers and the average duration of receivables does not significantly influence neither the cash flow nor the rates of return. [ABSTRACT FROM AUTHOR]

The use of solar energy for power generation using the innovative solar chimney concept has been explored by many researchers mostly with the help of analytical models as well as CFD simulations while experimental studies for a pilot and bench scale facilities have been carried out. The efficiencies of these chimneys, however, are less than 1% (~0.07% for 50 kW pilot plant similar to Manzanares plant in Spain). In the present study, an effort has been made to make modifications in the chimney design to improve the efficiency of the chimney in terms of power generation. CFD simulations have been carried out for this modified design and the efficiency is seen to improve to 0.12% for a 50 kW chimney. Furthermore, a techno-economic feasibility analysis has been carried out for a conventional 5 MW solar power plant which can be installed on the western part of India, which receives good solar irradiation throughout the year. Two cases with and without government subsidies have been considered. It is observed that a high rate of return (~20.4%) is obtained for a selling price of electricity of Rs 5 per kWh with government subsidy, while a rate of return of ~19% is obtained for Rs 10 per kWh without government subsidy. [ABSTRACT FROM AUTHOR]

The paper proposes an effective layout for ground-mounted photovoltaic systems with a gable structure and inverter oversizing, which allows an optimized use of the land and, at the same time, guarantees a valuable return on investment. A case study is presented to show the technical, economic, and environmental advantages compared with conventional "fixed-tilt" and "sun-tracking" ground-mounted photovoltaic installations. The main advantage of this solution is that it maximizes the energy produced per unit of land area used; but, also considering the economic metrics, the net present value of the proposed PV arrangement solution results in a greater annual volume of energy produced and therefore of net revenues and cash flows, and greater than the compared conventional solution with modules exposed in an optimal fixed position or which make use of sun-tracking systems. [ABSTRACT FROM AUTHOR]

In early 2020, Indonesia implemented the biodiesel 30 (B30) program as an initiative to reduce Indonesia's dependency on fossil fuels and to protect Indonesia's palm oil market. However, palm oil has received international criticism due to its association with harmful environmental externalities. This paper analysed whether an investment in palm oil-based biofuel (POBB) provides Indonesia with the ability to achieve its environmental and financial goals. In this research, we performed a meta-analysis on biofuel energy return on investment (EROI) by examining 44 biofuel projects using ten types of biofuel feedstocks from 13 countries between 1995 and 2016. Results showed an average EROI of 3.92 and 3.22 for POBB and other biomass-based biofuels (OBBB), respectively. This shows that if only energy inputs and outputs are considered, biofuels provide a positive energy return. However, biofuels, including those from palm oil, produce externalities especially during land preparation and land restoration. We also compared these EROI biofuel results with other renewable energy sources and further analysed the implications for renewable energies to meet society's energy demands in the future. Results showed that biofuel gives the lowest EROI compared to other renewable energy sources. Its EROI of 3.92, while positive, has been categorised as "not feasible for development". If Indonesia plans to continue with its biofuel program, some major improvements will be necessary. [ABSTRACT FROM AUTHOR]

Fundamental mathematical principles were applied to calculate the return on investment (ROI) of a multiple inclination, rooftop-mounted, photovoltaic (PV) system that is connected to a structured tariff network. Recent history has seen a disproportionate increase in electricity tariffs within South Africa, enabling an increase in the deployment rates of PV technologies. Given the inherent uncertainty associated with simulating the electricity yield of a PV system, it can become difficult to estimate the ROI in advance. This study contributes to existing knowledge by presenting a process for calculating the ROI of a case study rooftop-mounted PV system using mathematical first principles where structured tariffs apply. The PV modules were mounted to a curved roof structure, ranging from 9° towards a southerly direction to 10° towards a northerly direction. The research results indicate that since the PV system is located within the southern hemisphere, the ROI will increase when PV modules are orientated towards the northerly direction to attain a maximum of R0.0059/Wp/Day at 10°, and a minimum of R0.0025/Wp/Day at 9° towards the southerly direction in the winter season. Summer maximum ROI yielded an average of between R0.0050/Wp/Day and R0.0052/Wp/Day, irrespective of the angle of inclination of the PV modules. It was concluded that PV systems must be designed to favour winter electricity production for increased ROI where structured tariffs apply within a South African context. [ABSTRACT FROM AUTHOR]

The projected increase in the world's population requires an increase in the production of edible energy that would meet the associated increased demand for food. However, food production is strongly dependent on the use of energy, mainly from fossil fuels, the extraction of which requires increasing input due to the depletion of the most easily accessible deposits. According to numerous estimations, the world's energy production will be dependent on fossil fuels at least to 2050. Therefore, it is vital to increase the energy efficiency of production, including food production. One method to measure energy efficiency is the energy return on investment (EROI), which is the ratio of the amount of energy produced to the amount of energy consumed in the production process. The literature lacks comparable EROI calculations concerning global food production and the existing studies only include crop production. The aim of this study was to calculate the EROI of edible crop and animal production in the long term worldwide and to indicate the relationships resulting from its changes. The research takes into account edible crop and animal production in agriculture and the direct consumption of fossil fuels and electricity. The analysis showed that although the most underdeveloped regions have the highest EROI, the production of edible energy there is usually insufficient to meet the food needs of the population. On the other hand, the lowest EROI was observed in highly developed regions, where production ensures food self-sufficiency. However, the changes that have taken place in Europe since the 1990s indicate an opportunity to simultaneously reduce the direct use of energy in agriculture and increase the production of edible energy, thus improving the EROI. [ABSTRACT FROM AUTHOR]

Increasing interest in bioenergy production in the context of the transition towards a circular economy and the promotion of renewable energy has produced demands for optimization of the value chain of energy production to improve the environmental viability of the system. Hotspot analysis based on life cycle assessment (LCA) contributes to the mitigation of environmental burdens and is a very important step towards the implementation of a bioeconomy strategy. In this study, hotspots identified using two parallel pathways: a literature review and empirical research on four different biogas plants located in Poland. LCA and energy return on investment (EROI) analysis of the whole bioenergy production chain were considered to identify unit processes or activities that are highly damaging to the environment. The biogas plants differ mainly in the type of raw materials used as an input and in the method of delivery. The results show that the most impactful processes are those in the delivery of biomass, especially road transport by tractor. The second contributor was crop cultivation, where fossil fuels are also used. Although the EROI analysis indicates a negligible impact of transport on the energy efficiency of bioenergy plants, the environmental burden of biomass transportation should be taken into consideration when planning further measures to support the development of the bioeconomy. [ABSTRACT FROM AUTHOR]

This paper aims to analyze the impact of implied volatility on the costs, break-even points (BEPs), and the final results of the vertical spread option strategies (vertical spreads). We considered two main groups of vertical spreads: with limited and unlimited profits. The strategy with limited profits was divided into net credit spread and net debit spread. The analysis takes into account West Texas Intermediate (WTI) crude oil options listed on New York Mercantile Exchange (NYMEX) from 17 November 2008 to 15 April 2020. Our findings suggest that the unlimited vertical spreads were executed with profits less frequently than the limited vertical spreads in each of the considered categories of implied volatility. Nonetheless, the advantage of unlimited strategies was observed for substantial oil price movements (above 10%) when the rates of return on these strategies were higher than for limited strategies. With small price movements (lower than 5%), the net credit spread strategies were by far the best choice and generated profits in the widest price ranges in each category of implied volatility. This study bridges the gap between option strategies trading, implied volatility and WTI crude oil market. The obtained results may be a source of information in hedging against oil price fluctuations. [ABSTRACT FROM AUTHOR]

With the increase in penetration of photovoltaics (PV) into the power system, the correct prediction of return on investment requires accurate prediction of decrease in power output over time. Degradation rates and corresponding degraded energy estimation must be known in order to predict power delivery accurately. Solar radiation plays a key role in long-term solar energy predictions. A combination of auto-encoder and long short-term memory (AE-LSTM) based deep learning approach is adopted for long-term solar radiation forecasting. First, the auto-encoder (AE) is trained for the feature extraction, and then fine-tuning with long short-term memory (LSTM) is done to get the final prediction. The input data consist of clear sky global horizontal irradiance (GHI) and historical solar radiation. After forecasting the solar radiation for three years, the corresponding degradation rate (DR) influenced energy potentials of an a-Si PV system is estimated. The estimated energy is useful economically for planning and installation of energy systems like microgrids, etc. The method of solar radiation forecasting and DR influenced energy estimation is compared with the traditional methods to show the efficiency of the proposed method. [ABSTRACT FROM AUTHOR]

This paper presents a detailed life-cycle assessment of the greenhouse gas emissions, cumulative demand for total and non-renewable primary energy, and energy return on investment (EROI) for the domestic electricity grid mix in the U.S. state of California, using hourly historical data for 2018, and future projections of increased solar photovoltaic (PV) installed capacity with lithium-ion battery energy storage, so as to achieve 80% net renewable electricity generation in 2030, while ensuring the hourly matching of the supply and demand profiles at all times. Specifically—in line with California's plans that aim to increase the renewable energy share into the electric grid—in this study, PV installed capacity is assumed to reach 43.7 GW in 2030, resulting of 52% of the 2030 domestic electricity generation. In the modelled 2030 scenario, single-cycle gas turbines and nuclear plants are completely phased out, while combined-cycle gas turbine output is reduced by 30% compared to 2018. Results indicate that 25% of renewable electricity ends up being routed into storage, while 2.8% is curtailed. Results also show that such energy transition strategy would be effective at curbing California's domestic electricity grid mix carbon emissions by 50%, and reducing demand for non-renewable primary energy by 66%, while also achieving a 10% increase in overall EROI (in terms of electricity output per unit of investment). [ABSTRACT FROM AUTHOR]

One fundamental dimension in the design of an electrical energy system (EES) is the economic analysis of the possible design alternatives, in order to ensure not just the maximization of the energy output but also the return on the investment and the possible profits. Since the energy output and the economic figures of merit are intertwined, for an accurate analysis it is necessary to analyze these two aspects of the problem concurrently, in order to define effective energy management policies. This paper achieves that objective by tracking and measuring the energy efficiency and the cost effectiveness in a single modular framework. The two aspects are modeled separately, through the definition of dedicated simulation layers governed by dedicated virtual buses that elaborate and manage the information and energy flows. Both layers are simulated concurrently within the same simulation infrastructure based on SystemC-AMS, so as to recreate at runtime the mutual influence of the two aspects, while allowing the use of different discrete time scales for the two layers. Thanks to the tight coupling provided by the single simulation engine, our method enables a quick estimation of various cost metrics (net costs, annualized costs, and profits) of any configuration of EES under design, via an informed exploration of the alternatives. To prove the effectiveness of this approach, we apply the proposed strategy to two EES case studies, we explored various management strategies and the presence of different types and numbers of power sources and energy storage devices in the EES. The analysis proved to allow the identification of the optimal profitable solutions, thereby improving the standard design and simulation flow of EES. [ABSTRACT FROM AUTHOR]

Distributed solar photovoltaic (DPV) under net-energy metering with volumetric retail electricity pricing has raised concerns among utilities and regulators about adverse financial impacts for shareholders and ratepayers. Using a pro forma financial model, we estimate the financial impacts of different DPV deployment levels on a prototypical Western U.S. investor-owned utility under a varied set of operating conditions that would be expected to affect the value of DPV. Our results show that the financial impacts on shareholders and ratepayers increase as the level of DPV deployment increases, though the magnitude is small even at high DPV penetration levels. Even rather dramatic changes in DPV value result in modest changes to shareholder and ratepayer impacts, but the impacts on the former are greater than the latter (in percentage terms). The range of financial impacts are driven by differences in the amount of incremental capital investment that is deferred, as well as the amount of incremental distribution operating expenses that are incurred. While many of the impacts appear relatively small (on a percentage basis), they demonstrate how the magnitude of impacts depend critically on utility physical, financial, and operating characteristics. [ABSTRACT FROM AUTHOR]

The aim of this paper is to investigate households' willingness to adopt technological and behavioral energy savings measures, in their dwellings and for daily mobility. Based on the evidence that occupants' behavior has a major impact on energy uses at home and on the road, this paper aims at investigating which determinants influence household preferences for energy-saving measures, both technical as well as behavioral ones, as well as highlighting the key determinants for adopting energy-savings measures, at the household scale. This paper will attempt to shed more light on the factors that may bridge the intention–behavior gap. The analysis is based on an empirical survey carried out in the Netherlands. Main results show that (1) behavioral energy saving measures are more acceptable than technical ones; (2) the adoption of energy savings measures at home is more likely than on the road; (3) there is a relatively small market for technical energy measures, especially through the initial investment and the low return on investment; (4) environmental aspects seem to be more important for relatively expensive technical energy measures; (5) the reason for taking technological energy measures is rather to be found in differences among socio-demographic background than in environmental concerns; and (6) comfort at home and on the road is an important explanatory variable that many respondents used to justify not implementing energy savings measures and should be investigated in further research. [ABSTRACT FROM AUTHOR]

This study evaluates biorefinery bio-oil feedstock costs at the plant gate for a prospective field pennycress (Thlaspi arvense L.) to sustainable aviation fuel (SAF) supply chain. The biorefinery would supply SAF to the Nashville, Tennessee international airport. Supply chain activities include pennycress production, transporting oilseed to a crushing facility, processing of oilseed into bio-oil, and transporting bio-oil to the biorefinery. The analysis shows profit potential for economic agents in the prospective supply chain. Estimated breakeven cost (profit = 0) of growing, harvesting, and transporting oilseed to a crushing facility is 17.7 ¢ kg−1. A crushing facility can pay up to 23.8 ¢ kg−1 for pennycress oilseed during the first year of production and provide investors 12.5% annual rate of return. Therefore, a profit margin of up to 6.1 ¢ kg−1 is available for the crushing facility to induce prospective pennycress producers to supply oilseed for SAF production. However, the estimated profit margin was sensitive mainly to uncertain oilseed yields, changes in field production costs, and pennycress meal and bio-oil prices. A spatial biorefineries sitting model, the Biofuels Facility Location Analysis Modeling Endeavor, estimated that the least-cost supply chain configuration is to establish three crushing facilities located in Union City, Huntington, and Clarksville, TN, to supply bio-oil to the biorefinery, with the biorefinery sited in an industrial park about 24.14 km from the Nashville international airport aviation fuel storage. Estimated total costs of bio-oil at the biorefinery plant gate are between 83 and 109 ¢ kg−1 if crushing facility oilseed procurement costs are between 17.7 and 23.8 ¢ kg−1 for oilseed. [ABSTRACT FROM AUTHOR]

Small oil fields are expected to play an increasingly prominent role in the delivery of global crude oil production. As such, the Energy Return on Investment (EROI) parameter for three small offshore fields are investigated following a well-documented methodology, which is comprised of a "bottom-up" estimate for lifting and drilling energy and a "top-down" estimate for construction energy. EROI is the useable energy output divided by the applied energy input, and in this research, subscripts for "lifting", "drilling", and "construction" are used to differentiate the types of input energies accounted for in the EROI ratio. The EROILifting time series data for all three fields exhibits a decreasing trend with values that range from more than 300 during early life to less than 50 during latter years. The EROILifting parameter appears to follow an exponentially decreasing trend, rather than a linear trend, which is aligned with an exponential decline of production. EROILifting is also found to be inversely proportional to the lifting costs, as calculated in USD/barrel of crude oil. Lifting costs are found to range from 0.5 dollars per barrel to 4.5 dollars per barrel. The impact of utilizing produced gas is clearly beneficial and can lead to a reduction of lifting costs by as much as 50% when dual fuel generators are employed, and more than 90% when gas driven generators are utilized. Drilling energy is found to decrease as the field ages, due to a reduction in drilling intensity after the initial production wells are drilled. The drilling energy as a percentage of the yearly energy applied is found to range from 3% to 8%. As such, the EROILifting+Drilling value for all three fields approaches EROILifting as the field life progresses and the drilling intensity decreases. The construction energy is found to range from 25% to 63% of the total applied energy over the life of the field. [ABSTRACT FROM AUTHOR]

Recently, energy analysis has been added to Russian gas companies' annual reporting system. This new practice indicates that corporate reports are improving their analyses by addressing energy issue and the financial efficiency of energy production. However, the use of summary energy indicators is limited in these annual reports. In this paper we review the history of energy analysis in Russia from the early USSR period to today. Under the guidance of energy return on investment (EROI), we compare energy efficiency indicators with financial efficiency coefficients. The results show that the value of the return on cost of sales (ROCS) is negative in certain instances, while the value of the energy return on cost of sales (EROCS) is extremely high under the example of the Russian energy company JSC "YATEC." Money-based indicator values (ROCS and return on fix assets (ROFA)) fluctuate with internal company financial management goals, and from the outside depending on market prices. Meanwhile energy-based values (EROCS) remain stable. Added financial analysis and energy analysis in companies' annual statements will supplement each other in practice and will present the full picture for company efficiency analysis. [ABSTRACT FROM AUTHOR]