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In this study, a biorefinery concept is presented to produce valuable platform chemicals such as γ-valerolactone (GVL), 2-methyltetrahydrofuran (2-MTHF) and 5-hydroxymethylfurfural (5-HMF) from lignocellulosic biomass via aqueous phase processing. Process simulation models are developed using Aspen Plus and a techno-economic assessment including cost estimation, energy integration, profitability study, sensitivity analysis and Monte Carlo simulation-based uncertainty analysis is carried out for evaluating the economic potential of the proposed process. The total investment for a plant with an annual production capacity of 35 kt of GVL, 17 kt of 2-MTHF and 5 kt of 5-HMF, is estimated as 257 M€. The minimum selling prices (MSPs) of GVL, 2-MTHF and 5-HMF are estimated to be 1.91 €/kg, 1.64 €/kg, and 1.93 €/kg, respectively. The profitability study revealed that the process generates an internal rate of return of 15.90%, making it viable and profitable. The sensitivity analysis indicated that the annual operational costs and fixed capital investment have the biggest influence on the minimum selling price of the products. Furthermore, based on the uncertainty analysis, the probability of loss is estimated as 17%. According to the market potential assessment, the most promising application of these platform chemicals is as biofuels and solvents. [ABSTRACT FROM AUTHOR]

Abstract: This paper discusses the choice by the public authority of the most efficient programme of infrastructure investments. More specifically, it studies the optimal ranking of project implementation when these projects are partially self-financed by their own revenues such as tolled highways. In this case, the optimal investment programme must be defined under a constraint of annual subsidies. This paper demonstrates that the optimal ranking is not necessarily the ranking of decreasing socioeconomic IRR. This counter-intuitive result can be demonstrated by a general approach. Analytical calculations are not useful in this discrete problem because each programme is an ordered subset of projects. Therefore, there is no continuous variation linking the various programmes and the usual tools of optimization, such as differential calculus, are useless. Thus, we adopt here a discrete optimization analysis based on standard techniques in the physics area, such as Monte Carlo sampling. [Copyright &y& Elsevier]

Abstract Blue Growth is the creation of economic activity and jobs at sea, while multiple use of space makes efficient use of the available sea area by combining industries. Clearly there are many combinations and many value propositions. However, most technologies to date are considered blue sky concepts, with little robust techno-economic analysis demonstrating profitability. The paper begins by providing a comprehensive review of Blue Growth and multi-use in Blue Growth; both in policy as well as the wide range of current technologies, including ocean energy, offshore wind energy, offshore aquaculture and desalination. The Maribe H2020 project provides the vehicle for the research element of the paper. The major contribution is a new methodology for selecting, filtering, developing and ranking business propositions for multiple-use of space (MUS) and multi-use platforms (MUP). Application of the method for the first time identified three case studies where Blue Growth combination projects can be economically viable, with attractive internal rate of return (IRRs). Results presented for the case studies report standard investment metrics and show the relative contribution of each product (energy, food, water) to the system profitability, as well as socio-economic impact. Existing companies were fully engaged in the process. Co-creation between sector experts and industry led to both improved business value propositions and robust assessment of investment readiness. In contrast to the presumption that large scale platforms are commercially attractive, the highest ranking case study companies required smaller capital expenditure (CAPEX) and operated in niche subsectors. In conclusion, the positive economic performance of the case studies should provide confidence for the EC as well as investors that MUS and MUP have viable economic futures leading towards commercialisation. The macro and micro assessment methods will be particularly useful in other Blue Economy contexts and in other multiple product contexts. Highlights • A comprehensive history of multiple use of space blue growth. • New metrics for comparing salmon to megawatts are presented. • Method and criteria for ranking potential investments in blue growth business models. • Profitable case studies described involving electricity, water, mussels and fish. [ABSTRACT FROM AUTHOR]

Abstract: A continuous decrease trend in PV costs together with a wide variety of supporting measures have turned photovoltaic grid-connected systems (PVGCS) into a profitable investment when some economic conditions are met. The internal rate of return (IRR) is a meaningful parameter for prospective owners of these PV systems. Nevertheless, this parameter has to be estimated by means of non-analytical methods. This paper presents some easy-to-use tables addressed to estimate the IRR avoiding cumbersome calculations, which is an attractive feature for owners, marketers and designers. Firstly, current and near-term costs of PVGCS are reviewed, together with some financial incentives available at present. This introduces the economic scenario, where the tables are to be used. A short introduction to the economic analysis of these systems provides a solid ground to eventually present the tables intended to the estimation of the IRR. Lastly, three examples demonstrate the use of the tables. [Copyright &y& Elsevier]

Hexane extraction is the most common method used in the industry to produce soybean oil due to its high oil recovery and lower production cost. With the demands of soybean oil increasing either in food or industrial applications, expansion plans are considered by many companies to increase production capacity. Techno-economic analysis is performed to evaluate the economic feasibility of soybean oil production by hexane extraction based on historical scenarios from 1980 to 2015. Capital investment, operating costs, revenues, and profits are main parameters to consider when estimating profits, gross margin, return on investment (ROI), and payback time and are the indices used to evaluate the profitability of the process. As the plant capacity increases in scale to over 34.64 million kg of annual soybean oil production, the break-even is met and the producing stream is able to earn profits. Additionally, sensitivity analysis is also applied to examine which factor affects profit the most. In the hexane extraction process, material costs, especially for soybean prices, have the most significant effect on profit. However, soybean meal is the main driving force for soybean oil production due to its significant amount of productivity and revenues. [ABSTRACT FROM AUTHOR]

• Process design and energy analysis of IICLAS-based IGCC power and CLGH-based IGCC polygeneration plants are presented. • The capital cost of IICLAS and the expense of natural gas supply detracts the benefits of investing in an IICLAS-based IGCC power plant. • The commercial potential of the investment planning in an CLGH-based IGCC polygeneration plant is confirmed. • The minimum acceptable IRR for an CLGH-based IGCC polygeneration plant is about 14.1%. The techno-economic analysis of an IGCC power plant coupled with integrated intermittent chemical looping air separation (IICLAS) as Design 1 and an IGCC polygeneration plant integrated with chemical looping hydrogen generation (CLHG) as Design 2 are addressed. The economic evaluations show that (i) the total overnight cost of capital (TOCC) of Design 1 is higher than it of Design 2 by 3.6% and (ii) the total fixed and variable operation and maintenance cost (TOMC) of Design 1 is higher than it of Design 2 by 17.8%. These comparisons imply that the potential investment opportunities in Design 2 are more than Design 1. According to recent reports of the internal rate of return (IRR) for the coal-fired power plant investment around 8%∼12%, Design 2 guarantees the minimum acceptable IRR with 14.1% even though its revenue is reduced by 30%. For assessing the levelized cost of energy (LCOE) with 0.058USD/kWh and the dynamic payback period (DPP) with 6.6 years, these beneficial results raise the commercial potential of Design 2. [ABSTRACT FROM AUTHOR]

Abstract: The paper provides new estimates of the perceived rates of return to higher education in Cyprus and compares them to previous estimates for the year 1994 in the same country. Both the elaborate and the short-cut methods are used in the estimation of rates of return. The estimated rates are entered as independent variables in logistic regression analysis in order to study the effect of economic considerations on the decision of secondary school students to pursue higher education. The findings show an increase in the perceived rate of return for both higher education and labour market entrants. In agreement with human capital theory, the mean rate of return to higher education expected by higher education candidates is considerably higher than that expected by labour market entrants. In two logistic regression models, the perceived rate of return to higher education, as estimated by both the elaborate and the short-cut methods, has a significant effect on the students’ intention to pursue higher studies. [Copyright &y& Elsevier]

Abstract: The gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to 1 year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20–30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination. [Copyright &y& Elsevier]

[Display omitted] • Simultaneous effect of KOH and biochar was studied on hydrolysis and syntropy. • Taguchi based design of experiment was coupled with grey relation analysis. • 0.5 g/100 g straw of alkali and 10 g/L of biochar was the optimised dosing. • Techno-economic analysis showed US$ 25,652 of NPV and 11.29% IRR. The present study investigated the effect of alkali and biochar addition for simultaneous increment of hydrolysis and syntropy for higher methane yield from pearl millet straw (PMS) in solid state anaerobic digestion. A taguchi based design of experiment was coupled with grey relation analysis for multiple output optimization. Study showed that 0.5 g (g/100 g PMS) of alkali and 10 g/L of biochar was the optimised dosing. Statistically, contribution of biochar and alkali was 48 and 21% respectively on the multiple output. The confirmation test revealed that hydrolysis rate constant, k and total volatile fatty acid/alkalinity ratio for reactor having optimised conditions was 0.0521 d-1 and 0.36 while for control, it was 0.0595 d-1 and 0.76 respectively. Techno-economic assessment showed US$ 25,652 of net present value and 11.29% of internal rate of return. Sensitivity analysis showed that capital expenditure and methane yield was most sensitive to net present value. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, we describe market in the projective geometry language and give the definition of a matrix of market rate, which is related to the matrix rate of return and the matrix of judgements in the Analytic Hierarchy Process (AHP). We use these observations to extend the AHP model to the projective geometry formalism and generalise it to an intransitive case. We give financial interpretations of such a generalised model and propose its simplification. The unification of the AHP model and projective aspect of portfolio theory suggests a wide spectrum of new applications for such an extended model. [Copyright &y& Elsevier]

Abstract: Context: When dealing with improvements, organizations seek to find a break-even point as early as possible in order to maximize ROI. In some cases such a strategy can lead to long-term failures by not realizing full benefits, when focusing only on the short-term. LEGO (Living Engineering Process) allows building customized process meta-models based on multiple inputs, making an organization more efficient and effective by optimizing resources, time and costs. This paper introduces elements for designing a strategy for more efficient deployments of process improvement initiatives, optimizing the choice of models and elements to be considered as input to the LEGO approach. [Copyright &y& Elsevier]

Abstract: What role do stock returns play in determining investment? In this paper, we investigate the independent effect of stock returns on investment within the context of four hypotheses: passive informant, active informant, financing, and stock market pressure. Using a sample of 83 firms from five Arab countries during 1996–2001, we find that the passive informant hypothesis holds true, with only sales and debt growth as significant determinants of capital expenditures. Surprisingly, cash flow has no effect on investment, which could mostly be due to the dividend policy of Arab firms. The fact that Arab stock markets do not allocate capital expenditures unwarranted by fundamentals gives support to current efforts at strengthening Arab stock markets. [Copyright &y& Elsevier]

• The designs of vapor-recompression distillation columns for the ethylene-ethane separation with high or low pressures in the auxiliary condenser are compared. • High pressure reduces refrigeration cost in the condenser but increases compressor cost. • The high-pressure design has 11% lower total energy cost but requires more capital investment. • The return on investment is quite attractive. A recent paper studied the separation of ethylene and ethane using several types of distillation systems in which cryogenic cooling is required. The economics of a conventional column using a very low-temperature expensive refrigerant in the condenser were compared with several configurations using process compressors. The alternative configurations involve the pressure in the auxiliary condenser and the fraction of the column overhead vapor sent through the compressor. Low pressure in the condenser requires a very low-temperature expensive refrigerant but has lower compressor costs. The purpose of this paper is to show that all of the vapor from the column should be compressed and then split, with some going to the reboiler and the rest going to an auxiliary condenser that operates at high pressure so that a higher-temperature less-expensive refrigerant can be used. [ABSTRACT FROM AUTHOR]

Abstract: As part of their model to explain short-term positive and long-term negative auto-correlation in stock returns, Barberis, Shleifer, and Vishny [1998. A model of investor sentiment. Journal of Finance 49, 307–345] suggest that investors may extrapolate trends in earnings performance. I test this portion of their model by examining investor trading patterns in firms that experience consecutive same-sign earnings surprises. Consistent with their model, after controlling for regularities in trading activity, I find that the net buying of small investors increases with the number of consecutive positive earnings surprises. I further find that purchasing activity of small investors subsequent to consecutive positive surprises is significantly negatively correlated with returns throughout the remainder of the year. These results suggest that such investors are not simply rationally updating after public news announcements. My results are robust to controlling for auto-correlation in earnings surprises. [Copyright &y& Elsevier]

Abstract: Although variable-air-volume system (VAVS) can save much energy compared with other kind of HVAC system (e.g. constant-air-volume system (CAVS), fan-coil system (FCS)), it demands more investment. The rate of return of variable-air-volume system, which is closely related to the energy-saving rate of the system, ought to be taken into account by the engineers in the course of design. China has a wide territory and different climates that will impact on the energy-saving rate of variable-air-volume system. To help the engineers have a good idea of the rate of return of variable-air-volume system in different areas of China, it is necessary to establish such program that can evaluate the energy-saving rate of variable-air-volume system compared to constant-air-volume system and fan-coil system. In this paper, the specific energy models of the primary equipments in HVAC system are established, and the evaluation program for the energy-saving of variable-air-volume system compared to constant-air-volume system and fan-coil system are expounded. The parameters in the energy models, which may impact the validity of the evaluation program, can be obtained from the field-testing data or the performance data provided by the product manual. One small office building is taken as an example, the year-round energy simulations of the three kinds of HVAC systems (variable-air-volume system, constant-air-volume system and fan-coil system) of the same building have been made, and the energy-saving of the variable-air-volume system has been evaluated in six cities of China by the program. The evaluation program can also be used to analyze the energy-saving of variable-air-volume system in medium and big office buildings. [Copyright &y& Elsevier]

This study evaluated the techno-economic assessment of xylo-oligosaccharides (XOs) production from brewer's spent grains (BSG) in a single and two sequential flow-through subcritical water hydrolysis (SWH) reactors at different temperatures (80–180 °C). The process with a single reactor produced the highest yield (72.83 mg XOs g−1 BSG) at 180 °C. The SWH in two sequential reactors produced up to 52.47 mg XOs g−1 BSG for the process operated at 80 °C followed by 130 °C. The lowest cost of manufacturing (18.36 USD kg−1 XOs) was obtained for the process with two sequential reactors. Although the fixed capital investment was 0.82-fold lower for the process with a single reactor, the gross profit of the process with two sequential reactors was 30% higher, which resulted in a return on investment of 54.26% and a payback of 1.84 years. In conclusion, SWH is a potential eco-friendly process to produce XOs from BSG. [Display omitted] • Xylo-oligosaccharides (XOs) were obtained from subcritical water hydrolysis. • The highest XOs yield was obtained for the process at 180 °C. • Xylotetraose, xylotriose, and xylobiose represented 85% of the total XOs. • The lowest cost of manufacturing was 18.36 USD kg−1 XOs. • Subcritical water is a potential eco-friendly process to produce XOs. [ABSTRACT FROM AUTHOR]

The problem with evaluating the investment in a multi-site photovoltaic plant, such as that proposed in this paper (which can be viewed as a profitability analysis), is that it requires the development of an innovative methodological approach. By setting an upper limit of capital to invest, among sites with different Direct Normal Irradiations (DNI), those in which many photovoltaic systems can be installed are identified as is the optimal size within predefined ranges. The primary objective is to maximize the net return on investment for a multi-site plant with a lifespan of approximately twenty years. The proposed approach uses a stochastic business plan, through which data are generated via the Monte Carlo simulation. Subsequently, using the Response Surface Methodology procedure, it is possible to identify the regression meta-model that describes the optimum region and therefore the point (investment amount for individual sites and the corresponding size of plants) that maximizes the overall Net Present Value. The proposed approach is completely generalized and, as such, can be replicated. A properly conducted test case is presented and clearly illustrates the methodology. [ABSTRACT FROM AUTHOR]

The Brazilian territory is irradiated with solar energy ranging from 1500 to 2300 kWh/m 2 /year, compared to 900 to 1850 kWh/m 2 /year in Germany, France, Italy and Spain. Despite that, photovoltaic (PV) technology is only now starting to penetrate the Brazilian electricity mix. Until recently, the high costs of PV generation had prevented this technology from competing in Brazil. However, the consistent PV price reductions and the worldwide scale reached, has brought attention to the Brazilian planners and actions have been taken recently in Brazil to help PV start its progress. In this paper, two of the recent government actions are analyzed, namely the National Electrical Energy Agency ANEEL Resolution RN482/2012, and the announcement of support by the Brazilian Development Bank offering loans at low interest rates for solar PV projects. The effects of these actions for residential PV systems are positive where the conventional electricity tariff is high with respect to the average in the country, and less relevant elsewhere. We compare these tariffs with the calculated Levelized Cost of Energy of rooftop PV generation. The influence of these policies on the return on investment of residential rooftop PV generation is studied for different climatic zones in Brazil. [ABSTRACT FROM AUTHOR]

Summary: In 1984, ICARDA and its Syrian partners initiated farming systems research that led to a change in national fertilizer allocation policy. Evidence is assessed on the policy influence of the fertilizer-response research and on the impact of switching to a more inclusive policy that relaxed the government’s probation of fertilizer allocation to barley. Interviews with key informants make a persuasive case for attribution; estimates from economic surplus models are consistent with a high rate of return on investment in the policy-oriented research. This case study provides a contribution to the limited empirical literature on returns to research under policy distortions. [ABSTRACT FROM AUTHOR]

Abstract: In this paper we expand the work of Brandt and Dale (2011) on ERRs (energy return ratios) such as EROI (energy return on investment). This paper describes a “bottom-up” mathematical formulation which uses matrix-based computations adapted from the LCA (life cycle assessment) literature. The framework allows multiple energy pathways and flexible inclusion of non-energy sectors. This framework is then used to define a variety of ERRs that measure the amount of energy supplied by an energy extraction and processing pathway compared to the amount of energy consumed in producing the energy. ERRs that were previously defined in the literature are cast in our framework for calculation and comparison. For illustration, our framework is applied to include oil production and processing and generation of electricity from PV (photovoltaic) systems. Results show that ERR values will decline as system boundaries expand to include more processes. NERs (net energy return ratios) tend to be lower than GERs (gross energy return ratios). External energy return ratios (such as net external energy return, or NEER (net external energy ratio)) tend to be higher than their equivalent total energy return ratios. [Copyright &y& Elsevier]

This paper, on the basis of a sample of Chinese listed firms, investigates the relationship between both real and accrual-based earnings management activities and firms' capital investment behavior. We apply the threshold model proposed by Hansen (1999) and find firms managing earnings can either over or underinvest, depending upon firms' return on equity (ROE) level. The study results show an inverted relationship between earnings management and firms' investment, which changes from negative to positive with ROE rising beyond certain threshold levels. We also find that the level of ROE affects whether managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment. Our evidence is important because it sheds new light on the relationship between earnings management activities and firms' investment behavior by showing that ROE may act as an important determinant in this relationship. This finding has important implications for policymakers such as the Chinese Securities Regulatory Commission (CSRC) as it shows that the regulatory benchmarks they set may have a significant impact on firms' investment behavior. • The relationship between investments and earnings management activities is not linear in return on equity (ROE) • Firms managing earnings can either over or underinvest, depending upon the level of firms' ROE • Level of ROE affects if managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment [ABSTRACT FROM AUTHOR]

• The general problem of developing profitability optima is considered at the conceptual level for chemical process designs. • Industrial estimates often employ IRR (Internal Rate of Return) to measure profitability, with a "traditional" hurdle rate to specify the required IRR (ROI). • The NPV % measure provides a more effective basis. Its parameters are adjustable to match the process, the financial environment, and profitability requirements. • Viewing long-term profitability (NPV project), short-term risk [(NPV %)−1] and total capital invested (TI), the first should be maximized ... the last two, minimized or at least subject to bounds. • A new graphical method, with NPV % plotted versus NPV project , couples the three objectives, thus avoiding a Pareto-style optimization with its arbitrary weightings. • The optimum design is at the point of diminishing returns for LT profitability. Any lower value of TI reduces max (NPV project); any larger value isn't fully recovered. Recent fundamental work with discounted cash flow methods shows that an alternative metric for evaluating profitability and risk, one different from Internal Rate of Return (IRR) —namely the annualized and non-dimensionalized Net Present Value (NPV %)— can make evaluating project profitability easier yet more informative. It provides a simple and transparent strategy to optimize a design's key financial dependent variables (capital investment, profitability, risk). 1 1 Model form was originally referred to as "inside-out," but is now called "exo-parametric," i.e., switching from the vernacular to a more scientific and widely-used terminology (Mellichamp, 2018). Both traditional and exo-parametric modeling methods developed by the author are linked to this metric, providing an efficient and precise mechanism to organize and carry out the financial/optimization search procedures in process design. Design engineers want to know what is the optimum size of investment (TI) that meets projected market conditions? What is the expected long-term (NPV) return? What metric can be used to maximize them, consistent with the need to recover capital as quickly as reasonably possible (i.e., to bound the "short-term risk")? The proposed approach answers all three questions simultaneously, with a precise min-max solution obtained transparently. [ABSTRACT FROM AUTHOR]

Abstract This study aims to evaluate whether the implied cost of capital (ICC) model is better than the capital asset pricing model (CAPM) in predicting the realized rate of return for infrastructure firms. We selected a sample of 49 listed companies in Brazil for the period from 2002 to 2014. The CAPM yielded a cost of capital of 11.97% per annum, while the ICC yielded 13.39% per annum, a difference of 1.42% annually. We suggest that a possible explanation for this result is the existence of systematic, non-diversifiable risk, potentially due to regulatory intervention in the business environment. Highlights • This paper aims to evaluate whether the implied cost of capital (ICC) model, in the version developed by Easton (2006), is better than CAPM to predict the realized rate of return (ROR) for infrastructure firms. We selected a sample of 49 Brazilian listed companies from 2002 to 2014. • Our findings, obtained in the pooled regression model, showed that the ICC had a positive and significant correlation with future stock returns, whereas the CAPM did not. • Robustness and Diebold–Mariano tests (1995) corroborated that the ICC is a superior predictor of actual ROR's for the sample of Brazilian utilities. [ABSTRACT FROM AUTHOR]

This paper evaluates the economic feasibility of an integrated production pathway combining fast pyrolysis and bio-oil gasification. The conversion process is simulated with Aspen Plus® for a 2000 metric ton per day facility. Techno-economic analysis of this integrated pathway has been conducted. A total capital investment of $510 million has been estimated and the minimum fuel selling price (MSP) is $5.59 per gallon of gasoline equivalent. The sensitivity analysis shows that the MSP is most sensitive to internal rate of return, fuel yield, biomass feedstock cost, and fixed capital investment. Monte-Carlo simulation shows that MSP for bio-oil gasification would be more than $6/gal with a probability of 0.24, which indicates this pathway is still at high risk with current economic and technical situation. [ABSTRACT FROM AUTHOR]

The Capital Asset Pricing Model (CAPM) is commonly used in public utility rate proceedings to estimate the cost of capital and allowed rate of return. The beta in the CAPM associates risk with estimated return. However, an empirical analysis suggests that the commonly used Blume CAPM beta adjustment is not appropriate for electric and electric and gas public utility betas, and may bias the cost of common equity capital in public utility rate proceedings. [Copyright &y& Elsevier]

Abstract: In this article, in a context of wage equations with sample selection, we propose a novel interpretation of the partial effects linked to education as additional measures of returns to education that complement the traditional one, which is directly obtained from the estimation of the wage offer equation. Using European Household Panel data for Spain these partial effects were calculated. The results show that there are incentives in Spain for investing in education not only because it means an increase in wages but also because it raises the probability of obtaining any wage at all. [Copyright &y& Elsevier]

One of the most exciting new applications to be launched in the payment world is contactless payment. The technology is already available and waiting in the wings to help card-based payments eat further into the cash market. Contactless payment promises to deliver return on investment to banks, enables differentiated services and increased revenue for retailers, and offers speed and convenience to cardholders. So what will it look like when it''s part of our everyday lives? [Copyright &y& Elsevier]

Benchmarking of the economics methodologies developed by the Generation IV International Forum (GIF) and the International Atomic Energy Agency’s International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO), was performed for three Generation IV nuclear energy systems. The Economic Modeling Working Group of GIF developed an Excel based spreadsheet package, G4ECONS (Generation 4 Excel-based Calculation Of Nuclear Systems), to calculate the total capital investment cost (TCIC) and the levelised unit energy cost (LUEC). G4ECONS is sufficiently generic in the sense that it can accept the types of projected input, performance and cost data that are expected to become available for Generation IV systems through various development phases and that it can model both open and closed fuel cycles. The Nuclear Energy System Assessment (NESA) Economic Support Tool (NEST) was developed to enable an economic analysis using the INPRO methodology to easily calculate outputs including the TCIC, LUEC and other financial figures of merit including internal rate of return, return of investment and net present value. NEST is also Excel based and can be used to evaluate nuclear reactor systems using the open fuel cycle, MOX (mixed oxide) fuel recycling and closed cycles. A Super Critical Water-cooled Reactor system with an open fuel cycle and two Fast Reactor systems, one with a break-even fuel cycle and another with a burner fuel cycle, were selected for the benchmarking exercise. Published data on capital and operating costs were used for economics analyses using G4ECONS and NEST tools. Both G4ECONS and NEST predicted comparable TCIC and LUEC; with some variation in fuel cycle costs. The benchmarking exercise was also useful to understand the differences in the two methodologies for potential harmonisation opportunities in the future. [ABSTRACT FROM AUTHOR]

Abstract: A suggested method for controlling the level of hazardous materials in the atmosphere is prevention of combustion in flare. In this work, three methods are proposed to recover flare gas instead of conventional gas-burning in flare at the Farashband gas refinery. These methods aim to minimize environmental and economical disadvantages of burning flare gas. The proposed methods are: (1) gas to liquid (GTL) production, (2) electricity generation with a gas turbine and, (3) compression and injection into the refinery pipelines. To find the most suitable method, the refinery units that send gas to the flare as well as the required equipment for the three aforementioned methods are simulated. These simulations determine the amount of flare gas, the number of GTL barrels, the power generated by the gas turbine and the required compression horsepower. The results of simulation show that 563barrels/day of valuable GTL products is produced by the first method. The second method provides 25MW electricity and the third method provides a compressed natural gas with 129bar pressure for injection to the refinery pipelines. In addition, the economics of flare gas recovery methods are studied and compared. The results show that for the 4.176MMSCFD of gas flared from the Farashband gas refinery, the electricity production gives the highest rate of return (ROR), the lowest payback period, the highest annual profit and mild capital investment. Therefore, the electricity production is the superior method economically. [Copyright &y& Elsevier]

Abstract: In this paper we demonstrate that the probabilistic quantum-like (QL) behavior–the Born’s rule, interference of probabilities, violation of Bell’s inequality, representation of variables by in general noncommutative self-adjoint operators, Schrödinger’s dynamics–can be exhibited not only by processes in the micro world, but also in economics. In our approach the QL-behavior is induced not by properties of systems. Here systems (commodities) are macroscopic. They could not be superpositions of two different states. In our approach the QL-behavior of economical statistics is a consequence of the organization of the process of production as well as investments. In particular, Hamiltonian (“financial energy”) is determined by rate of return. [Copyright &y& Elsevier]

A method for assessment of wind–hydrogen ( energy systems is presented. The method includes chronological simulations and economic calculations, enabling optimised component sizing and calculation of cost. System components include a wind turbine, electrolyser, compressor, storage tank and power converter. A case study on a Norwegian island is presented. The commuting ferry is modelled as a ferry, representing the demand. The evaluation includes a grid-connected system and an isolated system with a backup power generator. Simulation results show that much larger components are needed for the isolated system. cost amounted to and for the grid-connected and isolated system, respectively. Sensitivity analyses show that a marginal decrease in wind turbine and electrolyser cost will reduce the cost substantially. Rate of return is also important due to high investment costs. The grid-connected system is by far the most economical, but the system involves frequent grid interaction. [Copyright &y& Elsevier]

Abstract: A process design study has been carried out to assess the feasibility of installing a small-scale municipal solid waste (MSW) gasifier on a university campus. The objective was to gasify all the non-recyclable MSW produced on campus and then combust the gaseous product to produce energy and electricity for the campus. Five energy generation combination scenarios were studied at two different mass gasification rates. The scenarios involved hot water (based on site demand), electricity (only, less the demand for hot water) and excess hot water for export (with electricity, with no electricity). Due to the high capital cost of generating electricity from a 10tonnes per day MSW gasifier, the optimum rate of return on capital investment is 14.8%. On a heat basis only a return of 23.4% is achievable. However, this optimum solution is based on being able to export 60% of the hot water off campus. If an additional 10tonnes per day MSW is imported onto campus the optimum rate of return increases to 36.1% but over 75% hot water has to be exported. Alternatively, with 400kW of electricity generation a rate of return of 32.5% can be achieved at this higher mass throughput. [Copyright &y& Elsevier]

• Diluent and temperature-swing regeneration processes applied for extraction of succinic acid with TOA and TOPO in MIBK. • Swing in acid distribution between extraction and regeneration more important than acid distribution itself. • Regeneration process based on gaseous anti-solvent ethane is most efficient, requiring only 21% of the energy of evaporation. • Combination of evaporation of MIBK and temperature-swing strongly reduces required energy input and results in higher product purity. Solvent regeneration processes for liquid-liquid extraction of succinic acid (HSuc) from aqueous streams were investigated. Tri -n- octyl amine (TOA) and tri -n- octyl phosphine oxide (TOPO) in methyl isobutyl ketone (MIBK) showed good extraction. For 20 wt% TOA in MIBK, addition of pentane at anti-solvent-to-solvent ratio of 1 (vol/vol) decreased K D from 10.2 to 0.46, applying ethane at 30 bar decreased K D to 0.45 and increasing the temperature to 60 °C decreased K D to 1.6. Evaporation of MIBK from a solvent of 40 wt% TOA in MIBK decreased K D from 10.2 to 4.0. For these processes, capital investments and energy requirements were calculated for 10 kiloton per year at a concentration factor of 5. Costs of all processes to obtain the product at maximum solubility are less than evaporation (2600 kJ/kg product at maximum solubility). A combination of a swing in diluent and temperature results in higher product concentrations after back-extraction, and reduced the energy input to obtain the pure HSuc to 19 MJ/kg. The ethane-based process is most effective with 13 MJ/kg to obtain the pure HSuc product. Although additional capital investments for compressors and pumps are required, only 110 days of production are required for return on investments. [ABSTRACT FROM AUTHOR]

Artisan cheese makers lack access to valid economic data to help them evaluate business opportunities and make important business decisions such as determining cheese pricing structure. The objective of this study was to utilize an economic model to evaluate the net present value (NPV), internal rate of return, and payback period for artisan cheese production at different annual production volumes. The model was also used to determine the minimum retail price necessary to ensure positive NPV for 5 different cheese types produced at 4 different production volumes. Milk type, cheese yield, and aging time all affected variable costs. However, aged cheeses required additional investment for aging space (which needs to be larger for longer aging times), as did lower yield cheeses (by requiring larger-volume equipment for pasteurization and milk handling). As the volume of milk required increased, switching from vat pasteurization to high-temperature, short-time pasteurization was necessary for low-yield cheeses before being required for high-yield cheeses, which causes an additional increase in investment costs. Because of these differences, high-moisture, fresh cow milk cheeses can be sold for about half the price of hard, aged goat milk cheeses at the largest production volume or for about two-thirds the price at the lowest production volume examined. For example, for the given model assumptions, at an annual production of 13,608 kg of cheese (30,000 lb), a fresh cow milk mozzarella should be sold at a minimum retail price of $27.29/kg ($12.38/lb), whereas a goat milk Gouda needs a minimum retail price of $49.54/kg ($22.47/lb). Artisan cheese makers should carefully evaluate annual production volumes. Although larger production volumes decrease average fixed cost and improve production efficiency, production can reach volumes where it becomes necessary to sell through distributors. Because distributors might pay as little as 35% of retail price, the retail price needs to be higher to compensate. An artisan cheese company that has not achieved the recognition needed to achieve a premium price may not find distribution through distributors profitable. [ABSTRACT FROM AUTHOR]

Conceptual design of two options of carbon dioxide utilized gas-to-liquids process (CUGP), which mainly produces light olefins and Fischer–Tropsch (F–T) synthetic oils, has been implemented with the aid of Aspen Plus software. The mass and energy stream results as well as the process efficiencies and CO 2 emissions of the proposed options were obtained from the developed models. The capital investment and the product cost estimations were conducted before the following economic analysis. Several indicators such as net present value (NPV), discounted payback period (DPBP) and internal rate of return (IRR) were calculated to evaluate the profitability of the two proposed options. In the economic analysis, sensitivity analysis as well as break-even analysis was carried out. In addition, effects of several sensitive factors such as the prices of synthetic oil, olefin and natural gas, capital investment, carbon tax and plant scale on the IRR of each option were analyzed in detail. It was found that the CUGP, regardless of option, was economically feasible at the plant scale of 40,000 BPD and was more competitive compared with conventional GTL processes, in case of high carbon tax. [ABSTRACT FROM AUTHOR]

Abstract: This paper shows how the cash flows received by an unregulated firm operating in a workably competitive market can be replicated for a regulated firm. The only change to standard regulatory practice is that each time the regulated firm invests, the amount added to its rate base is the product of its capital expenditure and a multiplier, greater than one, that captures the reduction in value of the unregulated firm''s growth options that occurs whenever the firm invests. The regulated firm is allowed to earn a rate of return equal to its weighted-average cost of capital, applied to this rate base. Four possible approaches to estimating the size of the multiplier are presented, each based on an established real-options investment model. [Copyright &y& Elsevier]

Abstract: Solid waste minimization and recycling goals for municipalities are achievable through the installation of material recovery facilities (MRFs) and in certain solid waste management systems, government owned and operated MRFs are feasible and cost justified. The aim of this paper is to demonstrate a structured process to evaluate and determine the operational and economic feasibly of a government owned MRF that is based on financial engineering. As a companion, a case study from Lucas County, Ohio (USA) is provided that demonstrated this analysis process. In addition, the paper explores the impact of uncertainty in decision alternatives by placing a strong emphasis on economic efficiencies and a sensitivity analysis of the results to changes in the data inputs, specifically inflation, recycling levels, and recycling commodity market shifts. The key findings from the research indicate that the municipality will achieve a payback period of approximately 4 years, and a 10 years internal rate of return of 20.5%, versus the current system of out souring. The consequences of these findings, stemming from the economic and operational justification, led to the actual purchase of a MRF site for Lucas County, Ohio (USA). This research may serve as an example or model for other local governments considering the implementation of such a system. [Copyright &y& Elsevier]

Abstract: In this paper, we study the connection between growth and human capital in a convergence regression for the panel of Italian regions. We include measures of average primary, secondary and tertiary education. We find that increased education seems to contribute to growth only in the South. Decomposing total schooling into its three constituent parts, we find that only primary education in the South seems to be important, while tertiary education seems to have a negative impact on regional growth. Our main results are robust to the inclusion of additional variables in the regression analysis and the use of an IV estimator. Overall, this study suggests that Italian growth benefited from the elimination of illiteracy in the South, mainly in the 60s. It also suggests a possible relationship between the level of development of an economy and returns to different levels of education, with Italian regions still far from being able to capture the positive returns from higher levels of education. [Copyright &y& Elsevier]

Abstract: Seasonal abundance and effect on onion yield reduction were studied for onion thrips, Thrips tabaci Lindeman, for two consecutive seasons (dry and rainy) to develop economic thresholds (ET) in Honduras. Overall, thrips populations were highest during the dry season, with average thrips per leaf per day 5.2 times higher than during the rainy season. In the two onion cultivars tested (Granex 429® and Texas Grano 438®), thrips densities were similar, but Texas Grano 438® showed 30% more yield reduction as a result of thrips damage than Granex 429®. ETs were calculated using four different methods based on the equilibrium between cost of thrips management and profits losses (based on either thrips densities or an action threshold (AT)), maximizing net profits derived from thrips management, and maximizing the rate of return of thrips management. Thrips infestations below 1.0 thrips per leaf per day did not appear to affect yield and during the rainy season thrips populations were always below this economic injury level. However, during the dry season our data indicate farmers should use an AT between 0.5 and 1.6 thrips per leaf, depending on the particular agronomic, climatic and market conditions. [Copyright &y& Elsevier]

Abstract: An economic analysis of an in-pond horizontal floating bar grader for food-sized channel catfish was performed. Data from previously reported field trials were used to determine whether farmer adoption of this grader is economically feasible. Scenarios for four farm sizes (65, 130, 259, and 478ha) were evaluated. Partial budget, payback period, net present value, internal rate of return, and Taguchi quality loss function analyses were used to quantify and compare economic losses due to deviation from the target fish size. Partial budget results indicated positive net revenue for all farm sizes. Net revenue increased with farm size, market price, and increased dockage penalties. Payback periods ranged from 0.1 to 2.0 years depending on the scenario. Net present values were positive and increased with increasing farm size. Estimated internal rates of return were higher than the current opportunity cost of capital and increased with increasing farm size. The value of the gain in quality from reducing size variation from use of the UAPB grader was estimated to range from $770 to $5575/year, depending on farm size. Producer adoption of the UAPB grader is economically feasible for the scenarios analyzed. [Copyright &y& Elsevier]

Abstract: We introduce a particular type of Brownian motion, i.e., a Brownian motion with a diffusion coefficient containing . We show that under classical Black–Scholes methodology we can obtain a PDE with a stochastic rate of return. In this environment of `non-classical'' uncertainty valued preferences for risk may exist. [Copyright &y& Elsevier]

This study investigates the facility location problem of transnational personal computer (PC) manufacturing for the domestic market of China. An integrated supply chain-based spatial interaction model is formulated to determine facility locations of the transnational PC manufacturing centers and regional product distribution centers in China, with the goal of maximizing the potential rate of return on facility investment. The numerical results show that the Shanghai municipality is ranked highest for siting both the manufacturing and distribution centers for a transnational PC manufacturing enterprise. [Copyright &y& Elsevier]

Highlights: [•] Comparison of 14 different external superheater scenarios using different biomass materials. [•] Concept raises the solar to electricity efficiency above >30% and reduce investment up to 23.5%. [•] Immediate cost reduction possible compared to 17–40% cost reduction by 2020. [•] Scenarios based on a 50MWe plant with 7.5h thermal storage in Mildura, Australia. [•] High-level identification of potential sites worldwide suitable for CSP-biomass hybrid plants. [Copyright &y& Elsevier]

Abstract: To achieve national CO2 emission reduction targets, the Taiwanese government is planning to adopt policies, such as feed-in tariffs (FITs) and capital subsidies, in order to attract the public as well as companies to invest in and use solar photovoltaic (PV) systems. However, a huge budget is necessary for the government to implement such policies. Therefore, it is important that it fully recognizes which policy, or combination of policies, promoting solar PV applications has the greatest economic benefit. This study uses the system dynamics approach to develop a simulation for assessing these promotion policies. Using this simulation system, policymakers can carry out cost/benefit analyses for different combinations of promotion policies, CO2 emission reduction goals, and budget limitations. In addition, the simulation scenarios include different FIT prices, subsidies, and upper limits of annual ROI (return of investment). The simulation period is from 2011 to 2030. We find that when adopting only FITs or capital subsidies with a fixed upper limit of ROI, increasing the FIT price or subsidy is a good approach. When the upper limit of ROI is fixed, the effect of different combinations of FIT prices and subsidies on the accumulation of solar PV applications is insignificant. Nevertheless, the promotion policy with the higher subsidy and lower initial FIT price has a lower average cost of CO2 emission reduction. [Copyright &y& Elsevier]

Abstract: This techno-economic study compares several process technologies for the production of ethanol from lignocellulosic material, based on a 5- to 8-year time frame for implementation. While several previous techno-economic studies have focused on future technology benchmarks, this study examines the short-term commercial viability of biochemical ethanol production. With that goal, yields (where possible) were based on publicly available experimental data rather than projected data. Four pretreatment technologies (dilute-acid, 2-stage dilute-acid, hot water, and ammonia fiber explosion or AFEX); and three downstream process variations (pervaporation, separate 5-carbon and 6-carbon sugars fermentation, and on-site enzyme production) were included in the analysis. Each of these scenarios was modeled and economic analysis was performed for an “nth plant” (a plant with the same technologies that have been employed in previous commercial plants) to estimate the total capital investment (TCI) and product value (PV). PV is the ethanol production cost, including a 10% return on investment. Sensitivity analysis has been performed to assess the impact of process variations and economic parameters on the PV. The dilute-acid pretreatment process has the lowest PV among all process scenarios, which is estimated to be $1.36/l of gasoline equivalent [LGE] ($5.13/gal of gasoline equivalent [GGE]). Sensitivity analysis shows that the PV is most sensitive to feedstock cost, enzyme cost, and installed equipment costs. A significant fraction of capital costs is related to producing heat and power from lignin in the biomass. Cellulosic ethanol production has yet to be commercialized. Hence, a pioneer plant is expected to be more costly to build and operate than an nth plant. To assess the impact of technological maturity on pioneer plant cost, a cost growth analysis was performed. The estimated value of PV for the pioneer plant is substantially larger than for the nth plant. The PV for the pioneer plant model with dilute-acid pretreatment is $2.30/LGE ($8.72/GGE) for the most probable scenario, and the estimated TCI was more than double the nth plant cost. [Copyright &y& Elsevier]

Economists, investors and policy makers need to understand the changing climate of energy systems and the potential for investment in both alternative energy supply and demand side efficiency and management technologies. Biophysical economics has contributed to conventional economics by incorporating thermodynamic and ecological principles and emphasising the importance of natural resources to the economic process. This paper is presented in two parts. Part 1 gives a historic review of biophysical economics and discusses some previous models of the energy-economy system built around the principles of biophysical economics. Part 2 presents the GEMBA model — a new modelling methodology in the biophysical economics tradition. The methodology proposes a new and important contribution to the field of biophysical economics; a lifetime evolving function for the dynamics of the energy return on investment (EROI). In the development stage of a new resource, EROI increases due to technological learning, market growth and capital investment. EROI then reaches a peak as diminishing returns are experienced on further technological innovation and capital investment. In the later stage EROI declines over time as the most accessible resources are developed first, resources become depleted, or scarcity develops for materials needed to extract, process or convert the energy for the market. EROI can also diminish over time as environmental restoration or emission reduction becomes required by the society. The dynamic EROI function was incorporated into a global energy model using a biophysical approach (GEMBA) and implemented in VenSim. The GEMBA model is calibrated using historical energy production data, i.e. training to historical data, then running the trained model to 2100 under a series of varying assumptions regarding availability of energy resources and corresponding EROIs. The main finding of the model is that growth of the renewable energy sector may impact investment in other areas of the economy and thereby stymie economic growth. [Copyright &y& Elsevier]

Abstract: Net present value (NPV) and return on investment (ROI) are commonly used to evaluate investment in new technologies. Sometimes, however, measuring the value of investment in new IT becomes very difficult due to its wide scope of application coupled with embedded options in its adoption. Therefore, comprehensive but easily understandable methodologies are needed to solve the complicated problems resulting from the complexity of new technologies. This paper employs a real option analysis to evaluate RFID adoption in the supply chain. Real options analysis should be a better way to evaluate a disruptive technology like RFID. However, the pure (probabilistic) real option rule characterizes the present value of expected cash flows and the expected costs by a single number, which is not realistic in many cases. To solve the problem, this paper considers the real option rule in a more realistic setting, namely, when the present values of expected cash flows and expected costs are estimated by trapezoidal fuzzy numbers. Specifically, it drew out their means and variance and presented a method of calculating fuzzy real options through numerical value examples of RFID investment assuming the current value of expected cash flow and investment costs using trapezoid fuzzy number fuzzy real options. Since advanced information technology such as RFID has very high risk and options such as change, extension, delay and withdrawal, etc., investment valuation using the real options technique should be done, and in the process, in a more realistic and practical approach, the fuzzy real options model presented in this study is judged to be useful. [Copyright &y& Elsevier]