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Investment appraisal of agricultural projects (APs) is particularly demanding due to several factors. Namely, APs may have longer time horizons, higher external and internal volatility, and uncertainty caused by less control of production and external conditions (e.g., climatic conditions and market demand). Indeed, these APs may face high and different risks that should be managed properly. Nevertheless, both the literature and practice do not address such complexity and uncertainty conveniently. Thus, this research aimed to develop an integrative and easy-to-use framework to support the investment appraisal of APs, which goes beyond the traditional approach based on simple and deterministic models. This framework is based on an approach that includes several capital budgeting techniques integrating extended multi-index methodology (EMIM), Monte Carlo simulation (MCS), and real options analysis (ROA). This framework allows dealing with different risk and uncertainty scenarios and managerial flexibilities, which allow alternative and additional investment options. A simpler and easier approach can be particularly important for family agribusinesses, which usually do not use sophisticated decision-making tools. An AP in an agrosilvopastoral system (i.e., agriculture, livestock, forestry) was used to present and discuss the proposed methodology considering the relevance of such systems for sustainable agriculture and their higher risk and complexity when compared to traditional approaches. The main contribution of the framework is structuring a set of steps based on several tools to carry out investment appraisal in APs. [ABSTRACT FROM AUTHOR]

Climate-smart agriculture (CSA) is a climate-resilient practice that stands out globally as an important practice through which we can deal with emerging challenges through adaptation and mitigation to increase crop productivity and resilience. Despite its significance, a comprehensive cost–benefit analysis of the adoption of these practices has not yet been carried out. This study aims to bridge the knowledge gap between the cost and effectiveness of CSA practices adopted by small-scale farmers in growing rice, wheat and maize, the most staple crops in the Gandaki River Basin of Nepal. In this study, net present value (NPV), internal rate of return (IRR), benefit–cost (BC) ratio, net benefit investment (NK) ratio and payback period, along with the value of externalities (social and environmental), were employed to assess the profitability of CSA practices. The findings indicate that almost all the CSA practices analyzed were profitable, with the exception of solar water management in maize with very low IRR (6%) and a longer payback period. The outcome of this study offers valuable insights for farmers in choosing profitable CSA technology and for policy makers in promoting better CSA technology, upscaling CSA practices, and formulating new agricultural policies and programs in the context of the changing climate. [ABSTRACT FROM AUTHOR]

Background: As opportunities grow for resource-constrained countries to use eHealth (digital health) to strengthen health systems, a dilemma arises. Wise eHealth investments require adequate appraisal to address opportunity costs. Economic appraisal techniques conventionally utilised for this purpose require sufficient economic expertise and adequate data that are frequently in short supply in low- and middle-income countries. This paper aims to identify, and, if required, develop, a suitable framework for performing eHealth investment appraisals in settings of limited economic expertise and data., Methods: Four progressive steps were followed: (1) identify required framework attributes from published checklists; (2) select, review, and chart relevant frameworks using a scoping review; (3) analyse the frameworks using deductive and inductive iterations; and, if necessary, (4) develop a new framework using findings from the first three steps., Results: Twenty-four candidate investment appraisal attributes were identified and seven relevant frameworks were selected for review. Analysis of these frameworks led to the refinement of the candidate attributes to 23 final attributes, and each framework was compared against them. No individual framework adequately addressed sufficient attributes. A new framework was developed that addressed all 23 final attributes., Conclusions: A new evidence-based investment appraisal framework has been developed that provides a practical, business case focus for use in resource-constrained African settings.

The use of renewable energy sources, especially wind energy, has been widely developed, mostly during the last decade. The main objective of the present study is to conduct a literature review focused on the evaluation under uncertainty of wind energy investment using the real options approach to find out whether public opposition (NIMBY projects) has been contemplated, and if so, what have been the flexible strategies applied for its intervention. Overall, 97 publications were analyzed, identifying 20 different models or approaches, which were grouped into eight categories: 1. Real options, 2. Optimization, 3. Stochastics, 4. Financial evaluation, 5. Probabilistic, 6. Estimation, 7. Numerical prediction, and 8. Others. The real options approach, present in 32% of the studies, was the most popular. Twenty-eight types of uncertainties were identified, which were grouped, for better analysis, into nine categories. In total, 62.5% of the studies included the price of electricity as a source of uncertainty; 18.8%, the velocity of wind; and 15.6%, the feed-in rates-subsidy. Both random and non-random techniques were applied to assess the real options and to model the uncertainties. When evaluating real options, the Monte Carlo simulation technique was the most preferred, with 16 (51.6%) applications, followed by non-randomized techniques, decision tree, and dynamic programming, with eight (25.8%) applications each. There is a marked tendency to use stochastic processes to model uncertainty, particularly geometric Brownian motion, which was used in 61.3% (19) of the studies in the sample. When searching for "real options AND (nimby OR public opposition)", no study was found, which shows the possibility of developing research on this aspect to determine its impact on investments in wind energy projects. [ABSTRACT FROM AUTHOR]

(1) Background: Decisions to use eHealth are complex and involve addressing a large opportunity cost. Sound choices are essential. Weighing up investment options is challenging in resource-constrained settings where there are frequently insufficient economics data and expertise to conduct adequate appraisals. To address this, a new eHealth Investment Appraisal Framework (eHIAF) for Africa has been designed and developed. The aim of this paper was to validate the new framework to consider whether it is fit for purpose and to refine it as needed. (2) Methods: An online survey of purposively selected eHealth experts was used to conduct a desktop validation of the proposed eHIAF for Africa. The survey covered the framework development process, structure, content, completeness, and utility. Expert opinions were charted, and a reflective and iterative process used to assess the tool and extract recommendations for refinement. (3) Results: Eleven eHealth experts who completed the survey had experience in African countries and elsewhere. The majority agreed with the eHIAF for Africa development approach and output. They provided valuable suggestions for minor refinements and felt that with these amendments, the eHIAF for Africa would be 'fit for purpose'. (4) Conclusions: The eHIAF for Africa is considered appropriate for use by policy- and decision-makers working in resource-constrained settings who face the task of selecting optimal eHealth investments. It has the potential for applicability beyond Africa and the framework should now be tested in African countries.

We analyse the factors involved in the selection of a development site to secure the economic feasibility and profitability of a public development real estate project through a comparative analysis with private development projects. Logistic regression was used as the analysis method. In the case of public development projects, whether or not the investment screening passed was used as a dependent variable, and in the case of private development projects, the successful bid rate was used as a dependent variable. Independent variables were selected based on prior research on variables suitable for the purpose and situation of the project. The results show that the greater the total development costs of a public development project and the greater the size of a private development project, the greater the rate of approval and bidding success. For public projects, the rate of approval decreases when there are several subways, train stations, and supermarkets; however, this is not the case for private projects, owing to differences in development methods and project purposes. From a public standpoint, the balanced regional development, revitalisation of old city centres, and implementation of social overhead capital projects in neighbourhoods lacking infrastructure have a strong influence. From a private sector perspective, the mobile/resident population, modification in extra demand, and feasibility analysis have a strong influence. In sum, if the private sector avoids large-scale supermarket projects, they can be conducted as public development projects to enhance residents' quality of life and revitalise the regional economy. Researchers should examine what could be benchmarked in the private sector in the operational stage and explore ways to maximise profitability and reduce financial burden. [ABSTRACT FROM AUTHOR]

This paper assesses the economic benefits of 57 World Bank Group-sponsored hydropower dam plant investments. Hydropower dams are among the main sources for producing electricity and the largest renewable source for power generation throughout the world. Hydropower dams are often a lower-cost option for power generation in Clean Energy Transition for addressing global climate change. Despite its conspicuous aspects, constructing hydropower dams has been controversial. Considering the World Bank's long history as the largest hydropower development financier, this study investigates its performance in supporting hydropower dams. The outcomes of this study apply to the wider hydropower development community. Of the projects in this study, 70% experienced a cost overrun, and more than 80% of projects experienced time overruns, incurring potential additional costs as a result. Despite the high cost and time overruns, this hydropower portfolio of dams produced a present value of net economic benefits by 2016 of over half a trillion USD. Based on our findings, the evaluated hydropower portfolio helped avoid over a billion tonnes of CO2 for an estimated global environmental benefit valued at nearly USD 350 billion. The projects' additional environmental benefits raise the real rate of return from 15.4% to 17.3%. The implication for hydropower developers is that the projects' assessment should consider cost and time overrun and factor them into the project-planning contingency scenarios. There is a considerable benefit for developing countries to exploit their hydropower resources if they can be developed according to industry practices and international standards. The case for developing hydropower may be stronger when considering its climate benefits. The net economic benefits of hydropower can be even higher if there is a greater effort to manage cost and time overruns. [ABSTRACT FROM AUTHOR]