Analysis of the project parameters of the fixed price projects in the IT services delivery organization

Directory of Open Access Journals (Sweden)

Miroslav Kral

2012-04-01

Full Text Available The success rate of IS/IT projects is low. Thus, in response, a large variety of methods and approaches to managing IS/IT projects has been developed over the years. The purpose of this paper is to analyse the relationships between the project parameters of fixed-price projects that take place within an IT service delivery organization. There is some evidence that simply using traditional project parameters (such as project duration, costs, reserves, and so on isn't enough to increase the success of projects; rather, new approaches and methods, including our applied systems approach, should also be considered. This paper aims to highlight issues from the perspective of an IT services delivery organization from the CEE region. The output of the paper should be a contribution to the project management of IS/IT projects and to systems research, as well.

Analysis on the choice of the most suitable metal prices in a mining investment project

International Nuclear Information System (INIS)

Torre, L. de la; Espi, J. a.

2014-01-01

The mineral price assigned in mining project design is critical to determining the economic feasibility of a project. Nevertheless, although it is not difficult to find literature about market metal prices, it is much more complicated to achieve a specific methodology for calculating the value or which justifications are appropriate to include. This study presents an analysis of various methods for selecting metal prices and investigates the mechanisms and motives underlying price selections. The results describe various attitudes adopted by the designers of mining investment project, and how the price can be determined not just by means of forecasting also by consideration of other relevant parameters. (Author)

Developments in Global Food Prices

OpenAIRE

Vanessa Rayner; Emily Laing; Jamie Hall

2011-01-01

Global food prices have increased significantly since the early 2000s, reversing the long-run trend decline in relative food prices over previous decades. A range of supply disruptions in key food-producing countries have contributed to higher food prices, along with strong demand from developing countries as per capita incomes rise and consumption patterns change. Rising commodity prices are leading to higher headline consumer price inflation in many countries though, at this stage, core mea...

Enhancing medicine price transparency through price information mechanisms.

Science.gov (United States)

Hinsch, Michael; Kaddar, Miloud; Schmitt, Sarah

2014-05-08

Medicine price information mechanisms provide an essential tool to countries that seek a better understanding of product availability, market prices and price compositions of individual medicines. To be effective and contribute to cost savings, these mechanisms need to consider prices in their particular contexts when comparing between countries. This article discusses in what ways medicine price information mechanisms can contribute to increased price transparency and how this may affect access to medicines for developing countries. We used data collected during the course of a WHO project focusing on the development of a vaccine price and procurement information mechanism. The project collected information from six medicine price information mechanisms and interviewed data managers and technical experts on key aspects as well as observed market effects of these mechanisms.The reviewed mechanisms were broken down into categories including objective and target audience, as well as the sources, types and volumes of data included. Information provided by the mechanisms was reviewed according to data available on medicine prices, product characteristics, and procurement modalities. We found indications of positive effects on access to medicines resulting from the utilization of the reviewed mechanisms. These include the uptake of higher quality medicines, more favorable results from contract negotiations, changes in national pricing policies, and the decrease of prices in certain segments for countries participating in or deriving data from the various mechanisms. The reviewed mechanisms avoid the methodological challenges observed for medicine price comparisons that only use national price databases. They work with high quality data and display prices in the appropriate context of procurement modalities as well as the peculiarities of purchasing countries. Medicine price information mechanisms respond to the need for increased medicine price transparency and have the

Photovoltaic System Pricing Trends. Historical, Recent, and Near-Term Projections, 2015 Edition

Energy Technology Data Exchange (ETDEWEB)

Feldman, David [National Renewable Energy Lab. (NREL), Golden, CO (United States); Barbose, Galen [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Margolis, Robert [National Renewable Energy Lab. (NREL), Golden, CO (United States); Bolinger, Mark [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Chung, Donald [National Renewable Energy Lab. (NREL), Golden, CO (United States); Fu, Ran [National Renewable Energy Lab. (NREL), Golden, CO (United States); Seel, Joachim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Davidson, Carolyn [National Renewable Energy Lab. (NREL), Golden, CO (United States); Darghouth, Naïm [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Wiser, Ryan [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

2015-08-25

This presentation, based on research at Lawrence Berkeley National Laboratory and the National Renewable Energy Laboratory, provides a high-level overview of historical, recent, and projected near-term PV pricing trends in the United States focusing on the installed price of PV systems. It also attempts to provide clarity surrounding the wide variety of potentially conflicting data available about PV system prices. This PowerPoint is the fourth edition from this series.

Price trends and project viability

International Nuclear Information System (INIS)

Olsen, W.H.

1999-01-01

The paper discusses some of the remarkable changes that have occurred in the oil and gas industry over about the past 25 years. In the past ten years alone, technology and politics have brought new ways of working together and the recovery of resources once thought of as impossible. Cooperation appears to be a key word. The paper was presented under the sub-headings of the environment, global energy outlook, technological drivers and the challenge ahead. The current low price of oil will inevitably slow down exploration and field development but the author remains optimistic despite the tough challenges. The paper contains many diagrams relating to production, costs, efficiency, exploration, reserves, price forecasts and exploration technology

Incentive Mechanism of Micro-grid Project Development

Directory of Open Access Journals (Sweden)

Yong Long

2018-01-01

Full Text Available Due to the issue of cost and benefit, the investment demand and consumption demand of micro-grids are insufficient in the early stages, which makes all parties lack motivation to participate in the development of micro-grid projects and leads to the slow development of micro-grids. In order to promote the development of micro-grids, the corresponding incentive mechanism should be designed to motivate the development of micro-grid projects. Therefore, this paper builds a multi-stage incentive model of micro-grid project development involving government, grid corporation, energy supplier, equipment supplier, and the user in order to study the incentive problems of micro-grid project development. Through the solution and analysis of the model, this paper deduces the optimal subsidy of government and the optimal cooperation incentive of the energy supplier, and calculates the optimal pricing strategy of grid corporation and the energy supplier, and analyzes the influence of relevant factors on optimal subsidy and incentive. The study reveals that the cost and social benefit of micro-grid development have a positive impact on micro-grid subsidy, technical level and equipment quality of equipment supplier as well as the fact that government subsidies positively adjust the level of cooperation incentives and price incentives. In the end, the validity of the model is verified by numerical analysis, and the incentive strategy of each participant is analyzed. The research of this paper is of great significance to encourage project development of micro-grids and to promote the sustainable development of micro-grids.

Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking.

Science.gov (United States)

Golden, Shelley D; Farrelly, Matthew C; Luke, Douglas A; Ribisl, Kurt M

2016-10-01

About half of all US states have cigarette minimum price laws (MPLs) that require a per cent mark-up on prices, but research suggests they may not be very effective in raising prices. An alternative type of MPL sets a floor price below which packs cannot be sold, and may be more promising. This new type of MPL policy has only been implemented in 1 city, therefore its benefits relative to excise taxes is difficult to assess. We constructed a set of possible state floor price MPL options, and matched them to possible state excise tax hikes designed to produce similar average price increases. Using self-reported price and cigarette consumption data from 23 521 participants in the 2010-2011 Tobacco Use Supplement of the Current Population Survey, we projected changes in pack prices and cigarette consumption following implementation of each paired MPL and tax option, for lower and higher income groups. We project that state MPLs set at the average reported pack price would raise prices by $0.33 and reduce cigarette consumption by about 4%; a tax with a similar average price effect would reduce consumption by 2.3%. MPLs and taxes that raise average prices by more than $2.00 would reduce consumption by 15.9% and 13.5%, respectively. In all models, we project that MPLs will reduce income-based smoking disparities more than their comparable excise taxes. Floor price cigarette MPLs set at or above what consumers currently report paying could reduce both tobacco use and socioeconomic disparities in smoking. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/.

Price expectations and price dynamics: the case of the rice sector in developing Asia

OpenAIRE

Thomas Barré

2011-01-01

Uncertainty is a crucial issue for producers who must make input decisions without knowing prices and without perfect knowledge of realized output. In this context, price expectations strongly determine the production choices and market prices that result from market-clearing conditions. This study analyzed the role that price expectations play in price dynamics, developing a theoretical model of trade in varieties following Armington (1969) and augmented with yield and price uncertainty to h...

Long-term trends in US gas supply and prices: 1993 edition of the GRI baseline projection of US energy supply and demand to 2010

International Nuclear Information System (INIS)

Woods, T.J.

1993-03-01

A Summary of the gas supply outlook in the 1993 Edition of the GRI Baseline Projection of U.S. Energy Supply and Demand, adopted as a major input to the planning cycle of the 1994 research and development program, is presented. Significant changes were made in developing the gas supply and price trends for the 1993 edition of the projection. The GRI Hydrocarbon Model was expanded to include the Canadian hydrocarbon resource base. Thus, Canadian and lower-48 gas production and prices were developed on a fully integrated basis in the 1993 projection. The lower-48 hydrocarbon resource estimate was increased, reflecting the results of the recent National Petroleum Council gas study and ongoing GRI resource work. The effects of new technology and practice on drilling costs and exploration efficiency were included for the first time. Appendices include comparisons of supply and price trends

Can developing countries benefit from innovative pricing in the power sector?

International Nuclear Information System (INIS)

Hill, L.J.

1991-01-01

This study explores electricity pricing as a demand-side management (DSM) strategy, looking to the developed country experience for insights into the types of approaches currently used, their effects, and the direction in which electricity pricing is headed. The discussion should be especially useful for electric utilities in developing countries that are exploring alternatives to capacity expansion to meet current and future electric power demand. For these electric utilities, demand-side options are especially important under today's conditions in which the capital cost of new generating capacity is increasing rapidly, international funds for expanding power sectors are not expected to be sufficient for meeting projected capacity needs and environmental concerns over fossil fuel emissions have raised new questions about constructing thermal power plants. (author). 21 refs, 2 tabs

Analysis of Cryptocurrencies Price Development

Directory of Open Access Journals (Sweden)

Jan Lansky

2016-12-01

Full Text Available Cryptocurrencies are a type of digital currencies based on cryptography principles. Cryptocurrencies are a unique combination of three characteristics: they provide anonymity, they are independent of central authority and they provide protection from double spending attack. The aim of this paper is to capture trends in the area of significant cryptocurrencies price developments and to explain their causes. The current research in this area is exclusively limited to an analysis of the price developments of the most important Bitcoin cryptocurrency; our research is the first to focus on other cryptocurrencies too. The economic perspective on cryptocurrencies is based on IT knowledge regarding the principles of their functioning. We have created a database of prices of 1278 cryptocurrencies from 2013 to 2016. This database is publicly available. To analyse the data, SQL query language was used.

Hydro power projects in Pakistan- who pays the price

International Nuclear Information System (INIS)

Baig, N.

2005-01-01

In this paper an attempt has been made to trace the procedures that have been adopted to arrive at the market value of the assets lost in the construction of Ghazi Barotha Hydro Power Project. There is nothing secret or mysterious about the value of land. It is a commodity commonly dealt with and like every other commodity it. has a price, which can be ascertained within certain limits. This price, however, constantly varies according to the variations of the supply and demand and it is impossible to fix it at any given time with mathematical accuracy. The question of fair compensation is not an algebraic problem, which would be solved by an abstract formula. Compensation must be determined by reference to the price, which a willing vendor might reasonably expect to obtain from a willing purchaser. Although market value cannot be calculated with mathematical precision and a certain amount of conjecture is inevitable, but in valuing one should be careful not to go too far in this direction. (author)

Utility-Scale Solar 2016: An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Seel, Joachim; LaCommare, Kristina Hamachi

2017-09-19

The utility-scale solar sector has led the overall U.S. solar market in terms of installed capacity since 2012. In 2016, the utility-scale sector installed more than 2.5 times as much new capacity as did the residential and commercial sectors combined, and is expected to maintain its dominant position for at least another five years. This report—the fifth edition in an ongoing annual series—provides data-driven analysis of the utility-scale solar project fleet in the United States. We analyze not just installed project prices, but also operating costs, capacity factors, and power purchase agreement ("PPA") prices from a large sample of utility-scale PV and CSP projects throughout the United States. Highlights from this year's edition include the following: Installation Trends: The use of solar tracking devices dominated 2016 installations, at nearly 80% of all new capacity. In a reflection of the ongoing geographic expansion of the market beyond California and the Southwest, the median long-term average insolation level at newly built project sites declined again in 2016. While new fixed-tilt projects are now seen predominantly in less-sunny regions, tracking projects are increasingly pushing into these same regions. The median inverter loading ratio has stabilized in 2016 at 1.3 for both tracking and fixed-tilt projects. Installed Prices: Median installed PV project prices within a sizable sample have fallen by two-thirds since the 2007-2009 period, to $2.2/WAC (or $1.7/WDC) for projects completed in 2016. The lowest 20th percentile of projects within our 2016 sample were priced at or below $2.0/WAC, with the lowest-priced projects around $1.5/WAC. Overall price dispersion across the entire sample and across geographic regions decreased significantly in 2016. Operation and Maintenance (“O&M”) Costs: What limited empirical O&M cost data are publicly available suggest that PV O&M costs were in the neighborhood of $18/kWAC-year, or $8/MWh, in 2016. These

Green pricing: Customer-oriented marketing of the electricity industry

International Nuclear Information System (INIS)

Weller, T.

1998-01-01

There are at present about 15 established projects launched by energy suppliers in Germany which deserve to be called ''green pricing'' marketing strategies, and about an equal number of further projects at various stages of development which also offer as a ''green'' incentive for customers electricity from renewable energy sources. Worldwide, there are about 50 established green pricing projects, offered primarily in the USA, Switzerland and the Netherlands, and in Germany. The targeted customers of these projects for the time being are exclusively households that cannot easily switch over to other than their local suppliers. It can be expected that with progressive market liberalisation in Great Britain, the USA and, finally, in Germany, competition for this customer group will rapidly increase the number of green pricing marketing projects in these countries. This is why the article here presents a thorough analysis of the specific features of green pricing contracts, their impact on enhanced development and application of the technology for electricity generation from renewables, and a forecast on future developments. (orig./CB) [de

Analysis of Cryptocurrencies Price Development

OpenAIRE

Jan Lansky

2016-01-01

Cryptocurrencies are a type of digital currencies based on cryptography principles. Cryptocurrencies are a unique combination of three characteristics: they provide anonymity, they are independent of central authority and they provide protection from double spending attack. The aim of this paper is to capture trends in the area of significant cryptocurrencies price developments and to explain their causes. The current research in this area is exclusively limited to an analysis of the price de...

The option to expand a project: its assessment with the binomial options pricing model

Directory of Open Access Journals (Sweden)

Salvador Cruz Rambaud

Full Text Available Traditional methods of investment appraisal, like the Net Present Value, are not able to include the value of the operational flexibility of the project. In this paper, real options, and more specifically the option to expand, are assumed to be included in the project information in addition to the expected cash flows. Thus, to calculate the total value of the project, we are going to apply the methodology of the Net Present Value to the different scenarios derived from the existence of the real option to expand. Taking into account the analogy between real and financial options, the value of including an option to expand is explored by using the binomial options pricing model. In this way, estimating the value of the option to expand is a tool which facilitates the control of the uncertainty element implicit in the project. Keywords: Real options, Option to expand, Binomial options pricing model, Investment project appraisal

Pricing of new vaccines

Science.gov (United States)

McGlone, Sarah M

2010-01-01

New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following eleven components: (1) Conduct a target population analysis; (2) Map potential competitors and alternatives; (3) Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; (4) Quantify the incremental value of the new vaccine's characteristics; (5) Determine vaccine positioning in the marketplace; (6) Estimate the vaccine price-demand curve; (7) Calculate vaccine costs (including those of manufacturing, distribution, and research and development); (8) Account for various legal, regulatory, third party payer and competitor factors; (9) Consider the overall product portfolio; (10) Set pricing objectives; (11) Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area. PMID:20861678

Pricing of new vaccines.

Science.gov (United States)

Lee, Bruce Y; McGlone, Sarah M

2010-08-01

New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical, and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following ten components: 1. Conduct a target population analysis; 2. Map potential competitors and alternatives; 3. Construct a vaccine target product profile (TPP) and compare it to projected or actual TPPs of competing vaccines; 4. Quantify the incremental value of the new vaccine's characteristics; 5. Determine vaccine positioning in the marketplace; 6. Estimate the vaccine price-demand curve; 7. Calculate vaccine costs (including those of manufacturing, distribution, and research and development); 8. Account for various legal, regulatory, third party payer, and competitor factors; 9. Consider the overall product portfolio; 10. Set pricing objectives; 11. Select pricing and pricing structure. While the biomedical literature contains some studies that have addressed these components, there is still considerable room for more extensive evaluation of this important area.

Project finance and international energy development

International Nuclear Information System (INIS)

Pollio, G.

1998-01-01

This paper explores the preference for and the features unique to project finance, one of the favoured vehicles for funding energy development. Our main focus is on the interests of project sponsors, commercial banks and host governments. Inclusion of the latter reflects the fact host governments are often leading participants in primary energy and energy-related projects; more recently, they have come to use limited recourse structures to finance local infrastructure development. Traditional analyses, whilst providing useful insights into the interests of leading project participants, are incapable of isolation a single motive or set of motives that can comprehensively account for all of the features common to this form of debt. Within an options-theoretic framework, most of these ambiguities are resolved. Risk management, long recognised as one of the primary reasons for choosing project finance over rival debt structures, is affirmed as a key explanatory factor. One the other hand, options pricing theory provides a radically different perspective on how to project finance contributes to the realisation of these objectives. (author)

Development of risk management strategies for state DOTs to effectively deal with volatile prices of transportation construction materials.

Science.gov (United States)

2014-06-01

Volatility in price of critical materials used in transportation projects, such as asphalt cement, leads to : considerable uncertainty about project cost. This uncertainty may lead to price speculation and inflated : bid prices submitted by highway c...

Prices, technology development and the rebound effect

International Nuclear Information System (INIS)

Birol, F.; Keppler, J.H.

2000-01-01

Energy efficiency is the critical parameter for policies that aim at reducing energy consumption while maintaining or even boosting economic growth. The two main options to influence energy efficiency are changes in relative prices, i.e., raising the price of energy through economic instruments, or to introduce new technologies which increase the productivity of each unit of energy. This paper is based on the notion that in an equilibrium economy the marginal economic productivity is identical for all factors, i.e., energy, labour, knowledge and capital. From this premise two main conclusions can be drawn. First, any change in price or technology will have an impact on the whole economy by creating feedbacks through the substitution of factors of production and goods, as well as increased wealth. Second, the two policy approaches, changing relative prices and technology development, are not opposite to each other. They are the two faces of the same reality and should be developed and promoted simultaneous and consistently. (Author)

Pricing offshore wind power

International Nuclear Information System (INIS)

Levitt, Andrew C.; Kempton, Willett; Smith, Aaron P.; Musial, Walt; Firestone, Jeremy

2011-01-01

Offshore wind offers a very large clean power resource, but electricity from the first US offshore wind contracts is costlier than current regional wholesale electricity prices. To better understand the factors that drive these costs, we develop a pro-forma cash flow model to calculate two results: the levelized cost of energy, and the breakeven price required for financial viability. We then determine input values based on our analysis of capital markets and of 35 operating and planned projects in Europe, China, and the United States. The model is run for a range of inputs appropriate to US policies, electricity markets, and capital markets to assess how changes in policy incentives, project inputs, and financial structure affect the breakeven price of offshore wind power. The model and documentation are made publicly available. - Highlights: → We calculate the Breakeven Price (BP) required to deploy offshore wind plants. → We determine values for cost drivers and review incentives structures in the US. → We develop 3 scenarios using today's technology but varying in industry experience. → BP differs widely by Cost Scenario; relative policy effectiveness varies by stage. → The low-range BP is below regional market values in the Northeast United States.

Real Options in Capital Budgeting. Pricing the Option to Delay and the Option to Abandon a Project

Directory of Open Access Journals (Sweden)

Nicoleta Vintila

2007-07-01

Full Text Available Traditional discounted cash-flows method for assessing projects assumes that investment decision is an irreversible one, which is not correct. Managers can and must reconsider their initial decision as the new information arises during the project life. This is managerial flexibility and it creates strategic value for a project, only if management takes advantage of the opportunities associated with an analyzed project. Real options represent a new approach in capital budgeting, using the theory of pricing financial options for investments in real assets. In this paper, we emphasize the characteristics and valuation methodologies of real options. The objective in the last section is pricing the option to delay and the option to abandon a project in construction materials field.

Comprehensive evaluation of power grid projects' investment benefits under the reform of transmission and distribution price

Science.gov (United States)

Wang, Yongli; Wang, Gang; Zuo, Yi; Fan, Lisha; Ling, Yunpeng

2017-03-01

On March 15, 2015, the Central Office issued the "Opinions on Further Deepening the Reform of Electric Power System" (Zhong Fa No. 9). This policy marks the central government officially opened a new round of electricity reform. As a programmatic document under the new situation to comprehensively promote the reform of the power system, No. 9 document will be approved as a separate transmission and distribution of electricity prices, which is the first task of promoting the reform of the power system. Grid tariff reform is not only the transmission and distribution price of a separate approval, more of the grid company input-output relationship and many other aspects of deep-level adjustments. Under the background of the reform of the transmission and distribution price, the main factors affecting the input-output relationship, such as the main business, electricity pricing, and investment approval, financial accounting and so on, have changed significantly. The paper designed the comprehensive evaluation index system of power grid projects' investment benefits under the reform of transmission and distribution price to improve the investment efficiency of power grid projects after the power reform in China.

Decommissioning Cost Estimating -The ''Price'' Approach

International Nuclear Information System (INIS)

Manning, R.; Gilmour, J.

2002-01-01

Over the past 9 years UKAEA has developed a formalized approach to decommissioning cost estimating. The estimating methodology and computer-based application are known collectively as the PRICE system. At the heart of the system is a database (the knowledge base) which holds resource demand data on a comprehensive range of decommissioning activities. This data is used in conjunction with project specific information (the quantities of specific components) to produce decommissioning cost estimates. PRICE is a dynamic cost-estimating tool, which can satisfy both strategic planning and project management needs. With a relatively limited analysis a basic PRICE estimate can be produced and used for the purposes of strategic planning. This same estimate can be enhanced and improved, primarily by the improvement of detail, to support sanction expenditure proposals, and also as a tender assessment and project management tool. The paper will: describe the principles of the PRICE estimating system; report on the experiences of applying the system to a wide range of projects from contaminated car parks to nuclear reactors; provide information on the performance of the system in relation to historic estimates, tender bids, and outturn costs

Carbon quota price and CDM potentials after Marrakesh

International Nuclear Information System (INIS)

Wenying Chen

2003-01-01

The Kyoto Protocol sets quantified GHG emission reduction commitments for Annex I Parties. But their emission reduction requirements related to BAU projections, one of the key factors to effect on future carbon market, are uncertain. Both the decisions made in Bonn and Marrakesh would have further consequences for how the future carbon market will take shape. This paper, with application of the carbon emission reduction trading model, evaluates future carbon quota price and Clean Development Mechanism (CDM) potentials under different BAU projections, and does sensitivity analysis on carry-over of AAUs, CERs and ERUs, implementation rate, transaction cost, holding of CERs in Non-Annex I Parties, etc. to assess the impacts of relevant decisions of COP6-bis and COP7 on the carbon market. Under different BAU projections, future carbon quota price and CDM potentials could vary widely. Carry over of AAUs, CERs, ERUs, and holding of CERs in Non-Annex I Parties could raise both quota price and total CDM potentials considerably. Implementation rate could have big impacts on both carbon quota price and CDM potentials, especially for the cases formerly with relatively high CDM potentials, and it could also change the regional distribution of CDM potentials. Transaction cost's effect on the carbon market would be comparatively low, but would become unignorable in the market whose quota price is low. It would lead to a downward trend in price while upward in CDM potentials when increasing the implementation rate or lowering transaction cost. Withdrawal of USA would dramatically shrink carbon price and credit amount, and large numbers of hot air and sink credits would further greatly crowd out the CDM projects; carry over of AAUs, CERs and ERUs, holding of CERs in Non-Annex I Parties, prompt start of CDM projects, etc., would, however, enhance the total CDM credits to ensure more investment and technology flow to developing countries to promote their sustainable development

Carbon quota price and CDM potentials after Marrakesh

International Nuclear Information System (INIS)

Chen Wenying

2003-01-01

The Kyoto Protocol sets quantified GHG emission reduction commitments for Annex I Parties. But their emission reduction requirements related to BAU projections, one of the key factors to effect on future carbon market, are uncertain. Both the decisions made in Bonn and Marrakesh would have further consequences for how the future carbon market will take shape. This paper, with application of the carbon emission reduction trading model, evaluates future carbon quota price and Clean Development Mechanism (CDM) potentials under different BAU projections, and does sensitivity analysis on carry-over of AAUs, CERs and ERUs, implementation rate, transaction cost, holding of CERs in Non-Annex I Parties, etc. to assess the impacts of relevant decisions of COP6-bis and COP7 on the carbon market. Under different BAU projections, future carbon quota price and CDM potentials could vary widely. Carry over of AAUs, CERs, ERUs, and holding of CERs in Non-Annex I Parties could raise both quota price and total CDM potentials considerably. Implementation rate could have big impacts on both carbon quota price and CDM potentials, especially for the cases formerly with relatively high CDM potentials, and it could also change the regional distribution of CDM potentials. Transaction cost's effect on the carbon market would be comparatively low, but would become unignorable in the market whose quota price is low. It would lead to a downward trend in price while upward in CDM potentials when increasing the implementation rate or lowering transaction cost. Withdrawal of USA would dramatically shrink carbon price and credit amount, and large numbers of hot air and sink credits would further greatly crowd out the CDM projects; carry over of AAUs, CERs and ERUs, holding of CERs in Non-Annex I Parties, prompt start of CDM projects, etc., would, however, enhance the total CDM credits to ensure more investment and technology flow to developing countries to promote their sustainable development

48 CFR 46.307 - Fixed-price research and development contracts.

Science.gov (United States)

2010-10-01

... REGULATION CONTRACT MANAGEMENT QUALITY ASSURANCE Contract Clauses 46.307 Fixed-price research and development... Development—Fixed-Price, in solicitations and contracts for research and development when (1) the primary... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Fixed-price research and...

Clean development mechanism projects and portfolio risks

International Nuclear Information System (INIS)

Matsuhashi, Ryuji; Fujisawa, Sei; Mitamura, Wataru; Momobayashi, Yutaka; Yoshida, Yoshikuni

2004-01-01

Clean development mechanism (CDM) is expected to facilitate technology transfer from developed to developing countries as well as to economically reduce greenhouse gas emissions. In this article, we explore effective institutions to activate CDM projects. For this purpose, we have estimated internal rate of return (IRR) and other indicators on profitability for 42 CDM or JI projects, taking account of volatilities in the price of certified emission reductions (CER). As a result of Monte Carlo simulations, expected values and standard deviations in the IRR of the projects were quantitatively shown. Then we evaluated various risks in CDM, concluding that diversification of investment is an effective way to suppress these risks. Therefore securitization of CDM finance is proposed as a means of facilitating the diversification of investment. Namely, we present the concept of a CDM bond, which is a project bond with CER. We also investigated the role of governments to suppress risks in CDM. Referring to CERUPT, initiated by the Netherlands' government, the institution of 'insured CERUPT' is proposed to suppress downside risks in the IRR of the projects. We concluded that it is possible to make CDM projects viable by the 'insured CERUPT' and CDM bond

Measuring and explaining house price developments

NARCIS (Netherlands)

De Vries, P.

2010-01-01

This study discusses ways of measuring and explaining the development of house prices. The goal of the research underpinning this dissertation was to develop a methodological framework for studying these developments. This framework relates, first, to correcting for changes in the composition of

The association between tax structure and cigarette price variability: findings from the ITC Project.

Science.gov (United States)

Shang, Ce; Chaloupka, Frank J; Fong, Geoffrey T; Thompson, Mary; O'Connor, Richard J

2015-07-01

Recent studies have shown that more opportunities exist for tax avoidance when cigarette excise tax structure departs from a uniform specific structure. However, the association between tax structure and cigarette price variability has not been thoroughly studied in the existing literature. To examine how cigarette tax structure is associated with price variability. The variability of self-reported prices is measured using the ratios of differences between higher and lower prices to the median price such as the IQR-to-median ratio. We used survey data taken from the International Tobacco Control Policy Evaluation (ITC) Project in 17 countries to conduct the analysis. Cigarette prices were derived using individual purchase information and aggregated to price variability measures for each surveyed country and wave. The effect of tax structures on price variability was estimated using Generalised Estimating Equations after adjusting for year and country attributes. Our study provides empirical evidence of a relationship between tax structure and cigarette price variability. We find that, compared to the specific uniform tax structure, mixed uniform and tiered (specific, ad valorem or mixed) structures are associated with greater price variability (p≤0.01). Moreover, while a greater share of the specific component in total excise taxes is associated with lower price variability (p≤0.05), a tiered tax structure is associated with greater price variability (p≤0.01). The results suggest that a uniform and specific tax structure is the most effective tax structure for reducing tobacco consumption and prevalence by limiting price variability and decreasing opportunities for tax avoidance. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://group.bmj.com/group/rights-licensing/permissions.

The SIMRAND methodology - Simulation of Research and Development Projects

Science.gov (United States)

Miles, R. F., Jr.

1984-01-01

In research and development projects, a commonly occurring management decision is concerned with the optimum allocation of resources to achieve the project goals. Because of resource constraints, management has to make a decision regarding the set of proposed systems or tasks which should be undertaken. SIMRAND (Simulation of Research and Development Projects) is a methodology which was developed for aiding management in this decision. Attention is given to a problem description, aspects of model formulation, the reduction phase of the model solution, the simulation phase, and the evaluation phase. The implementation of the considered approach is illustrated with the aid of an example which involves a simplified network of the type used to determine the price of silicon solar cells.

Recent developments and current policy issues in road pricing in the US and Canada

OpenAIRE

Lindsey, Robin

2005-01-01

The United States and Canada lag Europe and Singapore in implementing road pricing on a large scale. But the two countries have shown interest in tolling roads as a way to curb congestion and to generate revenues. The US is funding congestion pricing demonstration projects through its Value Pricing Pilot Program, and Canada has examined new ways to charge for road use and to finance road construction and maintenance. This paper reviews the current state of road pricing and funding...

Limits to oil pricing: scenario planning as a device to understand oil price developments

International Nuclear Information System (INIS)

Austvik, O.G.

1992-01-01

This paper underlines that the politicizing of the oil market makes economics, politics and even pure warfare important elements in the formation of the price of oil. The disagreement about which theory to use to analyze the market and the bad record of oil price forecasting indicates that conventional oil market models should be critically re-assessed. The scenario planning methodology presented in this paper may be one alternative approach. SP does not overthrow any other theories of the market. But it claims that no single discipline is able to tell the whole truth about the market. The SP approach stresses and clarifies the role of uncertainty in the development of oil prices and underlines the importance of the understanding of the functioning of the market. It argues that without a cross-disciplinary approach, with an adequate choice of parameters, at the right level of in-depth discussion, the analysis may lose essential input or drown in detail. As an example of the methodology, an analysis of development of oil prices in the nineties is presented. It is shown that lower (indicated as 15-20 S/bbl) and upper (indicated as 30-40 S/bbl) limits of the price in the long run can be constructed, based on economic, political and strategic reasoning. It is also argued that short run 'shocks' outside these limits may have become less likely, because: (1) the strategic petroleum reserves (SPR) will cut off the most extreme prices above the upper limit and (2) the existence of a supply side regulator, like OPEC, will prevent prices from dropping below the lower limit for any longer period of time. Sensitivity analysis tests the 'robustness' of the approach. 10 refs., 1 fig

Tracing the Base: A Topographic Test for Collusive Basing-Point Pricing

NARCIS (Netherlands)

Bos, Iwan; Schinkel, Maarten Pieter

2009-01-01

Basing-point pricing is known to have been abused by geographically dispersed firms in order to eliminate competition on transportation costs. This paper develops a topographic test for collusive basing-point pricing. The method uses transaction data (prices, quantities) and customer project site

Tracing the base: A topographic test for collusive basing-point pricing

NARCIS (Netherlands)

Bos, I.; Schinkel, M.P.

2008-01-01

Basing-point pricing is known to have been abused by geographically dispersed firms in order to eliminate competition on transportation costs. This paper develops a topographic test for collusive basing-point pricing. The method uses transaction data (prices, quantities) and customer project site

Neighborhood Energy/Economic Development project

Energy Technology Data Exchange (ETDEWEB)

1991-12-31

Energy costs impact low income communities more than anyone else. Low income residents pay a larger percentage of their incomes for energy costs. In addition, they generally have far less discretionary energy use to eliminate in response to increasing energy prices. Furthermore, with less discretionary income, home energy efficiency improvements are often too expensive. Small neighborhood businesses are in the same situation. Improved efficiency in the use of energy can improve this situation by reducing energy costs for residents and local businesses. More importantly, energy management programs can increase the demand for local goods and services and lead to the creation of new job training and employment opportunities. In this way, neighborhood based energy efficiency programs can support community economic development. The present project, undertaken with the support of the Urban Consortium Energy Task Force, was intended to serve as a demonstration of energy/economic programming at the neighborhood level. The San Francisco Neighborhood Energy/Economic Development (NEED) project was designed to be a visible demonstration of bringing the economic development benefits of energy management home to low-income community members who need it most. To begin, a Community Advisory Committee was established to guide the design of the programs to best meet needs of the community. Subsequently three neighborhood energy/economic development programs were developed: The small business energy assistance program; The youth training and weatherization program; and, The energy review of proposed housing development projects.

Wholesale pricing policies for energy in developing countries

International Nuclear Information System (INIS)

de Lucia, R. J.

1990-01-01

This chapter focuses on wholesale pricing policies with particular emphasis on domestic fuels. There are several characteristics of the supply system that affect wholesale pricing: Source of the fuel (imported or domestic); Characteristics of the fuel (tradable or non-tradable); Nature of the supply companies (public or private and, if private, local or multinational); and stage of development of the resource. Each of these characteristics has implications for how the components of the efficient wholesale price of fuels are determined. (author). 13 refs., 3 figs., 5 tabs

Boom or bust : developing countries' rough ride on the commodity price rollercoaster

International Nuclear Information System (INIS)

Brown, O.; Gibson, J.

2006-10-01

Current high commodity prices are driven by strong demand from the emerging economies of China and India in addition to high consumption in the United States. Many developing countries are experiencing massive windfall revenues from high commodity prices. However, commodity prices are highly volatile in the short term, and can vary as much as 50 per cent in a single year. While developed country producers are supported by subsidies and social safety nets, developing countries and smallholder producers feel the extent of commodity price volatility more directly. Many developing countries are becoming locked into the production and export of primary commodities whose volatile prices are declining over the long term, and over which they have very little control. Price volatility makes sound fiscal planning difficult for both countries and producers. Price booms and busts also drive social inequalities, livelihood inequalities, and corruption. Price swings can cause conflict over valuable land and resources, and does not create incentives for sound environmental stewardship. This paper described the impacts of commodity price volatility in developing countries with the aim of promoting discussion about what can be done to help stabilize revenues for countries as well as producers. Price trends and their importance were reviewed, and the theoretical benefits of liberalized commodity markets were examined. Previous attempts to stabilize commodity prices were reviewed. It was concluded that the best long-term solution to the commodity price problem is economic diversification. Recommendations for promoting economic diversification were provided. 43 refs., 1 tab., 2 figs

AEP Ohio gridSMART Demonstration Project Real-Time Pricing Demonstration Analysis

Energy Technology Data Exchange (ETDEWEB)

Widergren, Steven E.; Subbarao, Krishnappa; Fuller, Jason C.; Chassin, David P.; Somani, Abhishek; Marinovici, Maria C.; Hammerstrom, Janelle L.

2014-02-01

This report contributes initial findings from an analysis of significant aspects of the gridSMART® Real-Time Pricing (RTP) – Double Auction demonstration project. Over the course of four years, Pacific Northwest National Laboratory (PNNL) worked with American Electric Power (AEP), Ohio and Battelle Memorial Institute to design, build, and operate an innovative system to engage residential consumers and their end-use resources in a participatory approach to electric system operations, an incentive-based approach that has the promise of providing greater efficiency under normal operating conditions and greater flexibility to react under situations of system stress. The material contained in this report supplements the findings documented by AEP Ohio in the main body of the gridSMART report. It delves into three main areas: impacts on system operations, impacts on households, and observations about the sensitivity of load to price changes.

Water Pricing as an Economic Justification for Reducing Non-Revenue Water (NRW Projects

Directory of Open Access Journals (Sweden)

Massoud Tabesh

2017-03-01

Full Text Available Management of water demand and modification of consumption patterns are becoming increasingly essential due to the increasingly limited precipitation and the growing population which have led to both severe restrictions on renewable water resources and increasing demands for water in Iran. The most important consumption management measures involve reducing Non-Revenue Water (NRW and decreasing water losses in the water supply system. Non-revenue water is defined as the difference between the total inflow and the metered consumption in the supply system. The losses may be divided into the two components of apparent and real losses. Achieving reductions in non-revenue water calls for the careful study and evaluation of the operational procedures proposed in each case since reductions will be economical only when accurate and realistic values are considered in water pricing. The present study draws upon the data obtained from non-revenue water projects implemented in District 4 of Tehran Water and Wastewater Company, the measures proposed by the project consultant, and the economic justifications claimed for all the costs associated with the measures to eliminate water losses. The cost of the proposed measures are calculated for two different economic values of water proposed to ensure benefits, and under four different interest rates. Results confirm the profitability of the non-revenue water solutions based on the finished cost of water even at subsidized rates of public funds. However, project profitability will be in question if the economic price of water is assumed to be equivalent to the total trade price of water and if both real and apparent losses are to be reduced.

Gas pricing in developing countries: A case study of Pakistan

International Nuclear Information System (INIS)

Sohail, H.M.; Abid, M.S.; Ansari, A.M.

1994-01-01

Pakistan, a developing country, has gone through various phases of formulating gas pricing policies during its 40-year history of natural gas production and consumption. This paper identifies critical factors that influenced gas pricing policies in Pakistan and adverse effects experienced when any of these factors was not given proper consideration. For instance, on the producer's side, discounted pricing formulas discouraged further exploration and development, leaving high-potential areas unexplored and discovered fields dormant for more than a decade. On the consumer's side, subsidized gas prices encouraged consumption to rise steeply without new discoveries to offset additional surplus consumption. The paper also discusses various short- and long-term variables that should go into a gas pricing policy for developing countries. References to recent policies are also given, indicating how these variables were incorporated in real terms. The conclusions and recommendations, based on Pakistan's long experience with the gas industry, should be useful for other oil-importing countries rich in indigenous gas resources

Retail Price Model

Science.gov (United States)

The Retail Price Model is a tool to estimate the average retail electricity prices - under both competitive and regulated market structures - using power sector projections and assumptions from the Energy Information Administration.

PRICES - PREREQUISITE OF MARKET DEVELOPMENT

Directory of Open Access Journals (Sweden)

VĂDUVA MARIA

2017-08-01

Full Text Available Prices are the key points of transfer and interactions. Balance means knowing the real demand and adapting thier supply at its level and structure. In studying the prices, the knowledge of economic content and the mechanism of their formation in exchange process is a crucial prerequisites to accomplish the transition from theoretical foundations to practical foundations of concrete modalities, of pricing techniques. If demand can assimilate the production of considered enterprises, then the manufacturer is concerned to determine that level of production for which will get maximum profit, profitability threshold, elasticity of supply compared with the price, to choose the best outlet. Price depends on the intersection of demand and supply

Petroleum product pricing in Asian developing countries: Lessons from the past and future issues

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1997-01-01

This paper looks at the pricing of petroleum products in ten Asian developing countries using a data series for 1973--1992. Prices of petroleum products are compared with international prices. Differential prices are measured with respect to diesel prices. It is found that energy prices are used as instruments for revenue earnings. Pricing policies vary widely among countries and neighbors have different fuel prices. Countries try to align the local prices of petroleum products in line with international prices but with a lag of 1--2 years. The wave of liberalization and privatization is sweeping many developing countries. Additionally, environmental issues are gaining importance even in developing countries. The paper also discusses these emerging issues that need to be taken into account in the petroleum product pricing

The value of flexibility in offshore oil field development projects

Energy Technology Data Exchange (ETDEWEB)

Lund, Morten Wattengaard

1997-12-31

Offshore oil field development projects often face substantial uncertainties and the operator`s ability to take corrective actions is very important. The main objective of this thesis was to identify the value of flexibility in such projects. Estimates obtained from exploratory wells can be dependent through common information. The effect of stochastic dependence was illustrated by an analytical model, where the dependence was expressed in terms of correlation between estimate errors. It was found that a high degree of correlation might distort the benefit of additional exploration. A prototype that covered the major phases of the project was developed to study the value of flexibility. The prototype was a Markov decision process, solved by stochastic dynamic programming. Based on discussions with Norwegian oil companies, three uncertain variables were addressed: the reservoir volume, the well rate, and the oil price. Simple descriptions were used to mimic the uncertainty. The reservoir was thus depicted as a tank model, and the well rate and oil prices were assumed to follow Markov processes. Flexibility was restricted to managerial as opposed to financial flexibility. Application of the prototype to a case study, based on an ongoing field development, showed that flexibility might be of considerable value to the project. In particular, capacity flexibility and initiation flexibility were identified as important aspects of the development. The results also emphasized the importance of a joint assessment, as the values of different flexibility types are not additive. In conclusion, the proposed model motivates further development of the decision support system presently available. Future decision making should therefore be made within a framework that gives consideration to flexibility. 129 refs., 46 figs., 23 tabs.

Capturing option anomalies with a variance-dependent pricing kernel

NARCIS (Netherlands)

Christoffersen, P.; Heston, S.; Jacobs, K.

2013-01-01

We develop a GARCH option model with a variance premium by combining the Heston-Nandi (2000) dynamic with a new pricing kernel that nests Rubinstein (1976) and Brennan (1979). While the pricing kernel is monotonic in the stock return and in variance, its projection onto the stock return is

The price of electricity from private power producers: Stage 2, Expansion of sample and preliminary statistical analysis

Energy Technology Data Exchange (ETDEWEB)

Comnes, G.A.; Belden, T.N.; Kahn, E.P.

1995-02-01

The market for long-term bulk power is becoming increasingly competitive and mature. Given that many privately developed power projects have been or are being developed in the US, it is possible to begin to evaluate the performance of the market by analyzing its revealed prices. Using a consistent method, this paper presents levelized contract prices for a sample of privately developed US generation properties. The sample includes 26 projects with a total capacity of 6,354 MW. Contracts are described in terms of their choice of technology, choice of fuel, treatment of fuel price risk, geographic location, dispatchability, expected dispatch niche, and size. The contract price analysis shows that gas technologies clearly stand out as the most attractive. At an 80% capacity factor, coal projects have an average 20-year levelized price of $0.092/kWh, whereas natural gas combined cycle and/or cogeneration projects have an average price of $0.069/kWh. Within each technology type subsample, however, there is considerable variation. Prices for natural gas combustion turbines and one wind project are also presented. A preliminary statistical analysis is conducted to understand the relationship between price and four categories of explanatory factors including product heterogeneity, geographic heterogeneity, economic and technological change, and other buyer attributes (including avoided costs). Because of residual price variation, we are unable to accept the hypothesis that electricity is a homogeneous product. Instead, the analysis indicates that buyer value still plays an important role in the determination of price for competitively-acquired electricity.

The development of today's mineable oil sands projects, the key factors influencing economics

International Nuclear Information System (INIS)

Lynn, J.R.

1991-01-01

Many factors influence the perception of economic performance for developing projects. Some of these factors can be controlled by the developer, while some are outside the developer's sphere of influence. Technology selection, management systems, stakeholder involvement, environmental responsiveness and risk management are areas that may be influenced, however interest rates, product prices and currency exchange all have a measurable effect on project economics and are beyond a developer's control. Economic considerations for evaluating mineable oil sand development projects are outlined, focussing on the key factors unique to such developments in general and to the OSLO project in particular. The OSLO project is a proposed $5 billion energy development that entails constructing an open pit oil sands mine and a bitumen extraction facility north of Fort McMurray, Alberta, coupled with a bitumen upgrader in the Redwater area. 7 figs

Pharmaceutical pricing, price controls, and their effects on pharmaceutical sales and research and development expenditures in the European Union.

Science.gov (United States)

Vogel, Ronald J

2004-08-01

Each country in the European Union (EU) currently employs direct price controls or permutations of direct price controls, such as reference pricing or limitations on returns to capital. Some countries also use volume controls. A new proposal that is being discussed would have all of the countries in the EU adopt uniform pricing for each pharmaceutical. This paper analyzes the economic effects of free-market pricing individual-country price controls, and uniform EU price controls. Microeconomic and mathematical models were used to simulate and predict probable economic outcomes in a comparative static setting. Price controls may be in the form of price ceilings or price floors. Both forms of price control generate deadweight economic losses in the short run and long run. A uniform EU price for each pharmaceutical sold there would have elements of a price ceiling in some of the countries and of a price floor in other countries. The deadweight loss incurred would be a function of the level at which the uniform price was set by the EU and the price elasticity of demand for each pharmaceutical in each country. Economic efficiency is maximized in both the short run and long run when prices are set in freely competitive markets. An additional important dimension of Ramsey pricing within a competitive context is that it generates funds for investment in pharmaceutical research and development, which enhances economic efficiency in the long run.

Pass-Through to Import Prices: Evidence from Developing Countries

OpenAIRE

Miguel Fuentes

2007-01-01

In this paper I study the pass-through of nominal exchange rate changes to the price of imported goods in four developing countries. The results indicate that 75% of changes in the exchange rate are passed-through to the domestic currency price of imported goods within one quarter. Complete pass-through is attained within one year. There is no evidence that exchange rate pass-through to the price of imported goods has declined over time even in those countries that have managed to reduce infl...

48 CFR 52.249-9 - Default (Fixed-Price Research and Development).

Science.gov (United States)

2010-10-01

... Research and Development). 52.249-9 Section 52.249-9 Federal Acquisition Regulations System FEDERAL... Provisions and Clauses 52.249-9 Default (Fixed-Price Research and Development). As prescribed in 49.504(b), insert the following clause: Default (Fixed-Price Research and Development) (APR 1984) (a)(1) The...

Towards socially and economically sustainable urban developments : impacts of toll pricing on residential developments.

Science.gov (United States)

2013-12-01

The goal of this research is to investigate the effects of road pricing on residential land use choices and to : help select pricing policies that foster socially and economically sustainable residential development in : urbanized residential areas. ...

Hydro to market green power at special prices

International Nuclear Information System (INIS)

McArthur, D.; Salaff, S.

1996-01-01

A 600 kW grid-connected demonstration wind turbine at Ontario Place will provide green power to Toronto residents early in 1997. The joint venture project partners include publicly owned Ontario Hydro, Toronto Hydro and Natural Resources Canada. The power will be sold at a premium under arrangements yet to be announced. The green power pricing initiative would allow some customers to buy their electricity at a green price. The project could be a self-financing model for future renewable energy development. The Ontario Place turbine project will determine whether Toronto electricity customers want green power or electricity from nuclear and fossil stations, and could determine which type of generation should be built in the future

Price expectations and petroleum development

International Nuclear Information System (INIS)

Pollio, G.; Marian, W.S.

1991-01-01

In the first section of this paper, the authors present a highly stylized model of the world oil market that explicitly incorporates both expectative and financial effects. The model generates the extremely interesting result that actual future price outcomes are inversely related to prevailing price expectations, owing to fluctuation in the level and timing of industry investment expenditure. Given the importance of price expectations, it is surprising that the topic has received such scant attention. The authors therefore present in the second section of selective survey of the various measures that have been proposed and used in the literature, as well as an assessment of the value of potentially new indices and market prices for existing hydrocarbon reserves, for example. In the final section of the paper, we discuss the extent to which financial innovation, in the form of commodity-linked products-such as swaps, caps, collars, and so forth-are transforming the oil market, enabling all market segments to manage price uncertainty far more effectively than was ever possible in the past

Transport fuel demand responses to fuel price and income projections : Comparison of integrated assessment models

NARCIS (Netherlands)

Edelenbosch, O. Y.; van Vuuren, Detlef; Bertram, C.; Carrara, S.; Emmerling, J.; Daly, H.; Kitous, A.; McCollum, D. L.; Saadi Failali, N.

Income and fuel price pathways are key determinants in projections of the energy system in integrated assessment models. In recent years, more details have been added to the transport sector representation in these models. To better understand the model dynamics, this manuscript analyses transport

Bill project introducing a progressive price fixing of energy - Nr 150

International Nuclear Information System (INIS)

Brottes, Francois; Le Roux, Bruno

2012-01-01

This bill project aims at speeding up energy transition by inciting households to reduce their consumption, and at accompanying the unavoidable increase of energy prices. It introduces a rather complex process to establish the energy tariff, and notably a bonus-malus principle. The objective is to incite households to better insulate their main housing. It also takes social tariffs into account, defines institutions and representative for energy regulation, proposes the implementation of a public service for housing energy performance, and addresses the issue of energy supply in winter to households in precarious situation

Setting Offer Prices by Housing Developers - Selected Issues in the Light of Literature Review

Directory of Open Access Journals (Sweden)

Dittmann Iwona

2015-02-01

Full Text Available This paper deals with selected theoretical issues pertaining to the setting of asking prices by housing developers. Determinants of the buyer’s and seller’s reservation prices have been identified. The advantages and disadvantages, in terms of behavioral economics, of the pricing strategies practiced by housing developers have been indicated. The strategy based on fixing an asking price roughly equal to the estimated market value of the property was compared with the strategy based on offering an inflated asking price (with the assumption of price negotiations. A second comparison concerned the strategy of price disclosure compared with the strategy of price non-disclosure.

How effective project management will add value to your uranium project

International Nuclear Information System (INIS)

Bradford, R.; Titley, M.

2014-01-01

Up until the recent Fukushima incident in March 2011 project activity in the uranium sector was driven by high uranium prices and merger and acquisition corporate activity. Soon after the incident, project development in the uranium sector collapsed and capital slowly dried up as Uranium prices dropped. New projects were put on hold, significantly reducing growth in the small to medium capital markets. Existing brownfield growth plans were halted as corporate strategies focused on improving the efficiency of existing assets. Recent positive sentiment supported by positive commentary in the uranium market, driven by an improved understanding of the supply and demand fundamentals and the restart of Japan’s nuclear reactors, has seen renewed corporate merger and acquisition activity. Developers are again taking an interest in new uranium project development.

Assessing the Option to Abandon an Investment Project by the Binomial Options Pricing Model

Directory of Open Access Journals (Sweden)

Salvador Cruz Rambaud

2016-01-01

Full Text Available Usually, traditional methods for investment project appraisal such as the net present value (hereinafter NPV do not incorporate in their values the operational flexibility offered by including a real option included in the project. In this paper, real options, and more specifically the option to abandon, are analysed as a complement to cash flow sequence which quantifies the project. In this way, by considering the existing analogy with financial options, a mathematical expression is derived by using the binomial options pricing model. This methodology provides the value of the option to abandon the project within one, two, and in general n periods. Therefore, this paper aims to be a useful tool in determining the value of the option to abandon according to its residual value, thus making easier the control of the uncertainty element within the project.

Pricing products: juxtaposing affordability with quality appeal.

Science.gov (United States)

1984-01-01

Choosing appropriate product prices is 1 of the most crucial steps in creating an effective contraceptive social marketing (CSM) sales campaign. The Social Marketing Forum conducted an informal survey of social marketing project managers, international contractors, and marketing consultants to determine how CSM programs cope with pricing problems and ways to circumvent some obstacles. According to Diana Altman, a family planning consultant, low prices that make products available to needy individuals are more important than the program's self sufficiency, yet if prices are too low, consumers think the products were unusable in the US and thus were dumped on local markets. Other key factors include commercial competition, spiraling inflation rates, and problems with rising prices and retailer/distributor margins. A sampling of per capita gross national products indicates the poverty level of most CSM projects' target market. Consequently, CSM projects must set low pices, regardless of program operating costs. The goal often is to increase the demand and availability for contraceptives. The fact that social marketing products must pass through retail networks to reach consumers complicates the pricing equation. To deal with the problem, India's Nirodh program gives a 25% margin to distributors/wholesalers, compared to 6% offered on most other goods. Retailers also receive a 25% margin, more than double the commercial rate. Once prices are set, increases pose hazards. Local government approval often is a prerequisite and can require lengthy negotiations. Market studies remain a valuable approach to effective pricing, according to PNA's Mallamad and other research consultants. They cite such effective research strategies as test marketing products and asking consumers how prices affect buying habits. Further, CSM projects can jump over some pricing hurdles through creative marketing. An effective pricing strategy alone cannot produce a successful CSM program. Pricing

Development of Low Price Turbine Control System

Energy Technology Data Exchange (ETDEWEB)

Jeong, C.K.; Kim, J.A.; Jeong, W.J.; Choi, I.K.; Woo, J.H. [Korea Electric Power Research Institute, Taejon (Korea)

2002-07-01

This report is final research results of ''Development of Low Price Turbine Control System''. It describes test such as turbine startup, generator synchronization, rated load operation, simulation after manufacturing turbine control system. (author). 45 figs., 11 tabs.

Price signals and end consumer flexibility in shortage situations

International Nuclear Information System (INIS)

Hunnes, Arngrim; Grande, Ove S.

2002-08-01

This report is written as a part of the project ''Consumer flexibility and efficient use of ICT''. The project aim is 1) to provide a decision basis and suggest external conditions for a priority guided development of an infrastructure based on future ICT solutions and 2) develop, test and evaluate various measures which stimulate flexibility in consumption with consideration to power price, network rent and new market solutions. The central question in the report is how to stimulate the end consumer to be flexible in the consumption of electric power. The use of power price and system rent is desired tools for communicating the right price signals to the end consumers and thereby give the end users an incentive. The focus is primarily on the short term flexibility. The first chapter in the report gives an introduction to the price signals and the two way communication. There is a clear distinction between price signals from power suppliers and price signals from network companies. The two following chapters contain a more thorough discussion. As to the price signals from the power suppliers it is pointed out that most of the existing power contracts have a design so that they in the short term do not give the right price signals to the end users. It is proposed that two new contract types are tested: 1) Spot price and time settling. 2) Contract for reduced power price in a certain period provided the consumer is willing to reduce the load when 1) the spot price exceeds a level given by the end user, 2) the present load exceeds the subscribed level. In the chapter about the price signals from network companies there is first a brief introduction to the natural monopoly and the demands of the authorities to network tariffs. There is also a survey of the size of the system tariffs in the various counties. The central section of the chapter contains suggestions for designing network tariffs. Based on the deductions it is proposed that the project will test the

The consequences of price differentiation for regional development in Poland

Directory of Open Access Journals (Sweden)

Grzegorz Przekota

2017-07-01

Full Text Available Each region in Poland has a different economic potential due to its own specific features. Taking account of the specific nature of individual regions is important for the management of the country as a whole and of its particular regions. Existing disparities in the economic development may lead to many negative phenomena, such as internal migration or regional marginalization. Excessive price and income inequalities may weaken economic growth throughout the country. It is important for the coherence of the whole country that the disparities between regions are not too big. The study determines the consequences of price differentiation for regional development in Poland. The analysis was conducted using the coefficient of variation, correlation coefficient, regression coefficient and medium pace. The regions differ in terms of development, dynamic growth and wages. However, prices are much less diverse.

Developing a module for estimating climate warming effects on hydropower pricing in California

International Nuclear Information System (INIS)

Guégan, Marion; Uvo, Cintia B.; Madani, Kaveh

2012-01-01

Climate warming is expected to alter hydropower generation in California through affecting the annual stream-flow regimes and reducing snowpack. On the other hand, increased temperatures are expected to increase hydropower demand for cooling in warm periods while decreasing demand for heating in winter, subsequently altering the annual hydropower pricing patterns. The resulting variations in hydropower supply and pricing regimes necessitate changes in reservoir operations to minimize the revenue losses from climate warming. Previous studies in California have only explored the effects of hydrological changes on hydropower generation and revenues. This study builds a long-term hydropower pricing estimation tool, based on artificial neural network (ANN), to develop pricing scenarios under different climate warming scenarios. Results suggest higher average hydropower prices under climate warming scenarios than under historical climate. The developed tool is integrated with California's Energy-Based Hydropower Optimization Model (EBHOM) to facilitate simultaneous consideration of climate warming on hydropower supply, demand and pricing. EBHOM estimates an additional 5% drop in annual revenues under a dry warming scenario when climate change impacts on pricing are considered, with respect to when such effects are ignored, underlining the importance of considering changes in hydropower demand and pricing in future studies and policy making. - Highlights: ► Addressing the major gap in previous climate change and hydropower studies in California. ► Developing an ANN-based long-term hydropower price estimation tool. ► Estimating climate change effects on hydropower demand and pricing in California. ► Investigating the sensitivity of hydropower operations to future price changes. ► Underlining the importance of consideration of climate change impacts on electricity pricing.

43 CFR 402.6 - Price.

Science.gov (United States)

2010-10-01

... 43 Public Lands: Interior 1 2010-10-01 2010-10-01 false Price. 402.6 Section 402.6 Public Lands: Interior Regulations Relating to Public Lands BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR SALE OF LANDS IN FEDERAL RECLAMATION PROJECTS Public Lands § 402.6 Price. The price of land sold under this...

Competitive Pricing by a Price Leader

OpenAIRE

Abhik Roy; Dominique M. Hanssens; Jagmohan S. Raju

1994-01-01

We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimation procedure by calibrating this optimal price rule for both the leader and the follower using data on past sales and prices from the mid-size sedan segment of the U.S. automobile market. Our results suggest that a leader-follow...

Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets

OpenAIRE

Louise M. Arthur; Colin A. Carter; Fay Abizadeh

1988-01-01

A new asset pricing model, the arbitrage pricing theory, has been developed as an alternative to the capital asset pricing model. The arbitrage pricing theory model is used to analyze the relationship between risk and return for agricultural assets. The major conclusion is that the arbitrage pricing theory results support previous capital asset pricing model findings that the estimated risk associated with agricultural assets is low. This conclusion is more robust for the arbitrage pricing th...

The Association between Tax Structure and Cigarette Price Variability: Findings from the International Tobacco Control Policy Evaluation (ITC) Project

Science.gov (United States)

Shang, Ce; Chaloupka, Frank J.; Fong, Geoffrey T; Thompson, Mary; O’Connor, Richard J

2015-01-01

Background Recent studies have shown that more opportunities exist for tax avoidance when cigarette excise tax structure departs from a uniform specific structure. However, the association between tax structure and cigarette price variability has not been thoroughly studied in the existing literature. Objective To examine how cigarette tax structure is associated with price variability. The variability of self-reported prices is measured using the ratios of differences between higher and lower prices to the median price such as the IQR-to-median ratio. Methods We used survey data taken from the International Tobacco Control Policy Evaluation (ITC) Project in 17 countries to conduct the analysis. Cigarette prices were derived using individual purchase information and aggregated to price variability measures for each surveyed country and wave. The effect of tax structures on price variability was estimated using Generalised Estimating Equations after adjusting for year and country attributes. Findings Our study provides empirical evidence of a relationship between tax structure and cigarette price variability. We find that, compared to the specific uniform tax structure, mixed uniform and tiered (specific, ad valorem or mixed) structures are associated with greater price variability (p≤0.01). Moreover, while a greater share of the specific component in total excise taxes is associated with lower price variability (p≤0.05), a tiered tax structure is associated with greater price variability (p≤0.01). The results suggest that a uniform and specific tax structure is the most effective tax structure for reducing tobacco consumption and prevalence by limiting price variability and decreasing opportunities for tax avoidance. PMID:25855641

Risk Pricing in Construction Tenders - How, Who, What

Directory of Open Access Journals (Sweden)

Marcus Tower

2012-11-01

Full Text Available Construction projects are most commonlyprocured in Australia by means of a traditionaldesign–tender–build model, whereby design islargely completed then contractors submittenders in a competitive environment.Construction contractors must consider riskswithin their tenders. This paper reports theresearch findings into pricing for risk incompetitive tenders by constructioncontractors. The research is based onstructured interviews with 10 contractingpersonnel; supplemented by 23 responses ofconstruction personnel from an online survey.Two common methods to price for risk are atrade-by-trade basis or an overall percentageor lump sum addition to the base estimate.Experience and intuition plays a significant rolein pricing for risk in tenders and the numberand type of people involved varies with projectsize, with greater involvement as project sizeincreases. The most significant risks priced intenders were: availability of resources; designor documentation errors; incomplete design;buildability issues; and inclement weather. Themost significant project factors considered bycontractors when pricing for risk in tenders are:value of liquidated damages; type ofcontract/procurement; completeness ofdocumentation; project complexity; and currentworkload. These risks and project factors areprimarily those over which the contractor haslimited or no control.

The pricing of capital services over time

International Nuclear Information System (INIS)

Valle, A.P.D.; Watkins, G.C.

1990-01-01

In 1982, the Canadian National Energy Board and McGill University sponsored a conference on pipeline regulation in an inflationary era, focussing especially on the possible introduction of some form of tariff levelling. Ironically, shortly after the conference proceedings were published the very concerns addressed receded: inflation declined markedly and emerging weaknesses in oil and gas prices saw the demise or deferral of big projects with large up-front investments, the very projects which had excited interest in developing new regulatory techniques. This paper is organized in three main sections. Section I outlines the problems raised by traditional tariff regulation. Section II develops and discusses theoretical aspects of alternative rate structures. Section II focuses on practical problems of implementing rate structures that, on the face of it, have a better economic rationale than cost-of-service style pricing. Concluding remarks are made in Section IV

Pricing strategies of the supermarket sector

OpenAIRE

Leal, Joana Lobato da Fonseca Sáragga

2014-01-01

The food retail industry is a very competitive market. Supermarkets use a combination of price, quality of products and service to lure consumers and increase their profit. This work project draws upon both empirical and theoretical literatures to understand the different pricing strategies that the supermarket sector uses. Everyday Low Price, Promotional, Zone Pricing and Loyalty Programs are the most common pricing strategies in this industry. By using data from the Portuguese supermarket l...

Gasoline standard Motor monthly Prices, Projection and Impact, during 1999

International Nuclear Information System (INIS)

Unidad de Planeacion Minero Energetica, UPME

1999-01-01

The liberation of prices for the standard gasoline and ACPM, that was given starting from January of 1.999, it outlines uncertainties on the possible prices evolution, along the supply chain until the final user, in comparison with the system previous of control and adjustment. This article presents an approach to the possible evolution of the gasoline motor prices during 1.999, in their different components. It makes it from the entrance to the producer until when one sells the public to a maximum price that includes the super tax. Additionally, it makes a preliminary calculation of the impact of the prices prospective month to month on the cost of transport of ECOPETROL revenues and the Nation revenues. The prospective annual percentage variation is presented from the entrance to the producer and of the other components of the price of the standard gasoline motor in different scenarios of the rate variation. In the most probable scenario, a variation is expected from the entrance to the producing of 1,9% and an increment in the sale price to the public, without including the super tax, of 12,6%

Long-term trends in U.S. gas supply and prices: 1991 edition of the GRI baseline projection of U.S. energy supply and demand to 2010, April 1991. Gas research insights

International Nuclear Information System (INIS)

Woods, T.J.

1991-04-01

The report summarizes the gas supply and price outlook in the 1991 Edition of the GRI Baseline Projection of U.S. Energy Supply and Demand. Projected U.S. gas production, gas imports, and other sources of gas supply are discussed along with the sensitivity of the outlook to changes in price expectations. The critical uncertainties and issues affecting the gas supply and price outlook are discussed. Appendixes include a comparison of the 1991 and the 1989 projections of gas supply and price trends; and a description of the GRI Hydrocarbon Model

The Rise of Food Prices and the Challenge of Development in Africa ...

African Journals Online (AJOL)

This article examines the rise of food prices and analyses the factors that contribute to price hikes and the overall implication in Africa's development. Africa is a conspicuous laggard among contemporary developing regions in the world. The continent bears the brunt of starvation, malnutrition, hunger and diseases that arise ...

Setting Offer Prices by Housing Developers - Selected Issues in the Light of Literature Review

OpenAIRE

Dittmann Iwona

2015-01-01

This paper deals with selected theoretical issues pertaining to the setting of asking prices by housing developers. Determinants of the buyer’s and seller’s reservation prices have been identified. The advantages and disadvantages, in terms of behavioral economics, of the pricing strategies practiced by housing developers have been indicated. The strategy based on fixing an asking price roughly equal to the estimated market value of the property was compared with the strategy based on offerin...

NON-LINEARITY OF AUDIT PRICES AND REPUTATION IN DEVELOPING COUNTRIES: SHIFT TO OR FROM?

Directory of Open Access Journals (Sweden)

Svitlana Shulha

2016-11-01

Full Text Available The purpose of the paper is to analyse the origins of audit prices non-linearity in developing countries. We assume risk- and industry-sensitiveness of audit firms there due to the low institutional capacity, weak market forces development and questionable both auditors and clients ethical behaviour affecting market sustainability and implying additional challenges on stakeholder confidence. Methodology. We combine economic geography approach and reputation-averse phenomenon to explain endogenous volatility of average audit prices in Ukraine for the period of 2008-2015. Analysis of recent publications partially explains audit pricing non-linearity determinants that have both qualitative (brand and specialization and quantitative (risks, manipulations, bribery nature in developing countries. First, we qualify determinants of audit fees by inherent origin (endogenous, exogenous, stakeholder side (demand, supply, and market structure (concentrated, fragmented. Second, we summarize reputation challenges of audit business in developing countries. Third, we run empirical analysis of average prices in Ukraine for the period of 2008-2015 based on annual Chamber of Auditors of Ukraine reports data. Practical implications. Audit pricing models in developed countries are mainly exogenous and based on the auditor’s risk assessment. Vulnerability of markets and clients’ unethical behaviour makes audit pricing models more endogenous in developing countries. Value/originality. This is the first paper providing a better understanding of audit prices declination in Ukraine as a consequence of dysfunctional audit firms’ behaviour, institutional and market fragility, inherent to developing countries.

Method for Developing Descriptions of Hard-to-Price Products: Results of the Telecommunications Product Study

Energy Technology Data Exchange (ETDEWEB)

Conrad, F.; Tonn, B.

1999-05-01

This report presents the results of a study to test a new method for developing descriptions of hard-to-price products. The Bureau of Labor Statistics (BLS) is responsible for collecting data to estimate price indices such as the Consumers Price Index (BLS) is responsible for collecting data to estimate price indices such as the Consumers Price Index (CPI). BLS accomplishes this task by sending field staff to places of business to price actual products. The field staff are given product checklists to help them determine whether products found today are comparable to products priced the previous month. Prices for non-comparable products are not included in the current month's price index calculations. A serious problem facing BLS is developing product checklists for dynamic product areas, new industries, and the service sector. It is difficult to keep checklists up-to-date and quite often simply to develop checklists for service industry products. Some people estimates that upwards of 50 % of US economic activity is not accounted for in the CPI

Imperfect price-reversibility of US gasoline demand: Asymmetric responses to price increases and declines

International Nuclear Information System (INIS)

Gately, D.

1992-01-01

This paper describes a framework for analyzing the imperfect price-reversibility (hysteresis) of oil demand. The oil demand reductions following the oil price increases of the 1970s will not be completely reversed by the price cuts of the 1980s, nor is it necessarily true that these partial demand reversals themselves will be reversed exactly by future price increases. The author decomposes price into three monotonic series: price increases to maximum historic levels, price cuts, and price recoveries (increases below historic highs). He would expect that the response to price cuts would be no greater than to price recoveries, which in turn would be no greater than for increases in maximum historic price. For evidence of imperfect price-reversibility, he tests econometrically the following US data: vehicle miles per driver, the fuel efficiency of the automobile fleet, and gasoline demand per driver. In each case, the econometric results allow him to reject the hypothesis of perfect price-reversibility. The data show smaller response to price cuts than to price increases. This has dramatic implications for projections of gasoline and oil demand, especially under low-price assumptions. 26 refs., 13 figs., 3 tabs

Analysis on the choice of the most suitable metal prices in a mining investment project; Analisis sobre la eleccion del precio mas adecuado de los metales en un proyecto minero de inversion

Energy Technology Data Exchange (ETDEWEB)

Torre, L. de la; Espi, J. a.

2014-07-01

The mineral price assigned in mining project design is critical to determining the economic feasibility of a project. Nevertheless, although it is not difficult to find literature about market metal prices, it is much more complicated to achieve a specific methodology for calculating the value or which justifications are appropriate to include. This study presents an analysis of various methods for selecting metal prices and investigates the mechanisms and motives underlying price selections. The results describe various attitudes adopted by the designers of mining investment project, and how the price can be determined not just by means of forecasting also by consideration of other relevant parameters. (Author)

Long-term trends in U.S. gas supply and prices: 1992 edition of the GRI baseline projection of U.S. energy supply and demand to 2010

International Nuclear Information System (INIS)

Woods, T.J.

1991-12-01

The paper summarizes the gas supply outlook in the 1992 Edition of the GRI Baseline Projection of U.S. Energy Supply and Demand, which has been adopted as a major input to the planning cycle leading to the development of the Gas Research Institute (GRI) 1993 research and development program. The 1992 projection presents the GRI planning outlook for the economic and the energy supply and demand situation to the year 2010. It was prepared independently by GRI using publicly available data and a framework of commercially available models that GRI has developed over several years. It is not derived from the views of GRI member companies. The 1992 Edition of the GRI Baseline Projection presents an optimistic outlook for the U.S. gas industry in which increased gas supply can be obtained at competitive prices. The gas prices in the 1992 projection support growth in all major U.S. gas supply sources: lower-48, Alaska, Canada, Mexico, and LNG. By about 2005, U.S. gas supply is at its highest level ever. By 2010, U.S. gas supply has grown to almost 25 quads. U.S. gas production increases 2.6 quads between 1990 and 2010; imports increase 2.2 quads. Although imports do not increase as much as U.S. gas production, they account for an increased share of U.S. gas supply. The import share grows from 7 percent to 12 percent over the projection period. Supplemental gas sources provide about 1 percent of U.S. gas supply

Research on the pricing system of online nuclear power

International Nuclear Information System (INIS)

Xu Dan

2010-01-01

National Development and Reform Commission Issues 'Long-term Nuclear Power Development Plan (2005-2020)' in October, 2007. It is the milestone for great development of the nuclear power plant. By the end of the first half of 2009, the nuclear power companies, mainly leading by CNNC and CGNPC, are busy in expanding the new project investment scale of the nuclear power. They gradually initialize the enormous nuclear investment in Zhejiang, Liaoning, Shandong, Guangxi Province and some other place. Along with the development of the nuclear plant and the reformation of the electricity price, the online electricity price of the nuclear power plant will likely be revised. How long will the price policy of 'One to one price' for each type of plant be hold? How will the online electricity price be set in the future? What kind of theories will be followed in the new pricing policy? And what kind of influence will it have on the operating and constructing nuclear power plants? All these will be the problem to the nuclear power plant. There are a lot of uncertainties in front of the nuclear power enterprise in the future. The article analyzes the cost structure of the nuclear power enterprise. Based on the price theory of the market economy, and after benchmarking with the coal power and some other industries, the article studies the future pricing policy of the nuclear power enterprise. And the article analyzes the future management risk of the nuclear power enterprise after the pricing policy reformation. And through the management improvement, the nuclear power company could response effectively to the price regulation, and minimize the uncertainty caused by the pricing policy reformation to the enterprise operation and management. (author)

Historical development and future trends in the uranium industry and prices

International Nuclear Information System (INIS)

Collier, D.M.; Leamon, G.E.; Stobbs, J.J.

1983-01-01

The historical development of the uranium industry in general and of uranium prices in particular over the last 30 years is reviewed with the aim of defining: how the industry has evolved into its present position, how the industry responds to various market conditions, and implications for the assurance of future supplies. The industry's early history and the commercial market that began in the late 1960s are reviewed. A price history is shown in constant dollars and in year-of-delivery dollars. Since the beginning of the commercial market the uranium market has experienced large price variations. The specific causes for the cycles are discussed, including normal market responses of buyers and sellers and the impact of government policies. Expected market conditions and price levels for the next decade are presented. Current market conditions and price levels reflect the bottom of a downward price cycle. Although world-wide reserves are more than adequate to meet estimated uranium demand for the remainder of the century, prices will have to approach mid-1970 levels in constant-dollar terms to ensure the timely availability of production capability in the late 1980s. An upward price cycle should begin by the mid-1980s as buyers seek additional contract commitments and supply expands from currently reduced levels. (author)

Housing Price Volatility and Econometrics

Czech Academy of Sciences Publication Activity Database

Sunega, Petr; Lux, Martin; Zemčík, Petr

2014-01-01

Roč. 1, č. 2 (2014), s. 70-78 ISSN 2336-2839 R&D Projects: GA ČR(CZ) GAP404/12/1446 Institutional support: RVO:68378025 ; RVO:67985998 Keywords : econometrics * housing prices * price bubbles Subject RIV: AO - Sociology, Demography

Higher Education Prices and Price Indexes. 1976 Supplement.

Science.gov (United States)

Halstead, Kent D.

The 1976 supplement presents higher education price index data for fiscal years 1971 through 1976. The basic study, "Higher Education Prices and Price Indexes" (ED 123 996) presents complete descriptions of the indexes together with index values and price data for fiscal years 1961 through 1974. Indexes are presented for research and development,…

The development of Middle Eastern gas: analyses of the graveyard of export projects

International Nuclear Information System (INIS)

Mabro, Robert

1994-01-01

There are three types of opportunities for gas developments in the Middle East. The first are those provided by the domestic energy market, the second by regional trade and the third by the potential for exports outside the region. The development of the full gas potential of the region, given the size of the reserves held by several countries, will only be possible through export. Of course, there is still room for the expansion of gas use within the producing countries and their regional neighbours but growth of domestic demand would not make a significant dent in the regional reserves before several decades. The potential for exports is constrained, however, by the uncertainty about future oil prices, the long lead-in time of major gas projects and the associated financing problems. There is a graveyard of gas export projects in the Middle East. New projects are continually conceived and then abandoned or indefinitely postponed. Even the famous Qatargas project which took so long to bring to the threshold of implementation appears in the present climate to be unattractive for both the country and the foreign investors involved. Gas in the Middle East will remain for a very long time a resource for an ever more distant future. There is still too much oil around for its price to rise to a support level for big gas projects in the Middle East. And there is no significant demand yet in Europe for Middle East oil which only leaves the Far East as a potential market. The paradox is that if gas resources are not developed ahead of needs, gas will not be available in sufficient volumes when required. (Author)

Investments and price formation in a liberalized electric power market

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his investment has been

IS THE PRICE RIGHT? PRICING FOR LONG TERM PROFITABILITY

Directory of Open Access Journals (Sweden)

Andrea Erika NYÁRÁDI

2007-01-01

Full Text Available The way how we choose our pricing strategy has a significant impact on company’s success. Nowadays companies more and more adopt a new way of thinking in pricing, namely pricing for a long term period in order to bring higher profitability, to build an efficient pricing strategy. Marketers have only recently begun to focus seriously on effective pricing. These companies are the so called progressive companies. They have begun doing more than just worrying about pricing. To increase profitability many are abandoning traditional reactive pricing procedures in favor of proactive pricing, making explicit corporate decisions to change their focus to growth in top-line sales to growth in profitability. The long-term implications of price strategies are still under-researched, and managers should be aware of shifts in customer reactions that may result from frequent adoption of certain strategies. The company pricing strategy should be seen in relation to developments in the company variables, internal ones (capital strength, competencies, organizational conditions, efficiency of the work force etc. as well as external ones (customers, competitors, the technological development etc., adopting strategic pricing. In this paper I will present the most effective pricing strategies leading to long term profitability, and also suggest practical conditions for pricing strategies to maximize profit in the long run.

Capturing Option Anomalies with a Variance-Dependent Pricing Kernel

DEFF Research Database (Denmark)

Christoffersen, Peter; Heston, Steven; Jacobs, Kris

2013-01-01

We develop a GARCH option model with a new pricing kernel allowing for a variance premium. While the pricing kernel is monotonic in the stock return and in variance, its projection onto the stock return is nonmonotonic. A negative variance premium makes it U shaped. We present new semiparametric...... evidence to confirm this U-shaped relationship between the risk-neutral and physical probability densities. The new pricing kernel substantially improves our ability to reconcile the time-series properties of stock returns with the cross-section of option prices. It provides a unified explanation...... for the implied volatility puzzle, the overreaction of long-term options to changes in short-term variance, and the fat tails of the risk-neutral return distribution relative to the physical distribution....

The distribution of cigarette prices under different tax structures: findings from the International Tobacco Control Policy Evaluation (ITC) Project.

Science.gov (United States)

Shang, Ce; Chaloupka, Frank J; Zahra, Nahleen; Fong, Geoffrey T

2014-03-01

The distribution of cigarette prices has rarely been studied and compared under different tax structures. Descriptive evidence on price distributions by countries can shed light on opportunities for tax avoidance and brand switching under different tobacco tax structures, which could impact the effectiveness of increased taxation in reducing smoking. This paper aims to describe the distribution of cigarette prices by countries and to compare these distributions based on the tobacco tax structure in these countries. We employed data for 16 countries taken from the International Tobacco Control Policy Evaluation Project to construct survey-derived cigarette prices for each country. Self-reported prices were weighted by cigarette consumption and described using a comprehensive set of statistics. We then compared these statistics for cigarette prices under different tax structures. In particular, countries of similar income levels and countries that impose similar total excise taxes using different tax structures were paired and compared in mean and variance using a two-sample comparison test. Our investigation illustrates that, compared with specific uniform taxation, other tax structures, such as ad valorem uniform taxation, mixed (a tax system using ad valorem and specific taxes) uniform taxation, and tiered tax structures of specific, ad valorem and mixed taxation tend to have price distributions with greater variability. Countries that rely heavily on ad valorem and tiered taxes also tend to have greater price variability around the median. Among mixed taxation systems, countries that rely more heavily on the ad valorem component tend to have greater price variability than countries that rely more heavily on the specific component. In countries with tiered tax systems, cigarette prices are skewed more towards lower prices than are prices under uniform tax systems. The analyses presented here demonstrate that more opportunities exist for tax avoidance and brand

The distribution of cigarette prices under different tax structures: findings from the International Tobacco Control Policy Evaluation (ITC) Project

Science.gov (United States)

Shang, Ce; Chaloupka, Frank J; Zahra, Nahleen; Fong, Geoffrey T

2013-01-01

Background The distribution of cigarette prices has rarely been studied and compared under different tax structures. Descriptive evidence on price distributions by countries can shed light on opportunities for tax avoidance and brand switching under different tobacco tax structures, which could impact the effectiveness of increased taxation in reducing smoking. Objective This paper aims to describe the distribution of cigarette prices by countries and to compare these distributions based on the tobacco tax structure in these countries. Methods We employed data for 16 countries taken from the International Tobacco Control Policy Evaluation Project to construct survey-derived cigarette prices for each country. Self-reported prices were weighted by cigarette consumption and described using a comprehensive set of statistics. We then compared these statistics for cigarette prices under different tax structures. In particular, countries of similar income levels and countries that impose similar total excise taxes using different tax structures were paired and compared in mean and variance using a two-sample comparison test. Findings Our investigation illustrates that, compared with specific uniform taxation, other tax structures, such as ad valorem uniform taxation, mixed (a tax system using ad valorem and specific taxes) uniform taxation, and tiered tax structures of specific, ad valorem and mixed taxation tend to have price distributions with greater variability. Countries that rely heavily on ad valorem and tiered taxes also tend to have greater price variability around the median. Among mixed taxation systems, countries that rely more heavily on the ad valorem component tend to have greater price variability than countries that rely more heavily on the specific component. In countries with tiered tax systems, cigarette prices are skewed more towards lower prices than are prices under uniform tax systems. The analyses presented here demonstrate that more opportunities

Project development symposium

Energy Technology Data Exchange (ETDEWEB)

1983-01-01

Papers were presented on the following: project evaluation; case studies - minerals; finance; applied finance; legal; manpower/industrial relations; and new technologies. Those papers on the coal industry were: mine planning for coal project development; the planning and management of a lignite exploration contract in Thailand; development of the West Cliff extended project; Ulan: a resource development; Saxonvale mine development a case study in project planning and project management; the role of marketing in the development of a new coal project; technical support for coal marketing; infrastructure development for the Ulan project; underground mine project developments; the bucketwheel excavator at Goonyella - a case study; tax aspects of mining development projects; cost of capital mining development projects; and trends in development project finance. 16 papers were abstracted separately.

Bank pricing under oligopsony-oligopoly: Evidence from 103 developing countries

OpenAIRE

Marrouch, Walid; Turk-Ariss, Rima

2012-01-01

We propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component resulting from the interaction between the choke price of loans and prevailing banking structures, and a markup on deposit funding costs that captures the transformation efficiency of financial inter...

Analyzing Developing Country Market Integration using Incomplete Price Data and Cluster Analysis

NARCIS (Netherlands)

Ansah, I.G.; Gardebroek, Koos; Ihle, R.; Jaletac, M.

2015-01-01

Recent global food price developments have spurred renewed interest in analyzing integration of local markets to global markets. A popular approach to quantify market integration is cointegration analysis. However, local market price data often has missing values, outliers, or short and incomplete

Transfer pricing and safe harbours

Directory of Open Access Journals (Sweden)

Veronika Solilová

2013-01-01

Full Text Available Transfer prices are significant for both taxpayers and tax administrations because they determine in large part taxable profits of associated enterprises in different tax jurisdictions. Moreover, in the context of taxation, transfer prices must be complied with the arm’s length principle. However, Multinational Enterprises have been faced daily by conflicting rules and approaches to applying the arm’s length principle, burdensome documentation requirements, inconsistent audit standards and unpredictable competent authority outcomes. Therefore, the Committee on Fiscal Affairs launched another project on the administrative aspects of transfer pricing in 2010. On 16 May 2013 as a partial solution of this project was approved by the OECD Council the Revised Section E on Safe Harbours in Chapter IV of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities. The paper is focused on significant changes of newly approved chapter IV of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Authorities, further on analysis of practice in this area, on advantages and disadvantages of safe harbours for taxpayers and competent authorities with aim to suggest recommendations on use of safe harbours in the Czech Republic.

The Kintyre uranium project

International Nuclear Information System (INIS)

Larson, B.

1997-01-01

The Kintyre Uranium Project is being developed by Canning Resources Pty Ltd, a subsidiary of Rio Tinto (formerly CRA). The work on the project includes the planning and management of a number of background environmental studies. The company has also commissioned studies by external consultants into process technologies, mining strategies and techniques for extracting the uranium ore from the waste rock. In addition, Canning Resources has made a detailed assessment of the worldwide market potential for Australian uranium in the late 1990s and into the 21st century. The most significant factor affecting the future of this project is the current product price. This price is insufficient to justify the necessary investment to bring this project into production

Accounting for fuel price risk: Using forward natural gas prices instead of gas price forecasts to compare renewable to natural gas-fired generation

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2003-08-13

Against the backdrop of increasingly volatile natural gas prices, renewable energy resources, which by their nature are immune to natural gas fuel price risk, provide a real economic benefit. Unlike many contracts for natural gas-fired generation, renewable generation is typically sold under fixed-price contracts. Assuming that electricity consumers value long-term price stability, a utility or other retail electricity supplier that is looking to expand its resource portfolio (or a policymaker interested in evaluating different resource options) should therefore compare the cost of fixed-price renewable generation to the hedged or guaranteed cost of new natural gas-fired generation, rather than to projected costs based on uncertain gas price forecasts. To do otherwise would be to compare apples to oranges: by their nature, renewable resources carry no natural gas fuel price risk, and if the market values that attribute, then the most appropriate comparison is to the hedged cost of natural gas-fired generation. Nonetheless, utilities and others often compare the costs of renewable to gas-fired generation using as their fuel price input long-term gas price forecasts that are inherently uncertain, rather than long-term natural gas forward prices that can actually be locked in. This practice raises the critical question of how these two price streams compare. If they are similar, then one might conclude that forecast-based modeling and planning exercises are in fact approximating an apples-to-apples comparison, and no further consideration is necessary. If, however, natural gas forward prices systematically differ from price forecasts, then the use of such forecasts in planning and modeling exercises will yield results that are biased in favor of either renewable (if forwards < forecasts) or natural gas-fired generation (if forwards > forecasts). In this report we compare the cost of hedging natural gas price risk through traditional gas-based hedging instruments (e

Developing a goal programming model for ideal/mutual house price

Science.gov (United States)

Saiddin, Nor Syuhadah; Zaibidi, Nerda Zura; Sulaiman, Nor Intan Saniah

2015-12-01

One cannot deny the importance of a house as a living need. Unfortunately, the unreasonable house price makes it approximately impossible to be owned, mostly for middle income group. Nowadays, the middle income house buyers have two alternatives, whether to buy it from a private developer or through PR1MA and My First Home scheme, since both parties have their own advantages. Goal programming has been employed to resolve the multi objective problem among parties. Due to the complex decision making in house price determination between the parties, this study purposely modeled the problem using interval goal programming approach. Goal programming and interval goal programming can be differ based on their goal (i.e. the aspire level) which is in the form of interval. This study employed primary data and secondary data, which primary data is acquired from semi-structured interview with private developer, while secondary data is the data obtained from literature review. Initial result shows the satisfactory house price over preferences and needs of the decision makers, which are RM454, 050.00 for the private developer, RM322, 880.00 for the government and range of RM2380.95 to RM245, 100.00 for the house buyer. This suggests the house price range that is satisfied by all parties which is about RM238, 000.95 to RM460, 000.00.The satisfaction might occurred when they are all cooperating, which the way could enlighten the impact of collaboration between the parties. This could be the limitations for this study.

Understanding Price Controls and Non-Price Competition with Matching Theory

OpenAIRE

Hatfield, John William; Plott, Charles R.; Tanaka, Tomomi

2012-01-01

We develop a quality competition model to understand how price controls affect market outcomes in buyer-seller markets with discrete goods of varying quality. While competitive equilibria do not necessarily exist in such markets when price controls are imposed, we show that stable outcomes do exist and characterize the set of stable outcomes in the presence of price restrictions. In particular, we show that price controls induce non-price competition: price floors induce the trade of ineffici...

The development of a value based pricing index for new drugs in metastatic colorectal cancer

OpenAIRE

Lubbe, Martha Susanna; Dranitsaris, George; Truter, Ilse

2011-01-01

Background Worldwide, prices for cancer drugs have been under downward pressure where several governments have mandated price cuts of branded products. A better alternative to government mandated price cuts would be to estimate a final price based on drug performance, cost effectiveness and a country’s ability to pay. We developed a global pricing index for new cancer drugs in patients with metastatic colorectal cancer (mCRC) that encompasses all of these attributes. Methods ...

Investments and price formation in a liberalized electric power market. Appendices

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-06-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

International to domestic price transmission in fourteen developing countries during the 2007-08 food crisis

DEFF Research Database (Denmark)

Baltzer, Kenneth Thomas

-through in China and India, over close relationship between international and domestic prices in Brazil and South Africa, to substantial domestic price overshooting in Ethiopia and Nigeria. Much of this variation can be explained by price stabilization policies, public policy failure, incomplete market integration......This paper synthesizes the evidence on price transmission from international maize, rice and wheat markets to domestic markets in fourteen developing countries during the global food crisis in 2007-08. A great variation in the price transmission patterns is observed; from almost no price pass...

China on the move: Oil price explosion?

International Nuclear Information System (INIS)

Skeer, Jeffrey; Wang Yanjia

2007-01-01

Rapid expansion of highway and jet traffic in China has created a surge of demand for oil products, putting pressure on world energy markets and petroleum product prices. This paper examines trends in freight and passenger traffic to assess how growth in China's transport demand relates to growth in China's economy, as well as the energy intensity of transport. Based on assumptions about demand elasticity and energy intensity, a range of scenarios is developed for China's oil demand through 2020. Incremental oil demand from China's transport sector is then compared with world oil demand projections to assess the likely impact on world oil prices. The finding is that new demand from China's transport sector would likely raise world oil prices in 2020 by 1-3% in reference scenarios or by 3-10% if oil supply investment is constrained

World oil prices and domestic implications : a Russian perspective

International Nuclear Information System (INIS)

Khartukov, E.M.

2001-01-01

This paper presented an analysis of the impact of world oil prices on the future developments of Russia's oil sector and provided an international comparison of projected crude oil prices. The main factors that influence the price dynamics of the contemporary world oil market were described with reference to how these dynamics affect Russia's internal markets. World oil prices are determined by a mixture of politics and economics. The author suggested that Russian crude will not reach the desired parity with world oil prices. It was predicted that at the very best, by 2030, domestic crude oil sales will be 80 per cent of world-market proceeds. Russian refineries will enjoy cheaper feedstock. Regardless of future world price levels, the standstill in modernizing Russia's refining sector will further narrow the profit base, causing a massive run of Russian crude to more lucrative, external markets. It was emphasized that the survival of Russia's refining sector can only be guaranteed by radical upgrading of their outdated refineries. 4 refs., 2 tabs., 4 figs

The development of a value based pricing index for new drugs in metastatic colorectal cancer.

Science.gov (United States)

Dranitsaris, George; Truter, Ilse; Lubbe, Martie S

2011-06-01

Worldwide, prices for cancer drugs have been under downward pressure where several governments have mandated price cuts of branded products. A better alternative to government mandated price cuts would be to estimate a final price based on drug performance, cost effectiveness and a country's ability to pay. We developed a global pricing index for new cancer drugs in patients with metastatic colorectal cancer (mCRC) that encompasses all of these attributes. A pharmacoeconomic model was developed to simulate mCRC patients receiving chemotherapy plus a 'new drug' that improves survival by 1.4, 3 and 6months, respectively. Cost and utility data were obtained from cancer centres and oncology nurses (n=112) in Canada, Spain, India, South Africa and Malaysia. Multivariable analysis was then used to develop the pricing index, which considers survival benefit, per capita GDP and income dispersion (as measured by the Gini coefficient) as predictor variables. Higher survival benefits were associated with elevated drug prices, especially in higher income countries such as Canada. For Argentina with a per capita GDP of $15,000 and a Gini coefficient of 51, the index estimated that for a drug which provides a 4month survival benefit in mCRC, the value based price would be $US 630 per dose. In contrast, the same drug in a wealthier country like Norway (per capita GDP=$50,000) could command a price of $US 2,775 per dose. The application of this index to estimate a price based on cost effectiveness and the wealth of a nation would be important for opening dialogue between the key stakeholders and a better alternative to government mandated price cuts. Copyright © 2011 Elsevier Ltd. All rights reserved.

A Study on the Pricing Policy of Wind Power in China

International Nuclear Information System (INIS)

Junfeng, Li; Pengfei, Shi; Jingli, Shi; Hongwen, Xie; Yanqin, Song

2006-10-01

A review is given of the development of wind power and the pricing system in China. In particular, the report looks at the existing wind concession projects and sums up the lessons learned. The report finds that the current tender system for wind pricing needs to be improved in order to build a fair environment for the wind industry competition. Special attention should be paid to restricting the phenomenon of unreasonably low and unreasonably high wind tariffs, to facilitate the long-term development of the Chinese wind industry.

Independent power project finance rating criteria

International Nuclear Information System (INIS)

Goldsmith, D.; Chew W.; Moulton, C.

1992-01-01

Continuing growth of project financing for non-utility generators in the US and abroad has led to growing focus on their credit strength. In general, the financings remain relatively risky and would likely be rated below investment grade, because of various factors: loose power purchase arrangements, poor match between power pricing and fuel costs, aggressive leverage, troubled operating performance. But S and P believes some projects have the credit strength to support investment grade ratings. As traditional financing markets for these projects --- bank lending and private placements with highly specialized institutional investors --- have contracted, project sponsors and developers are considering broader markets. These include institutional investors without specialized focus on power project finance. In these markets, distinctions among projects may lead to greater liquidity and efficiency in developing the pricing and terms under which projects can be financed. This paper reports that ratings are most appropriate for projects seeking permanent financing as they enter commercial operations. They also may be useful for projects which have been operating for some time and for some very strong projects which are raising construction financing. To guide both project developers and investors in project financing, S and P has developed the following approach for rating these types of financings

The Clean-Development Mechanism, stochastic permit prices and energy investments

International Nuclear Information System (INIS)

Hieronymi, Philipp; Schüller, David

2015-01-01

We analyze the impact on energy investments stemming from different emission permit classes, by considering permits that are allocated inside the European Emission Trading Scheme and secondary Certified Emission Reduction (sCER) permits originating from the Clean Development Mechanism. One price taking firm which is subject to emission regulation has the choice to invest in gas or wind power plant. The firm faces uncertainty regarding stochastically evolving permit prices, while it receives a premium on the electricity price for wind energy. As a first step, we determine the value of the option to invest into a gas power plant over time. Then, we calculate the investment probability of a gas power investment in a range of policy scenarios. We find that allowing the usage of sCER permits in the present policy framework has a positive impact on gas power investment. Decoupling the price processes has a similar effect. If the quota of sCER permits is doubled, the decrease in the investment probability for wind power is large. We carry out sensitivity tests for different parameter values, and find that investment behavior changes significantly with differing interest rates, the wind energy premium and volatility. - Highlights: • We model the impact of two CO 2 permit classes on energy investments. • We present a real-options framework accounting for uncertainty. • Clean Development Mechanism permits have a negative influence on investment into renewable energy. • Interest rate and volatility values have a strong impact on the results

Consumers' price knowledge before, during, and after store visit

DEFF Research Database (Denmark)

Jensen, Birger Boutrup

Many attempts have been made to measure consumers' price knowledge for frequently purchased goods. However, the results have varied considerably and conflict with the results of reference price studies. This is the first study to examine consumers' price knowledge before, during, and after store...... visit, thus enabling a study of what consumers learn about prices during the store visit, and consequently the relationship between reference prices and episodic price knowledge. The project applies three measures of consumers' price knowledge corresponding to different levels of price information...

Oil prices and the stock prices of alternative energy companies

International Nuclear Information System (INIS)

Henriques, Irene; Sadorsky, Perry

2008-01-01

Energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements. While it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies, there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices. In this paper, a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices, technology stock prices, oil prices, and interest rates. Our results show technology stock prices and oil prices each individually Granger cause the stock prices of alternative energy companies. Simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices. These results should be of use to investors, managers and policy makers. (author)

Output Price Risk, Material Input Price Risk, and Price Margins: Evidence from the US Catfish Industry.

Directory of Open Access Journals (Sweden)

David Bouras

2017-07-01

Full Text Available Aim/purpose - To develop a conceptual model for analyzing the impact of output price risk and material input price risk on price margins. Design/methodology/approach - To analyze the combined effect of output price risk and material input risk on price margins, we use a series of comparative static analyses, GARCH models, and data ranging from 1990/01 to 2012/12. Findings - The theoretical results indicate that the impact of output price risk and the impact of material input price risk on price margins are ambiguous and, to a great extent, hinge on the correlation between output price and material input price. The empirical results show that whole frozen catfish price risk and live catfish price risk negatively affect the price margin for frozen catfish. The empirical results, however, indicate that the risk of the price of live catfish affects markedly the price margin for frozen whole catfish in contrast to the impact of the risk of the price of frozen whole catfish. Research implications/limitations - The empirical results have significant implications for managerial decision-making especially when crafting strategies for improving price margins. Accordingly, in order to beef up the price margin for frozen whole catfish, catfish processors may consider engaging in vertical integration. This paper has some limitations: first, it assumes that firms operate in competitive markets; second, it assumes that firms produce and sell a single product. Originality/value/contribution - Unlike earlier studies that focused solely on the effect of output price risk on price margins, this paper analyzes theoretically and empirically the impact of output price risk and material input price risk on price margins.

Prospects for oil prices

International Nuclear Information System (INIS)

Stevens, P.

1992-01-01

The basic argument presented is that the oil price is set in an administrated market. The administration is undertaken by the controllers of excess capacity to produce crude oil. The extent to which the administrated price matches the market price is a function, first, of the strength and effectiveness of the market controller and, secondly, of the state of supply and demand and expectations in the market. Currently, the market is operating close to capacity, what limited excess capacity exists is located mainly in Saudi Arabia and the Saudi Arabians appear to be following a low price objective. While the Saudi Arabians pursue volume, the short term project, in the balance of a political upheaval, is that oil prices will remain below the $21 per barrel agreed in July 1990. There is a view that Saudi Arabia would take quick action to reverse a price collapse, but attention is drawn to previous miscalculations with respect to price collapse. Should political circumstances allow the return of Iraq to the oil market, then excess capacity within the Gulf members of OPEC will return and control will be much more difficult. (UK)

Auction development for the price-based electric power industry

Science.gov (United States)

Dekrajangpetch, Somgiat

The restructuring of the electric power industry is to move away from the cost-based monopolistic environment of the past to the priced-based competitive environment. As the electric power industry is restructuring in many places, there are still many problems that need to be solved. The work in this dissertation contributes to solve some of the electric power auction problems. The majority of this work is aimed to help develop good markets. A LaGrangian relaxation (LR) Centralized Daily Commitment Auction (CDCA) has been implemented. It has been shown that the solution might not be optimal nor fair to some generation companies (GENCOs) when identical or similar generating units participate in a LR CDCA based auction. Supporting information for bidding strategies on how to change unit data to enhance the chances of bid acceptance has been developed. The majority of this work is based on Single Period Commodity Auction (SPCA). Alternative structures for the SPCA are outlined. Whether the optimal solution is degenerated is investigated. Good pricing criteria are summarized and the pricing method following good pricing criteria is developed. Electricity is generally considered as a homogeneous product. When availability level is used as additional characteristic to distinct electricity, electricity can be considered a heterogeneous product. The procedure to trade electricity as a heterogeneous product is developed. The SPCA is formulated as a linear program. The basic IPLP algorithm has been extended so that sensitivity analysis can be performed as in the simplex method. Sensitivity analysis is used to determine market reach. Additionally, sensitivity analysis is used in combination with the investigation of historical auction results to provide raw data for power system expansion. Market power is a critical issue in electric power deregulation. Firms with market power have an advantage over other competitor firms in terms of market reach. Various approaches to

Price development evaluation of chosen plant commodities in agra­rian market in the Slovak Republic

Directory of Open Access Journals (Sweden)

Patrik Rovný

2010-01-01

Full Text Available The objective of the paper is to evaluate the price development of the chosen commodities in plant production in Slovakia and to focus on the factors influencing the increase or decrease in the price of commodities on the domestic and foreign markets. In 2008 the prices of the products in a year–on–year plant production increased by 1.6 %. The price of the plant products, including fruits and ve­ge­tab­les recorded the biggest increase since January 2008 until October 2008. The biggest increase in prices was recorded in June (increase of 52.7%. The high prices of oil plants and legume were one of the causes in a year–on–year price increase (oil plants increase by 23.3% and legume −15.7%. Price development on the domestic market of cereals and oil plants was influenced in the first three terms by growing stock–exchange value and the high demand from the side of foreign buyers connected with the increasing production of biofuels. On the other hand, in the last term of the year 2008, there can be seen the rapid decrease of the prices of cereals and oil plants because of the high production and the development of the world prices. The prices of fruits, evaluated in 2004–2008, recorded the biggest increase in January and February 2008 (in January 2008 – increase by 22.1% and February 2008 – increase by 23.2%. Prices of vegetables slightly grew in the monitored period. The biggest increase was recorded in December 2006 and in January and February 2007 (more than 15%.

Utility-Scale Solar 2014. An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Seel, Joachim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

2015-09-01

Other than the nine Solar Energy Generation Systems (“SEGS”) parabolic trough projects built in the 1980s, virtually no large-scale or “utility-scale” solar projects – defined here to include any groundmounted photovoltaic (“PV”), concentrating photovoltaic (“CPV”), or concentrating solar thermal power (“CSP”) project larger than 5 MW_AC – existed in the United States prior to 2007. By 2012 – just five years later – utility-scale had become the largest sector of the overall PV market in the United States, a distinction that was repeated in both 2013 and 2014 and that is expected to continue for at least the next few years. Over this same short period, CSP also experienced a bit of a renaissance in the United States, with a number of large new parabolic trough and power tower systems – some including thermal storage – achieving commercial operation. With this critical mass of new utility-scale projects now online and in some cases having operated for a number of years (generating not only electricity, but also empirical data that can be mined), the rapidly growing utility-scale sector is ripe for analysis. This report, the third edition in an ongoing annual series, meets this need through in-depth, annually updated, data-driven analysis of not just installed project costs or prices – i.e., the traditional realm of solar economics analyses – but also operating costs, capacity factors, and power purchase agreement (“PPA”) prices from a large sample of utility-scale solar projects in the United States. Given its current dominance in the market, utility-scale PV also dominates much of this report, though data from CPV and CSP projects are presented where appropriate.

Private and Social Considerations in the Design and Appraisal of Development Projects and Related Agricultural Policies: The Case of Wheat in Zambia

OpenAIRE

Snodgrass, M M

1990-01-01

National planning for economic development has become an institutionalized process in most lesser developed nations of the world. A national plan is comprised of a set of development projects which individually and collectively are designed to contribute to achieving certain economic and social goals for the nation. Ideally, governments should have .a complementary set of price and trade policies that would enhance the success rate of development projects. It is now common practice to design ...

RegionsТ Competition for Investment Projects in Forest Development

Directory of Open Access Journals (Sweden)

Valentina Fedorovna Lapo

2014-06-01

Full Text Available The author considers the problem of competition between regions for investments. It is hypothesized that the presence of legislative stimulating benefits in a particular region, ceteris paribus, promotes investment flows in forest projects from other regions and is an instrumentl of inter-regional competition. To test the hypotheses the researcher uses a modified model with spatial weighted exogenous variables in order to assess the spatial effects. The obtained estimates indicate the presence of spatial effects, both negative (an inter-regional competition for investment and positive (agglomeration effects. The author argues that the process of inter-regional competition for investment in projects on forest development is caused by benefits under taxes and payments into the regional budget, regulation of pricing (including actions by natural and local monopolies and depreciation policy and solutions to put some forest projects in the list of priority ones. Along with this, the paper identifies agglomeration effects induced by a number of benefits: direct dealings in investment by financing or property contribution, subsidies, state guarantees, credit security and partial payment of interest

China prices up, ahead of major rail maintenance

Energy Technology Data Exchange (ETDEWEB)

NONE

2011-03-15

An update is given in China's coal industry. IN a move to keep more of its coal in China, a coal export quota of 38 mt has been set-up. Part. time closure of the Daqin railway line for maintenance is affecting prices. Development projects and mine safety are discussed. 1 photo.

Price developments in the region. A comparative analysis

International Nuclear Information System (INIS)

Gallagher, J.T.

2002-01-01

The ERRA Tariff and Pricing Committee has the following tasks: Data collection, research, round-table; Sharing information and potential solutions to common challenges; Highlight key issues, including common objectives, challenges and opportunities; Identify recent trends and developments; Discuss how member countries are addressing those challenges. These last step is discussed in detail. Future tasks and activities are highlighted. (R.P.)

Development of fuel prices and its impact on the future development of nuclear energy, the use of computer code DESAE

International Nuclear Information System (INIS)

Panik, M.; Necas, V.

2007-01-01

The thesis is an overview of fuel prices, its key components, such as the particular price and price of natural uranium fuel enrichment. The paper outlines the expected impact of higher fuel prices on the future development of nuclear energy. The last section is devoted to computer code DESAE, designed to calculate and compare advantages and disadvantages of different nuclear systems, but also to calculate the parameters of given nuclear system. They suggested the possibility of using code in practice. (author)

Photovoltaic (PV) Pricing Trends: Historical, Recent, and Near-Term Projections

Energy Technology Data Exchange (ETDEWEB)

Feldman, David [National Renewable Energy Lab. (NREL), Golden, CO (United States); Barbose, Galen [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Margolis, Robert [National Renewable Energy Lab. (NREL), Golden, CO (United States); Wiser, Ryan [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Darghouth, Naim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Goodrich, Alan [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2012-11-30

The installed capacity of global and U.S. photovoltaic (PV) systems has soared in recent years, driven by declining PV prices and government incentives. The U.S. Department of Energy’s (DOE) SunShot Initiative aims to make PV cost competitive without incentives by reducing the cost of PV-generated electricity by about 75% between 2010 and 2020. This summary report—based on research at Lawrence Berkeley National Laboratory (LBNL) and the National Renewable Energy Laboratory (NREL)—examines progress in PV price reductions to help DOE and other PV stakeholders manage the transition to a market-driven PV industry, and to provide clarity surrounding the wide variety of potentially conflicting data available about PV system prices.

National Health Expenditure Projections, 2015-25: Economy, Prices, And Aging Expected To Shape Spending And Enrollment.

Science.gov (United States)

Keehan, Sean P; Poisal, John A; Cuckler, Gigi A; Sisko, Andrea M; Smith, Sheila D; Madison, Andrew J; Stone, Devin A; Wolfe, Christian J; Lizonitz, Joseph M

2016-08-01

Health spending growth in the United States for 2015-25 is projected to average 5.8 percent-1.3 percentage points faster than growth in the gross domestic product-and to represent 20.1 percent of the total economy by 2025. As the initial impacts associated with the Affordable Care Act's coverage expansions fade, growth in health spending is expected to be influenced by changes in economic growth, faster growth in medical prices, and population aging. Projected national health spending growth, though faster than observed in the recent history, is slower than in the two decades before the recent Great Recession, in part because of trends such as increasing cost sharing in private health insurance plans and various Medicare payment update provisions. In addition, the share of total health expenditures paid for by federal, state, and local governments is projected to increase to 47 percent by 2025. Project HOPE—The People-to-People Health Foundation, Inc.

Multi-factor energy price models and exotic derivatives pricing

Science.gov (United States)

Hikspoors, Samuel

The high pace at which many of the world's energy markets have gradually been opened to competition have generated a significant amount of new financial activity. Both academicians and practitioners alike recently started to develop the tools of energy derivatives pricing/hedging as a quantitative topic of its own. The energy contract structures as well as their underlying asset properties set the energy risk management industry apart from its more standard equity and fixed income counterparts. This thesis naturally contributes to these broad market developments in participating to the advances of the mathematical tools aiming at a better theory of energy contingent claim pricing/hedging. We propose many realistic two-factor and three-factor models for spot and forward price processes that generalize some well known and standard modeling assumptions. We develop the associated pricing methodologies and propose stable calibration algorithms that motivate the application of the relevant modeling schemes.

The impact of wind power on APX day-ahead electricity prices in the Netherlands VVM-Intermittency project

Energy Technology Data Exchange (ETDEWEB)

Nieuwenhout, F.D.J. [ECN Policy Studies, Amsterdam (Netherlands); Brand, A.J. [ECN Wind Energy, Petten (Netherlands)

2013-02-15

A detailed analysis was conducted to assess to what extent availability of wind energy has influenced day-ahead electricity prices in the Netherlands over the period 2006-2009. With a meteorological model, time series of day-ahead wind forecasts were generated, and these were compared with APX-ENDEX day-ahead market prices. Wind energy contributes to only 4% of electricity generation in the Netherlands, but was found to depress average day-ahead market prices by about 5%. With the help of the bid curves on the APX-ENDEX day-ahead market for 2009, a model was developed to assess the impact of increasing levels of wind generation on power prices in the Netherlands. One of the main findings is that the future impact on prices will be less than in the past. With an increase of installed wind capacity from 2200 MW to 6000 MW, average day-ahead prices are expected to be depressed by an additional 6% in case no additional conventional generation is assumed. Taking into account existing government policy on wind and ongoing investments in new conventional power plants, prices in 2016 will be only 3% lower.

Energy consumption and economic development after the energy price increases of 1973

International Nuclear Information System (INIS)

Danielewski, J.

1993-01-01

The interdependence between energy consumption and economic development are highlighted in this research, which focuses on energy price rises between 1973 and 1989. Three groups of countries are identified, developing and developed market economies and centrally planned economies. Two areas of interdependence are examined, firstly the dynamic relationship between primary energy consumption growth and real economic growth and secondly the static relationship between primary energy consumption and national income. In the period under review, developing market economies reacted most strongly to higher energy prices, with lower energy consumption while maintaining real growth in the Gross Domestic Product. However developing countries and centrally planned economies increased their energy consumption per unit of national income although the rate of increase slowed after 1975. (UK)

Gas markets and pricing in Asia

International Nuclear Information System (INIS)

Mashayekhi, A.; Law, P.L.

1992-01-01

The issues of natural gas market development and pricing are reviewed within the context of specific Asian countries where gas plays an important role. Within Southeast Asia, Malaysia's Penninsular Gas Utilization project signals a new era in pipeline gas trade with an agreement to supply Singapore. There is now also an opportunity to extend Malaysian pipeline supplies to Thailand, which is actively seeking natural gas from neighboring countries. The prospects for LNG are dominated by the high growth markets of Japan, South Korea, and Taiwan. LNG trade has tended to bind the region together through close economic ties. Due to the increasing damand within the supplier countries themselves and their close neighbors, it is likely that LNG consumers will increasingly need to look beyond their traditional Southeast Asian suppliers in the future, perhaps to higher cost LNG schemes outside the region. In Southeast Asia, reduction of the high volumes of associated gas currently flared from the Bombay High Field in India will not only make big contribution to meeting the country's future gas demand, but will also prove environmentally beneficial. Pakistan, in order to control its developing gas markets, has raised gas prices to consumers substantially, with beneficial effects on supply and demand. In Bangladesh, economic pricing has been important in allocating gas resources efficiently. At both the regional and global level, the link between gas use and the environment is becoming stronger, raising the question of relating gas and energy prices to environmental costs and benefits

Another look on the relationships between oil prices and energy prices

International Nuclear Information System (INIS)

Lahiani, Amine; Miloudi, Anthony; Benkraiem, Ramzi; Shahbaz, Muhammad

2017-01-01

This paper employs the Quantile Autoregressive Distributed Lags (QARDL) model developed recently by Cho et al. (2015) to investigate the pass-through of oil prices to a set of energy prices. This approach allows analyzing simultaneously short-term connections and long-run cointegrating relationships across a range of quantiles. It also provides insights on the short-run predictive power of oil prices in predicting energy prices while accounting for the cointegration between oil prices and each of the considered energy prices in low, medium and high quantiles. Two key findings emerge from this paper. First, all considered energy prices are shown to be cointegrated with oil price across quantiles meaning that a stationaryequilibriumrelationship exists between single energy price and oil price. Second, we find evidence that oil price is a significant predictor of individual petroleum products prices and natural gas in the short run. This paper has important policy implications for forecasters, energy policy-makers and portfolio managers. - Highlights: • The pass-through of oil prices to a set of energy prices is investigated for US economy. • All considered energy prices are shown to be cointegrated with oil price across quantiles. • Oil price is a significant predictor of individual petroleum products prices in the short run. • Oil price also predicts natural gas prices in the short run.

Value pricing pilot program : lessons learned

Science.gov (United States)

2008-08-01

This "Lessons Learned Report" provides a summary of projects sponsored by the Federal Highway Administration's (FHWA's) Congestion and Value Pricing Pilot Programs from 1991 through 2006 and draws lessons from a sample of projects with the richest an...

Is the demand for alcoholic beverages in developing countries sensitive to price? Evidence from China.

Science.gov (United States)

Tian, Guoqiang; Liu, Feng

2011-06-01

Economic literature in developed countries suggests that demand for alcoholic beverages is sensitive to price, with an estimated price elasticity ranging from -0.38 for beer and -0.7 for liquor. However, few studies have been conducted in developing countries. We employ a large individual-level dataset in China to estimate the effects of price on alcohol demand. Using the data from China Health and Nutrition Survey for the years 1993, 1997, 2000, 2004 and 2006, we estimate two-part models of alcohol demand. Results show the price elasticity is virtually zero for beer and only -0.12 for liquor, which is far smaller than those derived from developed countries. Separate regressions by gender reveals the results are mainly driven by men. The central implication of this study is, while alcohol tax increases can raise government revenue, it alone is not an effective policy to reduce alcohol related problems in China.

PRICE AND PRICING STRATEGIES

OpenAIRE

SUCIU Titus

2013-01-01

In individual companies, price is one significant factor in achieving marketing success. In many purchase situations, price can be of great importance to customers. Marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Management should decide whether to charge the same price to all similar buyers of identical quantities of a product (a one-price strategy) or to set different prices (a flexible price strategy). Many organizations, especially retai...

Wood-energy: success depends on the price of fossil energies and on the carbon tax level

International Nuclear Information System (INIS)

Defaye, Serge; Maindrault, Marc

2016-01-01

Illustrated by several graphs indicating the structure of fossil energy prices, the comparison between domestic fuel and wood-energy for public network exploitation, the levels of fossil prices and carbon tax for non-subsidised projects, this article analyses the development of biomass (and more particularly wood-energy), the success of which depends on the price of fossil energies and on the carbon tax level. It outlines the differences of price-building elements between fossil and renewable heat, that subsidies are necessary if reference prices are low. It discusses the influence of carbon tax level and of fossil prices. It finally identifies conditions to be met (reduction of fossil energy supply and therefore higher fossil prices, introduction of a carbon tax) to reach COP objectives

The price of oil and the future of Middle East Gas

International Nuclear Information System (INIS)

Zaki Yamani, A.

1997-01-01

Most LNG contracts relate the LNG price received by the supplier at the point of delivery to a relevant oil price. Gas and oil are thus closely connected so that when the price of landed oil decreases so dose the price of delivered LNG. With large fixed transportation and liquefaction costs, accounting for around 85% of the supply cost of delivered LNG in the case of Qatari LNG supplied to japan, you can imagine how large falls in the price paid for delivered LNG would squeeze the net back to the producer back in Qatar. However, low oil price can do some damage to the economics of existing LNG projects in the Middle East. More importantly, persistently low oil prices can prevent new LNG projects from leaving the drawing board-which will stifle the exciting export potential of Middle Eastern gas

Dynamic cyclical comovements of oil prices with industrial production, consumer prices, unemployment, and stock prices

International Nuclear Information System (INIS)

Ewing, Bradley T.; Thompson, Mark A.

2007-01-01

This paper examines the empirical relationship between oil prices and several key macroeconomic variables. In particular, we investigate the cyclical comovements of crude oil prices with output, consumer prices, unemployment, and stock prices. The methodology involves the use of the Hodrick-Prescott [Hodrick, R.J., Prescott, E.C., 1980. Post-War US Business Cycles: An Empirical Investigation. Working Paper, Carnegie Mellon University] and Baxter-King [Baxter, M., King, R.G., 1999. Measuring business cycles: approximate band-pass filters for economic time series. Review of Economics and Statistics 81, 575-593] filters, as well as the recently developed full-sample asymmetric Christiano-Fitzgerald [Christiano, L.J., Fitzgerald, T.J., 2003. The band pass filter. International Economic Review 44, 435-465] band-pass filter. Contemporaneous and cross-correlation estimates are made using the stationary cyclical components of the time series to make inference about the degree to which oil prices move with the cycle. Besides documenting a number of important cyclical relationships using three different time series filtering methods, the results suggest that crude oil prices are procyclical and lag industrial production. Additionally, we find that oil prices lead consumer prices. (author)

A DYNAMIC APPROACH TO CALCULATE SHADOW PRICES OF WATER RESOURCES FOR NINE MAJOR RIVERS IN CHINA

Institute of Scientific and Technical Information of China (English)

Jing HE; Xikang CHEN; Yong SHI

2006-01-01

China is experiencing from serious water issues. There are many differences among the Nine Major Rivers basins of China in the construction of dikes, reservoirs, floodgates, flood discharge projects, flood diversion projects, water ecological construction, water conservancy management, etc.The shadow prices of water resources for Nine Major Rivers can provide suggestions to the Chinese government. This article develops a dynamic shadow prices approach based on a multiperiod input-output optimizing model. Unlike previous approaches, the new model is based on the dynamic computable general equilibrium (DCGE) model to solve the problem of marginal long-term prices of water resources.First, definitions and algorithms of DCGE are elaborated. Second, the results of shadow prices of water resources for Nine Major Rivers in 1949-2050 in China using the National Water Conservancy input-holding-output table for Nine Major Rivers in 1999 are listed. A conclusion of this article is that the shadow prices of water resources for Nine Major Rivers are largely based on the extent of scarcity.Selling prices of water resources should be revised via the usage of parameters representing shadow prices.

The pitfalls of capital budgeting : when costs correlate to oil price. Is the real-options approach superior to traditional valuation?

Energy Technology Data Exchange (ETDEWEB)

Schiozer, R.F. [Getulio Vargas Foundation, Sao Paolo (Brazil). School of Administration de Empresas; Costa Lima, G.A.; Suslick, S.B. [Unicamp, Campinas (Brazil). Center of Petroleum Studies

2007-07-01

Due to increased demand for drilling rigs, specialized labor force and other resources, the costs of exploration, appraisal, development and production have significantly risen over the last five years. The change in costs has mostly been attributed to the increased activity in the oil and gas exploration and production (EP) industry, as a result of the increase in oil prices. It was hypothesized that operating costs in the EP industry were strongly correlated to the price of oil. However, the correlation between prices and costs has traditionally been overlooked in the capital budgeting process. This paper investigated the economic relationship between oil price and the operating costs in the EP industry. It also explored its implications for the capital budgeting process and decision-making. The paper demonstrated the evaluation of projects under traditional net present value (NPV) and real-option approaches. Empirical evidence was also provided on how costs correlated to oil prices. The differences between project valuation when cost-price correlation was taken into account or not was also discussed. Last, findings, conclusions and general implications of the results obtained for the decision-making process were identified. It was concluded that there was a positive correlation between price and operating costs, and that overlooking this relationship would have significant implications on the valuation of investment projects, both using a traditional NPV methodology, which resulted in undervalued projects, and under real option analysis, which resulted in overvaluing projects. 6 refs., 2 tabs., 5 figs.

The pitfalls of capital budgeting : when costs correlate to oil price. Is the real-options approach superior to traditional valuation?

International Nuclear Information System (INIS)

Schiozer, R.F.; Costa Lima, G.A.; Suslick, S.B.

2007-01-01

Due to increased demand for drilling rigs, specialized labor force and other resources, the costs of exploration, appraisal, development and production have significantly risen over the last five years. The change in costs has mostly been attributed to the increased activity in the oil and gas exploration and production (EP) industry, as a result of the increase in oil prices. It was hypothesized that operating costs in the EP industry were strongly correlated to the price of oil. However, the correlation between prices and costs has traditionally been overlooked in the capital budgeting process. This paper investigated the economic relationship between oil price and the operating costs in the EP industry. It also explored its implications for the capital budgeting process and decision-making. The paper demonstrated the evaluation of projects under traditional net present value (NPV) and real-option approaches. Empirical evidence was also provided on how costs correlated to oil prices. The differences between project valuation when cost-price correlation was taken into account or not was also discussed. Last, findings, conclusions and general implications of the results obtained for the decision-making process were identified. It was concluded that there was a positive correlation between price and operating costs, and that overlooking this relationship would have significant implications on the valuation of investment projects, both using a traditional NPV methodology, which resulted in undervalued projects, and under real option analysis, which resulted in overvaluing projects. 6 refs., 2 tabs., 5 figs

Energy price increases and economic development in Malaysia.

OpenAIRE

Fong CO

1984-01-01

ILO pub-WEP pub. Working paper on the impact of higher energy costs (particularly petroleum price increases) on economic development in Malaysia, 1973 to 1983 - outlines trends in gross domestic product, balance of payments, trade and economic growth; considers household income and fuel expenditure of low income rural communitys; deals with choice of technology and employment in certain high power consumption industries; discusses energy policy implications. Graphs, maps, questionnaires, refe...

The price of electricity from private power producers

Energy Technology Data Exchange (ETDEWEB)

Kahn, E.; Milne, A.; Kito, S.

1993-10-01

The long-term wholesale electricity market is becoming increasingly competitive. Bidding for power contracts has become a dominant form of competition in this sector. The prices which emerge from this process have not been documented and compared in a systematic framework. This paper introduces a method to make such comparisons and illustrates it on a small sample of projects. This results show a wide range of prices for what is essentially the same technology, gas-fired combined cycle generation. The price range seems greater than what could be explained by transmission cost differences between high and low cost regions. For the smaller sample of coal-fired projects, price variation is substantially less. Further data collection and analysis should be able to help isolate more clearly what market or cost factors are responsible for the observed variation.

The impact of electricity price changes on industrial prices and the general price level in Korea

International Nuclear Information System (INIS)

Lim, Seul-Ye; Yoo, Seung-Hoon

2013-01-01

Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity. - Highlights: • We investigate the impact of electricity price changes on the Korean economy. • We use the input–output (I–O) analysis specifying the electricity sector as exogenous. • We apply the I–O price model to 2010 I–O table produced by the Bank of Korea. • The impact of a 10% increase in electricity price on the Korean economy is 0.2176%

Oil price and food price volatility dynamics: The case of Nigeria

Directory of Open Access Journals (Sweden)

Ijeoma C. Nwoko

2016-12-01

Full Text Available This study examines the long and short run relationships between oil price and food price volatility as well as the causal link between them. The study used annual food price volatility index from FAO from 2000 to 2013 and crude oil price from U.S. Energy Information and Administration (EIA from 2000 to 2013. The Johansen and Jesulius co-integration test revealed that there is a long run relationship between oil price and domestic food price volatility. The vector error correction model indicated a positive and significant short run relationship between oil price and food price volatility. The Granger causality test revealed a unidirectional causality with causality running from oil price to food price volatility but not vice versa. It is recommended that policies and interventions that will help reduce uncertainty about food prices such as improved market information, trade policies and investment in research and development among others should be encouraged. Also to reduce the effect of oil price shock, it is recommended that government should subsidise pump price of refined oil, seek alternative sources of energy and there should be less dependence on oil for fertilizer production.

Examining the impacts of Feed-in-Tariff and the Clean Development Mechanism on Korea's renewable energy projects through comparative investment analysis

International Nuclear Information System (INIS)

Koo, Bonsang

2017-01-01

Renewable energy projects in Korea have two avenues that provide subsidies to increase their financial viability. Feed-in-Tariffs (FITs) offer cost based prices for renewable electricity to compete with conventional energy producers. The Clean Development Mechanism (CDM) issues certified emission reduction (CER) credits that generate additional revenues, enhancing renewable projects’ return on investment. This study investigated how these subsidies impact the financial returns on Korea's CDM projects. An investment analysis was performed on four cases including solar, hydropower, wind and landfill gas projects. Revenues from electricity sales, FITs and CERs were compared using financial indicators to measure their relative contributions on profitability. Results indicate that CDM is partial towards large scale projects with high emission reductions. Moreover, conflicts with FIT schemes can deter small scale, capital intensive projects from pursuing registration. The analysis highlights CDM's bias for particular project types, which is in part due to its impartiality towards carbon credit prices. It also reveals that Korea, a key benefactor of CDM, is susceptible to such biases, as demonstrated by the disproportionate distribution of issued CERs. Improving incentives for bundled, small scale projects, CER price differentiation, and excluding domestic subsidies during additionality testing are proposed as possible reforms. - Highlights: • Korea constitute 8.2% of total CERs issued, third largest in the world after China and India. • CDM favors commercially competitive projects of large scale and high emissions. • 91% of issued CERs from GWP gas; of renewables, 88% from landfill gas and wind. • CER revenues marginal for small scale, commercially less attractive projects. • Conflicts with FIT potentially deters small scale projects from registration.

Is the Demand for Alcoholic Beverages in Developing Countries Sensitive to Price? Evidence from China

Science.gov (United States)

Tian, Guoqiang; Liu, Feng

2011-01-01

Economic literature in developed countries suggests that demand for alcoholic beverages is sensitive to price, with an estimated price elasticity ranging from −0.38 for beer and −0.7 for liquor. However, few studies have been conducted in developing countries. We employ a large individual-level dataset in China to estimate the effects of price on alcohol demand. Using the data from China Health and Nutrition Survey for the years 1993, 1997, 2000, 2004 and 2006, we estimate two-part models of alcohol demand. Results show the price elasticity is virtually zero for beer and only −0.12 for liquor, which is far smaller than those derived from developed countries. Separate regressions by gender reveals the results are mainly driven by men. The central implication of this study is, while alcohol tax increases can raise government revenue, it alone is not an effective policy to reduce alcohol related problems in China. PMID:21776220

Is the Demand for Alcoholic Beverages in Developing Countries Sensitive to Price? Evidence from China

Directory of Open Access Journals (Sweden)

Feng Liu

2011-06-01

Full Text Available Economic literature in developed countries suggests that demand for alcoholic beverages is sensitive to price, with an estimated price elasticity ranging from −0.38 for beer and −0.7 for liquor. However, few studies have been conducted in developing countries. We employ a large individual-level dataset in China to estimate the effects of price on alcohol demand. Using the data from China Health and Nutrition Survey for the years 1993, 1997, 2000, 2004 and 2006, we estimate two-part models of alcohol demand. Results show the price elasticity is virtually zero for beer and only −0.12 for liquor, which is far smaller than those derived from developed countries. Separate regressions by gender reveals the results are mainly driven by men. The central implication of this study is, while alcohol tax increases can raise government revenue, it alone is not an effective policy to reduce alcohol related problems in China.

An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries

International Nuclear Information System (INIS)

Thiam, Djiby Racine

2011-01-01

The purpose of this paper is to investigate price support for market penetration of renewable energy in developing nations through a decentralized supply process. We integrate the new decentralized energy support: renewable premium tariff, to analyze impacts of tariff incentives on the diffusion of renewable technology in Senegal. Based on photovoltaic and wind technologies and an assessment of renewable energy resources in Senegal, an optimization technique is combined with a cash flow analysis to investigate investment decisions in renewable energy sector. Our findings indicate that this support mechanism could strengthen the sustainable deployment of renewable energy in remote areas of Senegal. Although different payoffs emerged, profits associated with a renewable premium tariff are the highest among the set of existing payoffs. Moreover in analyzing impacts of price incentives on social welfare, we show that price tariffing schemes must be strategically scrutinized in order to minimize welfare loss associated with price incentives. Finally we argue that a sustainable promotion of incentive mechanisms supporting deployment of renewable technology in developing nations should be carried out under reliable institutional structures. The additional advantage of the proposed methodology is its ability to integrate different stakeholders (producers, investors and consumers) in the planning process. - Highlights: → We simulate impacts of price support for market penetration of renewable technology in developing nations. → An array of price incentive mechanisms strengthens diffusion of renewable technology in Senegal. → Moreover, reliable institutional frameworks in developing nations are a requirement in order to strengthen diffusion path of renewable technologies.

Simulation-based valuation of project finance investments. Crucial aspects of power plant projects

Energy Technology Data Exchange (ETDEWEB)

Pietz, Matthaeus

2010-12-15

The liberalization of electricity markets transformed a regulated and stable market to a market with former unknown price volatility. This results in a high uncertainty which is mainly due to the, from an economic point of view, lack of storability of the commodity electricity. Thus investments in power plants are highly risky. This dissertation analyzes crucial aspects within the valuation of a power plant financed via project finance, a popular financing method for projects with high capital requirements. Starting with the development of a valuation model based on stochastic modelling of the future cash flows the focus of the analysis is on the impact of model complexity and electricity prices. (orig.)

Natural gas purchasing for cogeneration projects

International Nuclear Information System (INIS)

Kubacki, J. Jr.

1992-01-01

This paper reports on the primary cost component for most gas-fired cogeneration or on-site power projects, cost of natural gas. Often gas comprises 50 to 65% of total project costs over the life of the project. Thus it is very important to focus on natural gas sourcing, pricing, transportation and storage. This important task should not be blindly delegated to a gas supplier. The end user must develop a gas strategy that results in the most cost-effective burnertip price. Long-term natural gas supplies are usually source from the three major producing regions: Mod-Continent, Gulf Coast, and Western Canada. A well-reasoned gas strategy must include: determination of transportation and distribution options from the project site to potential gas sources (including direct interconnection of the project to interstate pipelines); acquisition of competitive gas bids from suppliers in appropriate regions; negotiation of potential discounts from interstate pipelines and local distribution companies (LDCs); fine-tuning project economics by, for example, using storage to maximize transportation load factor; and pricing mechanisms that meet economic parameters of the project. This paper uses a hypothetical project in the Midwest to examine the major factors in devising a cost-effective natural gas sourcing

Seeking lower prices where providers are consolidated: an examination of market and policy strategies.

Science.gov (United States)

Ginsburg, Paul B; Pawlson, L Gregory

2014-06-01

The ongoing consolidation between and among hospitals and physicians tends to raise prices for health care services, which poses increasing challenges for private purchasers and payers. This article examines strategies that these purchasers and payers can pursue to combat provider leverage to increase prices. It also examines opportunities for governments to either support or constrain these strategies. In response to higher prices, payers are developing new approaches to benefit and network design, some of which may be effective in moderating prices and, in some cases, volume. These approaches interact with public policy because regulation can either facilitate or constrain them. Federal and state governments also have opportunities to limit consolidation's effect on prices by developing antitrust policies that better address current market environments and by fostering the development of physician organizations that can increase competition and contract with payers under shared-savings approaches. The success of these private- and public-sector initiatives likely will determine whether governments shift from supporting competition to directly regulating payment rates. Project HOPE—The People-to-People Health Foundation, Inc.

Prices and Price Setting

NARCIS (Netherlands)

R.P. Faber (Riemer)

2010-01-01

textabstractThis thesis studies price data and tries to unravel the underlying economic processes of why firms have chosen these prices. It focuses on three aspects of price setting. First, it studies whether the existence of a suggested price has a coordinating effect on the prices of firms.

Spatial Data Web Services Pricing Model Infrastructure

Science.gov (United States)

Ozmus, L.; Erkek, B.; Colak, S.; Cankurt, I.; Bakıcı, S.

2013-08-01

The General Directorate of Land Registry and Cadastre (TKGM) which is the leader in the field of cartography largely continues its missions which are; to keep and update land registry and cadastre system of the country under the responsibility of the treasure, to perform transactions related to real estate and to establish Turkish national spatial information system. TKGM a public agency has completed many projects. Such as; Continuously Operating GPS Reference Stations (TUSAGA-Aktif), Geo-Metadata Portal (HBB), Orthophoto-Base Map Production and web services, Completion of Initial Cadastre, Cadastral Renovation Project (TKMP), Land Registry and Cadastre Information System (TAKBIS), Turkish National Spatial Data Infrastructure Project (TNSDI), Ottoman Land Registry Archive Information System (TARBIS). TKGM provides updated map and map information to not only public institutions but also to related society in the name of social responsibility principals. Turkish National Spatial Data Infrastructure activities have been started by the motivation of Circular No. 2003/48 which was declared by Turkish Prime Ministry in 2003 within the context of e-Transformation of Turkey Short-term Action Plan. Action No. 47 in the mentioned action plan implies that "A Feasibility Study shall be made in order to establish the Turkish National Spatial Data Infrastructure" whose responsibility has been given to General Directorate of Land Registry and Cadastre. Feasibility report of NSDI has been completed in 10th of December 2010. After decision of Steering Committee, feasibility report has been send to Development Bank (old name State Planning Organization) for further evaluation. There are two main arrangements with related this project (feasibility report).First; Now there is only one Ministry which is Ministry of Environment and Urbanism responsible for establishment, operating and all national level activities of NSDI. And Second arrangement is related to institutional Level. The

Unit Pricing and Alternatives: Developing an Individualized Shopping Strategy.

Science.gov (United States)

Cude, Brenda; Walker, Rosemary

1985-01-01

This article offers a new perspective on the teaching of unit pricing in consumer economics classes by identifying ways to teach the costs as well as the benefits of unit pricing and realistic guidelines for suggesting situations in which it is most appropriate. Alternatives to unit pricing will also be explored. (CT)

Process, cost modeling and simulations for integrated project development of biomass for fuel and protein

International Nuclear Information System (INIS)

Pannir Selvam, P.V.; Wolff, D.M.B.; Souza Melo, H.N.

1998-01-01

The construction of the models for biomass project development are described. These models, first constructed using QPRO electronic spread sheet for Windows, are now being developed with the aid of visual and object oriented program as tools using DELPHI V.1 for windows and process simulator SUPERPRO, V.2.7 Intelligent Inc. These models render the process development problems with economic objectives to be solved very rapidly. The preliminary analysis of cost and investments of biomass utilisation projects which are included for this study are: steam, ammonia, carbon dioxide and alkali pretreatment process, methane gas production using anaerobic digestion process, aerobic composting, ethanol fermentation and distillation, effluent treatments using high rate algae production as well as cogeneration of energy for drying. The main project under developments are the biomass valuation projects with the elephant (Napier) grass, sugar cane bagasse and microalgae, using models for mass balance, equipment and production cost. The sensibility analyses are carried out to account for stochastic variation of the process yield, production volume, price variations, using Monte Carlo method. These models allow the identification of economical and scale up problems of the technology. The results obtained with few preliminary project development with few case studies are reported for integrated project development for fuel and protein using process and cost simulation models. (author)

Nodal price volatility reduction and reliability enhancement of restructured power systems considering demand-price elasticity

International Nuclear Information System (INIS)

Goel, L.; Wu, Qiuwei; Wang, Peng

2008-01-01

With the development of restructured power systems, the conventional 'same for all customers' electricity price is getting replaced by nodal prices. Electricity prices will fluctuate with time and nodes. In restructured power systems, electricity demands will interact mutually with prices. Customers may shift some of their electricity consumption from time slots of high electricity prices to those of low electricity prices if there is a commensurate price incentive. The demand side load shift will influence nodal prices in return. This interaction between demand and price can be depicted using demand-price elasticity. This paper proposes an evaluation technique incorporating the impact of the demand-price elasticity on nodal prices, system reliability and nodal reliabilities of restructured power systems. In this technique, demand and price correlations are represented using the demand-price elasticity matrix which consists of self/cross-elasticity coefficients. Nodal prices are determined using optimal power flow (OPF). The OPF and customer damage functions (CDFs) are combined in the proposed reliability evaluation technique to assess the reliability enhancement of restructured power systems considering demand-price elasticity. The IEEE reliability test system (RTS) is simulated to illustrate the developed techniques. The simulation results show that demand-price elasticity reduces the nodal price volatility and improves both the system reliability and nodal reliabilities of restructured power systems. Demand-price elasticity can therefore be utilized as a possible efficient tool to reduce price volatility and to enhance the reliability of restructured power systems. (author)

Do national drug policies influence antiretroviral drug prices? Evidence from the Southern African Development community.

Science.gov (United States)

Liu, Yao; Galárraga, Omar

2017-03-01

The efficacy of low- and middle-income countries’ (LMIC) national drug policies in managing antiretroviral (ARV) pharmaceutical prices is not well understood. Though ARV drug prices have been declining in LMIC over the past decade, little research has been done on the role of their national drug policies. This study aims to (i) analyse global ARV prices from 2004 to 2013 and (ii) examine the relationship of national drug policies to ARV prices. Analysis of ARV drug prices utilized data from the Global Price Reporting Mechanism from the World Health Organization (WHO). Ten of the most common ARV drugs (first-line and second-line) were selected. National drug policies were also assessed for 12 countries in the South African Development Community (SADC), which self-reported their policies through WHO surveys. The best predictor of ARV drug price was generic status—the generic versions of 8 out of 10 ARV drugs were priced lower than branded versions. However, other factors such as transaction volume, HIV prevalence, national drug policies and PEPFAR/CHAI involvement were either not associated with ARV drug price or were not consistent predictors of price across different ARV drugs. In the context of emerging international trade agreements, which aim to strengthen patent protections internationally and potentially delay the sale of generic drugs in LMIC, this study shines a spotlight on the importance of generic drugs in controlling ARV prices. Further research is needed to understand the impact of national drug policies on ARV prices.

Food Prices and Climate Extremes: A Model of Global Grain Price Variability with Storage

Science.gov (United States)

Otto, C.; Schewe, J.; Frieler, K.

2015-12-01

Extreme climate events such as droughts, floods, or heat waves affect agricultural production in major cropping regions and therefore impact the world market prices of staple crops. In the last decade, crop prices exhibited two very prominent price peaks in 2007-2008 and 2010-2011, threatening food security especially for poorer countries that are net importers of grain. There is evidence that these spikes in grain prices were at least partly triggered by actual supply shortages and the expectation of bad harvests. However, the response of the market to supply shocks is nonlinear and depends on complex and interlinked processes such as warehousing, speculation, and trade policies. Quantifying the contributions of such different factors to short-term price variability remains difficult, not least because many existing models ignore the role of storage which becomes important on short timescales. This in turn impedes the assessment of future climate change impacts on food prices. Here, we present a simple model of annual world grain prices that integrates grain stocks into the supply and demand functions. This firstly allows us to model explicitly the effect of storage strategies on world market price, and thus, for the first time, to quantify the potential contribution of trade policies to price variability in a simple global framework. Driven only by reported production and by long--term demand trends of the past ca. 40 years, the model reproduces observed variations in both the global storage volume and price of wheat. We demonstrate how recent price peaks can be reproduced by accounting for documented changes in storage strategies and trade policies, contrasting and complementing previous explanations based on different mechanisms such as speculation. Secondly, we show how the integration of storage allows long-term projections of grain price variability under climate change, based on existing crop yield scenarios.

Formulation of price strategies in the software sector: outsourcing of development and maintenance software product case

Directory of Open Access Journals (Sweden)

Antonio Cezar Bornia

2008-07-01

Full Text Available The main goal of this article is to discuss the formulation of price strategies in the software sector. In the intention of reaching the proposed goal, strategies models of prices are introduced along with the procedure to the formulation of price strategies, composed by five stages: external and internal analyses, consolidation, positioning, price strategy formalization and market attendance. As for the methodology, the study is classified as qualitative, exploratory, descriptive, documental, of field and case study, according to the approach of Vergara (1998. In the case study, the model to the formulation of price strategies is applied in a company’s software sector, being analyzed the outsourcing of development and maintenance software product. As main contributions, it is highlighted the price procedure application that emphasizes strategic price logic and prices strategies formulations, with base in the analysis of five main factors: quality, comparison with the competition, company life cycle, product life cycle and characteristics of the segment-objective. Based on the analyzed factors, a possible strategy to be adopted considering the characteristics of the product and the company is the price strategy and superior value. Key-words: Pricing Strategies. Price Formulation. Software Enterprises.

Estimating inpatient hospital prices from state administrative data and hospital financial reports.

Science.gov (United States)

Levit, Katharine R; Friedman, Bernard; Wong, Herbert S

2013-10-01

To develop a tool for estimating hospital-specific inpatient prices for major payers. AHRQ Healthcare Cost and Utilization Project State Inpatient Databases and complete hospital financial reporting of revenues mandated in 10 states for 2006. Hospital discharge records and hospital financial information were merged to estimate revenue per stay by payer. Estimated prices were validated against other data sources. Hospital prices can be reasonably estimated for 10 geographically diverse states. All-payer price-to-charge ratios, an intermediate step in estimating prices, compare favorably to cost-to-charge ratios. Estimated prices also compare well with Medicare, MarketScan private insurance, and the Medical Expenditure Panel Survey prices for major payers, given limitations of each dataset. Public reporting of prices is a consumer resource in making decisions about health care treatment; for self-pay patients, they can provide leverage in negotiating discounts off of charges. Researchers can also use prices to increase understanding of the level and causes of price differentials among geographic areas. Prices by payer expand investigational tools available to study the interaction of inpatient hospital price setting among public and private payers--an important asset as the payer mix changes with the implementation of the Affordable Care Act. © Published 2013. This article is a U.S. Government work and is in the public domain in the USA.

Development of a large-screen high-definition laser video projection system

Science.gov (United States)

Clynick, Tony J.

1991-08-01

A prototype laser video projector which uses electronic, optical, and mechanical means to project a television picture is described. With the primary goal of commercial viability, the price/performance ratio of the chosen means is critical. The fundamental requirement has been to achieve high brightness, high definition images of at least movie-theater size, at a cost comparable with other existing large-screen video projection technologies, while having the opportunity of developing and exploiting the unique properties of the laser projected image, such as its infinite depth-of-field. Two argon lasers are used in combination with a dye laser to achieve a range of colors which, despite not being identical to those of a CRT, prove to be subjectively acceptable. Acousto-optic modulation in combination with a rotary polygon scanner, digital video line stores, novel specialized electro-optics, and a galvanometric frame scanner form the basis of the projection technique achieving a 30 MHz video bandwidth, high- definition scan rates (1125/60 and 1250/50), high contrast ratio, and good optical efficiency. Auditorium projection of HDTV pictures wider than 20 meters are possible. Applications including 360 degree(s) projection and 3-D video provide further scope for exploitation of the HD laser video projector.

Role of Renewable Energy Certificates in Developing New Renewable Energy Projects

Energy Technology Data Exchange (ETDEWEB)

Holt, E.; Sumner, J.; Bird, L.

2011-06-01

For more than a decade, renewable energy certificates (RECs) have grown in use, becoming a common way to track ownership of the renewable and environmental attributes of renewable electricity generation. In recent years, however, questions have risen about the role RECs play in the decision to build new renewable energy projects. Information from a variety of market participants suggests that the importance of RECs in building new projects varies depending on a number of factors, including electricity market prices, the cost-competitiveness of the project, the presence or absence of public policies supportive of new projects, contract duration, and the perspective of different market participants. While there is no single answer to the role that RECs play, there are situations in which REC revenues are essential to project economics, as well as some where REC revenues may have little impact. To strengthen the role RECs play in both compliance and voluntary markets, there are a number of options that could be considered. In compliance markets, lawmakers or regulators would have to adopt measures that strengthen the role of RECs in the development of new projects, while in voluntary markets, it would be up to program leaders and market participants themselves to implement measures.

Dynamics of the international coffee market and instrumental in price formation

Directory of Open Access Journals (Sweden)

Ricardo Candéa Sá Barreto

2016-12-01

Full Text Available This study's main general objective of studying the behavior of coffee beans on the international market. Empirical analysis uses econometric tool as a model of simultaneous equations using least squares in a three-stage annual data base extending over the period 1964 / 65-2014 / 15. The results suggest that the factors that affect the production of coffee beans are the actual prices and the planted area. However, demand is affected by the growth of the world economy. The price simulations for the period 2014/15 - 2020/21 indicate that a yearly growth (GDP of 2.1% there is a tendency of small high price to 3.6% moderate rise in the price of coffee until 2018/19 and a stronger growth trend of prices from 2019/20 and a growth of 4.7% a high coffee prices trend in grain on the international market. Thus the tendency of the projections 3 and the key market factors continue to favor the maintenance of current high coffee prices. For the full period 1964/65 to 2014/15 there is a moderate relationship between coffee prices and the stock. It follows that the results obtained with the scenarios developed in this work can be useful to rethink measures to recover income from coffee producing countries

The Pricing of natural gas

International Nuclear Information System (INIS)

Nese, Gjermund

2004-11-01

The report focuses on the pricing of natural gas. The motivation has been the wish of the Norwegian authorities to increase the use of natural gas and that this should follow market conditions. The pricing of gas occurs at present in various ways in the different markets. The report identifies to main factors behind the pricing. 1) The type of market i.e. how far the liberalization of the gas markets has gone in the various countries. 2) The development within the regulation, climate and tax policies. The gas markets are undergoing as the energy markets in general, a liberalization process where the traditional monopoly based market structures are replaced by markets based on competition. There are great differences in the liberalization development of the various countries, which is reflected in the various pricing principles applied for the trade of gas in the countries. The analysis shows that the net-back-pricing is predominant in some countries i.e. that the price is in various ways indexed towards and follow the development of the price of alternative energy carriers so that the gas may be able to compete. The development towards trade places for gas where the pricing is based on offer and demand is already underway. As the liberalization of the European gas markets progresses it is expected that the gas price will be determined increasingly at spot markets instead of through bilateral agreements between monopolistic corporations. The development within the regulation, climate and tax policies and to what extent this may influence the gas prices in the future, are also studied. There seem to be effects that may pull in both directions but it is evident that these political variables will influence the gas pricing in the international market to a large extent and thereby also the future internal natural gas market

Utility-Scale Solar 2015: An Empirical Analysis of Project Cost, Performance, and Pricing Trends in the United States

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Environmental Energy Technologies Division; Seel, Joachim [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Environmental Energy Technologies Division

2016-08-17

The utility-scale solar sector—defined here to include any ground-mounted photovoltaic (“PV”), concentrating photovoltaic (“CPV”), or concentrating solar power (“CSP”) project that is larger than 5 MWAC in capacity—has led the overall U.S. solar market in terms of installed capacity since 2012. It is expected to maintain its market-leading position for at least another five years, driven in part by December 2015’s three-year extension of the 30% federal investment tax credit (“ITC”) through 2019 (coupled with a favorable switch to a “start construction” rather than a “placed in service” eligibility requirement, and a gradual phase down of the credit to 10% by 2022). In fact, in 2016 alone, the utility-scale sector is projected to install more than twice as much new capacity as it ever has previously in a single year. This unprecedented boom makes it difficult, yet more important than ever, to stay abreast of the latest utility-scale market developments and trends. This report—the fourth edition in an ongoing annual series—is intended to help meet this need, by providing in-depth, annually updated, data-driven analysis of the utility-scale solar project fleet in the United States. Drawing on empirical project-level data from a wide range of sources, this report analyzes not just installed project costs or prices—i.e., the traditional realm of most solar economic analyses—but also operating costs, capacity factors, and power purchase agreement (“PPA”) prices from a large sample of utility-scale solar projects throughout the United States. Given its current dominance in the market, utility-scale PV also dominates much of this report, though data from CPV and CSP projects are also presented where appropriate.

[Discussion on releasing price of Chinese patent medicine to market economy to achieve sustainable development].

Science.gov (United States)

Long, Xingchao; Huang, Luqi; Jiang, Erguo; Zhou, Yonghong; Xu, Yanfeng; Zheng, Shuhua; Ning, Xiaoling; Liu, Hongwei; Chen, Lin

2012-02-01

To analyze costs of the traditional Chinese medicine industry focusing on production costs. Data of 50 planted Chinese herbal medicines and 50 wild Chinese herbal medicines were summarized and analyzed to see the changes of price of Chinese herbal medicines. The derivative problems of limited price were analyzed by crude drug, quality of Chinese medicine and sustainable utilization of resource. The price of Chinese medicine shall be adapted to sustainable development of market economy.

Option pricing: Stock price, stock velocity and the acceleration Lagrangian

Science.gov (United States)

Baaquie, Belal E.; Du, Xin; Bhanap, Jitendra

2014-12-01

The industry standard Black-Scholes option pricing formula is based on the current value of the underlying security and other fixed parameters of the model. The Black-Scholes formula, with a fixed volatility, cannot match the market's option price; instead, it has come to be used as a formula for generating the option price, once the so called implied volatility of the option is provided as additional input. The implied volatility not only is an entire surface, depending on the strike price and maturity of the option, but also depends on calendar time, changing from day to day. The point of view adopted in this paper is that the instantaneous rate of return of the security carries part of the information that is provided by implied volatility, and with a few (time-independent) parameters required for a complete pricing formula. An option pricing formula is developed that is based on knowing the value of both the current price and rate of return of the underlying security which in physics is called velocity. Using an acceleration Lagrangian model based on the formalism of quantum mathematics, we derive the pricing formula for European call options. The implied volatility of the market can be generated by our pricing formula. Our option price is applied to foreign exchange rates and equities and the accuracy is compared with Black-Scholes pricing formula and with the market price.

The response of the Beijing carbon emissions allowance price (BJC) to macroeconomic and energy price indices

International Nuclear Information System (INIS)

Zeng, Shihong; Nan, Xin; Liu, Chao; Chen, Jiuying

2017-01-01

In 2013, China opened pilot carbon emission trading markets in seven provinces, where carbon emission allowances have now been traded for more than two years. In this paper, we employ a structural VAR model and the price of the Beijing carbon emission allowance to study the dynamic relationships among the price of the carbon emission allowance, economic development and the price of energy. This paper's data cover the period from April 2, 2014 to November 6, 2015. This paper provides information that will be helpful to both investors and governmental policy makers. The results show that (1) an increase of one standard deviation in the coal price leads to an initial increase of approximately 0.1% in the Beijing carbon price. After 2 days, there is a decrease of less than 0.1%, and the price gradually increases by approximately 0.1% after 30 days; (2) the price of the Beijing carbon emission allowance is mainly affected by its own historical price; (3) the Beijing carbon emission allowance price, crude oil price, natural gas price and economic development have positive – albeit non-significant – correlations. - Highlights: • This paper examines the response of the Beijing carbon emission allowance price. • A rise in coal prices will have different effects in different lag stages. • There are positive correlations between the BJC and economic development.

Unit Price and Cost Estimation Equations through Items Percentage of Construction Works in a Desert Area

Directory of Open Access Journals (Sweden)

Kadhim Raheem

2015-02-01

Full Text Available This research will cover different aspects of estimating process of construction work in a desert area. The inherent difficulties which accompany the cost estimating of the construction works in desert environment in a developing country, will stem from the limited information available, resources scarcity, low level of skilled workers, the prevailing severe weather conditions and many others, which definitely don't provide a fair, reliable and accurate estimation. This study tries to present unit price to estimate the cost in preliminary phase of a project. Estimations are supported by developing mathematical equations based on the historical data of maintenance, new construction of managerial and school projects. Meanwhile, the research has determined the percentage of project items, in such a remote environment. Estimation equations suitable for remote areas have been formulated. Moreover, a procedure for unite price calculation is concluded.

Biogas slurry pricing method based on nutrient content

Science.gov (United States)

Zhang, Chang-ai; Guo, Honghai; Yang, Zhengtao; Xin, Shurong

2017-11-01

In order to promote biogas-slurry commercialization, A method was put forward to valuate biogas slurry based on its nutrient contents. Firstly, element contents of biogas slurry was measured; Secondly, each element was valuated based on its market price, and then traffic cost, using cost and market effect were taken into account, the pricing method of biogas slurry were obtained lastly. This method could be useful in practical production. Taking cattle manure raw meterial biogas slurry and con stalk raw material biogas slurry for example, their price were 38.50 yuan RMB per ton and 28.80 yuan RMB per ton. This paper will be useful for recognizing the value of biogas projects, ensuring biogas project running, and instructing the cyclic utilization of biomass resources in China.

7 CFR 1000.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing... advanced pricing factors. Class prices per hundredweight of milk containing 3.5 percent butterfat, component prices, and advanced pricing factors shall be as follows. The prices and pricing factors described...

Effects of regulatory reforms in the electricity supply industry on electricity prices in developing countries

International Nuclear Information System (INIS)

Nagayama, Hiroaki

2007-01-01

Electric power sector reforms in the electricity supply industry have had an impact on industrial and household prices in developing countries in Latin America, the former Soviet Union, and Eastern Europe. Using original panel data for 83 countries during the period from 1985 to 2002, we examine how each policy instrument of the reform measures influenced electricity prices for countries in the above regions. We found that variables such as entry of independent power producers (IPP), unbundling of generation and transmission, establishment of a regulatory agency, and the introduction of a wholesale spot market have had a variety of impacts on electricity prices, some of which were not always consistent with expected results. The research findings suggest that neither unbundling nor introduction of a wholesale pool market on their own necessarily reduces the electric power price. In fact, contrary to expectations, there was a tendency for the price to rise. However, coexistent with an independent regulator, unbundling may work to reduce electricity prices. Privatization and the introduction of foreign IPP and retail competition lower electricity prices in some regions, but not all

Making the Traffic Operations Case for Congestion Pricing: Operational Impacts of Congestion Pricing

Energy Technology Data Exchange (ETDEWEB)

Chin, Shih-Miao [ORNL; Hu, Patricia S [ORNL; Davidson, Diane [ORNL

2011-02-01

delay, based on hours spent in traffic in a year, grew by 22% as the national average of hours spent in delay grew from 36 hours to 44 hours. Peak delay per traveler grew one-third in medium-size urban areas over the 10 year period. The traffic engineering community has developed an arsenal of integrated tools to mitigate the impacts of congestion on freeway throughput and performance, including pricing of capacity to manage demand for travel. Congestion pricing is a strategy which dynamically matches demand with available capacity. A congestion price is a user fee equal to the added cost imposed on other travelers as a result of the last traveler's entry into the highway network. The concept is based on the idea that motorists should pay for the additional congestion they create when entering a congested road. The concept calls for fees to vary according to the level of congestion with the price mechanism applied to make travelers more fully aware of the congestion externality they impose on other travelers and the system itself. The operational rationales for the institution of pricing strategies are to improve the efficiency of operations in a corridor and/or to better manage congestion. To this end, the objectives of this project were to: (1) Better understand and quantify the impacts of congestion pricing strategies on traffic operations through the study of actual projects, and (2) Better understand and quantify the impacts of congestion pricing strategies on traffic operations through the use of modeling and other analytical methods. Specifically, the project was to identify credible analytical procedures that FHWA can use to quantify the impacts of various congestion pricing strategies on traffic flow (throughput) and congestion.

Asset Pricing - A Brief Review

OpenAIRE

Li, Minqiang

2010-01-01

I first introduce the early-stage and modern classical asset pricing and portfolio theories. These include: the capital asset pricing model (CAPM), the arbitrage pricing theory (APT), the consumption capital asset pricing model (CCAPM), the intertemporal capital asset pricing model (ICAPM), and some other important modern concepts and techniques. Finally, I discuss the most recent development during the last decade and the outlook in the field of asset pricing.

Choice of large projects

Energy Technology Data Exchange (ETDEWEB)

Harris, R

1978-08-01

Conventional cost/benefit or project analysis has generally not taken into account circumstances in which the project under consideration is large enough that its introduction to the economy would have significant general equilibrium effects. In this paper, rules are examined that would indicate whether such large projects should be accepted or rejected. The rules utilize information yielded by before-project and after-project equilibrium prices and production data. Rules are developed for the undistorted ''first-best'' case, the case in which the fixed costs of the project are covered by distortionary taxation, and for the case of projects producing public goods. 34 references.

An integrated framework for energy pricing in developing countries

International Nuclear Information System (INIS)

Munasinghe, M.

1989-01-01

In the paper the importance of coordinated energy planning and pricing is emphasized with particular reference to the interrelationships among the pricing polices adopted in various energy subsectors such as electric power, petroleum, natural gas, coal and traditional fuels. Nonconventional sources can also be fitted into this framework. The chief investment issues are also touched to the extent that they strongly influence pricing policy. 15 refs, 7 figs

Carbon pricing, nuclear power and electricity markets

Energy Technology Data Exchange (ETDEWEB)

Cameron, R.; Keppler, J. H. [OECD Nuclear Energy Agency, 12, boulevard des Iles, 92130 Issy-les-Moulineaux (France)

2012-07-01

In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

Carbon pricing, nuclear power and electricity markets

International Nuclear Information System (INIS)

Cameron, R.; Keppler, J. H.

2012-01-01

In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

Dutch house price fundamentals

NARCIS (Netherlands)

Haffner, M.E.A.; de Vries, P.

2009-01-01

This paper discusses house price developments in the Netherlands, specifically focussing on the question whether current house prices in the Dutch owner-occupied market are likely to decrease. We analyse three aspects of the question based on a literature review: (1) whether there is a house price

Northeast U.S. update: price and demand issues

International Nuclear Information System (INIS)

Lucy, M.S.

1997-01-01

The issues affecting natural gas prices in the northeast United States were discussed. The supply of natural gas is high because of new pipeline projects and new market entrants. The demand for natural gas is also high because of nuclear plant closings, new electric plants, the clean air act, and economic growth. The supply of natural gas is expected to grow in the Northeast by 27 per cent by the year 2000. Future pipeline projects from Western Canada to Chicago, New York and Boston were examined and their effect on supply and pricing were analyzed. As another variable that affects the pricing of natural gas, a list of the nuclear plants that have closed and which may soon close in the northeast United States was provided, along with a list of new gas fired plants. Other factors affecting winter market prices in the northeast United States for 1997-1998 include El Nino, warm weather forecasts, NYMEX forecasts, natural gas demand, and low oil prices, were also reviewed. Cultivating long term comprehensive relationships, and focusing on customer service were considered the key to successful Canadian export growth. 7 tabs., 5 figs

Medicine prices, availability, and affordability in 36 developing and middle-income countries: a secondary analysis.

Science.gov (United States)

Cameron, A; Ewen, M; Ross-Degnan, D; Ball, D; Laing, R

2009-01-17

WHO and Health Action International (HAI) have developed a standardised method for surveying medicine prices, availability, affordability, and price components in low-income and middle-income countries. Here, we present a secondary analysis of medicine availability in 45 national and subnational surveys done using the WHO/HAI methodology. Data from 45 WHO/HAI surveys in 36 countries were adjusted for inflation or deflation and purchasing power parity. International reference prices from open international procurements for generic products were used as comparators. Results are presented for 15 medicines included in at least 80% of surveys and four individual medicines. Average public sector availability of generic medicines ranged from 29.4% to 54.4% across WHO regions. Median government procurement prices for 15 generic medicines were 1.11 times corresponding international reference prices, although purchasing efficiency ranged from 0.09 to 5.37 times international reference prices. Low procurement prices did not always translate into low patient prices. Private sector patients paid 9-25 times international reference prices for lowest-priced generic products and over 20 times international reference prices for originator products across WHO regions. Treatments for acute and chronic illness were largely unaffordable in many countries. In the private sector, wholesale mark-ups ranged from 2% to 380%, whereas retail mark-ups ranged from 10% to 552%. In countries where value added tax was applied to medicines, the amount charged varied from 4% to 15%. Overall, public and private sector prices for originator and generic medicines were substantially higher than would be expected if purchasing and distribution were efficient and mark-ups were reasonable. Policy options such as promoting generic medicines and alternative financing mechanisms are needed to increase availability, reduce prices, and improve affordability.

[Is the price of cancer drugs related to the cost of develo-pment and production or to the economic value of their clincal efficacy?].

Science.gov (United States)

Russi, Alberto; Serena, Marta; Palozzo, Angelo C

2016-04-01

In the past years, the expenditure for cancer drugs has quickly increased, especially for biologic agents. Pharmaceutical companies and national health systems have different approaches in handling the issue of drug reimbursement. Companies support a price based on research and development (R&D) expenditures including those for unsuccessful drug projects while national health systems generally argue that pricing should be based on the incremental benefit generated by the agent under examination (value-based pricing - VBP). Nevertheless, current oncologic drugs prices are too high and not really justified by their incremental benefits or innovation, nor can they demonstrate that higher thresholds in QALYs could bring wider societal benefits. In this article we discuss these two points of view in the light of the most recent national and international literature. In Italy, drug reimbursement is currently managed through a mixed approach between the recognition of R&D expenditures and VBP. Reimbursement is also integrated with post-marketing patient-based national registries, particularly in the field of anti-cancer agents, that provide rebates based on financial risk sharing, cost-sharing, payment by results and success fee methods.

A win-win solution?: A critical analysis of tiered pricing to improve access to medicines in developing countries

Science.gov (United States)

2011-01-01

Background Tiered pricing - the concept of selling drugs and vaccines in developing countries at prices systematically lower than in industrialized countries - has received widespread support from industry, policymakers, civil society, and academics as a way to improve access to medicines for the poor. We carried out case studies based on a review of international drug price developments for antiretrovirals, artemisinin combination therapies, drug-resistant tuberculosis medicines, liposomal amphotericin B (for visceral leishmaniasis), and pneumococcal vaccines. Discussion We found several critical shortcomings to tiered pricing: it is inferior to competition for achieving the lowest sustainable prices; it often involves arbitrary divisions between markets and/or countries, which can lead to very high prices for middle-income markets; and it leaves a disproportionate amount of decision-making power in the hands of sellers vis-à-vis consumers. In many developing countries, resources are often stretched so tight that affordability can only be approached by selling medicines at or near the cost of production. Policies that "de-link" the financing of R&D from the price of medicines merit further attention, since they can reward innovation while exploiting robust competition in production to generate the lowest sustainable prices. However, in special cases - such as when market volumes are very small or multi-source production capacity is lacking - tiered pricing may offer the only practical option to meet short-term needs for access to a product. In such cases, steps should be taken to ensure affordability and availability in the longer-term. Summary To ensure access to medicines for populations in need, alternate strategies should be explored that harness the power of competition, avoid arbitrary market segmentation, and/or recognize government responsibilities. Competition should generally be the default option for achieving affordability, as it has proven superior

A win-win solution?: A critical analysis of tiered pricing to improve access to medicines in developing countries.

Science.gov (United States)

Moon, Suerie; Jambert, Elodie; Childs, Michelle; von Schoen-Angerer, Tido

2011-10-12

Tiered pricing - the concept of selling drugs and vaccines in developing countries at prices systematically lower than in industrialized countries - has received widespread support from industry, policymakers, civil society, and academics as a way to improve access to medicines for the poor. We carried out case studies based on a review of international drug price developments for antiretrovirals, artemisinin combination therapies, drug-resistant tuberculosis medicines, liposomal amphotericin B (for visceral leishmaniasis), and pneumococcal vaccines. We found several critical shortcomings to tiered pricing: it is inferior to competition for achieving the lowest sustainable prices; it often involves arbitrary divisions between markets and/or countries, which can lead to very high prices for middle-income markets; and it leaves a disproportionate amount of decision-making power in the hands of sellers vis-à-vis consumers. In many developing countries, resources are often stretched so tight that affordability can only be approached by selling medicines at or near the cost of production. Policies that "de-link" the financing of R&D from the price of medicines merit further attention, since they can reward innovation while exploiting robust competition in production to generate the lowest sustainable prices. However, in special cases - such as when market volumes are very small or multi-source production capacity is lacking - tiered pricing may offer the only practical option to meet short-term needs for access to a product. In such cases, steps should be taken to ensure affordability and availability in the longer-term. To ensure access to medicines for populations in need, alternate strategies should be explored that harness the power of competition, avoid arbitrary market segmentation, and/or recognize government responsibilities. Competition should generally be the default option for achieving affordability, as it has proven superior to tiered pricing for reliably

A win-win solution?: A critical analysis of tiered pricing to improve access to medicines in developing countries

Directory of Open Access Journals (Sweden)

Childs Michelle

2011-10-01

Full Text Available Abstract Background Tiered pricing - the concept of selling drugs and vaccines in developing countries at prices systematically lower than in industrialized countries - has received widespread support from industry, policymakers, civil society, and academics as a way to improve access to medicines for the poor. We carried out case studies based on a review of international drug price developments for antiretrovirals, artemisinin combination therapies, drug-resistant tuberculosis medicines, liposomal amphotericin B (for visceral leishmaniasis, and pneumococcal vaccines. Discussion We found several critical shortcomings to tiered pricing: it is inferior to competition for achieving the lowest sustainable prices; it often involves arbitrary divisions between markets and/or countries, which can lead to very high prices for middle-income markets; and it leaves a disproportionate amount of decision-making power in the hands of sellers vis-à-vis consumers. In many developing countries, resources are often stretched so tight that affordability can only be approached by selling medicines at or near the cost of production. Policies that "de-link" the financing of R&D from the price of medicines merit further attention, since they can reward innovation while exploiting robust competition in production to generate the lowest sustainable prices. However, in special cases - such as when market volumes are very small or multi-source production capacity is lacking - tiered pricing may offer the only practical option to meet short-term needs for access to a product. In such cases, steps should be taken to ensure affordability and availability in the longer-term. Summary To ensure access to medicines for populations in need, alternate strategies should be explored that harness the power of competition, avoid arbitrary market segmentation, and/or recognize government responsibilities. Competition should generally be the default option for achieving affordability

LAND PRICE MAPPING OF JABODETABEK, INDONESIA

Directory of Open Access Journals (Sweden)

Adisti Madella Elmanisa

2017-03-01

Full Text Available Land provision is one of the biggest challenges for development in urban area. Most of the available urban land will be the object of speculation to be resold at a higher price when the time is right. In Jabodetabek, where the pace of urban development is faster than other parts of Indonesia, the prices of land show an abnormal increase; they seem to rise too fast. This paper discusses the increasing land prices in Jabodetabek area and argues that the increasing land price has encourages the private developer to bank the land in the area. Based on land price survey in Jabodetabek, urban activity is moving to south Jakarta. The highest land prices were found at East Kuningan, Setiabudi, and South Jakarta. By constrast, the lowest prices were observed in Sumur Batu and Cimuning (Bantar Gebang, Bekasi.It can be concluded that the land price increase also triggered land banking practice in Jabodetabek reaching in total approximately 60% of total area of Jakarta.

Domestic Price, (Expected) Foreign Price, and Travel Spending by Canadians in the United States

OpenAIRE

Jan Vilasuso; Fredric C. Menz

1998-01-01

In this paper, the authors develop and test a model to explain travel expenditures in the United States by Canadians. The model examines a consumer's choice problem where income is allocated between domestic and foreign consumption. Consumers do not know the foreign price level and base their spending in part on expected foreign price. In addition to expected foreign price, domestic price, exchange rates, income, and foreign price uncertainty influence travel spending. Empirically, each deter...

Internalising externalities of energy use through price mechanism: a developing country perspective

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1995-01-01

As concern grows about the environmental aspect of energy use, it is increasingly suggested in recent years that energy pricing should take negative externalities of energy use into account. A large body of literature, both theoretical and applied, has grown up over the years proposing a variety of options and methods for internalising environmental costs. However, most of these theories and methods, developed in the industrialised countries, have hitherto neglected two aspects of developing economies: the existence of informal sector in the economy and widespread use of traditional energies. This paper discusses the issues related to internalising environmental costs through price mechanism when these two aspects are included. It also calls for a more careful analysis of energy and environmental policies. (author)

Improving the asset pricing ability of the Consumption-Capital Asset Pricing Model?

DEFF Research Database (Denmark)

Rasmussen, Anne-Sofie Reng

This paper compares the asset pricing ability of the traditional consumption-based capital asset pricing model to models from two strands of literature attempting to improve on the poor empirical results of the C-CAPM. One strand is based on the intertemporal asset pricing model of Campbell (1993...... able to price assets conditionally as suggested by Cochrane (1996) and Lettau and Ludvigson (2001b). The unconditional C-CAPM is rewritten as a scaled factor model using the approximate log consumptionwealth ratio cay, developed by Lettau and Ludvigson (2001a), as scaling variable. The models...... and composite. Thus, there is no unambiguous solution to the pricing ability problems of the C-CAPM. Models from both the alternative literature strands are found to outperform the traditional C-CAPM on average pricing errors. However, when weighting pricing errors by the full variance-covariance matrix...

Gas supply for independent power projects: Drilling programs and reserve acquisitions

International Nuclear Information System (INIS)

Lambert, J.D.; Walker, R.K.

1990-01-01

Developers of gas-fired independent power projects, although drawn to gas as the fuel of choice for economic and environmental reasons, are finding the problem of cost-effective gas supply to be intractable. By one estimate, there are $6 billion worth of gas-fired projects languishing in the planning stage for want of long-term gas supply that is acceptable to project lenders. Worse still, as the authors are aware, some currently operating gas-fired projects lack such a supply, thus forcing the developer to rely on the spot market for gas as an interim (and unsatisfactory) solution. Although spot market prices in the deregulated natural gas industry have remained relatively low over several years, long-term gas supply has become problematic, particularly for power projects whose economics typically require an assured supply at a determined price over a multiyear period. In short, while there is an increasing demand for gas as a preferred source of fuel supply for power projects, there are discontinuities in the approaches taken to contracting for that supply by producers and developers. These concern primarily allocation of the risk of commodity-driven price increases during the term of the fuel supply contract. Without a means of accommodating price-related risk, the parties will inevitably find themselves at an impasse in contract negotiations. If there is a barrier to the independent power generation industry's vertical integration into gas production, it is the fundamental insularity of the two industries. As they have discovered, it may be indispensable for gas producers and power developers to employ intermediaries familiar with both industries in order to consummate appropriate joint-venture drilling programs and reserve acquisitions. Given the economic consequences of doing so successfully, however, they believe such programs and acquisitions may become an integral part of independent power developers' business strategy in the 1990s and beyond

Pricing health care services: applications to the health maintenance organization.

Science.gov (United States)

Sweeney, R E; Franklin, S P

1986-01-01

This article illustrates how management in one type of service industry, the health maintenance organization (HMO), have attempted to formalize pricing. This effort is complicated by both the intangibility of the service delivered and the relatively greater influence in service industries of non-cost price factors such as accessibility, psychology, and delays. The presentation describes a simple computerized approach that allows the marketing manager to formally estimate the effect of incremental changes in rates on the firm's projected patterns of enrollment growth and net revenues. The changes in turn reflect underlying variations in the mix of pricing influences including psychological and other factors. Enrollment projections are crucial to the firm's financial planning and staffing. In the past, most HMO enrollment and revenue projections of this kind were notoriously unreliable. The approach described here makes it possible for HMOs to fine-tune their pricing policies. It also provides a formal and easily understood mechanism by which management can evaluate and reach consensus on alternative scenarios for enrollment growth, staff recruitment and capacity expansion.

Evaluation model of commercial geological exploration and mining development project and analysis of some technical problems in commercial negotiation

International Nuclear Information System (INIS)

Yao Zhenkai

2012-01-01

A composite evaluation model of commercial geological exploration and mining development project was discussed, this new model consists of polity-economy-technique (PET) synthetic evaluation sub-model and geology-mining-metallurgy (GMM) technique evaluation sub-model. Besides, some key technical problems in commercial negotiation, such as information screening, quoted price and analysis of deadline, were briefly analyzed. (author)

A new approach to cost effective projects: High performance project teams

International Nuclear Information System (INIS)

Chambers, N.C.

1994-01-01

In low oil price environment in which environmental conditions are more challenging, reservoir characteristics less favourable and political risk increasing, successful projects are required in such cases. The present paper deals with the visionary process of establishing high performance project teams. According to the author, such project teams embody dynamic recognition of holism. Holism is achieved as an output from the process of establishing the drivers and enablers for success on a project. They are given birth during the unfolding of the operators development plans and contracting strategy. The paper discusses the main drivers of project teams comprising purpose and performance goals, selection, common approach, commitment and accountability, and financial alignment

A new approach to cost effective projects: High performance project teams

Energy Technology Data Exchange (ETDEWEB)

Chambers, N.C. [Brown and Root Energy Services (United Kingdom)

1994-12-31

In low oil price environment in which environmental conditions are more challenging, reservoir characteristics less favourable and political risk increasing, successful projects are required in such cases. The present paper deals with the visionary process of establishing high performance project teams. According to the author, such project teams embody dynamic recognition of holism. Holism is achieved as an output from the process of establishing the drivers and enablers for success on a project. They are given birth during the unfolding of the operators development plans and contracting strategy. The paper discusses the main drivers of project teams comprising purpose and performance goals, selection, common approach, commitment and accountability, and financial alignment

PRICE ON THE ORGANIC FOOD MARKET

Directory of Open Access Journals (Sweden)

GEORGE ATANASOAIE

2012-12-01

Full Text Available The main objective of this paper is to present prices on PAE market (PAE- organic foods market. Prices are analyzed in terms of importance and the main factors that contribute to their establishment (quality of products, distribution channels, certification and eco-labeling system, customer segments and market development stage. This paper is based on the investigation of secondary sources, of specialized literature related to PAE consumers. The paper shows that are used three strategic options of prices: prices with high rigidity located in a low or high level and fluctuating prices, characterized by variations on short periods of time. Price is a very important barrier to market development but this importance can be mitigated through appropriate communication policies with the market, which are essential especially for markets in early stages of development.

Price and Product Pooling: Impact on Development and Operation of Differentiated Value Chains

OpenAIRE

Hobbs, Jill E.; Kerr, William A.

2006-01-01

Price pooling has long been used as a means to deal with risk in the marketing of agricultural commodities. For commodities, product pooling may also generate potential benefits through economies of scale or the provision of market power. Yet there has also been a growing interest in product differentiation and the development of value chains as a means to increase returns to farmers. This article explores the question of whether price or product pooling is compatible with a strategy of pro-a...

PV window - Development and demonstrations. Final report

Energy Technology Data Exchange (ETDEWEB)

Haugaard, P.

2011-05-15

Using the results from the EU project RenewTransnet, which focused on the development of a pane with integrated solar cells, the goal of this project is to develop these principles into a window solution. This window solution is targeted to Danish building tradition and architecture. It is expected that an elegant PV-window solution for both new and retrofit buildings is developed during this project, and which appearance can be customized to each building. Based on results from a related projects carried out by Gaia Solar, the window solution will have the potential of being approximately 30% cheaper than similar products on the market. In this project this price reduction is the objective of the development of a window solution. The project team has succeeded in developing a 2-layer PV-window with glass / glass lamination with EVA as foil, which is 35% cheaper than similar products on the market. Since the price for the frame-profile does not differ significantly at market level, the price comparison is made on the basis of the developed PV-pane. The objective of 30 % price reduction in relation to similar products on the market is met. A special production process to the making glass/glass lamination with EVA as foil has been developed, in which a frame is put around the module which intends both to remove the unwanted tension along the edges, and to prevent the significant spillage of EVA from the module under pressure and prevent the invasive bubbles along the edge of module. Since the developed production method for making glass/glass modules with EVA is simple, a further cost reduction will primarily be in a reduction of the price of the cell. The project process has resulted in the development of a product, which due to continuous restrictions in the building regulations, will be very attractive in future buildings. (LN)

The development in energy consumption, price sensitivity and allocation of power; Utviklingen i stroemforbruket, prisfoelsomheten og stroemmarkedet

Energy Technology Data Exchange (ETDEWEB)

Halvorsen, Bente

2012-11-15

This report discusses the development in energy consumption in households, service industries, primary industries and other small industries, both in the short run (hour to hour, day by day) and over a longer period, back to the 1960. The report discusses the main driving forces behind this development, as well as the demand price sensitivity and its role in the allocation of power between customers and over time. The analysis shows that for the short-term fluctuations in consumption from hour to hour, the temperature of the main driver, while price changes have less influence. For the long-term trend, however, changes in relative energy prices are a key driver, along with population and income growth. Even if the short term price sensitivity is low for end-users, it may still have a big influence on the short-term clearance of the market (from hour to hour), as it affects the short term price sensitivity in the spot market. The long-term price elasticities in the retail markets is more important for determining consumption over a time period, and is important in allocating energy resources over time in the spot market, e.g. over the winter months. Empirical analyses show that the Norwegian demand responds to price changes, both in the short term in the spot market and in the longer term in the retail market. It takes a few weeks before the price signals from spot market affects the consumer prise for most end-users, but by then, most of the price signal has been transmitted. It also follows from the analysis that it is important to let prices vary between regions of the market in the event of scarcity, so customers in regions where shortages occur, have the incentive to change their demand. The faster these price signals affect consumer prices, the more efficient the market will be able to handle a tight power situation.(Author)

Does comprehensive redevelopment change the housing price gradient? A case study in Mongkok, Hong Kong

Directory of Open Access Journals (Sweden)

Yung Yau

2011-01-01

Full Text Available Urban decay is an inevitable outcome of the growth of most cities, including Hong Kong. Many old buildings in Hong Kong are dilapidated, and it is urgent to tackle urban decay in the city. Redeveloping dilapidated buildings has long been regarded as an effective solution to this urban problem. Yet, as suggested in the literature, redevelopment may be responsible for gentrifying neighbourhoods because it pushes up property and rental prices near redeveloped sites. However, there are still few empirical studies on how comprehensive redevelopment affects housing values in a neighbourhood. In this light, this study investigates the impacts of the Urban Renewal Authority’s Argyle Street / Shanghai Street Redevelopment Project on the transaction prices of nearby housing. A set of panel data is employed and the change in the spatial price gradient before and after the redevelopment project is explored. The findings suggest that proximity to the project site had a significant positive impact on housing prices before the project. However, no change was seen in the spatial price gradient after completion of the project. These results confirm the findings of a previous study that housing prices do not respond to the change in the environmental quality resulting from comprehensive redevelopment.

Method of determining the efficiency of price and non-price competition in service sector

Directory of Open Access Journals (Sweden)

Savel’eva Nadezhda

2017-01-01

Full Text Available With the end of 2014, the domestic banking system has serious difficulties with the availability of capital for lending and investment programs. Problems based on international political divisions, and their resolution lies in the distant future. in these circumstances, the government is concerned about the development of the Russian banking system in terms of ensuring their competitiveness in the international arena. foreign capital has always been a cheap resource for the domestic banking system, the problem area remains its state at the time of lifting of sanctions. Nowadays banks are forced to use different competition methods in target to adapt to environmental changes and ensure competitive success. So the development of methods for price and non-price competition has economic importance. Analysis of qualitative methodological foundations in banks service revealed strong background. Based on neoteric qualitative evaluation methodology, authors developed method for price and non-price competitiveness. It defines variables of price and non-price competitiveness, to set the value factors, to identify the closest competitors, and to set the position of a particular bank among other participants. It also helps to shape competitors dossier based on the evaluated score.

The importance of vehicle costs, fuel prices, and fuel efficiency to HEV market success.

Energy Technology Data Exchange (ETDEWEB)

Santini, D. J.; Patterson, P. D.; Vyas, A. D.

1999-12-08

Toyota's introduction of a hybrid electric vehicle (HEV) named ''Prius'' in Japan and Honda's proposed introduction of an HEV in the United States have generated considerable interest in the long-term viability of such fuel-efficient vehicles. A performance and cost projection model developed entirely at Argonne National Laboratory (ANL) is used here to estimate costs. ANL staff developed fuel economy estimates by extending conventional vehicle (CV) modeling done primarily under the National Cooperative Highway Research Program. Together, these estimates are employed to analyze dollar costs vs. benefits of two of many possible HEV technologies. We project incremental costs and fuel savings for a Prius-type low-performance hybrid (14.3 seconds zero to 60 mph acceleration, 260 time) and a higher-performance ''mild'' hybrid vehicle, or MHV (11 seconds 260 time). Each HEV is compared to a U.S. Toyota Corolla with automatic transmission (11 seconds 260 time). The base incremental retail price range, projected a decade hence, is $3,200-$3,750, before considering battery replacement cost. Historical data are analyzed to evaluate the effect of fuel price on consumer preferences for vehicle fuel economy, performance, and size. The relationship between fuel price, the level of change in fuel price, and consumer attitude toward higher fuel efficiency is also evaluated. A recent survey on the value of higher fuel efficiency is presented and U.S. commercial viability of the hybrids is evaluated using discount rates of 2090 and 870. Our analysis, with our current HEV cost estimates and current fuel savings estimates, implies that the U.S. market for such HEVS would be quite limited.

Investments and price formation in a liberalized electric power market; Investering og prisdannelse pae et liberaliseret elmarked

Energy Technology Data Exchange (ETDEWEB)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his

Analysis of domestic price and inflation determinants in Iran (as a developing oil-export based economy)

NARCIS (Netherlands)

S.F. Dizaji (Sajjad Faraji)

2011-01-01

textabstractAbstract The objective of this study is to examine and investigate both behaviour and determinants of domestic prices and inflation rate in Iran as a developing oil export based economy. I apply two models; the first model is for investigating the main determinants of domestic prices

The bio-energies development: the role of biofuels and the CO2 price

International Nuclear Information System (INIS)

Jouvet, Pierre-Andre; Lantz, Frederic; Le Cadre, Elodie

2012-01-01

Reduction in energy dependency and emissions of CO 2 via renewable energies targeted in the European Union energy mix and taxation system, might trigger the production of bio-energy production and competition for biomass utilization. Torrefied biomass could be used to produce second generation biofuels to replace some of the fuels used in transportation and is also suitable as feedstock to produce electricity in large quantities. This paper examines how the CO 2 price affects demand of torrefied biomass in the power sector and its consequences on the profitability of second generation biofuel units (Biomass to Liquid units). Indeed, the profitability of the BtL units which are supplied only by torrefied biomass is related to the competitive demand of the power sector driven by the CO 2 price and feed-in tariffs. We propose a linear dynamic model of supply and demand. On the supply side, a profit-maximizing torrefied biomass sector is modelled. The model aims to represent the transformation of biomass into torrefied biomass which could be sold to the refinery sector and the power sector. A two-sided (demanders and supplier) bidding process led us to arrive at the equilibrium price for torrefied biomass. The French case is used as an example. Our results suggest that the higher the CO 2 price, the more stable and important the power sector demand. It also makes the torrefied biomass production less vulnerable to uncertainty on demand coming from the refining sector. The torrefied biomass co-firing with coal can offer a near-term market for the torrefied biomass for a CO 2 emission price lower than 20 euros/tCO 2 , which can stimulate development of biomass supply systems. Beyond 2020, the demand for torrefied biomass from the power sector could be substituted by the refining sector if the oil price goes up whatever the CO 2 price. (authors)

The Combination Forecasting of Electricity Price Based on Price Spikes Processing: A Case Study in South Australia

Directory of Open Access Journals (Sweden)

Jianzhou Wang

2014-01-01

Full Text Available Electricity price forecasting holds very important position in the electricity market. Inaccurate price forecasting may cause energy waste and management chaos in the electricity market. However, electricity price forecasting has always been regarded as one of the largest challenges in the electricity market because it shows high volatility, which makes electricity price forecasting difficult. This paper proposes the use of artificial intelligence optimization combination forecasting models based on preprocessing data, called “chaos particles optimization (CPSO weight-determined combination models.” These models allow for the weight of the combined model to take values of [-1,1]. In the proposed models, the density-based spatial clustering of applications with noise (DBSCAN algorithm is used to identify outliers, and the outliers are replaced by a new data-produced linear interpolation function. The proposed CPSO weight-determined combination models are then used to forecast the projected future electricity price. In this case study, the electricity price data of South Australia are simulated. The results indicate that, while the weight of the combined model takes values of [-1,1], the proposed combination model can always provide adaptive, reliable, and comparatively accurate forecast results in comparison to traditional combination models.

The Earnings/Price Risk Factor in Capital Asset Pricing Models

Directory of Open Access Journals (Sweden)

Rafael Falcão Noda

2015-01-01

Full Text Available This article integrates the ideas from two major lines of research on cost of equity and asset pricing: multi-factor models and ex ante accounting models. The earnings/price ratio is used as a proxy for the ex ante cost of equity, in order to explain realized returns of Brazilian companies within the period from 1995 to 2013. The initial finding was that stocks with high (low earnings/price ratios have higher (lower risk-adjusted realized returns, already controlled by the capital asset pricing model's beta. The results show that selecting stocks based on high earnings/price ratios has led to significantly higher risk-adjusted returns in the Brazilian market, with average abnormal returns close to 1.3% per month. We design asset pricing models including an earnings/price risk factor, i.e. high earnings minus low earnings, based on the Fama and French three-factor model. We conclude that such a risk factor is significant to explain returns on portfolios, even when controlled by size and market/book ratios. Models including the high earnings minus low earnings risk factor were better to explain stock returns in Brazil when compared to the capital asset pricing model and to the Fama and French three-factor model, having the lowest number of significant intercepts. These findings may be due to the impact of historically high inflation rates, which reduce the information content of book values, thus making the models based on earnings/price ratios better than those based on market/book ratios. Such results are different from those obtained in more developed markets and the superiority of the earnings/price ratio for asset pricing may also exist in other emerging markets.

7 CFR 1124.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1124.50 Section 1124.50 Agriculture Regulations of the Department of Agriculture (Continued... prices, and advanced pricing factors. See § 1000.50. ...

7 CFR 1030.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1030.50 Section 1030.50 Agriculture Regulations of the Department of Agriculture (Continued... prices, and advanced pricing factors. See § 1000.50. ...

World oil prices, precious metal prices and macroeconomy in Turkey

International Nuclear Information System (INIS)

Soytas, Ugur; Sari, Ramazan; Hammoudeh, Shawkat; Hacihasanoglu, Erk

2009-01-01

We examine the long- and short-run transmissions of information between the world oil price, Turkish interest rate, Turkish lira-US dollar exchange rate, and domestic spot gold and silver price. We find that the world oil price has no predictive power of the precious metal prices, the interest rate or the exchange rate market in Turkey. The results also show that the Turkish spot precious metals, exchange rate and bond markets do not also provide information that would help improve the forecasts of world oil prices in the long run. The findings suggest that domestic gold is also considered a safe haven in Turkey during devaluation of the Turkish lira, as it is globally. It is interesting to note that there does not seem to be any significant influence of developments in the world oil markets on Turkish markets in the short run either. However, transitory positive initial impacts of innovations in oil prices on gold and silver markets are observed. The short-run price transmissions between the world oil market and the Turkish precious metal markets have implications for policy makers in emerging markets and both local and global investors in the precious metals market and the oil market.

THE PRICE ON THE ORGANIC PRODUCT MARKET

Directory of Open Access Journals (Sweden)

ATĂNĂSOAIE GEORGE SEBASTIAN

2013-08-01

Full Text Available The main objective of this paper is to present prices on PAE market (PAE- organic foods market. Prices areanalyzed in terms of importance and the main factors that contribute to their establishment (quality of products,distribution channels, certification and eco-labeling system, customer segments and market development stage.The paper shows that are used three strategic options of prices: prices with high rigidity located in a low or highlevel and fluctuating prices, characterized by variations on short periods of time. Price is a very importantbarrier to market development but this importance can be mitigated through appropriate communicationpolicies with the market, which are essential especially for markets in early stages of development

Gas prices and price process

International Nuclear Information System (INIS)

Groenewegen, G.G.

1992-01-01

On a conference (Gas for Europe in the 1990's) during the Gasexpo '91 the author held a speech of which the Dutch text is presented here. Attention is paid to the current European pricing methods (prices based on the costs of buying, transporting and distributing the natural gas and prices based on the market value, which is deducted from the prices of alternative fuels), and the transparency of the prices (lack of information on the way the prices are determined). Also attention is paid to the market signal transparency and gas-gas competition, which means a more or less free market of gas distribution. The risks of gas-to-gas competition for a long term price stability, investment policies and security of supply are discussed. Opposition against the Third Party Access (TPA), which is the program to implement gas-to-gas competition, is caused by the fear of natural gas companies for lower gas prices and lower profits. Finally attention is paid to government regulation and the activities of the European Commission (EC) in this matter. 1 fig., 6 ills., 1 tab

Ultra advanced projects. ; Naming hyper-hightech projects. (Cho) no tsuku project. ; Naming no shikumi

Energy Technology Data Exchange (ETDEWEB)

Goto, Y. (Ministry of International Trade and Industry, Tokyo (Japan))

1992-10-05

Significance of using 'super' for naming a project of technological development is discussed. Functions of naming are classified into (1) recognition, (2) display and (3) sales-promotion, whereby mechanism of naming of merchandise that is developed through the technique of 3 is considered. Further, the mechanism of naming is discussed in relation to marketing. It is pointed out that naming of merchandise is determined on the basis of (1) concept of planned goods and (2) marketing-mixes composed of goods, price, sales-roots and sales-promotion. The same mechanism works also in a project for technological development. Technical trends are caught and projects are targetted by taking supposed regimes into account, thereby the most suitable mix is formed. The mix in the technological development is assumed to be composed of purpose, specification, regime and sales-promotion. Two examples of the governmental projects by Ministry of International Trade and Industry, 'the big regime for research and development on industrial technologies' and 'the regime for development of the fundamental technologies in the next generation' are introduced and the significance of their naming is described. 2 tabs.

Dating breaks for global crude oil prices and their volatility : a possible price band for global crude prices

International Nuclear Information System (INIS)

Liao, H.C.; Suen, Y.B.

2006-01-01

Global oil prices are among the most visible of all historical commodity records. This paper presented and applied the multiple structural change method developed by Baie and Perron (BP) to investigate daily West Texas Intermediate (WTI) spot prices from January 2, 1986 to December 30, 2004 as collected by the United States Department of Energy. In particular, the BP statistical method was used to estimate the number and location of structural breaks in global oil price series and their volatility. The objective was to precisely determine the exact structural break in the global oil market. The breaks for both the price of oil and its volatility were successfully located and dated. It was shown that the break for the structural change in oil prices occurred on November 12, 1999, where the average oil price was U$19.02 per barrel previously, and U$30.90 afterwards. Two breaks for oil price volatility were also found, the first in March 1991 and the other in December 1995. The volatility was measured in 3 regimes by dividing these 2 breaks. It was suggested that since oil prices increased more rapidly during the second half of 2004 and 2005, it is possible that another structural break may be found during this period. However, it wa cautioned that it is difficult to find another significant break until more data becomes available, particularly for periods characterized by a rapid increase in price. 24 refs., 5 tabs., 2 figs

Electricity price modeling with stochastic time change

International Nuclear Information System (INIS)

Borovkova, Svetlana; Schmeck, Maren Diane

2017-01-01

In this paper, we develop a novel approach to electricity price modeling, based on the powerful technique of stochastic time change. This technique allows us to incorporate the characteristic features of electricity prices (such as seasonal volatility, time varying mean reversion and seasonally occurring price spikes) into the model in an elegant and economically justifiable way. The stochastic time change introduces stochastic as well as deterministic (e.g., seasonal) features in the price process' volatility and in the jump component. We specify the base process as a mean reverting jump diffusion and the time change as an absolutely continuous stochastic process with seasonal component. The activity rate of the stochastic time change can be related to the factors that influence supply and demand. Here we use the temperature as a proxy for the demand and hence, as the driving factor of the stochastic time change, and show that this choice leads to realistic price paths. We derive properties of the resulting price process and develop the model calibration procedure. We calibrate the model to the historical EEX power prices and apply it to generating realistic price paths by Monte Carlo simulations. We show that the simulated price process matches the distributional characteristics of the observed electricity prices in periods of both high and low demand. - Highlights: • We develop a novel approach to electricity price modeling, based on the powerful technique of stochastic time change. • We incorporate the characteristic features of electricity prices, such as seasonal volatility and spikes into the model. • We use the temperature as a proxy for the demand and hence, as the driving factor of the stochastic time change • We derive properties of the resulting price process and develop the model calibration procedure. • We calibrate the model to the historical EEX power prices and apply it to generating realistic price paths.

48 CFR 15.405 - Price negotiation.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Price negotiation. 15.405... AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.405 Price negotiation. (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits the...

Real-time pricing strategy of micro-grid energy centre considering price-based demand response

Science.gov (United States)

Xu, Zhiheng; Zhang, Yongjun; Wang, Gan

2017-07-01

With the development of energy conversion technology such as power to gas (P2G), fuel cell and so on, the coupling between energy sources becomes more and more closely. Centralized dispatch among electricity, natural gas and heat will become a trend. With the goal of maximizing the system revenue, this paper establishes the model of micro-grid energy centre based on energy hub. According to the proposed model, the real-time pricing strategy taking into account price-based demand response of load is developed. And the influence of real-time pricing strategy on the peak load shifting is discussed. In addition, the impact of wind power predicted inaccuracy on real-time pricing strategy is analysed.

Factors causing fluctuations in all milk price received by U.S. farmers

NARCIS (Netherlands)

Cropp, B.; Zijlstra, J.

2007-01-01

Milk prices received by U.S. dairy farmers have fluctuated considerably from one year to the next, particularly since the mid-1990s. The main factor for increased price fluctuation is a major change in U.S. dairy price support policy. This document will be part of the research report of the project

Oil price shocks and long run price and import demand behavior

International Nuclear Information System (INIS)

Kleibergen, F.; Van Dijk, H.K.; Urbain, J.P.

1997-01-01

The effect which the oil price time series has on the long run properties of Vector AutoRegressive (VAR) models for price levels and import demand is investigated. As the oil price variable is assumed to be weakly exogenous for the long run parameters, a cointegration testing procedure allowing for weakly exogenous variables is developed using a LU decomposition of the long run multiplier matrix. The likelihood based cointegration test statistics, Wald, Likelihood Ratio and Lagrange Multiplier, are constructed and their limiting distributions derived. Using these tests, we find that incorporating the oil price in a model for the domestic or import price level of seven industrialized countries decreases the long run memory of the inflation rate. Second, we find that the results for import demand can be classified with respect to the oil importing or exporting status of the specific country. The result for Japan is typical as its import price is not influenced by gnp in the long run, which is the case for all other countries. 31 refs

Pricing of new vaccines

OpenAIRE

Lee, Bruce Y; McGlone, Sarah M

2010-01-01

New vaccine pricing is a complicated process that could have substantial long-standing scientific, medical and public health ramifications. Pricing can have a considerable impact on new vaccine adoption and, thereby, either culminate or thwart years of research and development and public health efforts. Typically, pricing strategy consists of the following eleven components: (1) Conduct a target population analysis; (2) Map potential competitors and alternatives; (3) Construct a vaccine targe...

EOQ model for perishable products with price-dependent demand, pre and post discounted selling price

Science.gov (United States)

Santhi, G.; Karthikeyan, K.

2017-11-01

In this article we introduce an economic order quantity model for perishable products like vegetables, fruits, milk, flowers, meat, etc.,with price-dependent demand, pre and post discounted selling price. Here we consider the demand is depending on selling price and deterioration rate is constant. Here we developed mathematical model to determine optimal discounton the unit selling price to maximize total profit. Numerical examples are given for illustrated.

Biofuel policies and the impact of developing countries' policy responses to the 2007-2008 food price boom

NARCIS (Netherlands)

Gorter, de Harry; Drabik, D.

2016-01-01

Economists have been unanimous that developing countries’ policy responses to high food grain prices in 2007–2008 in restricting exports and promoting imports increased both world food grain price levels and volatility. Furthermore, the literature emphasizes the self-defeating aspects of policy

Economic analysis of coal price-electricity price adjustment in China based on the CGE model

International Nuclear Information System (INIS)

He, Y.X.; Zhang, S.L.; Yang, L.Y.; Wang, Y.J.; Wang, J.

2010-01-01

In recent years, coal price has risen rapidly, which has also brought a sharp increase in the expenditures of thermal power plants in China. Meantime, the power production price and power retail price have not been adjusted accordingly and a large number of thermal power plants have incurred losses. The power industry is a key industry in the national economy. As such, a thorough analysis and evaluation of the economic influence of the electricity price should be conducted before electricity price adjustment is carried out. This paper analyses the influence of coal price adjustment on the electric power industry, and the influence of electricity price adjustment on the macroeconomy in China based on computable general equilibrium models. The conclusions are as follows: (1) a coal price increase causes a rise in the cost of the electric power industry, but the influence gradually descends with increase in coal price; and (2) an electricity price increase has an adverse influence on the total output, Gross Domestic Product (GDP), and the Consumer Price Index (CPI). Electricity price increases have a contractionary effect on economic development and, consequently, electricity price policy making must consequently consider all factors to minimize their adverse influence.

The application of option pricing theory to the evaluation of mining investment

Institute of Scientific and Technical Information of China (English)

ZHANG Neng-fu(张能福); CAI Si-jing(蔡嗣经); LIU Chao-ma(刘朝马); TANG Rui(唐瑞)

2003-01-01

A rational evaluation on an investment project forms the basis of a right investment decision-making. The discounted cash flow (DCF for short) method is usually used as a traditional evaluation method for a project investment. However, as the mining investment is influenced by many uncertainties, DCF method cannot take into account these uncertainties and often underestimates the value of an investment project. Based on the option pricing theory of the modern financial assets, the characteristics of a real project investment are discussed, and the management option of mine managers and its pricing method are described.

Does energy-price regulation benefit China's economy and environment? Evidence from energy-price distortions

International Nuclear Information System (INIS)

Ju, Keyi; Su, Bin; Zhou, Dequn; Wu, Junmin

2017-01-01

China's energy prices have long been regulated due to the critical role energy plays in economic growth and social development, which leads to energy-price distortion to some extent. To figure out whether energy-price regulations will benefit China's economy (measured by GDP growth) and environment (measured by carbon emissions), we conducted an in-depth simulation using path analysis, where five energy products (natural gas, gasoline, fuel oil, steam coal, and coking coal) are selected and three measurements (absolute, relative, and moving) of energy-price distortions are calculated. The results indicate that, with a series of energy pricing policies, the price distortion for a single type of energy has gradually transformed, while the energy pricing system in China is not fully market-oriented yet. Furthermore, China's economy benefits from relative and moving distortions, while the absolute distortions of energy prices have negative impacts on economic growth. Finally, with regard to the environment, carbon emissions call for fewer distortions. - Highlights: • Price distortion for a single type of energy has gradually transformed. • Energy pricing system in China is not yet fully market-oriented. • China's economy benefits from relative and moving distortions. • Absolute distortions of energy prices have negative effects on economic growth. • Carbon emissions call for less pricing distortions.

The influence of prices formation system for natural gas over the sector development

International Nuclear Information System (INIS)

Drummond, P.H.

1988-01-01

An analysis of the existing methodologies concerning natural gas valorization in developing countries is presented. The characteristics of natural gas production, transport and distribution in Brazil, with the purpose of suggesting a pricing policy which could effectively permit its development on a national basis is also described. (author)

Criteria for classification of competitive housing projects in terms of their environmental friendliness

Science.gov (United States)

Nezhnikova, Ekaterina

2017-10-01

This article deals with social and economic essence of strategy of the housing industry development, both complex system of economic relations in field of production and consumption, which is regulated through the mechanism of prices and implemented through formation and realization of priority directions. Developed criteria for classification of housing construction projects as environmentally friendly and the quality criteria of variables for assessment of the environmental friendliness of residential buildings allowed to determine the ways of development of the industry on the basis of creation of competitive projects in interrelation with quality, environmental friendliness and price of consumption.

A Reconsideration of Full-Cost Pricing

OpenAIRE

Nubbemeyer, Elmar

2010-01-01

The wide use of full-cost pricing techniques remains an explanandum in both economics and management accounting theory. This work surveys and develops possible theoretical explanations of this industrial pricing behaviour and analyses some of its implications. By recognition of the widespread use of imperfect cost-plus pricing heuristics, observable pricing behaviour, as well as empirical market-level phenomena, can be explained. Furthermore, methodological aspects of marginalist price the...

Relating price strategies and price-setting practices

NARCIS (Netherlands)

Ingenbleek, P.T.M.; Lans, van der I.A.

2013-01-01

Purpose - This article addresses the relationship between price strategies and price-setting practices. The first derive from a normative tradition in the pricing literature and the latter from a descriptive tradition. Price strategies are visible in the market, whereas price-setting practices are

Experiences of project developers around CDM projects in South Africa

International Nuclear Information System (INIS)

Thurner, Thomas W.; Varughese, Arun

2013-01-01

Project developers in South Africa are puzzled with the long process of evaluating and registering their CDM projects. In addition to other obstacles, we find that South African big businesses are rather reluctant to engage in any new business activities such as CDM projects and municipalities often lack the necessary flexibility. This offers opportunities for small-scale project developers who spot the opportunities and find creative solutions to overcome these difficulties. - Highlights: • First paper analysing the experience of small project developers in South Africa. • Project developers in South Africa are puzzled with the long process. • South African big businesses are reluctant to engage in CDM projects. • Small-scale project developers spot opportunities and find creative solutions to overcome difficulties. • Also, we saw learning processes of South African administration in support of CDM projects

Drilling rates and expected oil prices: The own price elasticity of US oil supply

International Nuclear Information System (INIS)

Kaufmann, R.K.; Gruen, W.; Montesi, R.

1994-01-01

This paper evaluates the feasibility of policies to increase exploration and development by the oil industry. To do so, the authors estimate a new model for well completions in the United States that includes the effect of price expectations from survey data, that separates exploratory from development wells, and that uses a deflator based on the cost of drilling a well. The regression results indicate that the price elasticity of drilling is considerably smaller than previous estimates. When combined with recent analyses of drilling success, the results indicate that the own price elasticity of US oil supply is relatively small. The low price elasticity of supply indicates that efforts to increase domestic oil supplies by increasing well completions may be more expensive than believed previously

Innovative developments and managerial factors as key enablers of deepwater riser project delivery

OpenAIRE

Belik, Maxim

2016-01-01

Master's thesis in Offshore technology: industrial asset management The oil and gas industry is currently facing unprecedented challenges because of a negative impact from a declined commodity pricing trend. As the industry tackles deeper and more complex projects, the use of innovative technology to resolve technical challenges becomes an essential project enabler. Integrating proven designs and products with new technologies is a basic requirement in present business environment. Com...

How Do Companies Use the Price Strategies

Institute of Scientific and Technical Information of China (English)

赵亚男; 赵翠玲

2011-01-01

@@ 1 .Introduction With the development of the globalization, companies face many challenges.Pricing strategy is a part of their marketing efforts.Price is the only element in the marketing mix that produces revenues; all other elements re present cost.So pricing and price competition is the number-one problem facing many marketing executives.To select an initial price, companies should using pricing

Adaptation of warrant price with Black Scholes model and historical volatility

Science.gov (United States)

Aziz, Khairu Azlan Abd; Idris, Mohd Fazril Izhar Mohd; Saian, Rizauddin; Daud, Wan Suhana Wan

2015-05-01

This project discusses about pricing warrant in Malaysia. The Black Scholes model with non-dividend approach and linear interpolation technique was applied in pricing the call warrant. Three call warrants that are listed in Bursa Malaysia were selected randomly from UiTM's datastream. The finding claims that the volatility for each call warrants are different to each other. We have used the historical volatility which will describes the price movement by which an underlying share is expected to fluctuate within a period. The Black Scholes model price that was obtained by the model will be compared with the actual market price. Mispricing the call warrants will contribute to under or over valuation price. Other variables like interest rate, time to maturity date, exercise price and underlying stock price are involves in pricing call warrants as well as measuring the moneyness of call warrants.

Optimal pricing and investment in the electricity sector in Tamil Nadu, India

Science.gov (United States)

Murthy, Ranganath Srinivas

2001-07-01

Faulty pricing policies and inadequate investment in the power sector are responsible for the chronic power shortages that plague Tamil Nadu and the rest of India. Formulae for optimal pricing rules are derived for a social welfare maximizing Electricity Board which sells electricity that is used both as an intermediate, and as a final good. Because of distributional constraints, the optimal prices deviate systematically from marginal costs. Optimal relative price-marginal cost differentials are computed for Tamil Nadu, and are found to indicate a lower degree of subsidization than the prevailing prices. The rationalization of electricity tariffs would very likely increase the Board's revenues. The cost-effectiveness of nuclear power in India is examined by comparing actual data for the Madras Atomic Power Project and the Singrauli coal-fired thermal power station. The conventional (non-environmental) costs of power generation are compared at both market prices and shadow prices, calculated according to the UNIDO guidelines for project evaluation. Despite favorable assumptions for the costs of the nuclear plant, coal had a decided edge over nuclear in Tamil Nadu. Remarkably, the edge varied little when market prices are replaced by shadow prices in the computations. With regard to the environmental costs, far too much remains unknown. More research is therefore needed on the environmental impacts of both types of power generation before a final choice can be made.

Study on Stochastic Optimal Electric Power Procurement Strategies with Uncertain Market Prices

Science.gov (United States)

Sakchai, Siripatanakulkhajorn; Saisho, Yuichi; Fujii, Yasumasa; Yamaji, Kenji

The player in deregulated electricity markets can be categorized into three groups of GENCO (Generator Companies), TRNASCO (Transmission Companies), DISCO (Distribution Companies). This research focuses on the role of Distribution Companies, which purchase electricity from market at randomly fluctuating prices, and provide it to their customers at given fixed prices. Therefore Distribution companies have to take the risk stemming from price fluctuation of electricity instead of the customers. This entails the necessity to develop a certain method to make an optimal strategy for electricity procurement. In such a circumstance, this research has the purpose for proposing the mathematical method based on stochastic dynamic programming to evaluate the value of a long-term bilateral contract of electricity trade, and also a project of combination of the bilateral contract and power generation with their own generators for procuring electric power in deregulated market.

7 CFR 1131.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1131.53 Section 1131.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1005.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1005.53 Section 1005.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1126.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1126.53 Section 1126.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1032.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1032.53 Section 1032.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1030.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1030.53 Section 1030.53 Agriculture Regulations of the Department of Agriculture... of class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1033.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1033.53 Section 1033.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1001.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1001.53 Section 1001.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1007.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1007.53 Section 1007.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1006.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1006.53 Section 1006.53 Agriculture Regulations of the Department of Agriculture... class prices, component prices, and advanced pricing factors. See § 1000.53. ...

7 CFR 1033.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1033.50 Section 1033.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1005.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1005.50 Section 1005.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1001.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1001.50 Section 1001.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1006.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1006.50 Section 1006.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1126.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1126.50 Section 1126.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1032.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1032.50 Section 1032.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1131.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1131.50 Section 1131.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

7 CFR 1007.50 - Class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Class prices, component prices, and advanced pricing factors. 1007.50 Section 1007.50 Agriculture Regulations of the Department of Agriculture (Continued..., and advanced pricing factors. See § 1000.50. ...

Asymmetric and nonlinear pass-through of crude oil prices to gasoline and natural gas prices

International Nuclear Information System (INIS)

Atil, Ahmed; Lahiani, Amine; Nguyen, Duc Khuong

2014-01-01

In this article, we use the recently developed nonlinear autoregressive distributed lags (NARDL) model to examine the pass-through of crude oil prices into gasoline and natural gas prices. Our approach allows us to simultaneously test the short- and long-run nonlinearities through positive and negative partial sum decompositions of the predetermined explanatory variables. It also offers the possibility to quantify the respective responses of gasoline and natural gas prices to positive and negative oil price shocks from the asymmetric dynamic multipliers. The obtained results indicate that oil prices affect gasoline prices and natural gas prices in an asymmetric and nonlinear manner, but the price transmission mechanism is not the same. Important policy implications can be learned from the empirical findings. - Highlights: • The pass-through of crude oil prices into gasoline and natural gas prices is examined. • We use a NARDL model to test for the long-run and short-run asymmetric reactions. • Both gasoline and natural gas prices significantly adjust to changes in the price of oil. • Negative oil shocks have greater effects than positive oil shocks. • Policy implications are discussed

Development and implementation of a 600-MW natural gas cogeneration project - a financial case history

International Nuclear Information System (INIS)

Quinn, N.K.; Sherrill, R.L.

1992-01-01

In February 1990, General Electric Capital Corporation (GECC), through its wholly owned subsidiary, General Electric Power Funding Corporation (GEPFC), provided a number of commitments to a partnership (the Partnership) formed by a company that develops, owns, and operates cogeneration facilities to fund the development, construction, and permanent debt and equity financing of a 614 megawatt (M) cogeneration facility (the Project) to be located near a large refinery in the northeastern United States. The Project is unusual both for the magnitude of its natural gas requirements and for its contractual configuration. The Project's entire transportation needs and a substantial portion of its gas requirements will be met by a joint venture between two local gas distribution companies (the Joint Venture), one of which is a large gas-consuming utility in the eastern United States. The Project's power purchase customer, (the Utility Host), is another very large gas-consuming utility. Thus, the fuel cost recovery of the Project is determined by the Utility Host's gas costs while its actual bill for fuel will be heavily influenced by the Joint Venture's gas commodity and transportation costs. Therefore, in appraising the credit quality of the Project's proposed fuel supply arrangements, the key issue to be answered is: Are the Project's natural gas supply and transportation arrangements compatible with the fuel cost recovery provisions of the power sales agreement with the Utility Host? If so, then the sensitivity of the Project's financing to adverse gas price movements would be minimized

The identification of price jumps

Czech Academy of Sciences Publication Activity Database

Hanousek, Jan; Kočenda, Evžen; Novotný, Jan

2012-01-01

Roč. 18, č. 1 (2012), s. 53-77 ISSN 0929-9629 R&D Projects: GA ČR(CZ) GAP403/11/0020; GA ČR(CZ) GBP402/12/G097 Institutional support: PRVOUK-P23 Keywords : price jumps * non-parametric testing * financial econometrics Subject RIV: AH - Economics

7 CFR 1124.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... 7 Agriculture 9 2010-01-01 2009-01-01 true Announcement of class prices, component prices, and advanced pricing factors. 1124.53 Section 1124.53 Agriculture Regulations of the Department of Agriculture... Announcement of class prices, component prices, and advanced pricing factors. See § 1000.53. ...

33 CFR 211.75 - Price.

Science.gov (United States)

2010-07-01

... 33 Navigation and Navigable Waters 3 2010-07-01 2010-07-01 false Price. 211.75 Section 211.75... Under Jurisdiction of Department of the Army for Cottage Site Development and Use § 211.75 Price. The... for a price equal to the fair market value of the site at the time of the sale. ...

Oil price risk management in the 1990s - issues for producers and lenders

International Nuclear Information System (INIS)

Lambert, S.

1994-01-01

Oil prices have exhibited considerable volatility over the past five or ten years and the management of oil price risk has become an important factor in underpinning the viability of many oil producing operations from both a lender's and investor's perspective. Various oil based hedging products are now available to protect against such volatility, ranging from products which fix forward prices to option based arrangements which set a floor price but retain some (or all) of the potential upside. These products have particular relevance for petroleum companies with limited financial resources or who are looking to limit recourse to particular assets/cash flows. There are a number of techniques which can be successfully combined to mitigate oil price volatility and the most relevant of these to a producer are discussed. The recent development of the Tapis swap and option markets, which have provided flexibility to Australasian producers, is also discussed. Oil based financial products can also be used as a method of funding (e.g. for a development or acquisition) as an alternative to traditional cash based borrowing structures, thus creating a natural hedge against oil price movements. It is estimated that the use of such structures, coupled with a well structured revenue hedging program, can enhance a project's attractiveness from a lender's perspective (particularly with respect to protection against down side movements in oil price) and/or provide greater certainty of returns to producers. A case study of a recent commodity risk management based financing is presented. 1 fig., 6 tabs

Legal and policy foundations for global generic competition: Promoting affordable drug pricing in developing societies.

Science.gov (United States)

Zapatero Miguel, Pablo

2015-01-01

The so-called 'TRIPS flexibilities' restated in 2001 by the World Trade Organization's Doha Declaration on TRIPS and Public Health offer a variety of policy avenues for promoting global price-based competition for essential medicines, and thus for improving access to affordable medicines in the developing world. In recent years, developing countries and international organisations alike have begun to explore the potentialities of global generic markets and competition generally, and also of using compulsory licensing to remedy anti-competitive practices (e.g. excessive pricing) through TRIPS-compatible antitrust enforcement. These and other 'pro-competitive' TRIPS flexibilities currently available provide the critical leverage and policy space necessary to improve access to affordable medicines in the developing world.

Edgeworth Price Cycles, Cost-Based Pricing, and Sticky Pricing in Retail Gasoline Markets

OpenAIRE

Michael D. Noel

2007-01-01

This paper examines dynamic pricing behavior in retail gasoline markets for 19 Canadian cities over 574 weeks. I find three distinct retail pricing patterns: 1. cost-based pricing, 2. sticky pricing, and 3. steep, asymmetric retail price cycles that, while seldom documented empirically, resemble those of Maskin & Tirole[1988]. Using a Markov switching regression, I estimate the prevalence of patterns and the structural characteristics of the cycles. Retail price cycles prevail in over 40% of ...

Environmental economic calculation prices for emissions; Miljoeoekonomiske beregningspriser for emissioner

Energy Technology Data Exchange (ETDEWEB)

Skou Andersen, M.

2010-05-15

The project's aim has been to present updated environmental-economic calculation prices which make it possible to differentiate between traffic sources and stationary sources of air pollution. Furthermore, for the first time calculation prices for emissions to the aquatic environment and for the heavy metal lead are included. (ln)

Transfer Pricing and Developing Economies : A Handbook for Policy Makers and Practitioners

OpenAIRE

Cooper, Joel; Fox, Randall; Loeprick, Jan; Mohindra, Komal

2016-01-01

Recent years have seen unprecedented public scrutiny over the tax practices of Multinational Enterprise (MNE) groups. Tax policy and administration concerning international transactions, aggressive tax planning, and tax avoidance have become an issue of extensive national and international debate in developed and developing countries alike. Within this context, transfer pricing, historically a subject of limited specialist interest, has attained name recognition amongst a broader global audie...

Comparing Life-Cycle Costs of ESPCs and Appropriations-Funded Energy Projects: An Update to the 2002 Report

International Nuclear Information System (INIS)

Shonder, John A.; Hughes, Patrick; Atkin, Erica

2006-01-01

A study was sponsored by FEMP in 2001 - 2002 to develop methods to compare life-cycle costs of federal energy conservation projects carried out through energy savings performance contracts (ESPCs) and projects that are directly funded by appropriations. The study described in this report follows up on the original work, taking advantage of new pricing data on equipment and on $500 million worth of Super ESPC projects awarded since the end of FY 2001. The methods developed to compare life-cycle costs of ESPCs and directly funded energy projects are based on the following tasks: (1) Verify the parity of equipment prices in ESPC vs. directly funded projects; (2) Develop a representative energy conservation project; (3) Determine representative cycle times for both ESPCs and appropriations-funded projects; (4) Model the representative energy project implemented through an ESPC and through appropriations funding; and (5) Calculate the life-cycle costs for each project.

World oil demand's shift toward faster growing and less price-responsive products and regions

International Nuclear Information System (INIS)

Dargay, Joyce M.; Gately, Dermot

2010-01-01

Using data for 1971-2008, we estimate the effects of changes in price and income on world oil demand, disaggregated by product - transport oil, fuel oil (residual and heating oil), and other oil - for six groups of countries. Most of the demand reductions since 1973-74 were due to fuel-switching away from fuel oil, especially in the OECD; in addition, the collapse of the Former Soviet Union (FSU) reduced their oil consumption substantially. Demand for transport and other oil was much less price-responsive, and has grown almost as rapidly as income, especially outside the OECD and FSU. World oil demand has shifted toward products and regions that are faster growing and less price-responsive. In contrast to projections to 2030 of declining per-capita demand for the world as a whole - by the U.S. Department of Energy (DOE), International Energy Agency (IEA) and OPEC - we project modest growth. Our projections for total world demand in 2030 are at least 20% higher than projections by those three institutions, using similar assumptions about income growth and oil prices, because we project rest-of-world growth that is consistent with historical patterns, in contrast to the dramatic slowdowns which they project. (author)

Estimating Hedonic Prices for Stellenbosch wine

OpenAIRE

Sanja Lutzeyer

2008-01-01

This paper estimates a hedonic price function for Stellenbosch wines to determine the association between market value and different characteristics of these wines. In such a hedonic price function, the price of a bottle of wine is ascribed to the implicit value of its attributes. Besides contributing to both South African and international wine pricing literature, the benefits of developing a hedonic wine pricing model extend to numerous players in the wine industry. Consumers are provided w...

Estimation of volatility of selected oil production projects

International Nuclear Information System (INIS)

Costa Lima, Gabriel A.; Suslick, Saul B.

2006-01-01

In oil project valuation and investment decision-making, volatility is a key parameter, but it is difficult to estimate. From a traditional investment viewpoint, volatility reduces project value because it increases its discount rate via a higher risk premium. Contrarily, according to the real-option pricing theory, volatility may aggregate value to the project, since the downside potential is limited whereas the upside is theoretically unbounded. However, the estimation of project volatility is very complicated since there is not a historical series of project values. In such cases, many analysts assume that oil price volatility is equal to that of project. In order to overcome such problems, in this paper an alternative numerical method based on present value of future cash flows and Monte Carlo simulation is proposed to estimate the volatility of projects. This method is applied to estimate the volatility of 12 deep-water offshore oil projects considering that oil price will evolve according to one of two stochastic processes: Geometric Brownian Motion and Mean-Reverting Motion. Results indicate that the volatility of commodity usually undervalue that of project. For the set of offshore projects analyzed in this paper, project volatility is at least 79% higher than that of oil prices and increases dramatically in those cases of high capital expenditures and low price. (author)

The Effect of Wind Power on Electricity Prices in Denmark

DEFF Research Database (Denmark)

Jonsson, Tryggvi; Madsen, Henrik

This report is the result of a special course taken by the author at IMM DTU under the guidance of professor Henrik Madsen. The aim of the project is to analyze the influence wind energy has on the electricity spot price in Western Denmark and investigate how information about wind power production...... can be used to model the electricity spot price. Various model types were tried, giving very different performance. Here, only the models that performed best are discussed in order to keep focus on the projects goal....

DEVELOPMENT MANAGEMENT TRANSFER PRICING BY APPLICATION OF THE INTERVAL ESTIMATES

Directory of Open Access Journals (Sweden)

Elena B. Shuvalova

2013-01-01

Full Text Available The article discusses the application of the method of interval estimation of conformity of the transaction price the market price. A comparative analysis of interval and point estimate. Identified the positive and negative effects of using interval estimation.

Transfer pricing: van basismethoden tot systeem

NARCIS (Netherlands)

Steens, H.B.A.

The paper describes basic transfer pricing methods (e.g., cost plus, sales minus) and a framework for developing a consistent transfer pricing system as a consistent set of transfer prices for transactions using the basic methods and meeting managerial and fiscal requirements.

List prices vs. bargain prices: which solution to estimate consumer price indices?

OpenAIRE

Carlo De Gregorio

2010-01-01

Alternative approaches to CPI surveys are here evaluated, in markets where final prices are based on some sort of price listing. Three types of surveys are compared: local surveys (LOC), with small samples and a local price collection; list price surveys (LIS), with huge samples and centralised collection; mixed surveys (MXD), in which LOC and LIS are jointly used. Based on a multiplicative pricing model, some conditions are derived to establish the relative efficiency of these approaches. Th...

FTR-option formulation and pricing

International Nuclear Information System (INIS)

Parmeshwaran, Vijay; Muthuraman, Kumar

2009-01-01

Recent changes in electricity markets have advocated the use of Local Marginal Prices (LMP) for congestion management and pricing. From the perspective of market participants, the LMPs pose a risk since they are not known before a transaction on the grid is made. Financial transmission rights (FTR) are instruments that help market participants hedge this risk and are issuable in two flavors - obligations and options. While pricing obligations are much easier, pricing FTR options pose a significant challenge. In this paper we develop a computational method for pricing FTR options. We also discuss the problem of designing financial instrument sets that assure revenue adequacy for the issuer. We point out the difficulty in assuring revenue adequacy when FTR options are present and propose a scheme for overcoming the difficulty. The proposed pricing method can be used to compute prices of options and obligations in the primary market or as a reliable pricing tool to compute option prices in the secondary market. Finally using a test network we present and discuss numerical results. (author)

Fuel price impacts and compliance costs associated with the Renewable Fuel Standard (RFS)

International Nuclear Information System (INIS)

Christensen, Adam; Siddiqui, Sauleh

2015-01-01

US policy instruments concerning vehicle biofuels are currently being revisited. For example, as part of an on-going annual Renewable Fuel Standard (RFS) implementation, the Environmental Protection Agency (EPA) requests stakeholder feedback/analysis of programmatic effects, including impacts on gasoline/diesel prices and compliance costs. Motivated by the need for regulatory-specific feedback, a novel regional market model is developed that quantifies price impacts across different regional markets for a number of market variables, including several types of compliance certificates known as Renewable Identification Numbers (RINs). An analysis of the most recent EPA proposal suggests that the D4 (biodiesel) RIN price could rise to >$1.00/RIN. Sensitivity results show that the D4 RIN price is highly sensitive to soybean oil prices, while D5/D6 RIN prices are most sensitive to the volume of E85 consumed. It was found that the projected costs associated with the RFS in 2017 could be reduced by approximately 50% if an additional 600 million gallons of E85 were consumed. The analysis also suggests that the RFS does not dramatically affect the retail price of either gasoline and diesel fuels paid by consumers. - Highlights: • The most recent EPA could cause the biodiesel RIN price to rise to >$1.00/RIN. • D5/D6 RIN prices are most sensitive to the volume of E85 consumed. • Retail prices for fuel do not change dramatically. • 2017 compliance costs could fall by 50% if more E85 were consumed.

Determinants of agro-food price changes in Slovenia

OpenAIRE

Gričar, Sergej; Bojnec, Štefan

2013-01-01

This paper investigates the impacts of the current economic developments, the Euro adoption, and input prices on the consumer food prices. The focus of the analysis is on the consumer food price developments during the Slovenian adjustments towards the European Union membership, the Euro adoption by the followed increased in consumer prices, and the current economic and financial conditions. The empirical analysis on the determinants of the consumer food prices is based on the monthly statist...

Transfer Pricing - An Innovative Approach

Directory of Open Access Journals (Sweden)

Ramona MAXIM

2017-06-01

Full Text Available This paper presents transfer pricing and elements of drafting the transfer pricing file by the big companies. The transfer pricing procedure was founded based upon Order no. 442/2016 and the Fiscal Procedure Code and it represents a method upon which the tax base is transferred from a high tax country to a country with low taxation. This legislation outlines the conditions which companies must observe in order to draft the transfer pricing documentation and the significance thresholds. The purpose to draft a transfer pricing file is to reduce the differences between prices and market value and the actual results of company taxation. Economic double taxation occurs when tax authorities apply price adjustments because the company did not respect the principle of market value. Keeping records of transfer pricing and practicing a price aligned to market requirements contribute to an understanding of business development and the creation of appropriate tax planning. Taking into account all these aspects and the fact that any taxpayer is tempted to pay the lowest possible fees, tax havens become an option. In this context we can speak of a tax haven as a loophole in the use of the market price.

Investments and price formation in a liberalized electric power market. Appendices; Investering og prisdannelse pae et liberaliseret elmarked. Bilag

Energy Technology Data Exchange (ETDEWEB)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

New product pricing

International Nuclear Information System (INIS)

Wilkinson, V.K.

1981-01-01

One of the most uncertain elements in budget planning is estimating production costs of items that have heretofore only been produced in prototype configurations and quantities. This paper examines the design and development of a mathematical model which computes appropriate prices for new and unique products. The resulting model offers a producer a fair return on his investment and the consumer a fair purchase price

The Effects of High and Volatile Oil Prices

International Nuclear Information System (INIS)

Artus, Patrick; Autume, Antoine d'; Chalmin, Philippe; Chevalier, Jean-Marie; Coeure, Benoit; Kalantizs, Yannick; Klein, Caroline; Guesnerie, Roger; Callonnec, Gael; Gaudin, Thomas; Moisan, Francois; Lescaroux, Francois; Clerc, Marie; Marcus, Vincent; Lalanne, Guy; Pouliquen, Erwan; Simon, Olivier; Mignon, Valerie

2010-01-01

Forecasting work carried out by a number of institutions shows how difficult it is to accurately predict trends in oil prices. The authors of this report do not carry out this forecasting exercise, but they share the same conclusions about the main features of oil price trends in the near and medium term: a rise in oil prices is inevitable, and will be accompanied by significant volatility. This expectation is based on detailed analysis of oil price determinants, their past variations and forecasts as to their future trends. On the supply side, like with all goods, the price of oil reflects production costs: extraction, transport and refining costs. Alongside this essentially technological component, more specific determinants are at play: the noncompetitive economic rent, which largely stems from OPEC's hold on the market, the scarcity rent on all non-renewable natural resources (this rent increases at a rate equal to the real interest rate according to Hotelling's rule), various taxes (mainly the TIPP domestic tax on oil products in France) and a new component that is set to gain importance in the years ahead, namely the implicit price of carbon emissions (which may take the form of a carbon tax or the cost of emission permits). It is difficult to isolate these different components and even more difficult to quantify them, but the authors' detailed analysis shows that most predictable supply-side developments will concur to bring about a rise in oil prices. On the demand side, too, forecasts and projections converge towards a rise in oil prices. Demand trends depend on crude oil prices, taxes, economic growth and energy and environmental policies. In most developed countries, the trend is towards a slowdown in demand growth and some countries are even seeing a decline in demand. In addition to the economic crisis, two explanations are put forward. The levels reached by crude oil and fuel prices in July 2008 clearly brought the price-elasticity of

Perceived benefits of adopting Standard – Based pricing mechanism for mechanical and electrical services installations

Directory of Open Access Journals (Sweden)

Ganiyu Amuda Yusuf

2014-06-01

Full Text Available Cost is an important measure of project success and clients will expect a reliable forecast at the early stage of construction projects to inform their business decision. This study was undertaken to investigate the current practices in managing cost of mechanical and electrical (M&E services in buildings. The perceptions of practitioners on the benefits of adopting Standard – Based Pricing Mechanism for M&E services as used for building fabrics and finishes was ascertained. The methodology adopted for the study was semi – structure interview and questionnaire survey.  Inferential statistics technique was used to analyse the data collected. The results revealed that, M&E services tender documents are often based on lump sum contract. Practitioners are of the opinion that the adoption of Standard – Based Pricing Mechanism (SBPM could enhance the quality of M&E services price forecast; ensure active post contract cost monitoring and control; encourage collaborative working relationship; enhance efficient whole life cycle cost management; improve risk management and facilitate efficient tendering process. The study suggested the development of local Standard Method of Measurement for M&E services and proposed strategies to facilitate the adoption of SBPM as basis for forecasting contract price of mechanical and electrical services in buildings.

The effects of the vegetable prices insurance on the fluctuation of price: Based on Shanghai evidences

Science.gov (United States)

Qu, Chunhong; Li, Huishang; Hao, Shuai; Zhang, Xuebiao; Yang, Wei

2017-10-01

Taking Shanghai as an example, the influence of the vegetable price insurance on the fluctuation of prices was analyzed in the article. It was found that the sequence of seasonal fluctuations characteristics of leafy vegetable prices was changed by the vegetable cost-price insurance, the period of price fluctuation was elongated from 12-to-18 months to 37 months, and the influence of random factors on the price fluctuations was reduced in some degree. There was still great space for innovation of the vegetable prices insurance system in Shanghai. Some countermeasures would be suggested to develop the insurance system to better to play the role of insurance and promote the market running more smoothly in Shanghai such as prolonging the insurance cycle, improving the price information monitoring mechanism and innovating income insurance products and so on.

Keener pricing for the industry, but only for top quality names

International Nuclear Information System (INIS)

Anon.

1994-01-01

Loans to finance corporations producing energy from various sources are becoming increasingly common. This paper examines prices being paid for existing loans and predicts significant falls in corporate loan pricing in Europe. Various financing projects are described briefly and league tables of lending institutions are presented. (UK)

Price Tails in the Smith and Farmer's Model

Czech Academy of Sciences Publication Activity Database

Šmíd, Martin

2008-01-01

Roč. 15, č. 25 (2008), s. 31-40 ISSN 1212-074X R&D Projects: GA ČR GA402/07/1113; GA ČR(CZ) GA402/06/1417 Institutional research plan: CEZ:AV0Z10750506 Keywords : limit order market * continuous double auction * price increments * fat tails * tail exponent Subject RIV: AH - Economics http://library.utia.cas.cz/separaty/2008/E/smid-price tails in the smith and farmer's model.pdf

Oil price shocks: Sectoral and dynamic adjustments in a small-open developed and oil-exporting economy

International Nuclear Information System (INIS)

Dissou, Yazid

2010-01-01

The recent uptrend in oil prices represents both an opportunity and a challenge for small-open developed and oil-exporting countries. Using Canada as a study case and in contrast to most studies that use aggregate models, this paper employs a multi-sector, intertemporal general equilibrium model to provide perspectives on the sectoral, aggregate and dynamic adjustments of a sustained increase in oil prices. It highlights the transmission channels through which the rise in oil prices affects the domestic economy. The simulation results suggest that the shock would have positive aggregate impacts, but would also spur the reallocation of resources and would therefore induce disparities in sectoral adjustments. The suggested contraction in some industries could not however be attributed to a pure Dutch disease phenomenon because of, among other factors, the cost-push effect induced by the increase in oil prices.

Planning and development of the Better Bites program: a pricing manipulation strategy to improve healthy eating in a hospital cafeteria.

Science.gov (United States)

Liebert, Mina L; Patsch, Amy J; Smith, Jennifer Howard; Behrens, Timothy K; Charles, Tami; Bailey, Taryn R

2013-07-01

The Better Bites program, a hospital cafeteria nutrition intervention strategy, was developed by combining evidence-based practices with hospital-specific formative research, including key informant interviews, the Nutrition Environment Measures Study in Restaurants, hospital employee surveys, and nutrition services staff surveys. The primary program components are pricing manipulation and marketing to promote delicious, affordable, and healthy foods to hospital employees and other cafeteria patrons. The pricing manipulation component includes decreasing the price of the healthy items and increasing the price of the unhealthy items using a 35% price differential. Point-of-purchase marketing highlights taste, cost, and health benefits of the healthy items. The program aims to increase purchases of healthy foods and decrease purchases of unhealthy foods, while maintaining revenue neutrality. This article addresses the formative research, planning, and development that informed the Better Bites program.

An algorithm for on-line price discrimination

NARCIS (Netherlands)

D.D.B. van Bragt; D.J.A. Somefun (Koye); E. Kutschinski; J.A. La Poutré (Han)

2002-01-01

textabstractThe combination of on-line dynamic pricing with price discrimination can be very beneficial for firms operating on the Internet. We therefore develop an on-line dynamic pricing algorithm that can adjust the price schedule for a good or service on behalf of a firm. This algorithm (a

Power purchase prices for wind power IPPs (independent power producers) in Western Europe

International Nuclear Information System (INIS)

Kummert, C.

1995-01-01

In a number of European countries, renewable energy installations, especially wind turbines, are supported by paying high prices for their electricity. A survey of pricing practice should not be limited to an international comparison of price levels, however. The terms under which prices are fixed are important criteria for the assessment of costs and cost effectiveness of wind power projects. The conditions for electricity supply by independent wind power operators in Western Europe are therefore surveyed here. A comparison of the price levels is also shown. (author)

Carbon Pricing: Design, Experiences and Issues

DEFF Research Database (Denmark)

Carbon Pricing reflects upon and further develops the ongoing and worthwhile global debate into how to design carbon pricing, and how to utilize the financial proceeds in the best possible way for society. The world has recently witnessed a significant downward adjustment in fossil fuel prices...

The Limits of Water Pricing in a Developing Country Metropolis: Empirical Lessons from an Industrial City of Pakistan

Directory of Open Access Journals (Sweden)

Shabbir Ahmad

2017-07-01

Full Text Available This paper seeks to question the effectiveness of water pricing as a means of consumer behavioural change in urban centres of the Global South by analysing the domestic usage for water in a major industrial city of Pakistan. Using survey data of 1100 households from Faisalabad city, we estimate the price and income elasticities of water demand. Instrumental variable methods are applied to overcome the endogeneity issues of water pricing. The findings reflect that price and income elasticities vary across different groups. Price elasticities range from −0.43 to −0.71, and income elasticities vary between 0.01 and 0.12. These findings suggest that pricing policies may have limited scope to drive households’ water consumption patterns. However, these empirics may suggest that policy makers should design an appropriate tariff structure to increase revenues that can be invested to further improve the existing water infrastructure. The study findings also suggest that non-pricing instruments, such as water saving campaigns, may be helpful in driving an efficient use of water in rapidly growing cities in the developing world.

7 CFR 1000.53 - Announcement of class prices, component prices, and advanced pricing factors.

Science.gov (United States)

2010-01-01

... advanced pricing factors. 1000.53 Section 1000.53 Agriculture Regulations of the Department of Agriculture..., component prices, and advanced pricing factors. (a) On or before the 5th day of the month, the market... administrator for each Federal milk marketing order shall announce the following prices and pricing factors for...

Tuition Elasticity of the Demand for Higher Education among Current Students: A Pricing Model.

Science.gov (United States)

Bryan, Glenn A.; Whipple, Thomas W.

1995-01-01

A pricing model is offered, based on retention of current students, that colleges can use to determine appropriate tuition. A computer-based model that quantifies the relationship between tuition elasticity and projected net return to the college was developed and applied to determine an appropriate tuition rate for a small, private liberal arts…

Understanding the development of minimum unit pricing of alcohol in Scotland: a qualitative study of the policy process.

Science.gov (United States)

Katikireddi, Srinivasa Vittal; Hilton, Shona; Bonell, Chris; Bond, Lyndal

2014-01-01

Minimum unit pricing of alcohol is a novel public health policy with the potential to improve population health and reduce health inequalities. Theories of the policy process may help to understand the development of policy innovation and in turn identify lessons for future public health research and practice. This study aims to explain minimum unit pricing's development by taking a 'multiple-lenses' approach to understanding the policy process. In particular, we apply three perspectives of the policy process (Kingdon's multiple streams, Punctuated-Equilibrium Theory, Multi-Level Governance) to understand how and why minimum unit pricing has developed in Scotland and describe implications for efforts to develop evidence-informed policymaking. Semi-structured interviews were conducted with policy actors (politicians, civil servants, academics, advocates, industry representatives) involved in the development of MUP (n = 36). Interviewees were asked about the policy process and the role of evidence in policy development. Data from two other sources (a review of policy documents and an analysis of evidence submission documents to the Scottish Parliament) were used for triangulation. The three perspectives provide complementary understandings of the policy process. Evidence has played an important role in presenting the policy issue of alcohol as a problem requiring action. Scotland-specific data and a change in the policy 'image' to a population-based problem contributed to making alcohol-related harms a priority for action. The limited powers of Scottish Government help explain the type of price intervention pursued while distinct aspects of the Scottish political climate favoured the pursuit of price-based interventions. Evidence has played a crucial but complex role in the development of an innovative policy. Utilising different political science theories helps explain different aspects of the policy process, with Multi-Level Governance particularly useful for

Ex-vessel Fish Price Database: Disaggregating Prices for Low-Priced Species from Reduction Fisheries

Directory of Open Access Journals (Sweden)

Travis C. Tai

2017-11-01

Full Text Available Ex-vessel fish prices are essential for comprehensive fisheries management and socioeconomic analyses for fisheries science. In this paper, we reconstructed a global ex-vessel price database with the following areas of improvement: (1 compiling reported prices explicitly listed as “for reduction to fishmeal and fish oil” to estimate prices separately for catches destined for fishmeal and fish oil production, and other non-direct human consumption purposes; (2 including 95% confidence limit estimates for each price estimation; and (3 increasing the number of input data and the number of price estimates to match the reconstructed Sea Around Us catch database. Our primary focus was to address this first area of improvement as ex-vessel prices for catches destined for non-direct human consumption purposes were substantially overestimated, notably in countries with large reduction fisheries. For example in Peru, 2010 landed values were estimated as 3.8 billion real 2010 USD when using separate prices for reduction fisheries, compared with 5.8 billion using previous methods with only one price for all end-products. This update of the price database has significant global and country-specific impacts on fisheries price and landed value trends over time.

Natural gas pricing policies in Southeast Asia

International Nuclear Information System (INIS)

Pacudan, R.B.

1998-01-01

The very dynamic economies of Southeast Asia have recently been experiencing a rapid increase in energy demand. Parallel to this development, there has been an increase in the utilization of indigenous natural gas resources. This article reviews gas-pricing policies in the region, which partly explain the rise in gas utilization. Although diverse, energy pricing policies in Southeast Asia address the common objective of enhancing domestic gas production and utilization. The article concludes that a more rational gas-pricing policy framework is emerging in the region. In global terms, gas pricing in the region tends to converge in a market-related framework, despite the many different pricing objectives of individual countries, and the predominance of non-economic pricing objectives in certain countries (especially gas-rich nations). Specifically, governments have been flexible enough to follow global trends and initiate changes in contractual agreements (pricing and profit-sharing), giving oil companies more favourable terms, and encouraging continued private investment in gas development. At the same time, promotional pricing has also been used to increase utilization of gas, through set prices and adjusted taxes achieving a lower price level compared to substitute fuels. For an efficient gas-pricing mechanism, refinements in the pricing framework should be undertaken, as demand for gas approaches existing and/or forecast production capacities. (author)

Sustainable model for financial viability of decentralized biomass gasifier based power projects

International Nuclear Information System (INIS)

Palit, Debajit; Malhotra, Ramit; Kumar, Atul

2011-01-01

This paper made a modest attempt for designing a sustainable model for financial viability of biomass gasifier power projects for enhancing electricity access in India and other developing countries. For long term sustainability of distributed generation projects in remote rural areas, viability from both project implementing agency (PIA) and the end-users need to be ensured. The minimum required prices of electricity from both PIA and end-user perspective have been estimated. While for PIA the cost recovery is the key for viability, the affordability to pay the electricity cost is crucial for the end users. Analysis carried out in this paper on the basis of data obtained from operational projects implemented in India reveal that it is essential to operate the system at a higher capacity utilization factor. While this can be achieved though creating convergence with locally relevant economic activity, it is also observed that micro-enterprises cannot pay beyond a certain price of electricity to keep it sustainable. This paper sets forth a case for developing a regulatory mechanism to extend the tariff fixation for the projects and providing cross-subsidies to ensure long term sustainability of off-grid project. - Highlights: → We design sustainable financial model for viability of biomass gasifier projects. → Analysis based on field data obtained from operational projects in India. Estimated electricity pricing from both implementing agency and end-users perspective. → A regulatory mechanism for tariff fixation and cross subsidization is recommended.

Testing multi-factor asset pricing models in the Visegrad countries

Czech Academy of Sciences Publication Activity Database

Morgese Borys, Magdalena

2011-01-01

Roč. 61, č. 2 (2011), s. 118-139 ISSN 0015-1920 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : capital asset pricing model * macroeconomic factor models * asset pricing Subject RIV: AH - Economics Impact factor: 0.346, year: 2011 http://journal.fsv.cuni.cz/mag/article/show/id/1208

Air pollution, land price development and assessment of immission control needs in urban development plans. The impact of immission pollution by sulphur dioxide and dust precipitation on property prices in residential areas of Dortmund and Duisburg

International Nuclear Information System (INIS)

Lee Chenjai.

1993-01-01

Air pollution, land price development and assessment of immission control needs in urban development plans. The impact of immission pollution by sulphur dioxide and dust precipitation on property prices in residential areas of Dortmund and Duisburg. The focus of this thesis is on studying the links between property prices and air pollution. The ground rent theory which goes back to the 16th century provides the theoretical basis for this work. RICARDO put forward the theory, that air may, under certain circumstances, - as for instance different local air pollution levels or sensitivity of locals to air quality -, which did not apply 200 years ago actually produce rent. These circumstances do indeed apply widely today - different air pollution levels in urban areas are just a case in point. Various empiricial studies in the U.S. proved that air pollution with different substances does actually influence the value of property. The ground rent influenced by air pollution is called ''air rent''. This study contains empirical studies on the influence of air pollution by sulphur dioxide SO 2 and dust precipitation on general property prices in residential areas of Dortmund between 1979 and 1989 and Duisburg between 1981 and 1989. (orig./UA) [de

Price caps and price floors in climate policy: a quantitative assessment

Energy Technology Data Exchange (ETDEWEB)

Philibert, Cedric

2008-12-15

This study assesses the long-term economic and environmental effects of introducing price caps and price floors in hypothetical climate change mitigation architecture, which aims to reduce global energy-related CO2 emissions by 50% by 2050. Based on abatement costs in IPCC and IEA reports, this quantitative analysis confirms what qualitative analyses have already suggested: introducing price caps could significantly reduce economic uncertainty. This uncertainty stems primarily from unpredictable economic growth and energy prices, and ultimately unabated emission trends. In addition, the development of abatement technologies is uncertain. With price caps, the expected costs could be reduced by about 50% and the uncertainty on economic costs could be one order of magnitude lower. Reducing economic uncertainties may spur the adoption of more ambitious policies by helping to alleviate policy makers' concerns of economic risks. Meanwhile, price floors would reduce the level of emissions beyond the objective if the abatement costs ended up lower than forecasted. If caps and floors are commensurate with the ambition of the policy pursued and combined with slightly tightened emission objectives, climatic results could be on average similar to those achieved with 'straight' objectives (i.e. with no cost-containment mechanism). (auth)

Energy Efficiency Project Development

Energy Technology Data Exchange (ETDEWEB)

IUEP

2004-03-01

The International Utility Efficiency Partnerships, Inc. (IUEP) has been a leader among the industry groups that have supported voluntary initiatives to promote international energy efficiency projects and address global climate change. The IUEP maintains its leadership by both supporting international greenhouse gas (GHG) reduction projects under the auspices of the U.S. Department of Energy (DOE) and by partnering with U.S. and international organizations to develop and implement strategies and specific energy efficiency projects. The goals of the IUEP program are to (1) provide a way for U.S. industry to maintain a leadership role in international energy efficiency infrastructure projects; (2) identify international energy project development opportunities to continue its leadership in supporting voluntary market-based mechanisms to reduce GHG emissions; and (3) demonstrate private sector commitment to voluntary approaches to global climate issues. The IUEP is dedicated to identifying, promoting, managing, and assisting in the registration of international energy efficiency projects that result in demonstrated voluntary reductions of GHG emissions. This Final Technical Report summarizes the IUEP's work in identifying, promoting, managing, and assisting in development of these projects and IUEP's effort in creating international cooperative partnerships to support project development activities that develop and deploy technologies that (1) increase efficiency in the production, delivery and use of energy; (2) increase the use of cleaner, low-carbon fuels in processing products; and (3) capture/sequester carbon gases from energy systems. Through international cooperative efforts, the IUEP intends to strengthen partnerships for energy technology innovation and demonstration projects capable of providing cleaner energy in a cost-effective manner. As detailed in this report, the IUEP met program objectives and goals during the reporting period January 1

The EurMedStat proposals on indicators for price and utilisation

Directory of Open Access Journals (Sweden)

Tom Walley

2006-03-01

Full Text Available Medicines account for an increasing proportion of healthcare budgets in all European countries. The EuroMedStat project aims to establish methods and systems for comparing the publicly funded pharmaceutical markets across Europe. A key issue is how to compare prices across countries. There are established methods for bilateral comparisons between two countries which are used in pricing negotiations but no means of a broader overview. Difficulties exist because of: a lack of directly comparable packages of individual medicines across Europe; currency conversion in some countries, despite the use of the euro; a range of different prices from different parts of the supply chain that could be studied; differences even within what are included in prices across countries (e.g. pharmacy fees etc; and most important, lack of availability of data on many of these points. Our aim was to produce pragmatic suggestions and these are presented. We suggest that the price used in the pharmacy retail price; that the denominator for price is the defined daily dose; and that the package size selected is that which most closely equates to one month’s treatment at the most commonly used dosage. From this, we derive a number of markers of the efficiency of national markets. It is important that the limitations of these are understood and that they are sued only as broad indicators to begin exploring areas of possible concern, and not for instance in price setting. These indicators now need field testing and the project will extent to include the new accession countries.

Dynamics of global supply chain and electric power networks: Models, pricing analysis, and computations

Science.gov (United States)

Matsypura, Dmytro

In this dissertation, I develop a new theoretical framework for the modeling, pricing analysis, and computation of solutions to electric power supply chains with power generators, suppliers, transmission service providers, and the inclusion of consumer demands. In particular, I advocate the application of finite-dimensional variational inequality theory, projected dynamical systems theory, game theory, network theory, and other tools that have been recently proposed for the modeling and analysis of supply chain networks (cf. Nagurney (2006)) to electric power markets. This dissertation contributes to the extant literature on the modeling, analysis, and solution of supply chain networks, including global supply chains, in general, and electric power supply chains, in particular, in the following ways. It develops a theoretical framework for modeling, pricing analysis, and computation of electric power flows/transactions in electric power systems using the rationale for supply chain analysis. The models developed include both static and dynamic ones. The dissertation also adds a new dimension to the methodology of the theory of projected dynamical systems by proving that, irrespective of the speeds of adjustment, the equilibrium of the system remains the same. Finally, I include alternative fuel suppliers, along with their behavior into the supply chain modeling and analysis framework. This dissertation has strong practical implications. In an era in which technology and globalization, coupled with increasing risk and uncertainty, complicate electricity demand and supply within and between nations, the successful management of electric power systems and pricing become increasingly pressing topics with relevance not only for economic prosperity but also national security. This dissertation addresses such related topics by providing models, pricing tools, and algorithms for decentralized electric power supply chains. This dissertation is based heavily on the following

Forecasting prices and price volatility in the Nordic electricity market

International Nuclear Information System (INIS)

2001-01-01

We develop a stochastic model for long term price forecasting in a competitive electricity market environment. It is demonstrated both theoretically and through model simulations that non-stochastic models may give biased forecasts both with respect to price level and volatility. In the paper, the model concept is applied on the restructured Nordic electricity market. It is specially in peak load hours that a stochastic model formulation provides significantly different results than an expected value model. (author)

Specialty pharmaceuticals: policy initiatives to improve assessment, pricing, prescription, and use.

Science.gov (United States)

Robinson, James C; Howell, Scott

2014-10-01

The value of "specialty pharmaceuticals" for cancer and other complex conditions depends not merely on their molecular structures but also on the manner in which the drugs are assessed, insured, priced, prescribed, and used. This article analyzes the five principal stages through which a specialty drug must pass on its journey from the laboratory to the bedside. These include regulatory approval by the Food and Drug Administration for market access, insurance coverage, pricing and payment, physician prescription, and patient engagement. If structured appropriately, each stage improves performance and supports continued research and development. If structured inappropriately, however, each stage adds to administrative burdens, distorts clinical decision making, and weakens incentives for innovation. Cautious optimism is in order, but neither the continued development of breakthrough products nor their use according to evidence-based guidelines can be taken for granted. Project HOPE—The People-to-People Health Foundation, Inc.

The provinces and carbon pricing : three inconvenient truths

Energy Technology Data Exchange (ETDEWEB)

Courchene, T.J.; Allan, J.R. [Queen' s Univ., Kingston, ON (Canada). Inst. of Intergovernmental Relations

2008-12-15

This article discussed the role that the federal government should play in introducing a carbon price policy in Canada whereby a carbon tax would be instituted to send a price signal to those considering future investment in carbon-intensive energy projects. It focused on bridging the gap between federal and provincial jurisdictions and assessed how various carbon pricing models can play a role in environmental federalism while allowing provinces to remain involved in policy making. Policy commitments related to emissions and cap-and-trade systems were discussed along with carbon import tariffs and domestic carbon taxes. In a market-based policy on climate change, proceeds of carbon taxes will serve to reduce greenhouse gas emissions. This article also reviewed tax incentives as well as price signal systems designed to ensure successful climate change adjustments for Canadian enterprises. 1 fig.

The provinces and carbon pricing : three inconvenient truths

International Nuclear Information System (INIS)

Courchene, T.J.; Allan, J.R.

2008-01-01

This article discussed the role that the federal government should play in introducing a carbon price policy in Canada whereby a carbon tax would be instituted to send a price signal to those considering future investment in carbon-intensive energy projects. It focused on bridging the gap between federal and provincial jurisdictions and assessed how various carbon pricing models can play a role in environmental federalism while allowing provinces to remain involved in policy making. Policy commitments related to emissions and cap-and-trade systems were discussed along with carbon import tariffs and domestic carbon taxes. In a market-based policy on climate change, proceeds of carbon taxes will serve to reduce greenhouse gas emissions. This article also reviewed tax incentives as well as price signal systems designed to ensure successful climate change adjustments for Canadian enterprises. 1 fig

Price strategy and pricing strategy: terms and content identification

OpenAIRE

Panasenko Tetyana

2015-01-01

The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

Price increase and credit crunch: a double punishment for the financing of energy projects. Review of the Ifri Energy Breakfast Roundtable, 25 November 2008 in Brussels

International Nuclear Information System (INIS)

Schulke, Ch.

2009-01-01

The roundtable starts by giving an overview of the consequences of the sharp decrease of the oil price and the credit crunch for the financing of energy projects. Some analysts say that under-investment will be the main result and they hence predict a major supply crunch in some year's time. Others are more optimistic and point to the compensation and mitigating effects of the current situation, e.g. demand destruction and substitution. So a major question for the future is the extent of demand destruction that has happened: will this demand come back once the economic crisis is over? Furthermore, as developing costs decrease, will lower cost pressure allow some important projects to go forward? Finally, will the low oil revenue have an influence on producer countries stance on foreign investment by International Oil Companies? A discussion with the audience follows the presentations

Value based pricing: the least valued pricing strategy

OpenAIRE

Hoenen, Bob

2017-01-01

Pricing has been one of the least researched topics in marketing, although within these pricing strategies: cost-plus pricing is considered as the leading pricing strategy worldwide. Why should companies use such an unprofitable strategy, where fighting for a higher market share due to low prices is more a rule than exception? VBP is one of the most underestimated strategies by organizations. The definition of VBP is: 'value pricing applies to products that have the potential of being differe...

Pricing the Innovation for Market Introduction

Directory of Open Access Journals (Sweden)

Dănut Tiberius Epure

2006-10-01

Full Text Available The factors that influence pricing strategy change over the life of a product concept. The market defined by a product concept passes through four phases: development, growth, maturity, and decline. Briefly, the changes in the strategic environment over those phases are as follows: Market development. Buyers are price insensitive because they knowledge of the product’s benefits. Both production and not a threat since the potential gains from market development exceed those from competitive rivalry. Pricing strategy signals the product’s value to potential buyers, but buyer education remains the key to sales growth.

48 CFR 36.207 - Pricing fixed-price construction contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Pricing fixed-price... Contracting for Construction 36.207 Pricing fixed-price construction contracts. (a) Generally, firm-fixed... methods. (b) Lump-sum pricing shall be used in preference to unit pricing except when— (1) Large...

All projects related to morocco | IDRC - International Development ...

International Development Research Centre (IDRC) Digital Library (Canada)

Region: Middle East, Algeria, Libya, Morocco, Syria, Tunisia, Egypt, Yemen, ... intensified enforcement have prompted media and medicine suppliers alike to price ... Agriculture is at the heart of Morocco's economic and social development, but ...

Price strategy and pricing strategy: terms and content identification

Directory of Open Access Journals (Sweden)

Panasenko Tetyana

2015-11-01

Full Text Available The article is devoted to the terminology and content identification of seemingly identical concepts "price strategy" and "pricing strategy". The article contains evidence that the price strategy determines the direction, principles and procedure of implementing the company price policy and pricing strategy creates a set of rules and practical methods of price formation in accordance with the pricing strategy of the company.

The bio-energies development: the role of biofuels and the CO{sub 2} price

Energy Technology Data Exchange (ETDEWEB)

Jouvet, Pierre-Andre [Universite Paris Ouest Nanterre La Defense, Climate Economics Chair (France); Lantz, Frederic [IFP Energies nouvelles, 1-4, avenue de Bois-Preau, 92852 Rueil-Malmaison Cedex (France); Le Cadre, Elodie [IFPEN, INRA, Universite Paris Ouest Nanterre La Defense (France)

2012-07-01

Reduction in energy dependency and emissions of CO{sub 2} via renewable energies targeted in the European Union energy mix and taxation system, might trigger the production of bio-energy production and competition for biomass utilization. Torrefied biomass could be used to produce second generation biofuels to replace some of the fuels used in transportation and is also suitable as feedstock to produce electricity in large quantities. This paper examines how the CO{sub 2} price affects demand of torrefied biomass in the power sector and its consequences on the profitability of second generation biofuel units (Biomass to Liquid units). Indeed, the profitability of the BtL units which are supplied only by torrefied biomass is related to the competitive demand of the power sector driven by the CO{sub 2} price and feed-in tariffs. We propose a linear dynamic model of supply and demand. On the supply side, a profit-maximizing torrefied biomass sector is modelled. The model aims to represent the transformation of biomass into torrefied biomass which could be sold to the refinery sector and the power sector. A two-sided (demanders and supplier) bidding process led us to arrive at the equilibrium price for torrefied biomass. The French case is used as an example. Our results suggest that the higher the CO{sub 2} price, the more stable and important the power sector demand. It also makes the torrefied biomass production less vulnerable to uncertainty on demand coming from the refining sector. The torrefied biomass co-firing with coal can offer a near-term market for the torrefied biomass for a CO{sub 2} emission price lower than 20 euros/tCO{sub 2}, which can stimulate development of biomass supply systems. Beyond 2020, the demand for torrefied biomass from the power sector could be substituted by the refining sector if the oil price goes up whatever the CO{sub 2} price. (authors)

Helping consumers manage their exposure to volatile natural gas prices

International Nuclear Information System (INIS)

Campion, A.

2004-01-01

This presentation provided a customer's view of forward gas prices and outlined different buying behaviours in terms of characteristics of novice and seasoned buyers. It presented a portfolio overview of natural gas and described the risks facing customers in terms of fixed prices and fixed volumes. An energy smart price plan considers floating gas prices instead of a fixed market price. An automobile manufacturer was presented as an example of a gas consumer that would prefer to manage internal costs of production rather than manage gas volatility. The importance of understanding the drivers of individual businesses was emphasized. Natural Resources Canada and the Office of Energy Efficiency offer financial incentives for manufacturers for energy retrofit feasibility studies that result in energy retrofit projects in lighting, heating, boiler replacement, chiller upgrades, and heat recovery. tabs., figs

A quantitative analysis of the cost-effectiveness of project types in the CDM pipeline

Energy Technology Data Exchange (ETDEWEB)

Green, Gavin A.

2008-09-15

The flexibility of the CDM is intended to reduce the cost of compliance for Annex 1 countries and contribute to cost-effective reductions. This paper provides a framework for defining cost-effective payments for CDM carbon reductions. The projects in the CDM pipeline are categorised into project types. The data provided in the Project Design Documents is quantitatively assessed to calculate the median cost and range of costs for producing a CER from the project categories. These are measured against the range of prices in the market in order to estimate the level of cost-effectiveness. Global warming potential and size of the project were shown to be key factors in the cost of producing a CER. The results show that although prices for CERs are difficult to define in the primary CER market, many of the project categories generated CERs at a cost well below the lowest market price. The difference in these two values is defined as a loss in cost-effectiveness. The CDM is shown to be successful at developing the 'lowest hanging fruit' but the mechanism could be improved to fulfil the goal of cost-effectiveness by linking the price per CER to the cost of generating a CER. (au)

Space-time modeling of timber prices

Science.gov (United States)

Mo Zhou; Joseph Buongriorno

2006-01-01

A space-time econometric model was developed for pine sawtimber timber prices of 21 geographically contiguous regions in the southern United States. The correlations between prices in neighboring regions helped predict future prices. The impulse response analysis showed that although southern pine sawtimber markets were not globally integrated, local supply and demand...

Dynamic electricity pricing for electric vehicles using stochastic programming

International Nuclear Information System (INIS)

Soares, João; Ghazvini, Mohammad Ali Fotouhi; Borges, Nuno; Vale, Zita

2017-01-01

Electric Vehicles (EVs) are an important source of uncertainty, due to their variable demand, departure time and location. In smart grids, the electricity demand can be controlled via Demand Response (DR) programs. Smart charging and vehicle-to-grid seem highly promising methods for EVs control. However, high capital costs remain a barrier to implementation. Meanwhile, incentive and price-based schemes that do not require high level of control can be implemented to influence the EVs' demand. Having effective tools to deal with the increasing level of uncertainty is increasingly important for players, such as energy aggregators. This paper formulates a stochastic model for day-ahead energy resource scheduling, integrated with the dynamic electricity pricing for EVs, to address the challenges brought by the demand and renewable sources uncertainty. The two-stage stochastic programming approach is used to obtain the optimal electricity pricing for EVs. A realistic case study projected for 2030 is presented based on Zaragoza network. The results demonstrate that it is more effective than the deterministic model and that the optimal pricing is preferable. This study indicates that adequate DR schemes like the proposed one are promising to increase the customers' satisfaction in addition to improve the profitability of the energy aggregation business. - Highlights: • A stochastic model for energy scheduling tackling several uncertainty sources. • A two-stage stochastic programming is used to tackle the developed model. • Optimal EV electricity pricing seems to improve the profits. • The propose results suggest to increase the customers' satisfaction.

FERC's pilot project to eliminate the price cap on capacity release: a walk with Bob through 'This Old House'

International Nuclear Information System (INIS)

Howard, R.

1997-01-01

The Federal Energy Regulatory Commission's (FERC) recent attempt to remove the price cap on secondary market products, including released capacity, was described. Unfortunately, lifting the cap was conditional on sound market power analysis and joint filing with an open access local distribution company (LDC). There were few applications, and all but two have been rejected. The two companies whose applications were approved, subsequently decided not to proceed with the project, claiming that the diminished scope of the experiment would prevent the gathering of meaningful data. This author argued that a perfect market power analysis is not necessary; the natural gas market being a secondary market, lifting the price cap at the retail level would provide very good indication of the value of the capacity in the marketplace. From the pipeline's perspective the ultimate goal is to establish market benchmarks to value mainline capacity; this should be the goal of FERC, as well. A variety of arguments in favour of this view were presented; these were supported by illustrative examples based on Canadian experience

Logistics: Price Rises Incurred by High Oil Price

Institute of Scientific and Technical Information of China (English)

Lai Zhihui

2011-01-01

@@ "When the oil price grows by 100%, the logistic indus-try will see a price growth of 40%, while the logistics in-dustry a price rise of 35%, which means every price increase of 5% in the oil price will bring along that of 2% in this industry." said Liu Zongsheng, General Manager of Itochu Logistics Co., Ltd., on the seminar "Focusing on the eco-nomic consequences of raising oil price, interest rate and deposit reserve ratio", which was held recently.

Transfer Pricing: Is the Comparable Uncontrolled Price Method the Best Method in all Cases?

Directory of Open Access Journals (Sweden)

Pranvera Dalloshi

2012-12-01

Full Text Available The transfer price scope is becoming a very important issue for all companies that comprise from different departments or have a network of branches. These companies are obliged to present the way of price determination for transactions that they have with their branches or other relevant members of their network. The establishment of the multinational companies that develop their activities in various countries is being increased. It has increased the need to supervise their transactions and approval of laws and administrative orders that do not leave space for misuses. The paper is focused in the response to the question if the Comparable Uncontrolled Price Method is the best method to be used in all cases. It is presented through a concrete example that shows how the price of a product determined through the Comparable Uncontrolled Price Method or market price has an impact to the profit of the mother company and other subsidiaries.

[International reference prices and cost minimization analysis for the regulation of medicine prices in Colombia].

Science.gov (United States)

Vacca, Caludia; Acosta, Angela; Rodriguez, Ivan

2011-01-01

To suggest a scheme of decision making on pricing for medicines that are part of Free Regulated Regime, a regulation way of the pharmaceutical pricing policy in Colombia. It includes two regulation tools: international reference prices and a cost minimization analysis methodology. Following the current pricing policy, international reference prices were built with data from five countries for selected medicines, which are under Free Regulated Regime. The cost minimization analysis methodology includes selection of those medicines under Free Regulated Regime with possible comparable medicines, selection of comparable medicines, and treatment costs evaluation. As a result of the estimate of International Reference Prices, four medicines showed in the domestic pharmaceutical market a bigger price than the Reference Price. A scheme of decision-making was design containing two possible regulation tools for medicines that are part of Free Regulated Regime: estimate of international reference prices and cost minimization analysis methodology. This diagram would be useful to assist the pricing regulation of Free Regulated Regime in Colombia. As present results shows, international reference prices make clear when domestic prices are higher than those of reference countries. In the current regulation of pharmaceutical prices in Colombia, the international reference price has been applied for four medicines. Would be suitable to extend this methodology to other medicines of high impact on the pharmaceutical expenditure, in particular those covered by public funding. The availability of primary sources about treatment costs in Colombia needs to be improved as a requirement to develop pharmaco-economic evidence. SISMED is an official database that represents an important primary source of medicines prices in Colombia. Nevertheless, having into account that SISMED represents an important advantage of transparency in medicines prices, it needs to be improved in quality and data

A Study on the Economic Analysis for Overseas Project of New Nuclear Power Plant Using Binomial Option Pricing Model and Monte Carlo Simulation

Energy Technology Data Exchange (ETDEWEB)

Kim, Beong Gwon; Roh, Myung Sub [KEPCO International Nuclear Graduate School, Ulsan (Korea, Republic of)

2014-10-15

Real options approach is suitable for evaluation of large-scale investment project with great uncertainties. Takizawa and Omori (2001) introduced a real option approach to calculate electricity price for economic feasibility. Rothwell (2006) modeled the net present value (NPV) of building an ABWR in Texas using ROA to determine the risk premium associated with net revenue uncertainty. W.C Yoon (2006) evaluated nuclear power plant construction value using DCF and ROA with sensitivity analysis. The value evaluations involved with nuclear power are very uncertain. This is because of a long period of construction as well as the cost uncertainties of decommissioning and nuclear waste management. Even more elements should be considered in new nuclear power valuation, including the uncertainty from the technology, operating costs, the potential risk of radiation, electricity mechanism and climate policy. In this respect, a traditional method such as discounted cash flow (DCF) can't fully catch the impacts of these uncertainties on nuclear power investment. So it is necessary to develop a proper method to handle such kinds of uncertainties to evaluate the new deployment of nuclear power plants. Meanwhile, overseas construction projects which are required capital investment, localization by target countries are increasing in these days. These elements may influence the uncertainty of project too.

Forecasting Construction Tender Price Index in Ghana using Autoregressive Integrated Moving Average with Exogenous Variables Model

Directory of Open Access Journals (Sweden)

Ernest Kissi

2018-03-01

Full Text Available Prices of construction resources keep on fluctuating due to unstable economic situations that have been experienced over the years. Clients knowledge of their financial commitments toward their intended project remains the basis for their final decision. The use of construction tender price index provides a realistic estimate at the early stage of the project. Tender price index (TPI is influenced by various economic factors, hence there are several statistical techniques that have been employed in forecasting. Some of these include regression, time series, vector error correction among others. However, in recent times the integrated modelling approach is gaining popularity due to its ability to give powerful predictive accuracy. Thus, in line with this assumption, the aim of this study is to apply autoregressive integrated moving average with exogenous variables (ARIMAX in modelling TPI. The results showed that ARIMAX model has a better predictive ability than the use of the single approach. The study further confirms the earlier position of previous research of the need to use the integrated model technique in forecasting TPI. This model will assist practitioners to forecast the future values of tender price index. Although the study focuses on the Ghanaian economy, the findings can be broadly applicable to other developing countries which share similar economic characteristics.

Pricing policies for a two-part exhaustible resource cartel: the case of OPEC (world oil project). Working paper

Energy Technology Data Exchange (ETDEWEB)

Hnyilicza, E.; Pindyck, R.S.

1976-04-01

This paper examines pricing policies for OPEC under the assumption that the cartel is composed of a block of spender countries with large cash needs and a block of saver countries with little immediate need for cash and a lower rate of discount. The decision problem for the two-part cartel is embodied in a game-theoretic framework and the optimal bargaining solution is computed using results from the theory of cooperative games developed by Nash. The set of feasible bargaining points--and the corresponding Nash solution--is computed under two assumptions on the behavior of output shares: that they are subject to choice and that they are fixed at historical values. The results suggest that for fixed output shares, there is little room for bargaining and the price path approximates the optimal monopoly price path. If the shares are subject to control, optimal paths depend significantly on the relative bargaining power of each block.

Dynamic Pricing

DEFF Research Database (Denmark)

Sharifi, Reza; Anvari-Moghaddam, Amjad; Fathi, S. Hamid

2017-01-01

Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes h...... of dynamic pricing can lead to increased willingness of consumers to participate in DR programs which in turn improve the operation of liberalized electricity markets.......Dynamic pricing scheme, also known as real-time pricing (RTP), can be more efficient and technically beneficial than the other price-based schemes (such as flat-rate or time-of-use (TOU) pricing) for enabling demand response (DR) actions. Over the past few years, advantages of RTP-based schemes...

Hedging electricity price volatility using nuclear power

International Nuclear Information System (INIS)

Mari, Carlo

2014-01-01

Highlights: • Nuclear power is an important asset to reduce the volatility of electricity prices. • Unpredictability of fossil fuels and carbon prices makes power prices very volatile. • The dynamics of fossil fuels and carbon prices is described by Brownian motions. • LCOE values, volatilities and correlations are obtained via Monte Carlo simulations. • Optimal portfolios of generating technologies are get using a mean–variance approach. - Abstract: The analysis presented in this paper aims to put in some evidence the role of nuclear power as hedging asset against the volatility of electricity prices. The unpredictability of natural gas and coal market prices as well as the uncertainty in environmental policies may affect power generating costs, thus enhancing volatility in electricity market prices. The nuclear option, allowing to generate electricity without carbon emissions, offers the possibility to reduce the volatility of electricity prices through optimal diversification of power generating technologies. This paper provides a methodological scheme to plan well diversified “portfolios” of generating capacity that minimize the electricity price risk induced by random movements of fossil fuels market prices and by unpredictable fluctuations of carbon credits prices. The analysis is developed within a stochastic environment in which the dynamics of fuel prices as well as the dynamics of carbon credits prices is assumed to evolve in time according to well defined Brownian processes. Starting from market data and using Monte Carlo techniques to simulate generating cost values, the hedging argument is developed by selecting optimal portfolio of power generating technologies using a mean–variance approach

Heavy oil supply economics and supply response to low oil prices

International Nuclear Information System (INIS)

Fisher, L.

1999-01-01

The dynamics of the heavy oil industry are examined, including prices, market demand, supply and supply costs. Price assumptions are provided for the reference case oil price (west Texas intermediate at Cushing). Supply cost methodology is explained. Capital and operating costs for various heavy oil and synthetic sources are derived from modeling results. The range of supply costs for heavy oil and bitumen from various sources, supply costs in terms of reference case market values and in terms of 1995-1996 average market values for Bow River crude, are derived. The CERI long term supply forecast model is explained. Western Canada upstream oil and gas cash flow and capital expenditures, eastern Canada exploration and expenditures by hydrocarbon type, and Canadian heavy oil and bitumen production based on reference case prices are estimated. Based on these projections the outlook for heavy oil at reference case prices for better than average quality resources is judged to be economic. Lower quality resources will require technology gains for successful commercialization. SAGD is a likely candidate in this respect. Again based on reference prices, production is forecast to decline by 100 Kb/d over the next five years. Diluent supply is considered to be adequate throughout the forecast period. As far as thermal bitumen is concerned, the growth could, in fact, exceed the projection, but if so, more upgrading will be required. 11 figs

Area price and demand response in a market with 25% wind power

DEFF Research Database (Denmark)

Grohnheit, Poul Erik; Møller Andersen, Frits; Larsen, Helge V.

2011-01-01

Denmark, east and west of the Great Belt are bidding areas with separate hourly area prices for the Nord Pool power exchange, covering four Nordic countries and parts of Germany. The share of wind power has now increased to 25% on an annual basis in western Denmark. This has a significant impact...... not only on the electricity wholesale prices, but also on the development of the market. Hourly market data are available from the website of Danish TSO from 1999. In this paper these data are analysed for the period 2004–2010. Electricity generators and customers may respond to hourly price variations......, which can improve market efficiency, and a welfare gain is obtained. An important limitation for demand response is events of several consecutive hours with extreme values. The analysis in this paper is a summary and update of some of the issues covered by the EU RESPOND project. It shows that extreme...

Demand Uncertainty and Price Stabilization

OpenAIRE

E. Kwan Choi; Stanley R. Johnson

1987-01-01

Price stabilization is an important policy goal of government intervention in competitive markets. These policies are primarily directed at raising producer income and stabilizing market prices at levels acceptable to consumers and producers (Fox 1956, Turnovsky 1978, Newbery and Stiglitz 1979). Many of the stabilization policy results have been developed from the study of agricultural commodity markets. In these markets, prices tend to be highly variable due to uncertain and inelastic supply...

Regional prices in the Swedish wood-fuel market

International Nuclear Information System (INIS)

Hillring, Bengt

1999-01-01

This paper analyses, through a statistical survey, the regional distribution of prices on the commercial wood-fuel market for district heating plants and the pellets market for single family houses. The existing market watch of the national Swedish wood-fuel market has been developed for both refined and unrefined wood-fuels. The last five years the trend for wood-fuel prices on the district heating market has been stable, with a slight increase in the price of refined wood-fuels. However, on the young and fast-growing household market for pellets, prices have increased 12% during the last three years. The distribution of prices for northern, middle and southern Sweden indicates differences within 5% between the regions. The limited price difference between Swedish regions are a product of a large domestic supply and an increasing trade among regions in Europe, putting pressure on prices. Regional differences, mirrored as transportation distances and local production costs are key factors that could explain this regional price variation. However, the development of a commercial market with less regulation tends to level out prices. Consumers on the household market purchase small quantities and do not have the same possibility as district heating companies to take advantage of the oversupply opportunity and thus face a faster price development. The weaker market position of the consumers also tends to give homogeneous prices between regions of the residential sector. (Author)

Oluvil Port Development Project

DEFF Research Database (Denmark)

Frigaard, Peter; Margheritini, Lucia

Oluvil Port Development Project is the first development of a large port infrastructure in the entire eastern coastline of Sri Lanka. The project is supported by the Danish Foreign Ministry. Feasibility studies and detailed design studies were carried out by Lanka Hydraulic Institute Ltd during...... the years 1995 to 2003. The design was reviewed by COWI a/s. Construction of the port was started in 2008. MT Højgaard a/s acted as contractor. The outer breakwaters were constructed as first part of the project. During and after completion of the breakwaters a serious beach erosion and sand accumulation...... has been observed. Severe erosion is seen north of the harbour and some accumulation of sand is seen south of the harbour. On a sandy coastline like the one in Oluvil such erosion problems as observed are very typical. The report: Oluvil Port Development Project: Studies on Beach Erosion written...

A real option-based model for promoting sustainable energy projects under the clean development mechanism

International Nuclear Information System (INIS)

Lee, Hyounkyu; Park, Taeil; Kim, Byungil; Kim, Kyeongseok; Kim, Hyoungkwan

2013-01-01

The clean development mechanism (CDM) provides a way of assisting sustainable development in developing countries for developed countries to reduce greenhouse gas (GHG) emissions. Despite its intended benefits, the primary CDM market decreased from US$5.8 billion in 2006 to US$1.5 billion in 2010. One of the primary reasons for the reduction of market size is that developed countries as investors have a high level of risks caused by the volatility of the market price for certified emission reductions (CERs). Another issue to be resolved is that developing countries as host countries cannot claim any right to the CERs produced on their own land. This paper presents a real option-based model for both parties (developed and developing countries) to have their fair share of profits and risks by controlling the uncertainty associated with the future value of CERs. A case study illustrated that the proposed model can effectively attract investors to CDM projects leading to mitigation of climate change. - Highlights: ► This study focused on the risks associated with the uncertainty of future CER value in CDM projects. ► A real option-based model was developed for both parties in CDM to have fair share of profit and risk. ► Key variables and boundary conditions were identified for application of real option to CDM. ► The model allowed both parties to own options, which have an identical value. ► Hydropower plant projects in Indonesia were used to illustrate the implementation of the model

Management of research and development project

International Nuclear Information System (INIS)

Go, Seok Hwa; Hong Jeong Yu; Hyun, Byeong Hwan

2010-12-01

This book introduces summary on management of research and development project, prepare of research and development with investigation and analysis of paper, patent and trend of technology, structure of project, management model, management of project, management of project range, management of project time, management of project cost, management of project goods, management of project manpower, management of communication, management of project risk, management of project supply, management of outcome of R and D, management of apply and enroll of patent and management of technology transfer.

Optimal Pricing Strategy for New Products

OpenAIRE

Trichy V. Krishnan; Frank M. Bass; Dipak C. Jain

1999-01-01

Robinson and Lakhani (1975) initiated a long research stream in marketing when they used the Bass model (1969) to develop optimal pricing path for a new product. A careful analysis of the extant literature reveals that the research predominantly suggests that the optimal price path should be largely based on the sales growth pattern. However, in the real world we rarely find new products that have such pricing pattern. We observe either a monotonically declining pricing pattern or an increase...

ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING

Directory of Open Access Journals (Sweden)

TÜNDE VERES

2011-01-01

Full Text Available The pricing methods in practice need really complex view of the business situation and depend on the strategy and market position of a company. The structure of a price seems simple: cost plus margin. Both categories are special area in the management accounting. Information about the product costs, the allocation methodologies in cost accounting, the analyzing of revenue and different level of the margin needs information from accounting system. This paper analyzes the pricing methods from management accounting aspects to show out the role of the accounting system in the short term and long term pricing and transfer pricing decisions.

Energy consumption and energy prices

International Nuclear Information System (INIS)

Bentzen, J.

1993-01-01

Data are presented on energy consumption and energy prices related to a number of OECD (Organisation for Economic Co-operation and Development) lands covering the period 1951-1990. The information sources are described and the development of energy consumption and prices in Denmark are illustrated in relation to these other countries. The energy intensity (the relation between energy consumption and the gross national product) is dealt with. Here it is possible to follow development during the whole post-war period. It is generally understood that Denmark saved large amounts of energy after 1973-74 but, taken over the whole post-war period, savings and decline in energy-gross national product relations are less dramatic compared to conditions in other OECD countries. Energy coefficients or elasticities show the relative rise in consumption compared to the relative rise in gross national product (growth rate). This is shown to be typically unstable and an eventual connection with the amount of energy price increase and/or the growth rate of the national economy is considered. Results of Granger causuality tests on energy consumption, national income and energy prices are presented. Effective energy prices were very low in Denmark up to 1970 when they suddenly began to increase. Since the oil crisis Denmark's energy consumption has fallen whereas the other countries have used rather more energy than before. Effective promotion of energy savings must be seen in relation to the fact that the 1970 basis level of energy consumption and intensity was unusually high. The high effective energy prices have also encouraged energy savings in Denmark. (AB)

State energy price and expenditure report 1994

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-06-01

The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs.

State energy price and expenditure report 1994

International Nuclear Information System (INIS)

1997-06-01

The State Energy Price and Expenditure Report (SEPER) presents energy price and expenditure estimates individually for the 50 States and the District of Columbia and in aggregate for the United States. The price and expenditure estimates developed in the State Energy Price and Expenditure Data System (SEPEDS) are provided by energy source and economic sector and are published for the years 1970 through 1994. Consumption estimates used to calculate expenditures and the documentation for those estimates are taken from the State Energy Data Report 1994, Consumption Estimates (SEDR), published in October 1996. Expenditures are calculated by multiplying the price estimates by the consumption estimates, which are adjusted to remove process fuel; intermediate petroleum products; and other consumption that has no direct fuel costs, i.e., hydroelectric, geothermal, wind, solar, and photovoltaic energy sources. Documentation is included describing the development of price estimates, data sources, and calculation methods. 316 tabs

Information pricing based on trusted system

Science.gov (United States)

Liu, Zehua; Zhang, Nan; Han, Hongfeng

2018-05-01

Personal information has become a valuable commodity in today's society. So our goal aims to develop a price point and a pricing system to be realistic. First of all, we improve the existing BLP system to prevent cascading incidents, design a 7-layer model. Through the cost of encryption in each layer, we develop PI price points. Besides, we use association rules mining algorithms in data mining algorithms to calculate the importance of information in order to optimize informational hierarchies of different attribute types when located within a multi-level trusted system. Finally, we use normal distribution model to predict encryption level distribution for users in different classes and then calculate information prices through a linear programming model with the help of encryption level distribution above.

World oil demand's shift toward faster growing and less price-responsive products and regions

Energy Technology Data Exchange (ETDEWEB)

Dargay, Joyce M. [Institute for Transport Studies, University of Leeds, Leeds LS2 9JT (United Kingdom); Gately, Dermot [Dept. of Economics, New York University, 19W. 4 St., New York, NY 10012 (United States)

2010-10-15

Using data for 1971-2008, we estimate the effects of changes in price and income on world oil demand, disaggregated by product - transport oil, fuel oil (residual and heating oil), and other oil - for six groups of countries. Most of the demand reductions since 1973-74 were due to fuel-switching away from fuel oil, especially in the OECD; in addition, the collapse of the Former Soviet Union (FSU) reduced their oil consumption substantially. Demand for transport and other oil was much less price-responsive, and has grown almost as rapidly as income, especially outside the OECD and FSU. World oil demand has shifted toward products and regions that are faster growing and less price-responsive. In contrast to projections to 2030 of declining per-capita demand for the world as a whole - by the U.S. Department of Energy (DOE), International Energy Agency (IEA) and OPEC - we project modest growth. Our projections for total world demand in 2030 are at least 20% higher than projections by those three institutions, using similar assumptions about income growth and oil prices, because we project rest-of-world growth that is consistent with historical patterns, in contrast to the dramatic slowdowns which they project. (author)

Introducing of Green Pricing in the Korean Electricity Sector

Energy Technology Data Exchange (ETDEWEB)

Boo, K.J. [Korea Energy Economics Institute, Euiwang (Korea)

2001-11-01

renewables. Fourth, willingness to pay the premium is 17% with market potential of 14.2%. Fifth, the average rate of supporting the new renewable energy policies is less than 50%, way below those of the developed countries. These findings imply that consumer attitude toward green pricing is not so encouraging. At this point, what attracts our attention is the fact that the market potential of green pricing amounts to 14.2%, indicating the high level of environmental awareness. Materialization of this market potential calls for a step by step marketing strategy based on market segmentation. To start with, non-profit corporations should be targeted. Then, market efforts should be shifted to profit corporations. In addition, the government's role of leadership and monitoring is needed to help market function smoothly in a competitive environment. The major considerations in designing a green pricing are: first of all, the contribution-based green pricing is more desirable than the product-based or the capacity-based, in consideration of the current status of the domestic market development. Incentives for customer's wider participation include: protection against rate increases, related product discounts, certification and special recognition. Another idea to encourage participation is to enhance program's tangibility through locating the facilities in city parks and other public places frequently visited by community residents. What counts most in designing a green pricing is program credibility. To prevent a green scam, green pricing program should be accompanied by an education, green board of advisors, and environmental disclosure and green certification, all of which will make green pricing project transparent and accountable. This implies that existing programs and policies can be rekindled to supplement the green pricing program. In the midst of restructuring and transition into a competitive market, experts show a mixed feeling of concerns and hopes about

A model for energy pricing with stochastic emission costs

International Nuclear Information System (INIS)

Elliott, Robert J.; Lyle, Matthew R.; Miao, Hong

2010-01-01

We use a supply-demand approach to value energy products exposed to emission cost uncertainty. We find closed form solutions for a number of popularly traded energy derivatives such as: forwards, European call options written on spot prices and European Call options written on forward contracts. Our modeling approach is to first construct noisy supply and demand processes and then equate them to find an equilibrium price. This approach is very general while still allowing for sensitivity analysis within a valuation setting. Our assumption is that, in the presence of emission costs, traditional supply growth will slow down causing output prices of energy products to become more costly over time. However, emission costs do not immediately cause output price appreciation, but instead expose individual projects, particularly those with high emission outputs, to much more extreme risks through the cost side of their profit stream. Our results have implications for hedging and pricing for producers operating in areas facing a stochastic emission cost environment. (author)

Priced Timed Automata

DEFF Research Database (Denmark)

Behrmann, Gerd; Larsen, Kim Guldstrand; Rasmussen, Jacob Illum

2004-01-01

This contribution reports on the considerable effort made recently towards extending and applying well-established timed automata technology to optimal scheduling and planning problems. The effort of the authors in this direction has to a large extent been carried out as part of the European...... projects VHS [22] and AMETIST [17] and are available in the recently released UPPAAL CORA [12], a variant of the real-time verification tool UPPAAL [20,5] specialized for cost-optimal reachability for the extended model of priced timed automata....

Economic evaluation on tight sandstone gas development projects in China and recommendation on fiscal and taxation support policies

Directory of Open Access Journals (Sweden)

Zhen Yang

2016-11-01

Full Text Available China is rich in tight sandstone gas resources (“tight gas” for short. For example, the Sulige Gasfield in the Ordos Basin and the Upper Triassic Xujiahe Fm gas reservoir in the Sichuan Basin are typical tight gas reservoirs. In the past decade, tight gas reserve and production both have increased rapidly in China, but tight gas reservoirs are always managed as conventional gas reservoirs without effective fiscal, taxation and policy supports. The potential of sustainable tight gas production increase is obviously restricted. The tight gas development projects represented by the Sulige Gasfield have failed to make profit for a long period, and especially tight gas production has presented a slight decline since 2015. In this paper, a new economic evaluation method was proposed for tight gas development projects. The new method was designed to verify the key parameters (e.g. production decline rate and single-well economic service life depending on tight gas development and production characteristics, and perform the depreciation by using the production method. Furthermore, the possibility that the operation cost may rise due to pressure-boosting production and intermittent opening of gas wells is considered. The method was used for the tight gas development project of Sulige Gasfield, showing that its profit level is much lower than the enterprise's cost level of capital. In order to support a sustainable development of tight gas industry in China, it is recommended that relevant authorities issue value-added tax (VAT refund policy as soon as possible. It is necessary to restore the non-resident gas gate price of the provinces where tight gas is produced to the fair and reasonable level in addition to the fiscal subsidy of CNY0.24/m3, or offer the fiscal subsidy of CNY0.32/m3 directly based on the on-going gate price. With these support policies, tax income is expected to rise directly, fiscal expenditure will not increase, and gas

Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases

International Nuclear Information System (INIS)

Radchenko, S.

2005-01-01

This paper analyzes the effect of volatility in oil prices on the degree of asymmetry in the response of gasoline prices to oil price increases and decreases. Several time series measures of the asymmetry between the responses of gasoline prices to oil price increases and decreases and several measures of the oil price volatility are constructed. In all models, the degree of asymmetry in gasoline prices declines with an increase in oil price volatility. The results support the oligopolistic coordination theory as a likely explanation of the observed asymmetry and are not consistent with the standard search theory and the search theory with Bayesian updating. (author)

Uranium price formation. Final report

International Nuclear Information System (INIS)

1977-10-01

The modern uranium industry came into existence in 1946. Until 1966, its sole customer was the Atomic Energy Commission, whose needs for U 3 O 8 relative to industry capacity declined over the years. The development of the commercial market after 1965 coincided with a period of excess capacity and falling nominal and real prices. Gradually in 1973 and dramatically thereafter, market conditions changed and prices rose as utilities sought larger quantities of U 3 O 8 and longer term contracts. Questions about availability of long-run supplies were raised, given the known reserve base. The response of the supply of U 3 O 8 to incentives offered first by the AEC and later by the utilities in the context of new and developing market conventions is examined. The methodology used is microeconomic analysis, qualitatively applied to the history of price formation in the market. Because the study emphasizes the implications of the history of uranium price formation for forecasting supply response, the study presents many different kinds of data and evaluates their quality and appropriateness for forecasting. A simple, very-useful framework for analyzing the history of the market for U 3 O 8 was developed and used to describe supply responses in selected important periods of the industry's development. It is concluded that the response of supply of U 3 O 8 to rising prices or to expectations of demand growth has been impressively strong. The potential reserve inventory is large enough to meet the needs for nuclear power generation through the end of this century. The price necessary to induce producers to find and produce these reserves is uncertain, partly because of problems inherent in estimating long-run supply curves and partly because recent inflation has created major uncertainties about the cost of future supplies

Patients' views on price shopping and price transparency.

Science.gov (United States)

Semigran, Hannah L; Gourevitch, Rebecca; Sinaiko, Anna D; Cowling, David; Mehrotra, Ateev

2017-06-01

Driven by the growth of high deductibles and price transparency initiatives, patients are being encouraged to search for prices before seeking care, yet few do so. To understand why this is the case, we interviewed individuals who were offered access to a widely used price transparency website through their employer. Qualitative interviews. We interviewed individuals enrolled in a preferred provider organization product through their health plan about their experience using the price transparency tool (if they had done so), their past medical experiences, and their opinions on shopping for care. All interviews were transcribed and manually coded using a thematic coding guide. In general, respondents expressed frustration with healthcare costs and had a positive opinion of the idea of price shopping in theory, but 2 sets of barriers limited their ability to do so in reality. The first was the salience of searching for price information. For example, respondents recognized that due to their health plan benefits design, they would not save money by switching to a lower-cost provider. Second, other factors were more important than price for respondents when choosing a provider, including quality and loyalty to current providers. We found a disconnect between respondents' enthusiasm for price shopping and their reported use of a price transparency tool to shop for care. However, many did find the tool useful for other purposes, including checking their claims history. Addressing the barriers to price shopping identified by respondents can help inform ongoing and future price transparency initiatives.

Pay-what-you-want pricing schemes

DEFF Research Database (Denmark)

Kahsay, Goytom Abraha; Samahita, Margaret

2015-01-01

Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular. We develop a model incorporating self-image into the buyer’s utility function and introduce heterogeneity in consumption utility and image-sensitivity, generating different purchase decisions and optimal prices across...... individuals. When a good’s fixed price is lower than a threshold fair value, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, accounting for previously unexplained field experimental evidence. An increase in the threshold value decreases the buyer’s utility...... and may further lower the purchase rate, resulting in a further increase in purchase price....

75 FR 10272 - Notice Regarding 340B Drug Pricing Program-Contract Pharmacy Services

Science.gov (United States)

2010-03-05

... Regarding 340B Drug Pricing Program--Contract Pharmacy Services AGENCY: Health Resources and Services... drug pricing program by which manufacturers who sell covered outpatient drugs to particular covered... provisions, which had been previously limited to the Alternative Methods Demonstration Project program. FOR...

Cruise tourism: a hedonic pricing approach

Directory of Open Access Journals (Sweden)

Josep Maria Espinet-Rius

2018-03-01

Full Text Available Purpose - The purpose of this paper is to examine the effect on price of different cruise industry characteristics from the point of view of actual prices. The analysis is carried out from the supply side but taking into account the real prices paid by customers. Design/methodology/approach - This paper uses the hedonic price methodology. To develop this research, a database of more than 36,000 prices paid by cruise passengers and different characteristics of ships in 2013 was built. To obtain the results, ten models have been developed with significant adjusted R2 of between 0.85 and 0.93 making the models and results robust. Findings - The results show that the main attributes affecting prices are the number of nights of the itinerary, the departure date, the number of days before departure the booking is made, the accommodation type and some facilities, such as casinos, cinemas and swimming pools. The results also yield a ranking of ship companies based on price and quality dimensions. Finally, the authors suggest some implications for management and new research. Originality/value - This paper offers a new approach in the academic literature of the cruise industry in two respects. First, in its use of a broad database of actual prices paid by passengers – more than 36,000 observations. Second, in the application of the hedonic pricing methodology, widely used in the tourism sector (see the Methodology and Database section but until now not in the cruising segment.

Optimal pricing and lot-sizing for perishable inventory with price and time dependent ramp-type demand

Science.gov (United States)

Panda, S.; Saha, S.; Basu, M.

2013-01-01

Product perishability is an important aspect of inventory control. To minimise the effect of deterioration, retailers in supermarkets, departmental store managers, etc. always want higher inventory depletion rate. In this article, we propose a dynamic pre- and post-deterioration cumulative discount policy to enhance inventory depletion rate resulting low volume of deterioration cost, holding cost and hence higher profit. It is assumed that demand is a price and time dependent ramp-type function and the product starts to deteriorate after certain amount of time. Unlike the conventional inventory models with pricing strategies, which are restricted to a fixed number of price changes and to a fixed cycle length, we allow the number of price changes before as well as after the start of deterioration and the replenishment cycle length to be the decision variables. Before start of deterioration, discounts on unit selling price are provided cumulatively in successive pricing cycles. After the start of deterioration, discounts on reduced unit selling price are also provided in a cumulative way. A mathematical model is developed and the existence of the optimal solution is verified. A numerical example is presented, which indicates that under the cumulative effect of price discounting, dynamic pricing policy outperforms static pricing strategy. Sensitivity analysis of the model is carried out.

Analyzing the effects of past prices on reference price formation

OpenAIRE

van Oest, R.D.; Paap, R.

2004-01-01

textabstractWe propose a new reference price framework for brand choice. In this framework, we employ a Markov-switching process with an absorbing state to model unobserved price recall of households. Reference prices result from the prices households are able to remember. Our model can be used to learn how many prices observed in the past are used for reference price formation. Furthermore, we learn to what extent households have sufficient price knowledge to form an internal reference price...

How does increased corn-ethanol production affect US natural gas prices?

International Nuclear Information System (INIS)

Whistance, Jarrett; Thompson, Wyatt

2010-01-01

In recent years, there has been a push to increase biofuel production in the United States. The biofuel of choice, so far, has been ethanol produced from corn. The effects of increased corn-ethanol production on the consumer prices of food and energy continue to be studied and debated. This study examines, in particular, the effects of increased corn-ethanol production on US natural gas prices. A structural model of the natural gas market is developed and estimated using two stage least squares. A baseline projection for the period 2007-2018 is determined, and two scenarios are simulated. In the first scenario, current biofuel policies including EISA mandates, tariffs, and tax credits are removed. In the second scenario, we hold ethanol production to the level required only for largely obligatory additive use. The results indicate that the increased level of corn-ethanol production occurring as a result of the current US biofuel policies may lead to natural gas prices that are as much as 0.25% higher, on average, than if no biofuel policies were in place. A similar comparison between the baseline and second scenario indicates natural gas prices could be as much as 0.5% higher, on average, for the same period.

Study on Competitive Exporting Price-forecast of the SMART in the U.S

International Nuclear Information System (INIS)

Kim, In Su; Kim, Tae Ryong

2014-01-01

In line with this, the U.S. has a renewed interest in SMRs rather than large reactors. Nothing, however, has been implemented yet. The only SMRs under construction are in Russia: the first floating nuclear plants. For the most part, the primary candidates to be the first land-based counterparts of Russia's are the SMART (System integrated Modular Advanced Reactor) reactors. The Korean SMART has been developed and licensed for standard design. In addition, the SMART reactor may be suited to countries, which have a small grid capacity, low population density, and decentralization power system such as the U.S. Therefore, the purpose of this paper is to develop a target price for the SMR market opportunities in the U.S., competing against the CCGT (Combined Cycle Gas Turbine) which is currently a very attractive option for generating due to the shale innovation. Even though detailed cost estimates are not available, target price can be derived based on generally determining market price. This paper demonstrates the target exporting price of the SMART in the U.S. ranging from 3,091 - 4,011$/kWe depending on the scaling factor and carbon tax, assuming that discount rates are fixed. This value could be a target cost of construction, developing the U.S market whose demand of the SMART is potentially 4 units 2015 - 2035. Sensitivity analysis shows that the price goes up in proportion to the gas price, the capacity factor of the SMART, the overnight cost of CCGT, etc. More than anything else, this study reveals that carbon tax does not have much influence on the target price compared with those listed above. On the other hand, the price goes up in inverse proportion to the interest of the SMART, the capacity factor of CCGT, O and M costs of the SMART, and so on. For the price competitiveness, construction cost should first be reduced because construction cost is the largest component of LCOE as well as the effect of interest rate is the most sensitive for target price

Study on Competitive Exporting Price-forecast of the SMART in the U.S

Energy Technology Data Exchange (ETDEWEB)

Kim, In Su; Kim, Tae Ryong [KEPCO International Nuclear Graduate School, Ulsan (Korea, Republic of)

2014-10-15

In line with this, the U.S. has a renewed interest in SMRs rather than large reactors. Nothing, however, has been implemented yet. The only SMRs under construction are in Russia: the first floating nuclear plants. For the most part, the primary candidates to be the first land-based counterparts of Russia's are the SMART (System integrated Modular Advanced Reactor) reactors. The Korean SMART has been developed and licensed for standard design. In addition, the SMART reactor may be suited to countries, which have a small grid capacity, low population density, and decentralization power system such as the U.S. Therefore, the purpose of this paper is to develop a target price for the SMR market opportunities in the U.S., competing against the CCGT (Combined Cycle Gas Turbine) which is currently a very attractive option for generating due to the shale innovation. Even though detailed cost estimates are not available, target price can be derived based on generally determining market price. This paper demonstrates the target exporting price of the SMART in the U.S. ranging from 3,091 - 4,011$/kWe depending on the scaling factor and carbon tax, assuming that discount rates are fixed. This value could be a target cost of construction, developing the U.S market whose demand of the SMART is potentially 4 units 2015 - 2035. Sensitivity analysis shows that the price goes up in proportion to the gas price, the capacity factor of the SMART, the overnight cost of CCGT, etc. More than anything else, this study reveals that carbon tax does not have much influence on the target price compared with those listed above. On the other hand, the price goes up in inverse proportion to the interest of the SMART, the capacity factor of CCGT, O and M costs of the SMART, and so on. For the price competitiveness, construction cost should first be reduced because construction cost is the largest component of LCOE as well as the effect of interest rate is the most sensitive for target price

Technology trends, energy prices affect worldwide rig activity

International Nuclear Information System (INIS)

Rappold, K.

1995-01-01

The major worldwide offshore rig markets have improved slightly this year, while the onshore markets generally lagged slightly. Offshore rig utilization rates have remained strong worldwide, with some areas reaching nearly 100%. Total worldwide offshore rig (jack ups, semisubmersible, drillships, submersibles, and barges) utilization was about 86%. Offshore drilling activity is driven primarily by oil and natural gas price expectations. Natural gas prices tend to drive North American offshore drilling activity, including the shallow waters in the Gulf of Mexico. International offshore drilling activity and deepwater projects in the Gulf of Mexico are more closely tied to oil prices. The paper discusses US rig count, directional drilling activity, jack up rig demand, semisubmersibles demand, rig replacement costs, and new construction

Meeting competition through negotiated pricing

International Nuclear Information System (INIS)

Keith, D.M.; Raper, J.W.

1990-01-01

A fundamental premise of negotiated pricing as a demand-side management (DSM) tool is that price determines cost. As the ultimate objective of energy efficiency is to increase electromotive work while conserving resources, negotiated prices can have a significant impact as a DSM tool to force costs down. Three examples are offered of the effect of negotiated pricing as a DSM tool. The examples are a small hydroelectric company and an electric utility authority owned, a utility-to-customer example of negotiated pricing with the Public Service Company of Oklahoma's (PSO) system, and a large paper mill on PSO's system. Some of the major problems associated with negotiated pricing, outside of the human effort of finding and training knowledgeable and skilled negotiators, are: obtaining enough information about the customer or potential customer to be able to determine that in negotiating prices the utility is not giving away more benefits than the utility will gain; developing a pricing plan that fits both the customer's and utility's existing and potential future mode of operation; assuring that other customers who cannot negotiate on their own behalf are not adversely affected by utility revenue shortfalls; making such negotiated prices available to all similarly situated customers, so as not to inadvertently create unfair competitive advantages among them; and defining the shared benefits before and after the fact as a result of having negotiated prices in the first place

Innovation and the price of wind energy in the US

International Nuclear Information System (INIS)

Berry, David

2009-01-01

In the last ten years, the wind energy industry has experienced many innovations resulting in wider deployment of wind energy, larger wind energy projects, larger wind turbines, and greater capacity factors. Using regression analysis, this paper examines the effects of technological improvements and other factors on the price of wind energy charged under long-term contracts in the United States. For wind energy projects completed during the period 1999-2006, higher capacity factors and larger wind farms contributed to reductions in wind energy contract prices paid by regulated investor owned utilities in 2007. However, this effect was offset by rising construction costs. Turbine size (in MW) shows no clear relationship to contract prices, possibly because there may be opposing factors tending to decrease costs as turbine size increases and tending to increase costs as turbine size increases. Wind energy is generally a low-cost resource that is competitive with natural gas-fired power generation.

Pilot Project: analysis, development and projection

OpenAIRE

Tapia Abril, Verónica Emilia; Chérrez Rodas, Karina; García Pesántez, Gabriela Rosana; Maldonado Marchán, María Elisa; Bustamante Montesdeoca, José Luis

2014-01-01

Since the introduction of ICT in architecture and teaching, pedagogies of education have faced their learning paradigms change. Institutes of higher education have folded to this motion and have undergone a process of change by implementing multimedia elements in their subjects. Through the pilot project educational videos that aim to meet the highest standards of educational videos described by Van Dam have been developed. The project expects to generate educational videos for different depa...

Forecasting Day-Ahead Electricity Prices : Utilizing Hourly Prices

NARCIS (Netherlands)

E. Raviv (Eran); K.E. Bouwman (Kees); D.J.C. van Dijk (Dick)

2013-01-01

textabstractThe daily average price of electricity represents the price of electricity to be delivered over the full next day and serves as a key reference price in the electricity market. It is an aggregate that equals the average of hourly prices for delivery during each of the 24 individual

The Drivers of E-tailers' Price Levels

NARCIS (Netherlands)

Sotgiu, Francesca; Ancarani, Fabio

2005-01-01

One of the most important topics in online pricing is understanding the drivers of online price levels for different types of retailers, in order to better understand competition across retail channels. We developed a conceptual framework and conducted an empirical analysis on price levels in the

Solutions for wood-based bio-energy price discovery

Energy Technology Data Exchange (ETDEWEB)

Teraes, Timo [FOEX Indexes Ltd., Helsinki (Finland)], e-mail: timo@foex.fi

2012-11-01

Energy prices are highly volatile. This volatility can have serious ill-effects on the profitability of companies engaged in the energy business. There are, however, a number of price risk management tools which can be used to reduce the problems caused by price volatility. International trade of wood pellets and wood chips is rapidly growing. A good price transparency helps in developing the trade further. In order to meet the renewable energy targets within the EU, further growth of volumes is needed, at least within Europe and from overseas supply sources to the European markets. Reliable price indices are a central element in price risk management and in general price discovery. Exchanges have provided, in the past, the most widely known price discovery systems. Since 1990's, an increasing number of price risk management tools has been based on cash settlement concept. Cash settlement requires high quality benchmark price indices. These have been developed by the exchanges themselves, by trade press and by independent price benchmark provider companies. The best known of these benchmarks in forest industry and now also in wood-based bioenergy products are the PIX indices, provided by FOEX Indexes Ltd. This presentation discusses the key requirements for a good price index and the different ways of using the indices. Price relationships between wood chip prices and pellet prices are also discussed as will be the outlook for the future volume growth and trade flows in woodchips and pellets mainly from the European perspective.

The impact of city-level permitting processes on residential photovoltaic installation prices and development times: An empirical analysis of solar systems in California cities

International Nuclear Information System (INIS)

Dong, Changgui; Wiser, Ryan

2013-01-01

With “soft” costs accounting for well over 50% of the installed price of residential photovoltaic (PV) systems in the United States, this study evaluates the effect of city-level permitting processes on the installed price of residential PV systems and on the time required to develop those systems. The study uses a unique dataset from the U.S. Department of Energy's Rooftop Solar Challenge Program, which includes city-level permitting process “scores,” plus data from the California Solar Initiative and the U.S. Census. Econometric methods are used to quantify the price and development-time effects of city-level permitting processes on more than 3000 PV installations across 44 California cities in 2011. Results suggest that cities with the most favorable permitting practices can reduce average residential PV prices by $0.27–$0.77/W (4–12% of median PV prices in California) compared with cities with the most onerous permitting practices, depending on the regression model used. Though the empirical models for development times are less robust, results suggest that the most streamlined permitting practices may shorten development times by around 24 days on average (25% of the median development time). These findings illustrate the potential price and development-time benefits of streamlining local permitting procedures for PV systems. - Highlights: • The study uses a unique dataset from the U.S. DOE's Rooftop Solar Challenge Program. • We quantify the price and development-time effects of city-level permitting processes. • Most favorable permitting practices can reduce average residential PV prices by $0.27–$0.77/W

Rationally inattentive seller: sales and discrete pricing

Czech Academy of Sciences Publication Activity Database

Matějka, Filip

2016-01-01

Roč. 83, č. 3 (2016), s. 1125-1155 ISSN 0034-6527 R&D Projects: GA ČR(CZ) GPP402/11/P236 Institutional support: RVO:67985998 Keywords : rational inattention * nominal rigidity * sticky prices Subject RIV: AH - Economics Impact factor: 4.030, year: 2016

Forecasting Day-Ahead Electricity Prices: Utilizing Hourly Prices

OpenAIRE

Raviv, Eran; Bouwman, Kees E.; van Dijk, Dick

2013-01-01

This discussion paper led to a publication in 'Energy Economics' , 2015, 50, 227-239. The daily average price of electricity represents the price of electricity to be delivered over the full next day and serves as a key reference price in the electricity market. It is an aggregate that equals the average of hourly prices for delivery during each of the 24 individual hours. This paper demonstrates that the disaggregated hourly prices contain useful predictive information for the daily average ...

Essays on Derivatives Pricing

DEFF Research Database (Denmark)

Kokholm, Thomas

. With the existence of a liquid market for derivatives with variance as underlying, such as VIX options, VIX futures and a well-developed over-the-counter market for options on variance swaps, it is important to consider models that are able to fit these markets while consistently pricing vanilla options...... financial models, and most importantly, to be aware of their limitations. Following that belief, this thesis consists of three independent and self-contained papers, all dealing with topics in derivatives pricing. The first paper considers the pricing of traffic light options, which are appropriate...... the market for multivariate credit instruments, we take a step back and focus on single-name default modeling and introduce two new model classes for modeling of the default time of a company. Finally, in the third paper we propose a consistent pricing model for index and volatility derivatives...

Alberta producers' gas export prices slip

International Nuclear Information System (INIS)

Chandrasekharaiah, M.N.; Dubben, G.; Kolster, B.H.

1992-01-01

This paper reports that Alberta gas producers have approved a new contract with California buyers that includes slightly lower wellhead prices and more flexible pricing terms. The 1 year agreement, will apply a flexible price formula to gas sales. A basic volume of 212 MMcfd will receive $1.52 (U.S.)/Mcf. A and S also will buy 200 MMcfd at prices paid for other Alberta gas in the California market. It will have the right to buy added volumes at prices indexed to gas sold into California from the U.S. Southwest. Ballots cast by producers were to be verified by regulatory agencies in Alberta and British Columbia. The more flexible price terms in the new contract are seen as a positive development for negotiations in a dispute over long term contracts

Estimating Drug Costs: How do Manufacturer Net Prices Compare with Other Common US Price References?

Science.gov (United States)

Mattingly, T Joseph; Levy, Joseph F; Slejko, Julia F; Onwudiwe, Nneka C; Perfetto, Eleanor M

2018-05-12

Drug costs are frequently estimated in economic analyses using wholesale acquisition cost (WAC), but what is the best approach to develop these estimates? Pharmaceutical manufacturers recently released transparency reports disclosing net price increases after accounting for rebates and other discounts. Our objective was to determine whether manufacturer net prices (MNPs) could approximate the discounted prices observed by the U.S. Department of Veterans Affairs (VA). We compared the annual, average price discounts voluntarily reported by three pharmaceutical manufacturers with the VA price for specific products from each company. The top 10 drugs by total sales reported from company tax filings for 2016 were included. The discount observed by the VA was determined from each drug's list price, reported as WAC, in 2016. Descriptive statistics were calculated for the VA discount observed and a weighted price index was calculated using the lowest price to the VA (Weighted VA Index), which was compared with the manufacturer index. The discounted price as a percentage of the WAC ranged from 9 to 74%. All three indexes estimated by the average discount to the VA were at or below the manufacturer indexes (42 vs. 50% for Eli Lilly, 56 vs. 65% for Johnson & Johnson, and 59 vs. 59% for Merck). Manufacturer-reported average net prices may provide a close approximation of the average discounted price granted to the VA, suggesting they may be a useful proxy for the true pharmacy benefits manager (PBM) or payer cost. However, individual discounts for products have wide variation, making a standard discount adjustment across multiple products less acceptable.