Scenarios for Benefits Analysis of Energy Research, Development,Demonstration and Deployment

Energy Technology Data Exchange (ETDEWEB)

Gumerman, Etan; Marnay, Chris

2005-09-07

For at least the last decade, evaluation of the benefits of research, development, demonstration, and deployment (RD3) by the U.S. Department of Energy has been conducted using deterministic forecasts that unrealistically presume we can precisely foresee our future 10, 25,or even 50 years hence. This effort tries, in a modest way, to begin a process of recognition that the reality of our energy future is rather one rife with uncertainty. The National Energy Modeling System (NEMS) is used by the Department of Energy's Office of Energy Efficiency and Renewable Energy (EE) and Fossil Energy (FE) for their RD3 benefits evaluation. In order to begin scoping out the uncertainty in these deterministic forecasts, EE and FE designed two futures that differ significantly from the basic NEMS forecast. A High Fuel Price Scenario and a Carbon Cap Scenario were envisioned to forecast alternative futures and the associated benefits. Ernest Orlando Lawrence Berkeley National Laboratory (LBNL) implemented these scenarios into its version of NEMS,NEMS-LBNL, in late 2004, and the Energy Information Agency created six scenarios for FE in early 2005. The creation and implementation of the EE-FE scenarios are explained in this report. Both a Carbon Cap Scenario and a High Fuel Price Scenarios were implemented into the NEMS-LBNL. EIA subsequently modeled similar scenarios using NEMS. While the EIA and LBNL implementations were in some ways rather different, their forecasts do not significantly diverge. Compared to the Reference Scenario, the High Fuel Price Scenario reduces energy consumption by 4 percent in 2025, while in the EIA fuel price scenario (known as Scenario 4) reduction from its corresponding reference scenario (known as Scenario 0) in 2025 is marginal. Nonetheless, the 4 percent demand reduction does not lead to other cascading effects that would significantly differentiate the two scenarios. The LBNL and EIA carbon scenarios were mostly identical. The only major

Fuel prices scenario generation based on a multivariate GARCH model for risk analysis in a wholesale electricity market

International Nuclear Information System (INIS)

Batlle, C.; Barquin, J.

2004-01-01

This paper presents a fuel prices scenario generator in the frame of a simulation tool developed to support risk analysis in a competitive electricity environment. The tool feeds different erogenous risk factors to a wholesale electricity market model to perform a statistical analysis of the results. As the different fuel series that are studied, such as the oil or gas ones, present stochastic volatility and strong correlation among them, a multivariate Generalized Autoregressive Conditional Heteroskedastic (GARCH) model has been designed in order to allow the generation of future fuel prices paths. The model makes use of a decomposition method to simplify the consideration of the multidimensional conditional covariance. An example of its application with real data is also presented. (author)

Future climate scenarios and rainfall-runoff modelling in the Upper Gallego catchment (Spain)

International Nuclear Information System (INIS)

Buerger, C.M.; Kolditz, O.; Fowler, H.J.; Blenkinsop, S.

2007-01-01

Global climate change may have large impacts on water supplies, drought or flood frequencies and magnitudes in local and regional hydrologic systems. Water authorities therefore rely on computer models for quantitative impact prediction. In this study we present kernel-based learning machine river flow models for the Upper Gallego catchment of the Ebro basin. Different learning machines were calibrated using daily gauge data. The models posed two major challenges: (1) estimation of the rainfall-runoff transfer function from the available time series is complicated by anthropogenic regulation and mountainous terrain and (2) the river flow model is weak when only climate data are used, but additional antecedent flow data seemed to lead to delayed peak flow estimation. These types of models, together with the presented downscaled climate scenarios, can be used for climate change impact assessment in the Gallego, which is important for the future management of the system. - Future climate change and data-based rainfall-runoff predictions are presented for the Upper Gallego

Scenarios of future energy intensities

International Nuclear Information System (INIS)

Anon.

1992-01-01

In this chapter, the authors present scenarios of potential change in energy intensities in the OECD countries and in the Soviet Union. These scenarios are meant to illustrate how intensities might evolve over the next 20 years given different conditions with respect to energy prices, energy-efficiency policies, and other key factors. Changes in intensity will also be affected by the rates of growth and stock turnover in each sector. They have not tried to forecast how activity levels and structure will evolve. However, the OECD scenarios assume a world in which GDP averages growth in the 2-3%/year range, with some differences among countries. For the Soviet Union, the degree and pace of intensity decline will be highly dependent on the success of the transition to a market economy; each scenario explicitly envisions a different degree of success. They have not constructed comparable scenarios for the developing countries. The scenarios presented in this chapter do not predict what will happen in the future. They believe, however, that they illustrate a plausible set of outcomes if energy prices, policies, programs, and other factors evolve as described in each case. With higher energy prices and vigorous policies and programs, intensities in the OECD countries in 2010 could be nearly 50% less on average than the level where trends seem to be point. In the former Soviet Union, a combination of rapid, successful economic reform and extra effort to improve energy efficiency might result in average intensity being nearly 40% less than in a slow reform case. And in the LDCs, a mixture of sound policies, programs, and energy pricing reform could also lead to intensities being far lower than they would be otherwise. 8 refs., 10 figs., 1 tab

Price Discrimination: A Classroom Experiment

Science.gov (United States)

Aguiló, Paula; Sard, Maria; Tugores, Maria

2016-01-01

In this article, the authors describe a classroom experiment aimed at familiarizing students with different types of price discrimination (first-, second-, and third-degree price discrimination). During the experiment, the students were asked to decide what tariffs to set as monopolists for each of the price discrimination scenarios under…

Oil price scenarios and refining profitability

International Nuclear Information System (INIS)

Sweeney, B.

1993-01-01

Currently refining profitability is low because there has been an overbuilding of conversion capacity in Western Europe in the last round. Oil marketing, the chemicals business and the fundamental economy itself are at low points in their cycles which have not coincided, at least in the UK, since 1975. Against that gloomy background, it is predicted that downstream profitability will recover in the mid-1990s. Crude oil prices will remain low until the call on OPEC crude increases again and takes up the capacity which has been brought on stream in response to the Gulf War. When this happens, it is likely to trigger another price spike and another round of investment in production capacity. Environmentally driven investments in desulphurisation or emissions reduction will be poorly remunerated all the way through the value chain. Refining margins will recover when white oil demand growth tightens up the need for conversion capacity. Marketing will need to reduce the retail network overcapacity in the mature markets if it is to improve its profitability. In this period of low profitability, even with the light at the end of the tunnel for refiners in the middle of the decade, the industry structure is under threat. There is a strong argument for new modes of competitive behaviour which are backed by strong elements of cooperation. (author)

Low carbon and clean energy scenarios for India: Analysis of targets approach

International Nuclear Information System (INIS)

Shukla, Priyadarshi R.; Chaturvedi, Vaibhav

2012-01-01

Low carbon energy technologies are of increasing importance to India for reducing emissions and diversifying its energy supply mix. Using GCAM, an integrated assessment model, this paper analyzes a targets approach for pushing solar, wind, and nuclear technologies in the Indian electricity generation sector from 2005 to 2095. Targets for these technologies have been constructed on the basis of Indian government documents, policy announcements, and expert opinions. Different targets have been set for the reference scenario and the carbon price scenario. In the reference scenario, wind and nuclear technologies exceed respective targets in the long run without any subsidy push, while solar energy requires subsidy push throughout the century in order to meet its high targets. In the short run, nuclear energy also requires significant subsidy, including a much higher initial subsidy relative to solar power, which is a result of its higher targets. Under a carbon price scenario, the carbon price drives the penetration of these technologies. Still, subsidy is required — especially in the short run when the carbon price is low. We also found that pushing solar, wind, and nuclear technologies leads to a decrease in share of CCS under the carbon price scenario and biomass under both the reference and carbon price scenarios. This is because low carbon technologies compete among themselves and substitute each other, thereby enhancing the need for subsidy or carbon price, highlighting that proposed targets are not set at efficient levels. In light of contemporary debate on external costs of nuclear energy, we also assess the sensitivity of the results to nuclear technology cost. We find that higher cost significantly decreases the share of nuclear power under both the reference and carbon price scenarios.

Climate Change and water resources: Scenarios of low-flow conditions in the Upper Danube River Basin

International Nuclear Information System (INIS)

Mauser, W; Marke, T; Stoeber, S

2008-01-01

Global Climate Change will have regional impacts on the water resources and will force water resources managers and farmers to adapt. Both low-flow and its duration are critical hydrological parameters, which strongly influence the state of aquatic ecosystems as well as power production, reservoir management and industry. Impacts of future climate change is analysed using scenarios for the change of meteorological drivers and regional hydrological simulation models. The project GLOWA-Danube (www.glowa-danube.de) develops integrative modelling techniques combining process knowledge from both natural and social sciences to examine the sustainability of regional water systems as well as water management alternatives in the Upper Danube watershed (A = 77000 km 2 ). Special emphasis is given to changes in low-flow condition. DANUBIA describes the regional water cycle both physical and spatially distributed. It consists of a collection of tightly coupled models, which strictly preserve energy and matter and are not calibrated to maximise their overall predictive abilities. The paper demonstrates that DANUBIA can reproduce the daily discharge for the time period from 1971-2003 with a Nash-Suttcliffe coefficient of 0.84 (gauge Achleiten). Based on a statistical climate simulator 12 realisations of the IPCC A1B climate scenario were used to investigate impacts of climate change during the simulation period of 2011-2060. The change in discharge and frequency of occurrences of low-flow in the watershed for the scenario ensemble were analysed for the outlet gauge. The analysis shows that strong changes were simulated in the frequency of occurrences of low-flow conditions. The changing climate gradually reduces a 50-years NM7Q discharge of today to less than half of its discharge in the year 2060. These results clearly indicate that the expected climate change will strongly alter the low-flow conditions in the Upper Danube watershed.

Electricity market price volatility: The case of Ontario

International Nuclear Information System (INIS)

Zareipour, Hamidreza; Bhattacharya, Kankar; Canizares, Claudio A.

2007-01-01

Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets. Volatility indices are developed based on historical volatility and price velocity concepts, previously applied to other electricity market prices, and employed in the present work. The analysis is carried out in two scenarios: in the first scenario, the volatility indices are determined for the entire price time series. In the second scenario, the price time series are broken up into 24 time series for each of the 24 h and volatility indices are calculated for each specific hour separately. The volatility indices are also applied to the locational marginal prices of several pricing points in the New England, New York, and PJM electricity markets. The outcomes reveal that price volatility is significantly higher in Ontario than the three studied neighboring electricity markets. Furthermore, comparison of the results of this study with similar findings previously published for 15 other electricity markets demonstrates that the Ontario electricity market is one of the most volatile electricity markets world-wide. This high volatility is argued to be associated with the fact that Ontario is a single-settlement, real-time market

Introduction condition of a tokamak fusion power plant as an advanced technology in world energy scenario

International Nuclear Information System (INIS)

Hiwatari, R.; Tokimatsu, K.; Asaoka, Y.; Okano, K.; Konishi, S.; Ogawa, Y.

2005-01-01

The present study reveals the following two introduction conditions of a tokamak fusion power plant in a long term world energy scenario. The first condition is the electric breakeven condition, which is required for the fusion energy to be recognized as a suitable candidate of an alternative energy source in the long term world energy scenario. As for the plasma performance (normalized beta value β N , confinement improvement factor for H-mode HH, the ratio of plasma density to Greenwald density limit fn GW ), the electric breakeven condition requires the simultaneous achievement of 1.2 N GW tmax =16 T, thermal efficiency η e =30%, and current drive power P NBI N ∼1.8, HH∼1.0, and fn GW ∼0.9, which correspond to the ITER reference operation parameters, have a strong potential to achieve the electric breakeven condition. The second condition is the economic breakeven condition, which is required to be selected as an alternative energy source. By using a long term world energy and environment model, the potential of the fusion energy in the long term world energy scenario is being investigated. Under the constraint of 550 ppm CO 2 concentration in the atmosphere, a breakeven price for introduction of the fusion energy in the year 2050 is estimated from 65mill/kWh to 135mill/kWh, which is considered as the economic breakeven condition in the present study. Under the conditions of B tmax =16T, η e =40%, plant availability 60%, and a radial build with/without CS coil, the economic breakeven condition requires β N ∼2.5 for 135mill/kWh of higher breakeven price case and β N ∼6.0 for 65mill/kWh of lower breakeven price case. Finally, the demonstration of steady state operation with β N ∼3.0 in the ITER project leads to the prospect to achieve the upper region of breakeven price in the world energy scenario. (author)

Marginal-cost pricing for Hydro-Quebec residential customers

International Nuclear Information System (INIS)

Paquin, C.

1994-02-01

An option available to governments and to utilities such as Hydro-Quebec for responding to objectives of energy efficiency is the adoption of marginal cost pricing. Compared to currently used price structures, marginal cost pricing will allow improvement of price signals and assure an optimal utilization of the resource. That type of pricing could be economically beneficial but may not be desirable from the point of view of revenue distribution. Taking account of Hydro-Quebec's cost structure, pure marginal cost pricing would generate an income that would be strongly contested on equity grounds. For example, it would raise prices 60% for residential customers. Faced with this possibility, an analysis is presented of the impact of a peak-offpeak pricing (or pure marginal cost pricing) on Hydro-Quebec's residential customer energy bills. The marginal costs of Hydro-Quebec are calculated by the method of Bernard and Chatel (1985) and analysis of the results is based on Friedman and Weare (1993). A sample of 28,417 residential customers from a 1989 Hydro-Quebec survey is used in the study. Two scenarios are analyzed; the first allowing comparison of the energy bill only on the basis of marginal costs and of average costs, and the second allowing comparison of the impact of marginal cost pricing on the total bill. In the first scenario, the impact translates into a 31% increase in energy bills for the entire customer class considered; in addition, this impact is inversely proportional to the revenue class. In the second scenario, the increase is 24%. 33 refs., 10 figs., 53 tabs

Paying the price: a cross-sectional survey of Australian socioeconomically disadvantaged smokers' responses to hypothetical cigarette price rises.

Science.gov (United States)

Guillaumier, Ashleigh; Bonevski, Billie; Paul, Christine; D'Este, Catherine; Doran, Christopher; Siahpush, Mohammad

2014-03-01

Increases in tobacco taxation can lead to reductions in tobacco consumption and prevalence of use across social groups. However, use of price-minimisation strategies to manage current and future tobacco use and the role of financial stress is less understood. This study aimed to measure the effect of cigarette price increases on price-minimisation strategy endorsement and financial stress among socioeconomically disadvantaged smokers. Community service organisation welfare recipients in NSW, Australia completed a touchscreen survey. Smoking history, financial stress, highest price to quit and responses to hypothetical cigarette price increases were assessed. Participants were 354 smokers (response rate = 79%). Most participants received income from a government pension (95%), earned price rises, significantly more participants endorsed trying to quit in response to the larger increase scenario (P price-minimisation strategies (e.g. switching to cheaper brands/products) were endorsed, but remained constant across hypothetical scenarios; level of financial stress appeared to have little influence. Smokers indicating they would not change their smoking in response to price rises had higher levels of nicotine dependence. Socially disadvantaged smokers endorsed numerous price-minimising strategies to maintain smoking at hypothetically increased costs. Larger cigarette price rises motivated more smokers to consider quitting, while price-resistant smokers appeared to have a more entrenched smoker status. © 2013 Australasian Professional Society on Alcohol and other Drugs.

Documentation of the Retail Price Model

Science.gov (United States)

The Retail Price Model (RPM) provides a first‐order estimate of average retail electricity prices using information from the EPA Base Case v.5.13 Base Case or other scenarios for each of the 64 Integrated Planing Model (IPM) regions.

Emissions reduction scenarios in the Argentinean Energy Sector

International Nuclear Information System (INIS)

Di Sbroiavacca, Nicolás; Nadal, Gustavo; Lallana, Francisco; Falzon, James; Calvin, Katherine

2016-01-01

In this paper the LEAP, TIAM-ECN, and GCAM models were applied to evaluate the impact of a variety of climate change control policies (including carbon pricing and emission constraints relative to a base year) on primary energy consumption, final energy consumption, electricity sector development, and CO_2 emission savings of the energy sector in Argentina over the 2010–2050 period. The LEAP model results indicate that if Argentina fully implements the most feasible mitigation measures currently under consideration by official bodies and key academic institutions on energy supply and demand, such as the ProBiomass program, a cumulative incremental economic cost of 22.8 billion US$(2005) to 2050 is expected, resulting in a 16% reduction in GHG emissions compared to a business-as-usual scenario. These measures also bring economic co-benefits, such as a reduction of energy imports improving the balance of trade. A Low CO_2 price scenario in LEAP results in the replacement of coal by nuclear and wind energy in electricity expansion. A High CO_2 price leverages additional investments in hydropower. By way of cross-model comparison with the TIAM-ECN and GCAM global integrated assessment models, significant variation in projected emissions reductions in the carbon price scenarios was observed, which illustrates the inherent uncertainties associated with such long-term projections. These models predict approximately 37% and 94% reductions under the High CO_2 price scenario, respectively. By comparison, the LEAP model, using an approach based on the assessment of a limited set of mitigation options, predicts an 11.3% reduction. The main reasons for this difference include varying assumptions about technology cost and availability, CO_2 storage capacity, and the ability to import bioenergy. An emission cap scenario (2050 emissions 20% lower than 2010 emissions) is feasible by including such measures as CCS and Bio CCS, but at a significant cost. In terms of technology

Natural gas pricing: concepts and international overview

Energy Technology Data Exchange (ETDEWEB)

Gorodicht, Daniel Monnerat [Gas Energy, Rio de Janeiro, RJ (Brazil); Veloso, Luciano de Gusmao; Fidelis, Marco Antonio Barbosa; Mathias, Melissa Cristina Pinto Pires [Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis (ANP), Rio de Janeiro, RJ (Brazil)

2012-07-01

The core of this article is a critical analysis of different forms of pricing of natural gas existing in the world today. This paper is to describe the various scenarios of natural gas price formation models. Along the paper, the context is emphasized by considering their cases of applications and their results. Today, basically, there are three main groups of models for natural gas pricing: i) competition gas-on-gas, i.e., a liberalized natural gas market, II) gas indexed to oil prices or its products and III) bilateral monopolies and regulated prices. All the three groups of models have relevant application worldwide. Moreover, those are under dynamic influence of economic, technological and sociopolitical factors which bring complexity to the many existing scenarios. However, at first this paper builds a critical analysis of the international current situation of natural gas today and its economic relevance. (author)

Ontario demand response scenarios

International Nuclear Information System (INIS)

Rowlands, I.H.

2005-09-01

Strategies for demand management in Ontario were examined via 2 scenarios for a commercial/institutional building with a normal summertime peak load of 300 kW between 14:00 and 18:00 during a period of high electricity demand and high electricity prices. The first scenario involved the deployment of a 150 kW on-site generator fuelled by either diesel or natural gas. The second scenario involved curtailing load by 60 kW during the same periods. Costs and benefits of both scenarios were evaluated for 3 groups: consumers, system operators and society. Benefits included electricity cost savings, deferred transmission capacity development, lower system prices for electricity, as well as environmental changes, economic development, and a greater sense of corporate social responsibility. It was noted that while significant benefits were observed for all 3 groups, they were not substantial enough to encourage action, as the savings arising from deferred generation capacity development do not accrue to individual players. The largest potential benefit was identified as lower prices, spread across all users of electricity in Ontario. It was recommended that representative bodies cooperate so that the system-wide benefits can be reaped. It was noted that if 10 municipal utilities were able to have 250 commercial or institutional customers engaged in distributed response, then a total peak demand reduction of 375 MW could be achieved, representing more than 25 per cent of Ontario's target for energy conservation. It was concluded that demand response often involves the investment of capital and new on-site procedures, which may affect reactions to various incentives. 78 refs., 10 tabs., 5 figs

A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios

International Nuclear Information System (INIS)

Özkan, Şeyda; Farquharson, Robert J.; Hill, Julian; Malcolm, Bill

2015-01-01

Highlights: • Two different pasture-based dairy feeding systems were evaluated. • The home-grown forage system outperformed the traditional pasture-based system. • Probability of achieving $200,000 income was reduced by imposition of a carbon tax. • Different farming systems will respond to change differently. • The ‘best choice’ for each individual farm is subjective. - Abstract: The imposition of a carbon tax in the economy will have indirect impacts on dairy farmers in Australia. Although there is a great deal of information available regarding mitigation strategies both in Australia and internationally, there seems to be a lack of research investigating the variable prices of carbon-based emissions on dairy farm operating profits in Australia. In this study, a stochastic analysis comparing the uncertainty in income in response to different prices on carbon-based emissions was conducted. The impact of variability in pasture consumption and variable prices of concentrates and hay on farm profitability was also investigated. The two different feeding systems examined were a ryegrass pasture-based system (RM) and a complementary forage-based system (CF). Imposing a carbon price ($20–$60) and not changing the systems reduced the farm operating profits by 28.4% and 25.6% in the RM and CF systems, respectively compared to a scenario where no carbon price was imposed. Different farming businesses will respond to variability in the rapidly changing operating environment such as fluctuations in pasture availability, price of purchased feeds and price of milk or carbon emissions differently. Further, in case there is a carbon price imposed for GHG emissions emanated from dairy farming systems, changing from pasture-based to more complex feeding systems incorporating home-grown double crops may reduce the reductions in farm operating profits. There is opportunity for future studies to focus on the impacts of different mitigation strategies and policy

Are Price Limits Effective? An Examination of an Artificial Stock Market.

Science.gov (United States)

Zhang, Xiaotao; Ping, Jing; Zhu, Tao; Li, Yuelei; Xiong, Xiong

2016-01-01

We investigated the inter-day effects of price limits policies that are employed in agent-based simulations. To isolate the impact of price limits from the impact of other factors, we built an artificial stock market with higher frequency price limits hitting. The trading mechanisms in this market are the same as the trading mechanisms in China's stock market. Then, we designed a series of simulations with and without price limits policy. The results of these simulations demonstrate that both upper and lower price limits can cause a volatility spillover effect and a trading interference effect. The process of price discovery will be delayed if upper price limits are imposed on a stock market; however, this phenomenon does not occur when lower price limits are imposed.

A study on the future of unconventional oil development under different oil price scenarios: A system dynamics approach

International Nuclear Information System (INIS)

Hosseini, Seyed Hossein; Shakouri, Hamed G.

2016-01-01

Fluctuations in the oil global market has been a critical topic for the world economy so that analyzing and forecasting the conventional oil production rate has been examined by many researchers thoroughly. However, the dynamics of the market has not been studied systematically with regard to the new emerging competitors, namely unconventional oil. In this paper, the future trend of conventional and unconventional oil production and capacity expansion rates are analyzed using system dynamics approach. To do so, a supply-side modeling approach is utilized while main effective loops are modeled mathematically as follows: technological learning and progress, long and short-term profitability of oil capacity expansion and production, and oil proved reserve limitations. The proposed model is used to analyze conventional and unconventional oil production shares, up to 2025, under different oil price scenarios. The results show that conventional oil production rate ranges from 79.995 to 87.044 MB/day, which is 75–80 percent of total oil production rate, while unconventional oil production rate ranges from 19.615 to 28.584 MB/day. Simulation results reveal that unconventional oil can gain a considerable market share in the short run, although conventional oil will remain as the major source for the market in the long run. - Highlights: • Variables and loops affecting oil production are formulated mathematically. • Shares of conventional and unconventional oil in the global oil market is analyzed. • Oil production rate under different oil price scenarios up to 2025 is simulated. • Unconventional oil would obtain a considerable share in market in the short-term. • A late peak for the conventional oil resources would occur.

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.

Modelling long-term oil price and extraction with a Hubbert approach: The LOPEX model

International Nuclear Information System (INIS)

Rehrl, Tobias; Friedrich, Rainer

2006-01-01

The LOPEX (Long-term Oil Price and EXtraction) model generates long-term scenarios about future world oil supply and corresponding price paths up to the year 2100. In order to determine oil production in non-OPEC countries, the model uses Hubbert curves. Hubbert curves reflect the logistic nature of the discovery process and the associated constraint on temporal availability of oil. Extraction paths and world oil price path are both derived endogenously from OPEC's intertemporally optimal cartel behaviour. Thereby OPEC is faced with both the price-dependent production of the non-OPEC competitive fringe and the price-dependent world oil demand. World oil demand is modelled with a constant price elasticity function and refers to a scenario from ACROPOLIS-POLES. LOPEX results indicate a significant higher oil price from around 2020 onwards compared to the reference scenario, and a stagnating market share of maximal 50% to be optimal for OPEC

2015 Standard Scenarios Annual Report: U.S. Electric Sector Scenario Exploration

Energy Technology Data Exchange (ETDEWEB)

Sullivan, Patrick [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Cole, Wesley [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Blair, Nate [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Lantz, Eric [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Krishnan, Venkat [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Mai, Trieu [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Mulcahy, David [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Porro, Gian [National Renewable Energy Laboratory (NREL), Golden, CO (United States)

2015-07-16

This report is one of several products resulting from an initial effort to provide a consistent set of technology cost and performance data and to define a conceptual and consistent scenario framework that can be used in the National Renewable Energy Laboratory’s (NREL’s) future analyses. The long-term objective of this effort is to identify a range of possible futures of the U.S. electricity sector in which to consider specific energy system issues through (1) defining a set of prospective scenarios that bound ranges of key technology, market, and policy assumptions and (2) assessing these scenarios in NREL’s market models to understand the range of resulting outcomes, including energy technology deployment and production, energy prices, and carbon dioxide (CO2) emissions.

Alternative pricing regimes in Ontario : exploring the impacts

International Nuclear Information System (INIS)

Rowlands, I.H.

2006-01-01

Legislative goals were recently established in Ontario to promote reliability and quality of electricity service and to ensure that distribution rates for customers remain reasonable. This presentation explored the effect of changing electricity pricing structures on residential customers in Ontario. This study investigated a period between May to December 2005, in the town of Milton, Ontario. Monthly demand was measured for each month, and monthly weighted averages were presented. Residents with electric heating were removed from the sample. Four pricing structure scenarios were examined: (1) flat rates; (2) time-of-use pricing regimes; (3) real time pricing regimes; and (4) critical peak pricing. Average monthly consumption rates for July and August for all 4 scenarios were presented. Results for time-of-use were compared to flat rates, which showed a slight increase in monthly costs. Real time average monthly electricity costs were significantly higher. Time-of-use costs increased by 57 per cent during the periods examined. Real time pricing regimes resulted in a 196 per cent rise in costs. It was concluded that more research must be done to explore the policy implications of pricing regimes and their effect on consumer behaviour. refs., tabs., figs

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.

Italian energy scenarios: Markal model

International Nuclear Information System (INIS)

Gracceva, Francesco

2005-01-01

Energy scenarios carried out through formal models comply with scientific criteria such as internal coherence and transparency. Besides, Markal methodology allows a good understanding of the complex nature of the energy system. The business-as-usual scenario carried out through the Markal-Italy model shows that structural changes occurring in end-use sectors will continue to drive up energy consumption, in spite of the slow economic growth and the quite high energy prices [it

Analysis of Options Contract, Option Pricing in Agricultural Products

Directory of Open Access Journals (Sweden)

H. Tamidy

2016-03-01

of standardizing the underlying asset 4- Impossibility of creating cross supply of the underlying asset In addition, after the introduction of the model parameters, we offers method calculating of the volatility (standard deviation price with using historical data (time series. Parameters of Blk- Scholes model are introduced and option contract of selected product will pricing. After effect of the rise and fall agreement prices (in the form of 9-defined scenario on the price of put option and sales option are studied. In this study, after forming the hypothetical option market for the Canola, option pricing is done. In this section, the criteria for selecting an appropriate asset base is expressed for option contract. The Black–Scholes model is introduced for the valuation of call option and European put option contract. After introducing the model parameters, the calculation of volatility (standard deviation of price using historical data (time series is presented .To achieve this aim, the Black – Scholes model was used under 9 strike price scenario of 5, 10, 15, 20 percent above; 5, 10, 15, and 20 percent lower and finally equal to current prices. This model was run in Excel 2010 and Derivea gem 1.5. Results and Discussion: The results showed 43% price volatility for canola that reflects uncertainty in its price. In the next stage of pricing, the purchase and sale of the selected product was done under the nine price scenarios. The results showed that the highest authority to purchase option was for scenario K1 and the highest buy option was for the K9 scenario. The least expensive buy option is K9 and the least expensive sell option is K1. Conclusion: The results show that the increase of strike price under these scenarios leads to a decrease of call option price and decrease of put option price. In addition, the farmers, businesspersons and agricultural products transforming factories with a different degree of risk disclosure can participate in these markets

Producers give prices a boost

International Nuclear Information System (INIS)

Anon.

1992-01-01

Uranium producers came alive in August, helping spot prices crack the $8.00 barrier for the first time since March. The upper end of NUKEM's price range actually finished the month at $8.20. Scrambling to fulfill their long-term delivery contracts, producers dominate the market. In the span of three weeks, five producers came out for 2 million lbs U3O8, ultimately buying nearly 1.5 million lbs. One producer accounted for over half this volume. The major factor behind rising prices was that producers required specific origins to meet contract obligations. Buyers willing to accept open origins created the lower end of NUKEM's price range

Strategic Wholesale Pricing and Commonality Strategy in a Supply Chain with Quality Segmentation

Directory of Open Access Journals (Sweden)

Tiantian Xu

2015-01-01

Full Text Available We develop two game models of a one-supplier and one-manufacturer supply chain to investigate the supplier’s strategic wholesale pricing decision and the manufacturer’s commonality strategy. The manufacturer has three commonality strategies for the high-end and low-end products: common high-quality component, common low-quality component, and dedicated components. We consider both wholesale price first scenario and commonality strategy first scenario. Under the wholesale price first scenario, we identify the range of each commonality strategy and find that (i the common low-quality component strategy is harmful to the supplier; (ii if the quality of low-quality component and the unit production cost of high-quality component are sufficiently low, the supplier induces the common high-quality component strategy by strategically decreasing the unit wholesale price of high-quality component, while if they are sufficiently high, the supplier induces the dedicated components strategy by increasing the unit wholesale price of high-quality component and decreasing that of low-quality one. Under the commonality strategy first scenario, the common low-quality component strategy may exist. By comparing the two scenarios, we find that (i if the unit production cost of low-quality component is medium, the equilibrium outcomes under both scenarios are identical; (ii there exists a first-mover advantage for the two players.

Cost-reflective electricity pricing: Consumer preferences and perceptions

International Nuclear Information System (INIS)

Hall, Nina L.; Jeanneret, Talia D.; Rai, Alan

2016-01-01

In Australia, residential electricity peak demand has risen steeply in recent decades, leading to higher prices as new infrastructure was needed to satisfy demand. One way of limiting further infrastructure-induced retail price rises is via ‘cost-reflective’ electricity network pricing that incentivises users to shift their demand to non-peak periods. Empowering consumers with knowledge of their energy usage is critical to maximise the potential benefits of cost-reflective pricing. This research consulted residential electricity consumers in three Australian states on their perceptions and acceptance of two cost-reflective pricing scenarios (Time-of-Use and Peak Capacity pricing) and associated technologies to support such pricing (smart meters, in-home displays and direct load control devices). An energy economist presented information to focus groups on the merits and limitations of each scenario, and participants’ views were captured. Almost half of the 53 participants were agreeable to Time-of-Use pricing, but did not have a clear preference for Peak Capacity pricing, where the price was based on the daily maximum demand. Participants recommended further information to both understand and justify the potential benefits, and for technologies to be introduced to enhance the pricing options. The results have implications for utilities and providers who seek to reduce peak demand. - Highlights: •Electricity price rises can be limited by ‘cost-reflective’ pricing. •We consulted residential electricity consumers on Time-of-Use and Peak Capacity pricing. •Understanding of peak electricity demand must increase to enable demand shift. •Interactive website could enable consumers to evaluate pricing options. •Smart meter adoption may increase if voluntary and includes an in-home display.

The voluntary price for the small consumer: Real-time pricing in Spain

International Nuclear Information System (INIS)

Roldán Fernández, Juan Manuel; Payán, Manuel Burgos; Santos, Jesús Manuel Riquelme; García, Ángel Luis Trigo

2017-01-01

In 2013, a period of reform was initiated of the regulatory framework of the Spanish electricity sector. A year later, the methodology for the calculation of the Voluntary Price for the Small Consumer (VPSC) was approved: a real-time price tariff for small domestic consumers. Under this price-setting system, VPSC consumers are billed according to their hourly consumption and hourly prices along the day. Directive 27/2014/EU, on energy saving, was also transposed to Spanish regulation in 2014. The impact on the Spanish electricity market and domestic VPSC consumers of these two recent energy policy modifications are analyzed in this work. A qualitative model, based on the flexibility of the merit-order curves, is first introduced to formulate a number of hypotheses. A set of scenarios are then examined to quantify the main effects on the market and on domestic consumers. The results show that domestic energy-saving, and, to a lesser extent, load-shifting scenarios, can diminish the mean hourly price and the cost of the annual traded energy in the market. Nevertheless, these reductions are mainly granted to large qualified consumers, since domestic consumers mostly benefit from the reduction of their energy demand rather than from a reduction of the price. - Graphical abstract: Load saving and load-shifting performed by small VPSC consumers reduces the hourly clearing price and the traded energy leading to some rent transfer from the generators to the purchasing agents. The cost saving for VPSC consumers is mainly related to the energy they saved. They profit only partially from the market cost saving. - Highlights: • Merit-order effect related to energy saving and load-shifting are identified. • Domestic consumers are able to conduct energy saving and load-shifting at no cost. • Cyclic load-shifting reduces the traded energy and the economic cost in the market. • Rent transfer form generators to purchasing agents catalyzed by costumers’ saving. �

Oil price assumptions in macroeconomic forecasts: should we follow future market expectations?

International Nuclear Information System (INIS)

Coimbra, C.; Esteves, P.S.

2004-01-01

In macroeconomic forecasting, in spite of its important role in price and activity developments, oil prices are usually taken as an exogenous variable, for which assumptions have to be made. This paper evaluates the forecasting performance of futures market prices against the other popular technical procedure, the carry-over assumption. The results suggest that there is almost no difference between opting for futures market prices or using the carry-over assumption for short-term forecasting horizons (up to 12 months), while, for longer-term horizons, they favour the use of futures market prices. However, as futures market prices reflect market expectations for world economic activity, futures oil prices should be adjusted whenever market expectations for world economic growth are different to the values underlying the macroeconomic scenarios, in order to fully ensure the internal consistency of those scenarios. (Author)

Dynamic Price Vector Formation Model-Based Automatic Demand Response Strategy for PV-Assisted EV Charging Stations

Energy Technology Data Exchange (ETDEWEB)

Chen, Qifang; Wang, Fei; Hodge, Bri-Mathias; Zhang, Jianhua; Li, Zhigang; Shafie-Khah, Miadreza; Catalao, Joao P. S.

2017-11-01

A real-time price (RTP)-based automatic demand response (ADR) strategy for PV-assisted electric vehicle (EV) Charging Station (PVCS) without vehicle to grid is proposed. The charging process is modeled as a dynamic linear program instead of the normal day-ahead and real-time regulation strategy, to capture the advantages of both global and real-time optimization. Different from conventional price forecasting algorithms, a dynamic price vector formation model is proposed based on a clustering algorithm to form an RTP vector for a particular day. A dynamic feasible energy demand region (DFEDR) model considering grid voltage profiles is designed to calculate the lower and upper bounds. A deduction method is proposed to deal with the unknown information of future intervals, such as the actual stochastic arrival and departure times of EVs, which make the DFEDR model suitable for global optimization. Finally, both the comparative cases articulate the advantages of the developed methods and the validity in reducing electricity costs, mitigating peak charging demand, and improving PV self-consumption of the proposed strategy are verified through simulation scenarios.

Upper bounds of supersymmetric particle masses in a gaugino-originated radiative breaking scenario

International Nuclear Information System (INIS)

Goto, T.

1993-01-01

The mass spectrum of supersymmetric particles is studied in the radiative breaking scenario of the minimal supersymmetric standard model, with an assumption that all soft supersymmetry-breaking parameters other than the gaugino masses are vanishing at the Planck scale. The U(1) gaugino mass M 1X is taken to be an independent parameter, while the SU(2) and SU(3) gaugino masses are supposed to be unified. Within the ''natural'' range, the whole parameter space is scanned numerically and the consistent particle mass spectra with the experimental bounds are obtained. The supersymmetric particle masses are tightly bounded above as m eR approx-lt 100 GeV, etc., if the top quark is sufficiently heavy m top approx-gt 100 GeV and the minimal grand unified theory relation for three gaugino masses is satisfied. For a large |M 1X |, there is no restriction other than the naturalness for the upper bounds of supersymmetric particle masses

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

Food prices and poverty negatively affect micronutrient intakes in Guatemala.

Science.gov (United States)

Iannotti, Lora L; Robles, Miguel; Pachón, Helena; Chiarella, Cristina

2012-08-01

Limited empirical evidence exists for how economic conditions affect micronutrient nutrition. We hypothesized that increasing poverty and rising food prices would reduce consumption of high-quality "luxury" foods, leading to an increased probability of inadequacy for several nutrients. The 2006 Guatemala National Living Conditions Survey was analyzed. First, energy and nutrient intakes and adequacy levels were calculated. Second, the income-nutrient relationships were investigated by assessing disparities in intakes, determining income-nutrient elasticities, and modeling nutrient intakes by reductions in income. Third, the food price-nutrient relationships were explored through determination of price-nutrient elasticities and modeling 2 price scenarios: an increase in food prices similar in magnitude to the food price crisis of 2007-2008 and a standardized 10% increase across all food groups. Disparities in nutrient intakes were greatest for vitamin B-12 (0.38 concentration index) and vitamin A (0.30 concentration index); these nutrients were highly and positively correlated with income (r = 0.22-0.54; P < 0.05). Although the baseline probability of inadequacy was highest for vitamin B-12 (83%), zinc showed the greatest increase in probability of inadequacy as income was reduced, followed by folate and vitamin A. With rising food prices, zinc intake was most acutely affected under both scenarios (P < 0.05) and folate intake in the poorest quintile (+7 percentage points) under the 10% scenario. Price-nutrient elasticities were highest for vitamin B-12 and the meat, poultry, and fish group (-0.503) and for folate and the legumes group (-0.343). The economic factors of food prices and income differentially influenced micronutrient intakes in Guatemala, notably zinc and folate intakes.

ACA Federal Upper Limits

Data.gov (United States)

U.S. Department of Health & Human Services — Affordable Care Act Federal Upper Limits (FUL) based on the weighted average of the most recently reported monthly average manufacturer price (AMP) for...

Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios

Directory of Open Access Journals (Sweden)

Nana Wan

2015-01-01

Full Text Available There exist obvious changes in price and demand during the inflationary period, both of which are regarded as the key factors leading to supply chain uncertainty. In this paper, we focus our discussion on price increase and demand contraction caused by inflation, integrate the effect of inflation and option contracts within the model framework, and analyze how to use option contracts to achieve supply chain coordination under inflation scenarios. We consider a one-period two-stage supply chain consisting of one supplier and one retailer and explore the effect of inflation on the optimal ordering and production decisions under three different types of contracts: wholesale price contracts, option contracts, and portfolio contracts. Moreover, we explore the impact of option contracts on the supply chain through using wholesale price contracts model as the benchmark. We find that the retailer prefers adopting portfolio contracts, but the supplier prefers providing option contracts under inflation scenarios. Ultimately, option contracts will be implemented owing to the supplier’s market dominant position. In addition, we discuss the supply chain bilateral coordination mechanism with option contracts from the perspectives of two members and derive that option contracts can coordinate the supply chain and achieve Pareto improvement under inflation scenarios.

An interdisciplinary scenario analysis to assess the water availability and water consumption in the Upper Ouémé catchment in Benin

Directory of Open Access Journals (Sweden)

S. Giertz

2006-01-01

Full Text Available This paper presents an interdisciplinary scenario analysis to assess the influence of global and regional change on future water availability and water consumption in the Upper Ouémé catchment in central Benin. For the region three development scenarios were evolved. These scenarios are combined with climate change scenarios based on the IPCC (Intergovernmental Panel on Climate Change. In the mo-delling approach the quantification of the land use/land cover change is performed by the cellular automata model CLUE-S. The future climate scenarios are computed with the regional climate model REMO driven by the global ECHAM model. Using this data different land use and climate change scenarios can be calculated with the conceptual hydrological model UHP-HRU to assess the effects of global changes on the future water availability in Benin. To analyse the future water availability also the water consumption has to be taken into account. Due to high population growth an increase in water need in the future is expected for the region. To calculate the future household water consumption data from a regional survey and demographic projections are used. Development of the water need for animal husbandry is also considered. The first test run of the modelling approach was performed for the development scenario 'business as usual' combined with the IPCC scenario B2 for the year 2025. This test demonstrates the applicability of the approach for an interdisciplinary scenario analysis. A continuous run from 2000–2025 will be simulated for different scenarios as soon as the input data concerning land use/land cover and climate are available.

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%

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.

Pricing and collecting decisions in a closed-loop supply chain with symmetric and asymmetric information

DEFF Research Database (Denmark)

Wei, Jie; Govindan, Kannan; Li, Yongjian

2015-01-01

. The optimal strategies in closed form are given under the decision scenarios with symmetric information; moreover, the first order conditions that the optimal retail price, optimal wholesale price, and optimal collection rate satisfy are given under the decision scenarios with asymmetric information......The optimal decision problem of a closed-loop supply chain with symmetric and asymmetric information structures is considered using game theory in this paper. The paper aims to explore how the manufacturer and the retailer make their own decisions about wholesale price, retail price, and collection...... rate under symmetric and asymmetric information conditions. Four game models are established, which allow one to examine the strategies of each firm and explore the role of the manufacturer and the retailer in four different game scenarios under symmetric and asymmetric information structures...

The price elasticity of demand for heroin: Matched longitudinal and experimental evidence.

Science.gov (United States)

Olmstead, Todd A; Alessi, Sheila M; Kline, Brendan; Pacula, Rosalie Liccardo; Petry, Nancy M

2015-05-01

This paper reports estimates of the price elasticity of demand for heroin based on a newly constructed dataset. The dataset has two matched components concerning the same sample of regular heroin users: longitudinal information about real-world heroin demand (actual price and actual quantity at daily intervals for each heroin user in the sample) and experimental information about laboratory heroin demand (elicited by presenting the same heroin users with scenarios in a laboratory setting). Two empirical strategies are used to estimate the price elasticity of demand for heroin. The first strategy exploits the idiosyncratic variation in the price experienced by a heroin user over time that occurs in markets for illegal drugs. The second strategy exploits the experimentally induced variation in price experienced by a heroin user across experimental scenarios. Both empirical strategies result in the estimate that the conditional price elasticity of demand for heroin is approximately -0.80. Copyright © 2015 Elsevier B.V. All rights reserved.

The price elasticity of demand for heroin: matched longitudinal and experimental evidence#

Science.gov (United States)

Olmstead, Todd A.; Alessi, Sheila M.; Kline, Brendan; Pacula, Rosalie Liccardo; Petry, Nancy M.

2015-01-01

This paper reports estimates of the price elasticity of demand for heroin based on a newly constructed dataset. The dataset has two matched components concerning the same sample of regular heroin users: longitudinal information about real-world heroin demand (actual price and actual quantity at daily intervals for each heroin user in the sample) and experimental information about laboratory heroin demand (elicited by presenting the same heroin users with scenarios in a laboratory setting). Two empirical strategies are used to estimate the price elasticity of demand for heroin. The first strategy exploits the idiosyncratic variation in the price experienced by a heroin user over time that occurs in markets for illegal drugs. The second strategy exploits the experimentally-induced variation in price experienced by a heroin user across experimental scenarios. Both empirical strategies result in the estimate that the conditional price elasticity of demand for heroin is approximately −0.80. PMID:25702687

A Case Study of Pharmaceutical Pricing in China: Setting the Price for Off-Patent Originators.

Science.gov (United States)

Hu, Shanlian; Zhang, Yabing; He, Jiangjiang; Du, Lixia; Xu, Mingfei; Xie, Chunyan; Peng, Ying; Wang, Linan

2015-08-01

This article aims to define a value-based approach to pricing and reimbursement for off-patent originators using a multiple criteria decision analysis (MCDA) approach centered on a systematic analysis of current pricing and reimbursement policies in China. A drug price policy review was combined with a quantitative analysis of China's drug purchasing database. Policy preferences were identified through a MCDA performed by interviewing well-known academic experts and industry stakeholders. The study findings indicate that the current Chinese price policy includes cost-based pricing and the establishment of maximum retail prices and premiums for off-patent originators, whereas reference pricing may be adopted in the future. The literature review revealed significant differences in the dissolution profiles between originators and generics; therefore, dissolution profiles need to be improved. Market data analysis showed that the overall price ratio of generics and off-patent originators was around 0.54-0.59 in 2002-2011, with a 40% price difference, on average. Ten differentiating value attributes were identified and MCDA was applied to test the impact of three pricing policy scenarios. With the condition of implementing quality consistency regulations and controls, a reduction in the price gap between high-quality off-patent products (including originator and generics) seemed to be the preferred policy. Patents of many drugs will expire within the next 10 years; thus, pricing will be an issue of importance for off-patent originators and generic alternatives.

Correlations of stock price fluctuations under multi-scale and multi-threshold scenarios

Science.gov (United States)

Sui, Guo; Li, Huajiao; Feng, Sida; Liu, Xueyong; Jiang, Meihui

2018-01-01

The multi-scale method is widely used in analyzing time series of financial markets and it can provide market information for different economic entities who focus on different periods. Through constructing multi-scale networks of price fluctuation correlation in the stock market, we can detect the topological relationship between each time series. Previous research has not addressed the problem that the original fluctuation correlation networks are fully connected networks and more information exists within these networks that is currently being utilized. Here we use listed coal companies as a case study. First, we decompose the original stock price fluctuation series into different time scales. Second, we construct the stock price fluctuation correlation networks at different time scales. Third, we delete the edges of the network based on thresholds and analyze the network indicators. Through combining the multi-scale method with the multi-threshold method, we bring to light the implicit information of fully connected networks.

Apples to Apples: Equivalent-Reliability Power Systems Across Diverse Resource Mix Scenarios

Energy Technology Data Exchange (ETDEWEB)

Stephen, Gordon W [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Frew, Bethany A [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Sigler, Devon [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Jones, Wesley B [National Renewable Energy Laboratory (NREL), Golden, CO (United States)

2018-03-28

Electricity market research is highly price sensitive, and prices are strongly influenced by balance of supply and demand. This work looks at how to combine capacity expansion models and reliability assessment tools to assess equivalent-reliability power systems across diverse resource mix scenarios.

Impacts of carbon pricing, brown coal availability and gas cost on Czech energy system up to 2050

International Nuclear Information System (INIS)

Rečka, L.; Ščasný, M.

2016-01-01

A dynamic partial equilibrium model, TIMES (​The Integrated MARKAL-EFOM System), is built to optimize the energy system in a post-transition European country, the Czech Republic. The impacts of overall nine scenarios on installed capacity, capital and fuel costs, air quality pollutant emission, emission of CO_2 and environmental and health damage are quantified for a period up to 2050. These scenarios are built around three different price sets of the EUA (EU allowance) to emit greenhouse gasses alongside a policy that retains the ban on brown coal mining in two Czech mines, a policy that will allow the re-opening of mining areas under this ban (i.e. within the territorial ecological limits), and a low natural gas price assumption. We found that the use of up until now dominant brown coal will be significantly reduced in each scenario, although reopening the coal mines will result in its smaller decline. With low EUA price, hard coal will become the dominant fuel in electricity generation, while nuclear will overtake this position with a 51% or even 65% share assuming the central price of EUA, or high EUA price, respectively. The low price of natural gas will result in an increasing gas share from an almost zero share recently up to about 42%. This stimulus does not however appear at all with low EUA price. Neither of these scenarios will achieve the renewable energy sources 2030 targets and only a high EUA price will lead to almost full de-carbonization of the Czech power system, with fossil fuels representing only 16% of the energy mix. The low EUA price will result in an increase in CO_2 emissions, whereas the high EUA price will reduce CO_2 emission by at least 81% compared to the 2015 reference level. Those scenarios that will result in CO_2 emission reduction will also generate ancillary benefits due to reduction in air quality emissions, on average over the entire period, at least at 38€ per t of avoided CO_2, whereas scenarios that will lead to CO_2

The role of internal reference prices in consumers' willingness to pay judgments: Thaler's Beer Pricing Task revisited.

Science.gov (United States)

Ranyard, R; Charlton, J P; Williamson, J

2001-02-01

Alternative reference prices, either displayed in the environment (external) or recalled from memory (internal) are known to influence consumer judgments and decisions. In one line of previous research, internal reference prices have been defined in terms of general price expectations. However, Thaler (Marketing Science 4 (1985) 199; Journal of Behavioral Decision Making 12 (1999) 183) defined them as fair prices expected from specific types of seller. Using a Beer Pricing Task, he found that seller context had a substantial effect on willingness to pay, and concluded that this was due to specific internal reference prices evoked by specific contexts. In a think aloud study using the same task (N = 48), we found only a marginal effect of seller context. In a second study using the Beer Pricing Task and seven analogous ones (N = 144), general internal reference prices were estimated by asking people what they normally paid for various commodities. Both general internal reference prices and seller context influenced willingness to pay, although the effect of the latter was again rather small. We conclude that general internal reference prices have a greater impact in these scenarios than specific ones, because of the lower cognitive load involved in their storage and retrieval.

Energy perspectives 2035 - Volume 2, scenarios I to IV

International Nuclear Information System (INIS)

Kirchner, A.

2007-01-01

This comprehensive report published by the Swiss Federal Office of Energy (SFOE) takes a look at the four scenarios concerning future developments in Swiss energy supply policy. The four complex scenarios include variants entitled 'business as usual', 'increased co-operation', 'new priorities' and 'on the way to a 2000-Watt society'. These scenarios deal with the development of energy demand and electricity offerings in Switzerland for the period 1990 to 2035. They are reviewed in the light of various sensitivity factors. These sensitivity factors include a high GDP, oil prices of 50 US-dollars per barrel and a warmer climate. The report presents the results of the model calculations made. First of all, the report takes a look at the motivation and aims behind the work and discusses the modelling methods, system limits and conventions used and the possibilities offered by the perspectives as well as the limits encountered. The four scenarios are then presented and discussed in detail. Implementation variants in the private, services, industrial and traffic sectors are discussed and various electricity supply variants are presented, as are the associated environmental issues involved. The scenarios are compared with each other and pricing and security of supply issues are discussed. Finally, a short synopsis of the scenarios is presented and decision criteria are discussed as are implementation instruments. Ethical dilemmas and the risks involved are noted

Essays on microgrids, asymmetric pricing and market power in electricity markets

Science.gov (United States)

Lo Prete, Chiara

This dissertation presents four studies of the electricity industry. The first and second essays use economic-engineering models to assess different aspects of microgrid penetration in regional electricity markets, while the last two studies contain empirical analyses aimed at evaluating the performance of wholesale electricity markets. Chapter 2 develops a framework to quantify economic, environmental, efficiency and reliability impacts of different power production scenarios in a regional system, focusing on the interaction of microgrids with the existing transmission and distribution grid. The setting is the regional network formed by Belgium, France, Germany and the Netherlands. The study presents simulations of power market outcomes under various policies and levels of microgrid penetration, and evaluates them using a diverse set of metrics. Chapter 3 studies the interaction between a microgrid and a regulated electric utility in a regional electricity market. I consider the interaction among the utility, the microgrid developer and consumers in the framework of cooperative game theory (assuming exchangeable utility), and use regional market models to simulate scenarios in which microgrid introduction may or may not be socially beneficial. Under the assumptions of this chapter, customer participation is essential to the development of socially beneficial microgrids, while the utility has little or no gain from it. Discussed incentives to avoid that utilities block microgrid entry include additional revenue drivers related to microgrid connection, decoupling and performance-based mechanisms targeted at service quality. When prices are below marginal costs of utility provided power, microgrid development may be socially beneficial, but unprofitable for microgrid customers and its developer. By imposing lower charges and higher remuneration for its services, the regulator could ensure that microgrid value is positive, without adversely impacting the utility

A multi-stage stochastic program for supply chain network redesign problem with price-dependent uncertain demands

DEFF Research Database (Denmark)

Fattahi, Mohammad; Govindan, Kannan; Keyvanshokooh, Esmaeil

2018-01-01

In this paper, we address a multi-period supply chain network redesign problem in which customer zones have price-dependent stochastic demand for multiple products. A novel multi-stage stochastic program is proposed to simultaneously make tactical decisions including products' prices and strategic...... redesign decisions. Existing uncertainty in potential demands of customer zones is modeled through a finite set of scenarios, described in the form of a scenario tree. The scenarios are generated using a Latin Hypercube Sampling method and then a forward scenario construction technique is employed...

Analysis of Current and Future Water Demands in the Upper Indus Basin under IPCC Climate and Socio-Economic Scenarios Using a Hydro-Economic WEAP Model

Directory of Open Access Journals (Sweden)

Ali Amin

2018-04-01

Full Text Available Pakistan is currently facing physical and economic water scarcity issues that are further complicated by the rapid increase in its population and by climate change. Many studies have focused on the physical water scarcity using hydrological modeling and the measurement of the impact of climate change on water resources in the Upper Indus Basin (UIB. However, few studies have concentrated on the importance of the economic water scarcity, that is, the water management issue under the looming impacts of climate change and the population explosion of Pakistan. The purpose of this study is to develop a management strategy which helps to achieve water security and sustainability in the Upper Indus Basin (UIB with the help of different socio-economic and climate change scenarios using WEAP (Water Evaluation and Planning modeling. The streamflow data of five sub-basins (Gilgit, Hunza, Shigar, Shyok, and Astore and the entire Upper Indus Basin (UIB were calibrated (2006–2010 and validated (2011–2014 in the WEAP model. The coefficient of determination and Nash Sutcliffe values for the calibration period ranged from 0.81–0.96. The coefficient of determination and the Nash Sutcliffe values for the validation period ranged from 0.85–0.94. After the development of the WEAP model, the analysis of the unmet water demand and percent coverage of the water demand for the period of 2006–2050 was computed. Different scenarios were generated for external driving factors (population growth, urbanization, and living standards and the impact of climate change to evaluate their effect on the current water supply system. The results indicated that the future unmet water demand is likely to reach 134 million cubic meters (mcm by the year 2050 and that the external driving factors are putting more pressure on the supply service. This study further explores the importance of proposed dams (likely to be built until 2025 by WAPDA (Water and Power Development

Price projections of feedstocks for biofuels and biopower in the U.S

International Nuclear Information System (INIS)

Langholtz, Matthew; Graham, Robin; Eaton, Laurence; Perlack, Robert; Hellwinkel, Chad; De La Torre Ugarte, Daniel G.

2012-01-01

The economic availability of biomass resources is a critical component in evaluating the commercial viability of biofuels. To evaluate projected farmgate prices and grower payments needed to procure 295 million dry Mg (325 million dry tons) of biomass in the U.S. by 2022, this research employs POLYSYS, an economic model of the U.S. agriculture sector. A price-run simulation suggests that a farmgate price of $58.42 Mg −1 ($53.00 dry ton −1 ) is needed to procure this supply, while a demand-run simulation suggests that prices of $34.56 and $71.61 Mg −1 ($30.00 and $62.00 dry ton −1 ) in are needed in 2012 and 2022, respectively, to procure the same supply, under baseline yield assumptions. Grower payments are reported as farmgate price minus resource-specific harvest costs. - Highlights: ► We model biomass prices needed to meet projected demand for biofuels and biopower. ► Combined projected demand is 295 million dry Mg of biomass by 2022. ► A farmgate price of $58.42 Mg −1 in 2022 meets demand under a price-run scenario. ► A farmgate price of $71.61 Mg −1 in 2022 meets demand under a demand-run scenario. ► Higher farmgate prices incentivize adoption of dedicated crops.

Road transport and power system scenarios for Northern Europe in 2030

DEFF Research Database (Denmark)

Juul, Nina; Meibom, Peter

2012-01-01

sensitivity on CO2 and oil prices, inclusion/exclusion of electric drive vehicles, and change in investment possibilities in flexible power plants. Plug-in hybrid electric vehicles are shown to be competitive in all scenarios except the low oil scenarios. The increased electricity consumption for the electric......Increasing focus on sustainability affects all parts of the energy system. The future integration of the power and road transport system due to the introduction of electric drive vehicles influences the economically optimal investments and optimal operation of the power system. This work presents...... vehicles is covered by wind power in Denmark and Norway and by coal production in Finland and Germany. The competition between wind power and coal is dependent on fuel price and CO2 price assumptions. Furthermore, introducing the flexibility of electric drive vehicles helps decrease cycling...

An optimal lot sizing and pricing in two echelon supply chain

Directory of Open Access Journals (Sweden)

Jafar Naeij

2010-07-01

Full Text Available This paper studies inventory and pricing policies in a non-cooperative supply chain with onesupplier and several retailers who are involved in producing, delivering and selling a singleproduct. We consider inventory policies in an information-asymmetric vendor managedinventory. The study consists of different scenarios where a supplier produces the product at thewholesale price to multiple retailers. The retailers also distribute the product in dispersed andindependent markets at retail selling prices. The demand rate for each market is a nondecreasingconcave function of the marketing expenditures of both local retailers and themanufacturer, but a non-increasing and convex function of the retail selling prices. The primarypurpose is to determine wholesale price, marketing expenditure for supplier and retailers,replenishment cycles for the product, and backorder quantity to maximize the total profit forboth groups of supplier and retailers. All scenarios are modeled as a Stackelberg game wherethe manufacturer is the leader and the retailers are the followers. A numerical study arepresented to demonstrate the influences of decision variables and/or parameters in variousscenarios.

Do food and oil prices co-move?

International Nuclear Information System (INIS)

Reboredo, Juan C.

2012-01-01

This paper studies co-movements between world oil prices and global prices for corn, soybean and wheat using copulas. Several copula models with different conditional dependence structures and time-varying dependence parameters were considered. Empirical results for weekly data from January 1998 to April 2011 showed weak oil-food dependence and no extreme market dependence between oil and food prices. These results support the neutrality of agricultural commodity markets to the effects of changes in oil prices and non-contagion between the crude oil and agricultural markets. However, dependence increased significantly in the last three years of the sampling period, even though upper tail dependence remained insignificant, indicating that food price spikes are not caused by positive extreme oil price changes. These results have implications for policy design, risk management and hedging strategies. - Highlights: ► We study co-movement between food and oil markets through copulas. ► Food prices are neutral to the effects of changes in oil prices. ► Oil price spikes had no causal effect on agricultural price spikes. ► Oil–corn and oil–soybean dependence increased in recent years. ► Food subsidy policies and price controls are unnecessary to avoid extreme oil prices.

Carbon tax scenarios and their effects on the Irish energy sector

International Nuclear Information System (INIS)

Di Cosmo, Valeria; Hyland, Marie

2013-01-01

In this paper we use annual time series data from 1960 to 2008 to estimate the long run price and income elasticities underlying energy demand in Ireland. The Irish economy is divided into five sectors: residential, industrial, commercial, agricultural and transport, and separate energy demand equations are estimated for all sectors. Energy demand is broken down by fuel type, and price and income elasticities are estimated for the primary fuels in the Irish fuel mix. Using the estimated price and income elasticities we forecast Irish sectoral energy demand out to 2025. The share of electricity in the Irish fuel mix is predicted to grow over time, as the share of carbon intensive fuels such as coal, oil and peat, falls. The share of electricity in total energy demand grows most in the industrial and commercial sectors, while oil remains an important fuel in the residential and transport sectors. Having estimated the baseline forecasts, two different carbon tax scenarios are imposed and the impact of these scenarios on energy demand, carbon dioxide emissions, and government revenue is assessed. If it is assumed that the level of the carbon tax will track the futures price of carbon under the EU-ETS, the carbon tax will rise from €21.50 per tonne CO 2 in 2012 (the first year forecasted) to €41 in 2025. Results show that under this scenario total emissions would be reduced by approximately 861,000 tonnes of CO 2 in 2025 relative to a zero carbon tax scenario, and that such a tax would generate €1.1 billion in revenue in the same year. We also examine a high tax scenario under which emissions reductions and revenue generated will be greater. Finally, in order to assess the macroeconomic effects of a carbon tax, the carbon tax scenarios were run in HERMES, the ESRI's medium-term macroeconomic model. The results from HERMES show that, a carbon tax of €41 per tonne CO 2 would lead to a 0.21% contraction in GDP, and a 0.08% reduction in employment. A higher carbon

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.

Optimal Tradable Credits Scheme and Congestion Pricing with the Efficiency Analysis to Congestion

Directory of Open Access Journals (Sweden)

Ge Gao

2015-01-01

Full Text Available We allow for three traffic scenarios: the tradable credits scheme, congestion pricing, and no traffic measure. The utility functions of different modes (car, bus, and bicycle are developed by considering the income’s impact on travelers’ behaviors. Their purpose is to analyze the demand distribution of different modes. A social optimization model is built aiming at maximizing the social welfare. The optimal tradable credits scheme (distribution of credits, credits charging, and the credit price, congestion pricing fees, bus frequency, and bus fare are obtained by solving the model. Mode choice behavior under the tradable credits scheme is also studied. Numerical examples are presented to demonstrate the model’s availability and explore the effects of the three schemes on traffic system’s performance. Results show congestion pricing would earn more social welfare than the other traffic measures. However, tradable credits scheme will give travelers more consumer surplus than congestion pricing. Travelers’ consumer surplus with congestion pricing is the minimum, which injures the travelers’ benefits. Tradable credits scheme is considered the best scenario by comparing the three scenarios’ efficiency.

Short-term uranium price formation: a methodology

International Nuclear Information System (INIS)

Hsieh, L.Y.; de Graffenried, C.L.

1987-01-01

One of the major problems in analyzing the short-term uranium market is the lack of a well-defined spot market price. The two primary sources of price data covering the US uranium market are the series published by the US Dept. of Energy (DOE) and by the Nuclear Exchange Corporation (NUEXCO), a private brokerage firm. Because of the differences in both definition and coverage, these two series are not directly comparable. In this study, an econometric model was developed for analyzing the interrelationship between short-term uranium price (NUEXCO exchange value), supply, demand, and future price expectations formed by market participants. The validity of this model has been demonstrated by the fact that all simulation statistics derived are highly significant. Three forecasting scenarios were developed in this study

Scenario approach for the seasonal forecast of Kharif flows from the Upper Indus Basin

Science.gov (United States)

Fraz Ismail, Muhammad; Bogacki, Wolfgang

2018-02-01

Snow and glacial melt runoff are the major sources of water contribution from the high mountainous terrain of the Indus River upstream of the Tarbela reservoir. A reliable forecast of seasonal water availability for the Kharif cropping season (April-September) can pave the way towards better water management and a subsequent boost in the agro-economy of Pakistan. The use of degree-day models in conjunction with satellite-based remote-sensing data for the forecasting of seasonal snow and ice melt runoff has proved to be a suitable approach for data-scarce regions. In the present research, the Snowmelt Runoff Model (SRM) has not only been enhanced by incorporating the glacier (G) component but also applied for the forecast of seasonal water availability from the Upper Indus Basin (UIB). Excel-based SRM+G takes account of separate degree-day factors for snow and glacier melt processes. All-year simulation runs with SRM+G for the period 2003-2014 result in an average flow component distribution of 53, 21, and 26 % for snow, glacier, and rain, respectively. The UIB has been divided into Upper and Lower parts because of the different climatic conditions in the Tibetan Plateau. The scenario approach for seasonal forecasting, which like the Ensemble Streamflow Prediction method uses historic meteorology as model forcings, has proven to be adequate for long-term water availability forecasts. The accuracy of the forecast with a mean absolute percentage error (MAPE) of 9.5 % could be slightly improved compared to two existing operational forecasts for the UIB, and the bias could be reduced to -2.0 %. However, the association between forecasts and observations as well as the skill in predicting extreme conditions is rather weak for all three models, which motivates further research on the selection of a subset of ensemble members according to forecasted seasonal anomalies.

A scenario analysis of investment options for the Cuban power sector using the MARKAL model

International Nuclear Information System (INIS)

Wright, Evelyn L.; Belt, Juan A.B.; Chambers, Adam; Delaquil, Pat; Goldstein, Gary

2010-01-01

The Cuban power sector faces a need for extensive investment in new generating capacity, under a large number of uncertainties regarding future conditions, including: rate of demand growth, fluctuations in fuel prices, access to imported fuel, and access to investment capital for construction of new power plants and development of fuel import infrastructure. To identify cost effective investment strategies under these uncertainties, a supply and power sector MARKAL model was assembled, following an extensive review of available data on the Cuban power system and resource potentials. Two scenarios were assessed, a business-as-usual (BAU) scenario assuming continued moderate electricity load growth and domestic fuel production growth, and a high growth (HI) scenario assuming rapid electricity demand growth, rapid increase in domestic fuel production, and a transition to market pricing of electricity. Within these two scenarios sets, sensitivity analyses were conducted on a number of variables. The implications of least-cost investment strategies for new capacity builds, investment spending requirements, electricity prices, fuel expenditures, and carbon dioxide emissions for each scenario were assessed. Natural gas was found to be the cost effective fuel for new generation across both scenarios and most sensitivity cases, suggesting that access to natural gas, through increased domestic production and LNG import, is a clear priority for further analysis in the Cuban context.

A scenario analysis of investment options for the Cuban power sector using the MARKAL model

Energy Technology Data Exchange (ETDEWEB)

Wright, Evelyn L.; Chambers, Adam; Delaquil, Pat; Goldstein, Gary [International Resources Group, 1211 Connecticut Avenue, NW, Suite 700, Washington, DC 20036 (United States); Belt, Juan A.B. [US Agency for International Development, 1300 Pennsylvania Avenue, NW, Washington, DC 20523-3800 (United States)

2010-07-15

The Cuban power sector faces a need for extensive investment in new generating capacity, under a large number of uncertainties regarding future conditions, including: rate of demand growth, fluctuations in fuel prices, access to imported fuel, and access to investment capital for construction of new power plants and development of fuel import infrastructure. To identify cost effective investment strategies under these uncertainties, a supply and power sector MARKAL model was assembled, following an extensive review of available data on the Cuban power system and resource potentials. Two scenarios were assessed, a business-as-usual (BAU) scenario assuming continued moderate electricity load growth and domestic fuel production growth, and a high growth (HI) scenario assuming rapid electricity demand growth, rapid increase in domestic fuel production, and a transition to market pricing of electricity. Within these two scenarios sets, sensitivity analyses were conducted on a number of variables. The implications of least-cost investment strategies for new capacity builds, investment spending requirements, electricity prices, fuel expenditures, and carbon dioxide emissions for each scenario were assessed. Natural gas was found to be the cost effective fuel for new generation across both scenarios and most sensitivity cases, suggesting that access to natural gas, through increased domestic production and LNG import, is a clear priority for further analysis in the Cuban context. (author)

Predictive densities for day-ahead electricity prices using time-adaptive quantile regression

DEFF Research Database (Denmark)

Jónsson, Tryggvi; Pinson, Pierre; Madsen, Henrik

2014-01-01

A large part of the decision-making problems actors of the power system are facing on a daily basis requires scenarios for day-ahead electricity market prices. These scenarios are most likely to be generated based on marginal predictive densities for such prices, then enhanced with a temporal...... dependence structure. A semi-parametric methodology for generating such densities is presented: it includes: (i) a time-adaptive quantile regression model for the 5%–95% quantiles; and (ii) a description of the distribution tails with exponential distributions. The forecasting skill of the proposed model...

Is there a water–energy nexus in electricity generation? Long-term scenarios for the western United States

International Nuclear Information System (INIS)

Ackerman, Frank; Fisher, Jeremy

2013-01-01

Water is required for energy supply, and energy is required for water supply, creating problems as demand for both resources grows. We analyze this “water–energy nexus” as it affects long-run electricity planning in the western United States. We develop four scenarios assuming: no new constraints; limits on carbon emissions; limits on water use; and combined carbon and water limits. We evaluate these scenarios through 2100 under a range of carbon and water prices. The carbon-reducing scenarios become cost-effective at carbon prices of about $50–$70 per ton of CO 2 , moderately high but plausible within the century. In contrast, the water-conserving scenarios are not cost-effective until water prices reach thousands of dollars per acre-foot, well beyond foreseeable levels. This is due in part to the modest available water savings: our most and least water-intensive scenarios differ by less than 1% of the region's water consumption. Under our assumptions, Western electricity generation could be reshaped by the cost of carbon emissions, but not by the cost of water, over the course of this century. Both climate change and water scarcity are of critical importance, but only in the former is electricity generation central to the problem and its solutions. - Highlights: • We model long-run electricity supply and demand for the western United States. • We evaluate the costs of carbon-reducing and water-conserving scenarios. • Carbon-reducing scenarios become cost-effective at carbon prices of $50–70 per ton CO 2 . • Water-conserving scenarios are only cost-effective above $4000/acre-foot of water. • Electricity planning is central to climate policy, but much less so to water planning

Emissions Scenarios and Fossil-fuel Peaking

Science.gov (United States)

Brecha, R.

2008-12-01

Intergovernmental Panel on Climate Change (IPCC) emissions scenarios are based on detailed energy system models in which demographics, technology and economics are used to generate projections of future world energy consumption, and therefore, of greenhouse gas emissions. Built into the assumptions for these scenarios are estimates for ultimately recoverable resources of various fossil fuels. There is a growing chorus of critics who believe that the true extent of recoverable fossil resources is much smaller than the amounts taken as a baseline for the IPCC scenarios. In a climate optimist camp are those who contend that "peak oil" will lead to a switch to renewable energy sources, while others point out that high prices for oil caused by supply limitations could very well lead to a transition to liquid fuels that actually increase total carbon emissions. We examine a third scenario in which high energy prices, which are correlated with increasing infrastructure, exploration and development costs, conspire to limit the potential for making a switch to coal or natural gas for liquid fuels. In addition, the same increasing costs limit the potential for expansion of tar sand and shale oil recovery. In our qualitative model of the energy system, backed by data from short- and medium-term trends, we have a useful way to gain a sense of potential carbon emission bounds. A bound for 21st century emissions is investigated based on two assumptions: first, that extractable fossil-fuel resources follow the trends assumed by "peak oil" adherents, and second, that little is done in the way of climate mitigation policies. If resources, and perhaps more importantly, extraction rates, of fossil fuels are limited compared to assumptions in the emissions scenarios, a situation can arise in which emissions are supply-driven. However, we show that even in this "peak fossil-fuel" limit, carbon emissions are high enough to surpass 550 ppm or 2°C climate protection guardrails. Some

A spatial price equilibrium model in the oligopolistic market for oil derivatives: an application to the brazilian scenario

Directory of Open Access Journals (Sweden)

Fabiano Mezadre Pompermayer

2007-01-01

Full Text Available This paper presents a spatial price equilibrium model in an oligopoly market for refined oil products. Till 1997 the Brazilian oil market was characterized by the state monopoly of Petrobras, which up to 2001 remained the only firm authorized to import oil derivatives. With several agents operating in the primary oil supply market, the government stopped fixing the prices for Petrobras, which started to determine the prices based on competition with other players. In this new scenario some questions arise regarding the price levels at which refined products will be supplied in different regions across Brazil as well as the capacity of national refineries to compete with imported products. To answer those and other questions, a new oligopoly spatial equilibrium model is herein proposed, taking into account the special characteristics of production of refined oil products. An iterative Gauss-Seidel-like algorithm with sequential adjustments was developed and applied to Brazilian market data. The model, the algorithm and its application are described in this work. Such a model may be used both by regulatory authorities and by companies in the sector.Este artigo apresenta um modelo de equilíbrio espacial de preços em um mercado oligopolizado de derivados de petróleo. Até o ano de 1997, o mercado brasileiro era caracterizado pelo monopólio estatal da Petrobrás, a qual permaneceu, até 2001, como a única empresa autorizada a importar derivados de petróleo. Com vários agentes operando no mercado, o governo deixou de fixar os preços para a Petrobrás, que passou a determinar os preços baseada na competição com outros agentes. Neste cenário, surgem algumas questões relativas aos níveis de preços a serem oferecidos no mercado e relativas à capacidade das refinarias nacionais de competir com produtos importados. Para responder a estas e outras questões, um novo modelo de equilíbrio espacial de preços para um mercado oligopolizado foi

Uncertain long-run emissions targets, CO2 price and global energy transition. A general equilibrium approach

International Nuclear Information System (INIS)

Durand-Lasserve, Olivier; Smeers, Yves; Pierru, Axel

2010-01-01

The persistent uncertainty about mid-century CO 2 emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO 2 price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO 2 policy scenarios. In these scenarios, economic agents know that credible long-run CO 2 emissions targets will be set in 2020, with two possible outcomes: either a hard cap or a soft cap. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories - with two branches after 2020 - for prices and quantities of energy commodities and CO 2 emissions permits. The impact of uncertain long-run CO 2 emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios. (author)

Demand side management in recycling and electricity retail pricing

Science.gov (United States)

Kazan, Osman

This dissertation addresses several problems from the recycling industry and electricity retail market. The first paper addresses a real-life scheduling problem faced by a national industrial recycling company. Based on their practices, a scheduling problem is defined, modeled, analyzed, and a solution is approximated efficiently. The recommended application is tested on the real-life data and randomly generated data. The scheduling improvements and the financial benefits are presented. The second problem is from electricity retail market. There are well-known patterns in daily usage in hours. These patterns change in shape and magnitude by seasons and days of the week. Generation costs are multiple times higher during the peak hours of the day. Yet most consumers purchase electricity at flat rates. This work explores analytic pricing tools to reduce peak load electricity demand for retailers. For that purpose, a nonlinear model that determines optimal hourly prices is established based on two major components: unit generation costs and consumers' utility. Both are analyzed and estimated empirically in the third paper. A pricing model is introduced to maximize the electric retailer's profit. As a result, a closed-form expression for the optimal price vector is obtained. Possible scenarios are evaluated for consumers' utility distribution. For the general case, we provide a numerical solution methodology to obtain the optimal pricing scheme. The models recommended are tested under various scenarios that consider consumer segmentation and multiple pricing policies. The recommended model reduces the peak load significantly in most cases. Several utility companies offer hourly pricing to their customers. They determine prices using historical data of unit electricity cost over time. In this dissertation we develop a nonlinear model that determines optimal hourly prices with parameter estimation. The last paper includes a regression analysis of the unit generation cost

Impact of carbon cost on wholesale electricity price: A note on price pass-through issues

Energy Technology Data Exchange (ETDEWEB)

Kim, Wook [Korea Southern Power Co., 167, Samsung-dong, Gangnam-gu, Seoul 135-791 (Korea); Chattopadhyay, Deb [Saha International, Level 26, 385 Bourke Street, Melbourne, VIC 3000 (Australia); Park, Jong-bae [Electrical Engineering Department, Konkuk University, 1 Hwayang-dong, Kwanggin-gu, Seoul 143-701 (Korea)

2010-08-15

Carbon costs - either in the form of a carbon tax or through permit prices in an emissions trading scheme - would ultimately be reflected in higher electricity prices. Carbon cost ''pass-through'' is critical to the survival of existing coal generation assets and has been discussed widely as a measure of business impact in the electricity industry. This paper sets out in a structured way the factors that determine price pass-through and why this may differ greatly across different systems. Although the basic concept of price pass-through is simple, a clear understanding of the underlying factors is critical to developing insights on how carbon cost would impact on existing coal generation businesses. It is shown that pass-through can vary drastically if the underlying dispatch potential of generators varies significantly across alternative emissions reduction scenarios. It can also vary depending on the availability of competing cleaner forms of generation. Pass-through as a measure of business performance is, therefore, hard to generalize across different circumstances and should be interpreted carefully. (author)

Analysis for Embedded Systems: Experiments with Priced Timed Automata

DEFF Research Database (Denmark)

Ovatman, Tolga; Brekling, Aske Wiid; Hansen, Michael Reichhardt

2010-01-01

costs of those models. In order to achieve this, a basic model is built using priced timed automata and some resource consumption scenarios are verified. Even though the experiments are performed on small and basic models, we believe we have taken a basis step in showing that it is promising to use...... priced timed automata and Uppaal Cora as a model checking tool in reasoning about resource consumption of embedded systems....

Least cost 100% renewable electricity scenarios in the Australian National Electricity Market

International Nuclear Information System (INIS)

Elliston, Ben; MacGill, Iain; Diesendorf, Mark

2013-01-01

Least cost options are presented for supplying the Australian National Electricity Market (NEM) with 100% renewable electricity using wind, photovoltaics, concentrating solar thermal (CST) with storage, hydroelectricity and biofuelled gas turbines. We use a genetic algorithm and an existing simulation tool to identify the lowest cost (investment and operating) scenarios of renewable technologies and locations for NEM regional hourly demand and observed weather in 2010 using projected technology costs for 2030. These scenarios maintain the NEM reliability standard, limit hydroelectricity generation to available rainfall, and limit bioenergy consumption. The lowest cost scenarios are dominated by wind power, with smaller contributions from photovoltaics and dispatchable generation: CST, hydro and gas turbines. The annual cost of a simplified transmission network to balance supply and demand across NEM regions is a small proportion of the annual cost of the generating system. Annual costs are compared with a scenario where fossil fuelled power stations in the NEM today are replaced with modern fossil substitutes at projected 2030 costs, and a carbon price is paid on all emissions. At moderate carbon prices, which appear required to address climate change, 100% renewable electricity would be cheaper on an annual basis than the replacement scenario

Does climate policy make the EU economy more resilient to oil price rises? A CGE analysis

International Nuclear Information System (INIS)

Maisonnave, Hélène; Pycroft, Jonathan; Saveyn, Bert; Ciscar, Juan-Carlos

2012-01-01

The European Union has committed itself to reduce greenhouse gas (GHG) emissions by 20% in 2020 compared with 1990 levels. This paper investigates whether this policy has an additional benefit in terms of economic resilience by protecting the EU from the macroeconomic consequences due to an oil price rise. We use the GEM-E3 computable general equilibrium model to analyse the results of three scenarios. The first one refers to the impact of an increase in the oil price. The second scenario analyses the European climate policy and the third scenario analyses the oil price rise when the European climate policy is implemented. Unilateral EU climate policy implies a cost on the EU of around 1.0% of GDP. An oil price rise in the presence of EU climate policy does imply an additional cost on the EU of 1.5% of GDP (making a total loss of 2.5% of GDP), but this is less than the 2.2% of GDP that the EU would lose from the oil price rise in the absence of climate policy. This is evidence that even unilateral climate policy does offer some economic protection for the EU.

The oil market. Call on OPEC determines the oil price

International Nuclear Information System (INIS)

Kingma, D.; Mulder, M.

2001-01-01

Several scenarios are applied to determine the oil price for the medium-long term, based on the so-called 'call on OPEC'. The 'call on OPEC' is part of the demand for oil which has to supplied by OPEC. It is expected that the nominal oil price will be circa $24 per barrel in 2004, based on a global growth of 4%. 2 refs

World market of crude oil - review of possible scenarios of forecasting for the crude oil price movement

International Nuclear Information System (INIS)

Janevski, Risto

2003-01-01

Throughout most of 2002, crude oil prices were solidly within the range preferred by producers in the Organization of Petroleum Exporting Countries (OPEC), $22 to $28 per barrel for the OPEC 'basket price' (Fig. 1). OPEC producers have been demonstrating disciplined adherence to announced cutbacks in production. Early in 2003, a dramatic upward turn in crude oil prices was brought about by a combination of two factors. First, a general strike against the Chavez regime resulted in a sudden drop in Venezuela's oil exports. Although other OPEC producers agreed to increase production to make up for the lost Venezuelan output, the obvious strain on worldwide spare capacity kept prices high. Second, price volatility was exacerbated by fears of war in Iraq. (Original)

Scenarios of Future Socio-Economics, Energy, Land Use, and Radiative Forcing

Energy Technology Data Exchange (ETDEWEB)

Eom, Jiyong; Moss, Richard H.; Edmonds, James A.; Calvin, Katherine V.; Clarke, Leon E.; Dooley, James J.; Kim, Son H.; Kopp, Roberrt; Kyle, G. Page; Luckow, Patrick W.; Patel, Pralit L.; Thomson, Allison M.; Wise, Marshall A.; Zhou, Yuyu

2013-04-13

This chapter explores uncertainty in future scenarios of energy, land use, emissions and radiative forcing that span the range in the literature for radiative forcing, but also consider uncertainty in two other dimensions, challenges to mitigation and challenges to adaptation. We develop a set of six scenarios that we explore in detail including the underlying the context in which they are set, assumptions that drive the scenarios, the Global Change Assessment Model (GCAM), used to produce quantified implications for those assumptions, and results for the global energy and land-use systems as well as emissions, concentrations and radiative forcing. We also describe the history of scenario development and the present state of development of this branch of climate change research. We discuss the implications of alternative social, economic, demographic, and technology development possibilities, as well as potential stabilization regimes for the supply of and demand for energy, the choice of energy technologies, and prices of energy and agricultural commodities. Land use and land cover will also be discussed with the emphasis on the interaction between the demand for bioenergy and crops, crop yields, crop prices, and policy settings to limit greenhouse gas emissions.

The economic impact of carbon pricing with regulated electricity prices in China—An application of a computable general equilibrium approach

International Nuclear Information System (INIS)

Li, Ji Feng; Wang, Xin; Zhang, Ya Xiong; Kou, Qin

2014-01-01

We use a dynamic CGE model (SICGE) to assess the economic and climate impacts of emissions trading system (ETS) in China with a carbon price of 100 Yuan/ton CO2. A particular focus is given to the regulated electricity price regime, which is a major concern of electricity sector’s cost-effective participation in ETS in China. We found: (1) Carbon pricing is an effective policy for China to reduce CO 2 emissions. Total CO 2 emissions reduction ranges from 6.8% to 11.2% in short-term. (2) Rigid electricity price entails lower CO 2 emissions reduction but can be considered as a feasible starting point to introduce carbon pricing policies in short-term as long as governmental subsidies are given to electricity production. (3) In mid- and long-term, the efficient policy is to earmark carbon revenue with competitive electricity price. We propose to use carbon revenue to reduce consumption tax in the first year of the introduction of carbon price and to use the carbon revenue to reduce production tax in following years. - Highlights: • We use a CGE model to assess the impacts of carbon pricing in China. • We test different scenarios of carbon cost pass-through in electricity price. • Carbon pricing policy cost-efficiency is examined with double-dividend hypothesis

ELMO model predicts the price of electric power

International Nuclear Information System (INIS)

Antila, H.

2001-01-01

Electrowatt-Ekono has developed a new model, by which it is possible to make long-term prognoses on the development of electricity prices in the Nordic Countries. The ELMO model can be used as an analysis service of the electricity markets and estimation of the profitability of long-term power distribution contracts with different scenarios. It can also be applied for calculation of technical and economical fundamentals for new power plants, and for estimation of the effects of different taxation models on the emissions of power generation. The model describes the whole power generation system, the power and heat consumption and transmission. The Finnish power generation system is based on the Electrowatt-Ekono's boiler database by combining different data elements. Calculation is based on the assumption that the Nordic power generation system is used optimally, and that the production costs are minimised. In practise the effectively operated electricity markets ensure the optimal use of the production system. The market area to be described consists of Finland and Sweden. The spot prices have long been the same. Norway has been treated as a separate market area. The most potential power generation system, the power consumption and the power transmission system are presumed for the target year during a normal rainfall situation. The basic scenario is calculated on the basis of the preconditional data. The calculation is carried out on hourly basis, which enables the estimation of the price variation of electric power between different times during the day and seasons. The system optimises the power generation on the basis of electricity and heat consumption curves and fuel prices. The result is an hourly limit price for electric power. Estimates are presented as standard form reports. Prices are presented as average annuals, in the seasonal base, and in hourly or daily basis for different seasons

Shell energy scenarios to 2050

International Nuclear Information System (INIS)

2008-01-01

Shell developed two scenarios that describe alternative ways the energy future may develop. In the first scenario (Scramble) policymakers pay little attention to more efficient energy use until supplies are tight. Likewise, greenhouse gas emissions are not seriously addressed until there are major climate shocks. In the second scenario (Blueprints) growing local actions begin to address the challenges of economic development, energy security and environmental pollution. A price is applied to a critical mass of emissions giving a huge stimulus to the development of clean energy technologies, such as carbon dioxide capture and storage, and energy efficiency measures. The result is far lower carbon dioxide emissions. Both these scenarios can help Shell to test their strategy against a range of possible developments over the long-term. However, according to Shell, the Blueprints' outcomes offer the best hope for a sustainable future, whether or not they arise exactly in the way described. However, with the right combination of policy, technology and commitment from governments, industry and society globally, Shell believes it can be realized. But achieving the targets will not be easy, and time is short. Clear thinking, huge investment, and effective leadership are required

A counterfactual price analysis of British electricity privatisation

International Nuclear Information System (INIS)

Branston, J.R.

2000-01-01

The aim of this paper is to challenge the widely held view that electricity privatisation in Great Britain (comprised of the markets of England and Wales, and Scotland) was beneficial simply because the price of electricity has subsequently fallen in real terms. This is carried out by comparing the electricity prices actually observed with those that might have been charged had the industry remained in public ownership. In order to do this the paper develops a counterfactual scenario for the likely decisions and effects of a publicly owned industry. This leads the paper to conclude that observed prices are indeed significantly higher than they would have been had privatisation not occurred. (author)

The impact of a federal cigarette minimum pack price policy on cigarette use in the USA.

Science.gov (United States)

Doogan, Nathan J; Wewers, Mary Ellen; Berman, Micah

2018-03-01

Increasing cigarette prices reduce cigarette use. The US Food and Drug Administration has the authority to regulate the sale and promotion-and therefore the price-of tobacco products. To examine the potential effect of federal minimum price regulation on the sales of cigarettes in the USA. We used yearly state-level data from the Tax Burden on Tobacco and other sources to model per capita cigarette sales as a function of price. We used the fitted model to compare the status quo sales with counterfactual scenarios in which a federal minimum price was set. The minimum price scenarios ranged from $0 to $12. The estimated price effect in our model was comparable with that found in the literature. Our counterfactual analyses suggested that the impact of a minimum price requirement could range from a minimal effect at the $4 level to a reduction of 5.7 billion packs sold per year and 10 million smokers at the $10 level. A federal minimum price policy has the potential to greatly benefit tobacco control and public health by uniformly increasing the price of cigarettes and by eliminating many price-reducing strategies currently available to both sellers and consumers. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

Effect of floating pricing policy: An application of system dynamics on oil market after liberalization

Energy Technology Data Exchange (ETDEWEB)

Wu, Jung-Hua, E-mail: hwaa@mail.ncku.edu.tw [Department of Resources Engineering, National Cheng Kung University, Tainan 701, Taiwan (China); Huang, Yi-Lung [Exploration and Development Research Institute, Chinese Petroleum Corporation, Taiwan, No. 1, Dayuan, Wenfa Road, Miaoli City, Miaoli County 36042, Taiwan (China); Liu, Chang-Chen [Department of Resources Engineering, National Cheng Kung University, Tainan 701, Taiwan (China)

2011-07-15

Upon the implementation of the floating price mechanism, Taiwan's gasoline and diesel prices returned to market mechanism, which terminated the phenomenon of the public paying for the losses of the state-owned oil company-Chinese Petroleum Corporation, Taiwan (CPC). Furthermore, the relatively low production costs of the privately owned Formosa Petrochemical Corporation (FPCC) disclosed the pricing mechanism of CPC, which inspired FPCC to adopt pricing strategy in order to increase the market share. This study aims to establish a system dynamics model to analyze the effects of the floating price mechanism on Taiwan's gasoline and diesel markets. This Model is divided into four sub-systems. The model of this study passed several validation tests, and hence, is able to provide a 'virtual laboratory' for policy-makers to conduct simulation and scenario analysis. The simulation results indicate (a) feedback mechanism of expected revenues and pricing strategy could efficiently simulate the FPCC pricing mechanism, (b) price competition strategy could increase FPCC revenues, although the effect on market share is not remarkable, and (c) FPCC has a higher gas-station growth rate. Scenario analyses found (a) lowering oil security stockpile would not change FPCC's pricing strategy and (b) FPCC prefers to follow CPC pricing when it has more gas stations. - Highlights: > System dynamics model analyzes the effects of oil markets' floating price mechanism. > Feedback mechanism of expected revenues could efficiently simulate pricing mechanism. > Price competition strategy could increase FPCC revenues. > Lowering oil security stockpile, FPCC's pricing strategy would not change. > FPCC prefers to follow CPC pricing when it has more gas stations.

Effect of floating pricing policy: An application of system dynamics on oil market after liberalization

International Nuclear Information System (INIS)

Wu, Jung-Hua; Huang, Yi-Lung; Liu, Chang-Chen

2011-01-01

Upon the implementation of the floating price mechanism, Taiwan's gasoline and diesel prices returned to market mechanism, which terminated the phenomenon of the public paying for the losses of the state-owned oil company-Chinese Petroleum Corporation, Taiwan (CPC). Furthermore, the relatively low production costs of the privately owned Formosa Petrochemical Corporation (FPCC) disclosed the pricing mechanism of CPC, which inspired FPCC to adopt pricing strategy in order to increase the market share. This study aims to establish a system dynamics model to analyze the effects of the floating price mechanism on Taiwan's gasoline and diesel markets. This Model is divided into four sub-systems. The model of this study passed several validation tests, and hence, is able to provide a 'virtual laboratory' for policy-makers to conduct simulation and scenario analysis. The simulation results indicate (a) feedback mechanism of expected revenues and pricing strategy could efficiently simulate the FPCC pricing mechanism, (b) price competition strategy could increase FPCC revenues, although the effect on market share is not remarkable, and (c) FPCC has a higher gas-station growth rate. Scenario analyses found (a) lowering oil security stockpile would not change FPCC's pricing strategy and (b) FPCC prefers to follow CPC pricing when it has more gas stations. - Highlights: → System dynamics model analyzes the effects of oil markets' floating price mechanism. → Feedback mechanism of expected revenues could efficiently simulate pricing mechanism. → Price competition strategy could increase FPCC revenues. → Lowering oil security stockpile, FPCC's pricing strategy would not change. → FPCC prefers to follow CPC pricing when it has more gas stations.

Stock Price Manipulation: The Role of Intermediaries

Directory of Open Access Journals (Sweden)

Hammad Siddiqi

2017-10-01

Full Text Available We model a scenario in which there are three types of investors: fundamentalists, speculators, and trend-followers and an intermediary who cares about his reputation. Fundamentalists are rational investors with long horizons who are interested in the dividend stream. Speculators are rational investors who have short horizons and are interested in profiting from short-term price movements or capital gains. Trend-followers are behavioral investors who extrapolate price trends, and, consequently, are late entrants in the market. We show that an informed intermediary (broker can manipulate demand (consequently stock price without losing his reputation when there is information asymmetry. We also show that there is a trade-off between broker level competition for reputation and market liquidity. Broker level competition checks manipulation, but it adversely affects market liquidity.

The impact of alternative pricing methods for drugs in California Workers' Compensation System: Fee-schedule pricing.

Science.gov (United States)

Wilson, Leslie; Turkistani, Fatema A; Huang, Wei; Tran, Dang M; Lin, Tracy Kuo

2018-01-01

California's Workers' Compensation System (CAWCS) Department of Industrial Relations questioned the adequacy of the current Medi-Cal fee-schedule pricing and requested analysis of alternatives that maximize price availability and maintain budget neutrality. To compare CAWCS pharmacy-dispensed (PD) drug prices under alternative fee schedules, and identify combinations of alternative benchmarks that have prices available for the largest percentage of PD drugs and that best reach budget neutrality. Claims transaction-level data (2011-2013) from CAWCS were used to estimate total annual PD pharmaceutical payments. Medi-Cal pricing data was from the Workman's Compensation Insurance System (WCIS). Average Wholesale Prices (AWP), Wholesale Acquisition Costs (WAC), Direct Prices (DP), Federal Upper Limit (FUL) prices, and National Average Drug Acquisition Costs (NADAC) were from Medi-Span. We matched National Drug Codes (NDCs), pricing dates, and drug quantity for comparisons. We report pharmacy-dispensed (PD) claims frequency, reimbursement matching rate, and paid costs by CAWCS as the reference price against all alternative price benchmarks. Of 12,529,977 CAWCS claims for pharmaceutical products 11.6% (1,462,814) were for PD drugs. Prescription drug cost for CAWCS was over $152M; $63.9M, $47.9M, and $40.6M in 2011-2013. Ninety seven percent of these CAWCS PD claims had a Medi-Cal price. Alternative mechanisms provided a price for fewer claims; NADAC 94.23%, AWP 90.94%, FUL 73.11%, WAC 66.98%, and DP 14.33%. Among CAWCS drugs with no Medi-Cal price in PD claims, AWP, WAC, NADAC, DP, and FUL provided prices for 96.7%, 63.14%, 24.82%, 20.83%, and 15.08% of claims. Overall CAWCS paid 100.52% of Medi-Cal, 60% of AWP, 97% of WAC, 309.53% of FUL, 103.83% of DP, and 136.27% of NADAC. CAWCS current Medi-Cal fee-schedule price list for PD drugs is more complete than all alternative fee-schedules. However, all reimbursement approaches would require combinations of pricing benchmarks

Considering extraction constraints in long-term oil price modelling

Energy Technology Data Exchange (ETDEWEB)

Rehrl, Tobias; Friedrich, Rainer; Voss, Alfred

2005-12-15

Apart from divergence about the remaining global oil resources, the peak oil discussion can be reduced to a dispute about the time rate at which these resources can be supplied. On the one hand it is problematic to project oil supply trends without taking both - prices as well as supply costs - explicitly into account. On the other hand are supply cost estimates however itself heavily dependent on the underlying extraction rates and are actually only valid within a certain business-as-usual extraction rate scenario (which itself is the task to determine). In fact, even after having applied enhanced recovery technologies, the rate at which an oil field can be exploited is quite restricted. Above a certain level an additional extraction rate increase can only be costly achieved at risks of losses in the overall recoverable amounts of the oil reservoir and causes much higher marginal cost. This inflexibility in extraction can be overcome in principle by the access to new oil fields. This indicates why the discovery trend may roughly form the long-term oil production curve, at least for price-taking suppliers. The long term oil discovery trend itself can be described as a logistic process with the two opposed effects of learning and depletion. This leads to the well-known Hubbert curve. Several attempts have been made to incorporate economic variables econometrically into the Hubbert model. With this work we follow a somewhat inverse approach and integrate Hubbert curves in our Long-term Oil Price and EXtraction model LOPEX. In LOPEX we assume that non-OPEC oil production - as long as the oil can be profitably discovered and extracted - is restricted to follow self-regulative discovery trends described by Hubbert curves. Non-OPEC production in LOPEX therefore consists of those Hubbert cycles that are profitable, depending on supply cost and price. Endogenous and exogenous technical progress is extra integrated in different ways. LOPEX determines extraction and price

Considering extraction constraints in long-term oil price modelling

International Nuclear Information System (INIS)

Rehrl, Tobias; Friedrich, Rainer; Voss, Alfred

2005-01-01

Apart from divergence about the remaining global oil resources, the peak oil discussion can be reduced to a dispute about the time rate at which these resources can be supplied. On the one hand it is problematic to project oil supply trends without taking both - prices as well as supply costs - explicitly into account. On the other hand are supply cost estimates however itself heavily dependent on the underlying extraction rates and are actually only valid within a certain business-as-usual extraction rate scenario (which itself is the task to determine). In fact, even after having applied enhanced recovery technologies, the rate at which an oil field can be exploited is quite restricted. Above a certain level an additional extraction rate increase can only be costly achieved at risks of losses in the overall recoverable amounts of the oil reservoir and causes much higher marginal cost. This inflexibility in extraction can be overcome in principle by the access to new oil fields. This indicates why the discovery trend may roughly form the long-term oil production curve, at least for price-taking suppliers. The long term oil discovery trend itself can be described as a logistic process with the two opposed effects of learning and depletion. This leads to the well-known Hubbert curve. Several attempts have been made to incorporate economic variables econometrically into the Hubbert model. With this work we follow a somewhat inverse approach and integrate Hubbert curves in our Long-term Oil Price and EXtraction model LOPEX. In LOPEX we assume that non-OPEC oil production - as long as the oil can be profitably discovered and extracted - is restricted to follow self-regulative discovery trends described by Hubbert curves. Non-OPEC production in LOPEX therefore consists of those Hubbert cycles that are profitable, depending on supply cost and price. Endogenous and exogenous technical progress is extra integrated in different ways. LOPEX determines extraction and price

Adapting for uncertainty : a scenario analysis of U.S. technology energy futures

International Nuclear Information System (INIS)

Laitner, J.A.; Hanson, D.A.; Mintzner, I.; Leonard, J.A.

2006-01-01

The pattern of future evolution for United States (US) energy markets is highly uncertain at this time. This article provided details of a study using a scenario analysis technique to investigate key energy issues affecting decision-making processes in the United States. Four scenarios were used to examine the driving forces and critical uncertainties that may shape United States energy markets and the economy for the next 50 years: (1) a reference scenario benchmarked to the 2002 annual energy outlook forecast, (2) abundant and inexpensive supplies of oil and gas, (3) a chaotic future beset with international conflict, faltering new technologies, environmental policy difficulties and slowed economic growth, and (4) a technology-driven market in which a variety of forces converge to reshape the energy sector. Each of the scenarios was quantified using a computable general equilibrium model known as the All Modular Industry Growth Assessment (AMIGA) model. Results suggested that the range of different outcomes for the US is broad. However, energy use is expected to increase in all 4 scenarios. It was observed that the introduction of policies to encourage capital stock turnover and accelerate the commercialization of high efficiency, low-emissions technologies may reduce future primary energy demand. The analysis also showed that lower energy prices may lead to higher economic growth. Policies introduced to improve energy efficiency and accelerate the introduction of new technologies did not appreciably reduce the prospects for economic growth. Results also suggested that lower fossil fuel prices discourage investments in energy efficiency or new technologies and may mask the task of responding to future surprises. It was concluded that an investment path that emphasizes both energy efficiency improvements and advanced energy supply technologies will provide economic growth conditions similar to the implementation of lower energy prices. 11 refs., 1 tab., 2 figs

Emission trading scheme: market analysis and forecasting scenarios

International Nuclear Information System (INIS)

Clo, Stefano

2006-01-01

This article offers an economic analysis of the Emission Trading Scheme (ETS) and its institutional framework; we introduce an economic model able to simulate some possible market price's scenarios. The aim of this article is to offer a better market fundamentals' comprehension and to help economic agents building their expectations about market's development [it

Rethinking the role of scenarios: Participatory scripting of low-carbon scenarios for France

International Nuclear Information System (INIS)

Mathy, Sandrine; Fink, Meike; Bibas, Ruben

2015-01-01

This article considers the usefulness of low-carbon scenarios in public decision-making. They may be useful as a product-oriented trajectory. The scenarios on the agenda of the 2013 Energy Debate in France belong to this category. But a scenario may also be process-oriented, in the sense that its scripting process helps build consensus and a minimum level of agreement. We have scripted scenarios using a codevelopment method, involving about 40 stakeholders from the private and public sectors, and from the state: NGOs, consumer groups, trade unions, banks and local authorities. They selected policies they considered acceptable for achieving 75% greenhouse gases emission reductions in 2050. These policies were then integrated in the Imaclim-R-France technico-economic simulation model, as part of a high or moderate acceptability scenario. In the first case emissions were cut by between 58% and 72% by 2050; in the second case by between 68% and 81%, depending on the energy price assumptions. All these measures benefited jobs and economic growth, swiftly and durably cutting household spending on energy services. This offers a solid basis for gaining acceptability for low carbon trajectories; the process constitutes also a framework for consolidating collective learning centering on the acceptability of climate policies. - Highlights: • The article develops a ‘process-oriented’ low carbon scenario for France. • Stakeholders define a set of sectoral and fiscal ‘acceptable’ climate policies. • These policies are integrated within a technico-economic model Imaclim-R-France. • Economic impacts and CO 2 emission reductions are computed. •The co-development methodology favors joint production of solutions and shared vision-building

Uncertain long-run emissions targets, CO{sub 2} price and global energy transition: A general equilibrium approach

Energy Technology Data Exchange (ETDEWEB)

Durand-Lasserve, Olivier, E-mail: olivier.durand@uclouvain.b [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium); Pierru, Axel, E-mail: axel.pierru@ifp.f [IFP, Economics Department, 232 Avenue Napoleon Bonaparte, 92852 Rueil-Malmaison (France); Smeers, Yves, E-mail: yves.smeers@uclouvain.ac.b [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium)

2010-09-15

The persistent uncertainty about mid-century CO{sub 2} emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO{sub 2} price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO{sub 2} policy scenarios. In these scenarios, economic agents know that credible long-run CO{sub 2} emissions targets will be set in 2020, with two possible outcomes: either a 'hard cap' or a 'soft cap'. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories-with two branches after 2020-for prices and quantities of energy commodities and CO{sub 2} emissions permits. The impact of uncertain long-run CO{sub 2} emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios.

Uncertain long-run emissions targets, CO{sub 2} price and global energy transition. A general equilibrium approach

Energy Technology Data Exchange (ETDEWEB)

Durand-Lasserve, Olivier; Smeers, Yves [Universite Catholique de Louvain (UCL), CORE, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve (Belgium); Pierru, Axel [IFP, Economics Department, 232 Avenue Napoleon Bonaparte, 92852 Rueil-Malmaison (France)

2010-09-15

The persistent uncertainty about mid-century CO{sub 2} emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO{sub 2} price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO{sub 2} policy scenarios. In these scenarios, economic agents know that credible long-run CO{sub 2} emissions targets will be set in 2020, with two possible outcomes: either a hard cap or a soft cap. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories - with two branches after 2020 - for prices and quantities of energy commodities and CO{sub 2} emissions permits. The impact of uncertain long-run CO{sub 2} emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios. (author)

The economics of greenhouse gas mitigation: Insights from illustrative global abatement scenarios modelling

International Nuclear Information System (INIS)

Gurney, Andrew; Ahammad, Helal; Ford, Melanie

2009-01-01

In this paper the Global Trade and Environment Model (GTEM) and MAGICC are used to simulate a number of global emission mitigation scenarios devised by the EMF 22 Transition Scenarios group in which radiative forcing goals and the architecture of developing economies' participation in hypothetical mitigation actions are varied. This paper presents a reference case of the world economy to 2100 and analyses some key regional and global results for the various global mitigation scenarios, including emission prices, emission levels, primary energy consumption and economic growth. Modelling results suggest that a transition to a low-carbon world would require a significant decarbonisation of electricity generation without necessarily cutting the electricity output in the long run. With the uptake of hybrids and non-fossil-fuel technologies, the transport sector could make an important contribution to global abatement of greenhouse gases. Furthermore, with substantial international mitigation efforts and uptake of low- and/or zero-emission technologies, the achievement of 3.7 W/m 2 and 4.5 W/m 2 radiative forcing targets by the end of the century could occur at emission prices of up to $550/t CO 2 -e. However, achieving the 2.6 W/m 2 (overshoot) radiative forcing target would require considerably higher emission prices and an immediate global mitigation action.

Electrical-Generation Scenarios for China

Energy Technology Data Exchange (ETDEWEB)

Kypreos, S.; Krakowski, R.A.

2002-03-01

The China Energy Technology Program (CETP) used both optimizing and simulation energy- economic-environmental (E3) models to assess tradeoffs in the electricity-generation sector for a range of fuel, transport, generation, and distribution options. The CETP is composed of a range of technical tasks or activities, including Energy Economics Modeling (EEM, optimizations), Electric Sector Simulation (ESS, simulations), Life Cycle Analyses (LCA, externalization) of energy systems, and Multi-Criteria Decision Analyses (MCDA, integration). The scope of CETP is limited to one province (Shandong), to one economic sector (electricity), and to one energy sector (electricity). This document describes the methods, approaches, limitations, sample results, and future/needed work for the EEM ( optimization-based modeling) task that supports the overall goal of CETP. An important tool used by the EEM task is based on a Linear Programming (LP) optimization model that considers 17 electricity-generation technologies utilizing 14 fuel forms (type, composition, source) in a 7-region transportation model of China's electricity demand and supply system over the period 2000-2030; Shandong is one of the seven regions modeled. The China Regional Electricity Trade Model (CRETM) is used to examine a set of energy-environment-economy E3-driven scenarios to quantify related policy implications. The development of electricity production mixes that are optimized under realistically E3 constraints is determined through regional demands for electricity that respond to exogenous assumptions on income (GDP) and electricity prices through respective time-dependent elasticities. Constraints are applied to fuel prices, transportation limits, resource availability, introduction (penetration) rates of specific technology, and (where applicable) to local, regional, and countrywide emission rates of CO{sub 2}, SO{sub 2} and NO{sub x}. Importantly, future inter- regional energy flows are optimized with

Derivation of upper bound concentration of LLW for land disposal in Taiwan

International Nuclear Information System (INIS)

Chang, F.D.; Liou, C.T.; Su, M.F.; Tsai, S.C.

1989-01-01

The upper bound concentrations of radionuclides in the low level waste to be disposed in Taiwan are investigated based on a proposed reference site with all of the scenarios and exposure pathways reflecting the local conditions and environmental characteristics. The analysis reveals that most of the upper bound concentrations are determined from the scenario of intruder-agriculture. It can also be found that the Transuranic radionuclides and those with long half-lives are the dominant radionuclides which result in major radiological impact to the environment in this intruder-agriculture scenario

Nucs down in Germany-Prices up in Europe?

International Nuclear Information System (INIS)

Bode, Sven

2009-01-01

Current legislation on power production from nuclear energy in Germany defines certain remaining quantities of permitted electricity production for nuclear power plants. These quantities are defined for each nuclear power plant and are measured in TWh. In the discussion about climate protection and market trend of electricity prices, it is regularly stated by policy makers that the nuclear phase-out will result in an increase in electricity prices and CO 2 emissions. As a consequence a revision is proposed, especially from the Liberals (FDP) and Conservatives (CDU). The following article discusses this issue analysing the different options investors and operators under different scenarios have. It shows firstly that both emissions and power prices can indeed increase, and secondly that the mere discussion about potentially reversing the phasing-out decision can lead to an increase in electricity prices as investment behaviour may change based on expectations regarding future regulation. I conclude that - ceteris paribus - the nuclear phase-out is likely to result in an increase in CO 2 emissions and prices.

Prospective activity levels in the regions of the UKCS under different oil and gas prices: an application of the Monte Carlo technique

International Nuclear Information System (INIS)

Kemp, A.G.; Stephen, L.

1999-01-01

This paper summarises the results of a study using the Monte Carlo simulation to examine activity levels in the regions of the UK continental shelf under different oil and gas prices. Details of the methodology, data, and assumptions used are given, and the production of oil and gas, new field investment, aggregate operating expenditures, and gross revenues under different price scenarios are addressed. The total potential oil and gas production under the different price scenarios for 2000-2013 are plotted. (UK)

Estimating the Impact of Raising Prices and Eliminating Discounts on Cigarette Smoking Prevalence in the United States.

Science.gov (United States)

Marynak, Kristy L; Xu, Xin; Wang, Xu; Holmes, Carissa Baker; Tynan, Michael A; Pechacek, Terry

2016-01-01

The average retail price per pack of cigarettes is less than $6, which is substantially lower than the $10 per-pack target established in 2014 by the Surgeon General to reduce the smoking rate. We estimated the impact of three cigarette pricing scenarios on smoking prevalence among teens aged 12-17 years, young adults aged 18-25 years, and adults aged ≥26 years, by state: (1) $0.94 federal tax increase on cigarettes, as proposed in the fiscal year 2017 President's budget; (2) $10 per-pack retail price, allowing discounts; and (3) $10 per-pack retail price, eliminating discounts. We conducted Monte Carlo simulations to generate point estimates of reductions in cigarette smoking prevalence by state. We found that each price scenario would substantially reduce cigarette smoking prevalence. A $10 per-pack retail price eliminating discounts could result in 637,270 fewer smokers aged 12-17 years; 4,186,954 fewer smokers aged 18-25 years; and 7,722,460 fewer smokers aged ≥26 years. Raising cigarette prices and eliminating discounts could substantially reduce cigarette smoking prevalence as well as smoking-related death and disease.

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...

A 'business-as-usual' energy scenario for France at the 2020 vista; Un scenario energetique tendanciel pour la France a l'horizon 2020

Energy Technology Data Exchange (ETDEWEB)

Giraud, P.N

2000-01-01

A 'business-as-usual' energy scenario is the most probable scenario where the energy demand follows the trends of the past and where no new energy policy is implemented. This work is a complement to the three contrasted energy scenarios built in 1998 by the 'Energy 2010-2020' prospective group of the French general commission of national development. The scenario built in this study is only a reference which allows the measure the efforts made to reach political goals. The main conclusion of this scenario is the increase of the CO{sub 2} emissions under the double effect of the economic growth and of the cessation of the nuclear program which becomes non-competitive with respect to the gas prices and actualization rates retained in the scenario. The main constraint of the energy future is incontestably the necessary fight against the greenhouse effect. (J.S.)

The impact of alternative pricing methods for drugs in California Workers’ Compensation System: Fee-schedule pricing

Science.gov (United States)

Wilson, Leslie; Turkistani, Fatema A.; Huang, Wei; Tran, Dang M.; Lin, Tracy Kuo

2018-01-01

Introduction California’s Workers’ Compensation System (CAWCS) Department of Industrial Relations questioned the adequacy of the current Medi-Cal fee-schedule pricing and requested analysis of alternatives that maximize price availability and maintain budget neutrality. Objectives To compare CAWCS pharmacy-dispensed (PD) drug prices under alternative fee schedules, and identify combinations of alternative benchmarks that have prices available for the largest percentage of PD drugs and that best reach budget neutrality. Methods Claims transaction-level data (2011–2013) from CAWCS were used to estimate total annual PD pharmaceutical payments. Medi-Cal pricing data was from the Workman’s Compensation Insurance System (WCIS). Average Wholesale Prices (AWP), Wholesale Acquisition Costs (WAC), Direct Prices (DP), Federal Upper Limit (FUL) prices, and National Average Drug Acquisition Costs (NADAC) were from Medi-Span. We matched National Drug Codes (NDCs), pricing dates, and drug quantity for comparisons. We report pharmacy-dispensed (PD) claims frequency, reimbursement matching rate, and paid costs by CAWCS as the reference price against all alternative price benchmarks. Results Of 12,529,977 CAWCS claims for pharmaceutical products 11.6% (1,462,814) were for PD drugs. Prescription drug cost for CAWCS was over $152M; $63.9M, $47.9M, and $40.6M in 2011–2013. Ninety seven percent of these CAWCS PD claims had a Medi-Cal price. Alternative mechanisms provided a price for fewer claims; NADAC 94.23%, AWP 90.94%, FUL 73.11%, WAC 66.98%, and DP 14.33%. Among CAWCS drugs with no Medi-Cal price in PD claims, AWP, WAC, NADAC, DP, and FUL provided prices for 96.7%, 63.14%, 24.82%, 20.83%, and 15.08% of claims. Overall CAWCS paid 100.52% of Medi-Cal, 60% of AWP, 97% of WAC, 309.53% of FUL, 103.83% of DP, and 136.27% of NADAC. Conclusions CAWCS current Medi-Cal fee-schedule price list for PD drugs is more complete than all alternative fee-schedules. However, all

Base case and perturbation scenarios

Energy Technology Data Exchange (ETDEWEB)

Edmunds, T

1998-10-01

This report describes fourteen energy factors that could affect electricity markets in the future (demand, process, source mix, etc.). These fourteen factors are believed to have the most influence on the State's energy environment. A base case, or most probable, characterization is given for each of these fourteen factors over a twenty year time horizon. The base case characterization is derived from quantitative and qualitative information provided by State of California government agencies, where possible. Federal government databases are nsed where needed to supplement the California data. It is envisioned that a initial selection of issue areas will be based upon an evaluation of them under base case conditions. For most of the fourteen factors, the report identities possible perturbations from base case values or assumptions that may be used to construct additional scenarios. Only those perturbations that are plausible and would have a significant effect on energy markets are included in the table. The fourteen factors and potential perturbations of the factors are listed in Table 1.1. These perturbations can be combined to generate internally consist.ent. combinations of perturbations relative to the base case. For example, a low natural gas price perturbation should be combined with a high natural gas demand perturbation. The factor perturbations are based upon alternative quantitative forecasts provided by other institutions (the Department of Energy - Energy Information Administration in some cases), changes in assumptions that drive the quantitative forecasts, or changes in assumptions about the structure of the California energy markets. The perturbations are intended to be used for a qualitative reexamination of issue areas after an initial evaluation under the base case. The perturbation information would be used as a "tiebreaker;" to make decisions regarding those issue areas that were marginally accepted or rejected under the base case. Hf a

A hybrid model for electricity spot prices

International Nuclear Information System (INIS)

Anderson, C.L.D.

2004-01-01

Electricity prices were highly regulated prior to the deregulation of the electric power industry. Prices were predictable, allowing generators and wholesalers to calculate their production costs and revenues. With deregulation, electricity has become the most volatile of all commodities. Electricity must be consumed as soon as it is generated due to the inability to store it in any sufficient quantity. Economic uncertainty exists because the supply of electricity cannot shift as quickly as the demand, which is highly variable. When demand increases quickly, the price must respond. Therefore, price spikes occur that are orders of magnitude higher than the base electricity price. This paper presents a robust and realistic model for spot market electricity prices used to manage risk in volatile markets. The model is a hybrid of a top down data driven method commonly used for financial applications, and a bottom up system driven method commonly used in regulated electricity markets. The advantage of the model is that it incorporates primary system drivers and demonstrates their effects on final prices. The 4 primary modules of the model are: (1) a model for forced outages, (2) a model for maintenance outages, (3) an electrical load model, and (4) a price model which combines the results of the previous 3 models. The performance of each model was tested. The forced outage model is the first of its kind to simulate the system on an aggregate basis using Weibull distributions. The overall spot price model was calibrated to, and tested with, data from the electricity market in Pennsylvania, New Jersey and Maryland. The model performed well in simulated market prices and adapted readily to changing system conditions and new electricity markets. This study examined the pricing of derivative contracts on electrical power. It also compared a range of portfolio scenarios using a Cash Flow at Risk approach

A hybrid model for electricity spot prices

Energy Technology Data Exchange (ETDEWEB)

Anderson, C.L.D.

2004-07-01

Electricity prices were highly regulated prior to the deregulation of the electric power industry. Prices were predictable, allowing generators and wholesalers to calculate their production costs and revenues. With deregulation, electricity has become the most volatile of all commodities. Electricity must be consumed as soon as it is generated due to the inability to store it in any sufficient quantity. Economic uncertainty exists because the supply of electricity cannot shift as quickly as the demand, which is highly variable. When demand increases quickly, the price must respond. Therefore, price spikes occur that are orders of magnitude higher than the base electricity price. This paper presents a robust and realistic model for spot market electricity prices used to manage risk in volatile markets. The model is a hybrid of a top down data driven method commonly used for financial applications, and a bottom up system driven method commonly used in regulated electricity markets. The advantage of the model is that it incorporates primary system drivers and demonstrates their effects on final prices. The 4 primary modules of the model are: (1) a model for forced outages, (2) a model for maintenance outages, (3) an electrical load model, and (4) a price model which combines the results of the previous 3 models. The performance of each model was tested. The forced outage model is the first of its kind to simulate the system on an aggregate basis using Weibull distributions. The overall spot price model was calibrated to, and tested with, data from the electricity market in Pennsylvania, New Jersey and Maryland. The model performed well in simulated market prices and adapted readily to changing system conditions and new electricity markets. This study examined the pricing of derivative contracts on electrical power. It also compared a range of portfolio scenarios using a Cash Flow at Risk approach.

Simulation scenarios for rapid reduction in carbon dioxide emissions in the western electricity system

International Nuclear Information System (INIS)

Ford, Andrew

2008-01-01

This paper describes a computer simulation analysis of carbon dioxide emissions in the electric power system in the western United States. Legislation at both the state and federal level would impose a price on emissions via cap-and-trade in allowances for carbon dioxide emissions. The simulation scenarios for the western system indicate that dramatic reductions in emissions are possible with generating technologies that exist today. Wind and biomass generators play a key role even with conservative assumptions about their future costs. In contrast, generation from advanced technologies provide only a minor contribution by the year 2025. These scenarios provide support to those who argue that the US should move expeditiously to put a price on carbon dixoide emissions

Application of Impulse Control in Smart Grid Price System

Directory of Open Access Journals (Sweden)

Peng Du

2013-07-01

Full Text Available With the development of smart grid, flexible and interactive electricity market will finally emerge. Making full use of price can encourage consumers to use electricity during a low load period and reduce peak load, thus to guarantee electricity market stability. Impulse control is applied to price system in this paper. It is found that giving impulse control to price system can make the system reach stable state well, which is based on the theory of impulsive differential system. The sufficient condition for stable system and the max upper bound of impulse interval are also provided. The proposed method is proved to be feasible and effective by theoretically analysis and numerical simulation.

Future Water Availability from Hindukush-Karakoram-Himalaya upper Indus Basin under Conflicting Climate Change Scenarios

Directory of Open Access Journals (Sweden)

Shabeh ul Hasson

2016-08-01

Full Text Available Future of the crucial Himalayan water supplies has generally been assessed under the anthropogenic warming, typically consistent amid observations and climate model projections. However, conflicting mid-to-late melt-season cooling within the upper Indus basin (UIB suggests that the future of its melt-dominated hydrological regime and the subsequent water availability under changing climate has yet been understood only indistinctly. Here, the future water availability from the UIB is presented under both observed and projected—though likely but contrasting—climate change scenarios. Continuation of prevailing climatic changes suggests decreased and delayed glacier melt but increased and early snowmelt, leading to reduction in the overall water availability and profound changes in the overall seasonality of the hydrological regime. Hence, initial increases in the water availability due to enhanced glacier melt under typically projected warmer climates, and then abrupt decrease upon vanishing of the glaciers, as reported earlier, is only true given the UIB starts following uniformly the global warming signal. Such discordant future water availability findings caution the impact assessment communities to consider the relevance of likely (near-future climate change scenarios—consistent to prevalent climatic change patterns—in order to adequately support the water resource planning in Pakistan.

Frameworks for pricing greenhouse gas emissions and the policy objectives they promote

International Nuclear Information System (INIS)

Higgins, Paul A.T.

2013-01-01

Four cost-effective frameworks for pricing greenhouse gas emissions currently receive widespread attention: cap-and-trade, emission fees, and hybrid cap-and-trade approaches that include upper or lower limits on permit prices (price ceilings or floors). This paper develops a fifth framework that uses an emission fee with an upper limit on the quantity of emissions—a quantity ceiling—and compares the impact of each framework on emission prices and quantities. Cap-and-trade with a price ceiling minimizes price increases for emitting activities in all cases whereas an emission fee with a quantity ceiling maximizes emissions reductions. Thus, the choice of framework influences policy outcomes because each framework is more or less suited to particular policy goals. Whether pursuing one potential policy goal serves society's interests best depends on the eventual consequences of climate damage and emissions pricing, which are uncertain when policy choices are made. Policy updating over time may reduce but likely cannot entirely eliminate the differences in outcome that arise due to framework choice. Therefore, the “best” framework for emissions pricing depends on subjective preferences regarding the relative importance of different policy objectives, most notably whether one is more risk averse to climate damages or emissions price increases. - Highlights: • This article develops and examines a carbon tax that includes a quantity constraint on emissions. • This approach maximizes climate protection in all cases, unlike existing policy alternatives. • This promotes rapid reductions in emissions if mitigation is easy without risk to long term targets. • This analysis reveals that different policy frameworks promote different policy goals. • The analysis helps round out ongoing policy discussions over how to deal with climate change

What about oil reserve depletion and crude oil price evolution?

International Nuclear Information System (INIS)

2007-01-01

The objective of this report is to give a synthesis of different points of view with respect to the 'Peak Oil' perspective and to the crude oil price evolution. In the first part, the authors examine the evolutions and assessments of oil reserves and productions, by discussing the different types of reserve, the optimistic and pessimistic points of views. Then, in the second part, they analyse the long term price formation, the various production technical costs (conventional oils, heavy oils and asphaltic sands, coal- and gas-based synthetic hydrocarbons, bio-fuels), the external costs (notably in relationship with greenhouse emissions), the relationship between geopolitical issues and short and middle term price formation. In the third and last part, they discuss the possible evolutions and scenarios in terms of demand, production, and prices

World crude oil prices and the North Sea after the Gulf conflict

International Nuclear Information System (INIS)

Kemp, A.

1992-01-01

A large computerised financial model has been developed to simulate future activity in the United Kingdom continental shelf. Primary inputs into the model include all the publicly available information on currently producing fields relating to their historic and expected production rates, investment costs, operating costs and abandonment costs. From a variety of sources information has also been gathered on all new discoveries which have not yet been developed or even fully appraised in some cases. Estimates were made of the time periods at which such fields would be ready for development work and production to commence. For these future fields estimates were made of the likely investment costs, operating costs and abandonment costs. In making such calculations only limited technological progress was assumed. The bank of future fields is also conservative as it does not include any new discoveries from further exploration successes. Key inputs into the financial model are future oil and gas price scenarios. In this study, three price scenarios have been chosen for investigation - a base case, a high price case and a low price case. From the analysis, the possible consequences of a very modest real growth in oil and gas prices on the development of the very large numbers of discovered, but as yet undeveloped, oil and gas fields in the United Kingdom continental shelf are presented. (author)

Model France. Efficiently achieving climate protection targets. Nuclear power phase-out scenario adapted in favour of climate protection; Vorbild Frankreich. Klimaschutzziele effizient erreichen. Ausstiegszenario Kernkraft zugunsten des Klimaschutzes angepasst

Energy Technology Data Exchange (ETDEWEB)

Leidinger, Tobias [Luther Rechtsanwaltsgesellschaft, Duesseldorf (Germany)

2017-12-15

In Germany - after an abrupt, legally controversial and in some cases unconstitutional phase-out of nuclear power (''at any price'') - the next phase-out of is now being negotiated among new coalition partners. In France, on the other hand, energy and climate protection seem to be in the clear sense of the word: the French nuclear phase-out scenario is clearly being ''stretched out'' in order to achieve the promised climate protection targets. Reason seems to have the upper hand in France: instead of ''black-and-white scenarios'', one prefers to stick to what is in reality feasible and achievable. In reality, the expansion of renewable energies, the regulation of the transport sector and electricity production from nuclear energy are not opposites, but complement each other in the interests of affordable energy and effective climate protection.

Prediction of Change in Prescription Ingredient Costs and Co-payment Rates under a Reference Pricing System in South Korea.

Science.gov (United States)

Heo, Ji Haeng; Rascati, Karen L; Lee, Eui-Kyung

2017-05-01

The reference pricing system (RPS) establishes reference prices within interchangeable reference groupings. For drugs priced higher than the reference point, patients pay the difference between the reference price and the total price. To predict potential changes in prescription ingredient costs and co-payment rates after implementation of an RPS in South Korea. Korean National Health Insurance claims data were used as a baseline to develop possible RPS models. Five components of a potential RPS policy were varied: reference groupings, reference pricing methods, co-pay reduction programs, manufacturer price reductions, and increased drug substitutions. The potential changes for prescription ingredient costs and co-payment rates were predicted for the various scenarios. It was predicted that transferring the difference (total price minus reference price) from the insurer to patients would reduce ingredient costs from 1.4% to 22.8% for the third-party payer (government), but patient co-payment rates would increase from a baseline of 20.4% to 22.0% using chemical groupings and to 25.0% using therapeutic groupings. Savings rates in prescription ingredient costs (government and patient combined) were predicted to range from 1.6% to 13.7% depending on various scenarios. Although the co-payment rate would increase, a 15% price reduction by manufacturers coupled with a substitution rate of 30% would result in a decrease in the co-payment amount (change in absolute dollars vs. change in rates). Our models predicted that the implementation of RPS in South Korea would lead to savings in ingredient costs for the third-party payer and co-payments for patients with potential scenarios. Copyright © 2017 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

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.

Integrated forward/reverse logistics network design under uncertainty with pricing for collection of used products

DEFF Research Database (Denmark)

Fattahi, Mohammad; Govindan, Kannan

2017-01-01

This paper addresses design and planning of an integrated forward/reverse logistics network over a planning horizon with multiple tactical periods. In the network, demand for new products and potential return of used products are stochastic. Furthermore, collection amounts of used products...... with different quality levels are assumed dependent on offered acquisition prices to customer zones. A uniform distribution function defines the expected price of each customer zone for one unit of each used product. Using two-stage stochastic programming, a mixed-integer linear programming model is proposed....... To cope with demand and potential return uncertainty, Latin Hypercube Sampling method is applied to generate fan of scenarios and then, backward scenario reduction technique is used to reduce the number of scenarios. Due to the problem complexity, a novel simulation-based simulated annealing algorithm...

Description of relevant scenarios in the field of agricultural, environmental and climate policy and energy prices for the preliminary study on a Roadmap for the 'SuikerUnie'

International Nuclear Information System (INIS)

Plomp, A.J.

2011-11-01

In the Dutch Long Term Agreements on energy efficiency (MJA3 and MEE)the Dutch government and industry agreed to strive for a 30% energy efficiency improvement in 2020 compared to 2005. To reach more than 30%, it is not enough to optimize; instead larger process changes will be needed. An important instrument is the realization of preliminary studies and roadmaps, which are supported by the government. This memo offers an overview of relevant developments and scenarios from Agricultural, climate and environmental policy and energy prices for the Dutch sugar industry. This memo serves as input for the Preliminary study Roadmap SuikerUnie. [nl

The role of fusion power in energy scenarios. Proposed method and review of existing scenarios

International Nuclear Information System (INIS)

Lako, P; Ybema, J.R.; Seebregts, A.J.

1998-04-01

The European Commission wishes more insight in the potential role of fusion energy in the second half of the 21st century. Therefore, several scenario studies are carried out in the so-called macro-task Long Term Scenarios to investigate the potential role of fusion power in the energy system. The main contribution of ECN to the macro-task is to perform a long term energy scenario study for Western Europe with special focus on the role of fusion power. This interim report gives some methodological considerations for such an analysis. A discussion is given on the problems related to the long time horizon of the scenario study such as the forecast of technological innovations, the selection of appropriate discount rates and the links with climate change. Key parameters which are expected to have large effects on the role and cost-effectiveness are discussed in general terms. The key parameters to be varied include level and structure of energy demand, availability and prices of fossil energy, CO2 reduction policy, discount rates, cost and potential of renewable energy sources, availability of fission power and CO2 capture and disposal and the cost and the maximum rate of market growth of fusion power. The scenario calculations are to be performed later in the project with the help of an existing cost minimisation model of the Western European energy system. This MARKAL model is briefly introduced. The results of the model calculations are expected to make clear under which combinations of scenario parameters fusion power is needed and how large the expected financial benefits will be. The present interim report also gives an evaluation of existing energy scenarios with respect to the role of fusion power. 18 refs

Price movements guided by the OPEC cartel, when there is a possible increase on prices inside the Market

Directory of Open Access Journals (Sweden)

Alex Paubel Junger

2017-07-01

Full Text Available The main purpose of this paper is to calculate the estimation of oil supply and demand in the last 12 quarters (2013-2015, using an OLSconometric model, indicating the supply and demand of the market, in a second moment the oil market current supply and demand curves would be indicated for the average price of Brent oil in the abovementioned period. So that in a second moment the "dead weight" of OPEC's economic price model is calculated and how this deadweight economically affects the oil and gas market globally, economically withdrawing the profits that the main producers could obtain if OPEC did not set the price artificially in unstable political scenarios. Lastly, regarding the global economy, and more precisely, the loss in the energy through financial results due the actions taken by OPEC led by Saudi Arabia and its partners in the Middle East, indicating the market failures caused by a cartel.

The effect of price regulation on the performances of industrial symbiosis: a case study on district heating

DEFF Research Database (Denmark)

Sacchi, Romain; Ramsheva, Yana Konstantinova

2018-01-01

. The most ambitious scenario doubles the amount of excess heat supplied and reduces the heat carbon footprint by 90% compared to current level, for an end-user price increase of 41%. The price increase results from a higher supply of excess heat at a higher price and an unchanged purchase cost from the coal......This study of the district heating system of Aalborg (Denmark) analyses how fiscal instruments affect the extent excess heat recovery helps reduce the carbon footprint of heat. It builds on a supply-and-demand framework and characterizes the changes in excess heat supply with consequential life...... cycle assessment in reference to one gigajoule distributed. The heat supply curve is defined through ten scenarios, which represent incremental shares of excess heat as the constraints of the said legal instruments are lifted. The heat demand curve follows the end-users’response to price changes...

Scenarios for gluino coannihilation

Energy Technology Data Exchange (ETDEWEB)

Ellis, John [Theoretical Particle Physics and Cosmology Group, Department of Physics, King’s College London, London, WC2R 2LS United Kingdom (United Kingdom); Theory Division, CERN,Geneva 23, CH-1211 (Switzerland); Evans, Jason L. [School of Physics and Astronomy, University of Minnesota,Minneapolis, MN, 55455 (United States); William I. Fine Theoretical Physics Institute, School of Physics and Astronomy, University of Minnesota, Minneapolis, MN, 55455 (United States); Luo, Feng [Theory Division, CERN,Geneva 23, CH-1211 (Switzerland); Olive, Keith A. [School of Physics and Astronomy, University of Minnesota,Minneapolis, MN, 55455 (United States); William I. Fine Theoretical Physics Institute, School of Physics and Astronomy, University of Minnesota, Minneapolis, MN, 55455 (United States)

2016-02-11

We study supersymmetric scenarios in which the gluino is the next-to-lightest supersymmetric particle (NLSP), with a mass sufficiently close to that of the lightest supersymmetric particle (LSP) that gluino coannihilation becomes important. One of these scenarios is the MSSM with soft supersymmetry-breaking squark and slepton masses that are universal at an input GUT renormalization scale, but with non-universal gaugino masses. The other scenario is an extension of the MSSM to include vector-like supermultiplets. In both scenarios, we identify the regions of parameter space where gluino coannihilation is important, and discuss their relations to other regions of parameter space where other mechanisms bring the dark matter density into the range allowed by cosmology. In the case of the non-universal MSSM scenario, we find that the allowed range of parameter space is constrained by the requirement of electroweak symmetry breaking, the avoidance of a charged LSP and the measured mass of the Higgs boson, in particular, as well as the appearance of other dark matter (co)annihilation processes. Nevertheless, LSP masses m{sub χ}≲8 TeV with the correct dark matter density are quite possible. In the case of pure gravity mediation with additional vector-like supermultiplets, changes to the anomaly-mediated gluino mass and the threshold effects associated with these states can make the gluino almost degenerate with the LSP, and we find a similar upper bound.

Applying a System Dynamics Approach for Modeling Groundwater Dynamics to Depletion under Different Economical and Climate Change Scenarios

Directory of Open Access Journals (Sweden)

Hamid Balali

2015-09-01

Full Text Available In the recent decades, due to many different factors, including climate change effects towards be warming and lower precipitation, as well as some structural policies such as more intensive harvesting of groundwater and low price of irrigation water, the level of groundwater has decreased in most plains of Iran. The objective of this study is to model groundwater dynamics to depletion under different economic policies and climate change by using a system dynamics approach. For this purpose a dynamic hydro-economic model which simultaneously simulates the farmer’s economic behavior, groundwater aquifer dynamics, studied area climatology factors and government economical policies related to groundwater, is developed using STELLA 10.0.6. The vulnerability of groundwater balance is forecasted under three scenarios of climate including the Dry, Nor and Wet and also, different scenarios of irrigation water and energy pricing policies. Results show that implementation of some economic policies on irrigation water and energy pricing can significantly affect on groundwater exploitation and its volume balance. By increasing of irrigation water price along with energy price, exploitation of groundwater will improve, in so far as in scenarios S15 and S16, studied area’s aquifer groundwater balance is positive at the end of planning horizon, even in Dry condition of precipitation. Also, results indicate that climate change can affect groundwater recharge. It can generally be expected that increases in precipitation would produce greater aquifer recharge rates.

OPEC and the world oil prices: Is the genie back in the bottle

International Nuclear Information System (INIS)

Griffin, J.M.

1992-01-01

After reviewing and analyzing OPEC's behavior in the past two decades, a simulation model is employed to explore plausible paths for oil prices. OPEC's members are subdivided into analytically convenient maximizing groups. Lener index analysis is applied to measure observed market power and the potential monopoly power for the cartel core. Price paths for the 1990s under alternative OPEC configurations are presented, and it is suggested that the return to monopolization is large. Price levels of the 1970s were not sustainable even with a perfectly disciplined cartel core. Long run supply and demand elasticities were much greater than OPEC expected. Even though cheating contributed to OPEC's predicament in the 1980s, the primary determinant of oil price decline was external market forces. Future price instability is possible for both political and economic reasons, with a likely scenario of prices oscillating around the cartel core's optimum price path that features prices in the present range rising moderately. 8 refs., 6 tabs., 3 figs

An analysis of factors affecting price volatility of the US oil market

International Nuclear Information System (INIS)

Yang, C.W.; Hwang, M.J.; Huang, B.N.

2002-01-01

This paper studies the price volatility of the crude oil market by examining the market structure of OPEC, the stable and unstable demand structure, and related elasticity of demand. In particular, the impacts of prosperity and recession of the world economy and the resulting demand shift on crude oil price are investigated. The error correction model is used to estimate the demand relations and related elasticity. The income effect on demand functions is evaluated to shed light on future prices. A simulation of potential oil prices under different scenarios on a cut of one million barrels per day by OPEC is evaluated. From our simulation, given the 4% cut in OPEC production, the oil price is expected to increase unless the recession is severe. The magnitude and scope of a price hike would be diminished if non-OPEC or domestic production were greatly expanded

Natural gas prices force businesses to strategic energy policy

International Nuclear Information System (INIS)

Wisse, C.J.

2006-01-01

There are many factors which force businesses to think about a strategic energy policy: energy prices, supply security, regulations in the Netherlands and the European Union, technological developments with regard to fuels, etc. By using a decision making model several criteria can be assessed for different scenarios [nl

Real-time electricity pricing mechanism in China based on system dynamics

International Nuclear Information System (INIS)

He, Yongxiu; Zhang, Jixiang

2015-01-01

Highlights: • The system dynamics is used to research the real-time electricity pricing mechanism. • Four kinds of the real-time electricity pricing models are carried out and simulated. • It analysed the electricity price, the user satisfaction and the social benefits under the different models. • Market pricing is the trend of the real-time electricity pricing mechanism. • Initial development path of the real-time price mechanism for China is designed between 2015 and 2030. - Abstract: As an important means of demand-side response, the reasonable formulation of the electricity price mechanism will have an important impact on the balance between the supply and demand of electric power. With the introduction of Chinese intelligence apparatus and the rapid development of smart grids, real-time electricity pricing, as the frontier electricity pricing mechanism in the smart grid, will have great significance on the promotion of energy conservation and the improvement of the total social surplus. From the perspective of system dynamics, this paper studies different real-time electricity pricing mechanisms based on load structure, cost structure and bidding and analyses the situation of user satisfaction and the total social surplus under different pricing mechanisms. Finally, through the comparative analysis of examples under different real-time pricing scenarios, this paper aims to explore and design the future dynamic real-time electricity pricing mechanism in China, predicts the dynamic real-time pricing level and provides a reference for real-time electricity price promotion in the future

Fiscal 1998 research report on International Clean Energy Network using Hydrogen Conversion (WE-NET). Subtask 3. Prediction evaluation on a national scale; 1998 nendo suiso riyo kokusai clean energy system gijutsu (WE-NET) sub task. 3. Ikkoku kibo deno yosoku hyoka

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-03-01

Japanese long-term energy demand and various energy use styles were simulated from the viewpoint of a profitability and environmental preservation, and hydrogen consumption was studied. In the research in fiscal 1998, the data on available primary energy was modified based on the upper limit of CO{sub 2} emission by COP3, and the long-term energy supply and demand outlook of Advisory Committee for Energy in June, 1998. The result of scenario analysis is as follows: (1) The reference scenario showed that reduction of a hydrogen price is indispensable to use imported hydrogen, (2) The carbon externality scenario showed that market penetration of hydrogen can be large if the carbon externality amounts to $300/t-C, (3) The high fossil fuel price scenario showed that a fossil fuel price (in particular, price of hydrocarbon) highly affects market penetration of hydrogen, and (4) The low nuclear capacity scenario suggested that a competitiveness of hydrogen is considerably improved as an energy supply-demand-balance is tight. (NEDO)

Optimal Retail Price Model for Partial Consignment to Multiple Retailers

Directory of Open Access Journals (Sweden)

Po-Yu Chen

2017-01-01

Full Text Available This paper investigates the product pricing decision-making problem under a consignment stock policy in a two-level supply chain composed of one supplier and multiple retailers. The effects of the supplier’s wholesale prices and its partial inventory cost absorption of the retail prices of retailers with different market shares are investigated. In the partial product consignment model this paper proposes, the seller and the retailers each absorb part of the inventory costs. This model also provides general solutions for the complete product consignment and the traditional policy that adopts no product consignment. In other words, both the complete consignment and nonconsignment models are extensions of the proposed model (i.e., special cases. Research results indicated that the optimal retail price must be between 1/2 (50% and 2/3 (66.67% times the upper limit of the gross profit. This study also explored the results and influence of parameter variations on optimal retail price in the model.

Optimizing Wellfield Operation in a Variable Power Price Regime.

Science.gov (United States)

Bauer-Gottwein, Peter; Schneider, Raphael; Davidsen, Claus

2016-01-01

Wellfield management is a multiobjective optimization problem. One important objective has been energy efficiency in terms of minimizing the energy footprint (EFP) of delivered water (MWh/m(3) ). However, power systems in most countries are moving in the direction of deregulated markets and price variability is increasing in many markets because of increased penetration of intermittent renewable power sources. In this context the relevant management objective becomes minimizing the cost of electric energy used for pumping and distribution of groundwater from wells rather than minimizing energy use itself. We estimated EFP of pumped water as a function of wellfield pumping rate (EFP-Q relationship) for a wellfield in Denmark using a coupled well and pipe network model. This EFP-Q relationship was subsequently used in a Stochastic Dynamic Programming (SDP) framework to minimize total cost of operating the combined wellfield-storage-demand system over the course of a 2-year planning period based on a time series of observed price on the Danish power market and a deterministic, time-varying hourly water demand. In the SDP setup, hourly pumping rates are the decision variables. Constraints include storage capacity and hourly water demand fulfilment. The SDP was solved for a baseline situation and for five scenario runs representing different EFP-Q relationships and different maximum wellfield pumping rates. Savings were quantified as differences in total cost between the scenario and a constant-rate pumping benchmark. Minor savings up to 10% were found in the baseline scenario, while the scenario with constant EFP and unlimited pumping rate resulted in savings up to 40%. Key factors determining potential cost savings obtained by flexible wellfield operation under a variable power price regime are the shape of the EFP-Q relationship, the maximum feasible pumping rate and the capacity of available storage facilities. © 2015 The Authors. Groundwater published by Wiley

An empirical exploration of the world oil price under the target zone model

International Nuclear Information System (INIS)

Linghui Tang; Shawkat Hammoudeh

2002-01-01

This paper investigates the behavior of the world oil price based on the first-generation target zone model. Using anecdotal data during the period of 1988-1999, we found that OPEC has tried to maintain a weak target zone regime for the oil price. Our econometric tests suggest that the movement of the oil price is not only manipulated by actual and substantial interventions by OPEC but also tempered by market participants' expectations of interventions. As a consequence, the non-linear model based on the target zone theory has very good forecasting ability when the oil price approaches the upper or lower limit of the band. (author)

An empirical exploration of the world oil price under the target zone model

International Nuclear Information System (INIS)

Tang, Linghui; Hammoudeh, Shawkat

2002-01-01

This paper investigates the behavior of the world oil price based on the first-generation target zone model. Using anecdotal data during the period of 1988-1999, we found that OPEC has tried to maintain a weak target zone regime for the oil price. Our econometric tests suggest that the movement of the oil price is not only manipulated by actual and substantial interventions by OPEC but also tempered by market participants' expectations of interventions. As a consequence, the non-linear model based on the target zone theory has very good forecasting ability when the oil price approaches the upper or lower limit of the band

Depletion of petroleum reserves and oil price trends

International Nuclear Information System (INIS)

Babusiaux, D.; Bauquis, P.R.

2007-11-01

This document is the report of the 'Petroleum' working group from the French Academy of Technology, coordinated by the authors in the framework of the Energy and Climate Change Commission chaired by Gilbert Ruelle. Firstly, it present a synthesis of the different points of view about reserves and the peak of world oil production (optimists, pessimists and official organizations). Secondly, it analyzes the mechanisms of oil price formation focusing on the long term without addressing the question of short term market behaviour. The last section is devoted to possible scenarios of the evolution of production profiles and prices in the medium and long term. (authors)

Optimizing pricing and ordering strategies in a three-level supply chain under return policy

Science.gov (United States)

Noori-daryan, Mahsa; Taleizadeh, Ata Allah

2018-03-01

This paper develops an economic production quantity model in a three-echelon supply chain composing of a supplier, a manufacturer and a wholesaler under two scenarios. As the first scenario, we consider a return contract between the outside supplier and the supplier and also between the manufacturer and the wholesaler, but in the second one, the return policy between the manufacturer and the wholesaler is not applied. Here, it is assumed that shortage is permitted and demand is price-sensitive. The principal goal of the research is to maximize the total profit of the chain by optimizing the order quantity of the supplier and the selling prices of the manufacturer and the wholesaler. Nash-equilibrium approach is considered between the chain members. In the end, a numerical example is presented to clarify the applicability of the introduced model and compare the profit of the chain under two scenarios.

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...

Capacity pricing in a free market

International Nuclear Information System (INIS)

Wangensteen, Ivar; Wolfgang, Ove; Doorman, Gerard

2005-01-01

This report deals primarily with pricing of reserve capacity, partly on a theoretical basis and partly based on practical experience from the Norwegian market. In the theoretical part we describe a simple model for investigation of equilibrium prices on capacity reserves, spot power and regulating power. This model is based on strong simplifying assumptions. Next a computer model is introduced. That enables more complexity and makes it possible to analyse more realistic scenarios. Finally the report describes experiences from the Norwegian market. The Norwegian System Operator, Statnett, is responsible for the Balancing Market (BM) and Reserves Option Market (ROM), which was introduced a few years ago as a separate market for reserves. Experience with these market instruments are generally good and Statnett is preparing a new version for the winter 2004/2005. The report deals with generation as well as consumer side capacity reserves. One interesting observation is that in Norway the consumer side is providing more capacity reserves than the generators, but the consumers normally bid in a higher BM price than the generators. (author)

A 'business-as-usual' energy scenario for France at the 2020 vista

International Nuclear Information System (INIS)

Giraud, P.N.

2000-01-01

A 'business-as-usual' energy scenario is the most probable scenario where the energy demand follows the trends of the past and where no new energy policy is implemented. This work is a complement to the three contrasted energy scenarios built in 1998 by the 'Energy 2010-2020' prospective group of the French general commission of national development. The scenario built in this study is only a reference which allows the measure the efforts made to reach political goals. The main conclusion of this scenario is the increase of the CO 2 emissions under the double effect of the economic growth and of the cessation of the nuclear program which becomes non-competitive with respect to the gas prices and actualization rates retained in the scenario. The main constraint of the energy future is incontestably the necessary fight against the greenhouse effect. (J.S.)

Share-of-Surplus Product Line Optimisation with Price Levels

Directory of Open Access Journals (Sweden)

X. G. Luo

2014-01-01

Full Text Available Kraus and Yano (2003 established the share-of-surplus product line optimisation model and developed a heuristic procedure for this nonlinear mixed-integer optimisation model. In their model, price of a product is defined as a continuous decision variable. However, because product line optimisation is a planning process in the early stage of product development, pricing decisions usually are not very precise. In this research, a nonlinear integer programming share-of-surplus product line optimization model that allows the selection of candidate price levels for products is established. The model is further transformed into an equivalent linear mixed-integer optimisation model by applying linearisation techniques. Experimental results in different market scenarios show that the computation time of the transformed model is much less than that of the original model.

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

Joint decision of pricing and order quantity by considering product substitution in dual channel supply chain

Science.gov (United States)

Widodo, Erwin

2017-11-01

Dual channel supply chain (DCSC) has been attracting many researchers' attention. Their contributions mainly are in two folds, namely pricing problem and inventory policy. However, research to address both pricing and inventory problems simultaneously are still scarce. Meanwhile in recent competitive market, product substitution is an unavoidable practice in fulfilling customer demand when the main product is unavailable. Thus how to decide price and order quantity by considering product substitution under DCSC setting is an interesting topic to address. In this paper, corresponding mathematical model incorporating such problem is proposed. This model consists of objective function measuring sales revenue and inventory cost, and some constraints to assure positive profit margin, interplaying price between online and offline channel, and positive demand. Two pricing schemes, namely Vertical Nash and Stackelberg Leadership are evaluated. The result shows that in any situation of substitution level, Vertical Nash solution provides higher financial performance than that under Stackelberg Leadership. In addition, this work's results have also revealed that there exist some threshold values differentiating when it is better off to apply Vertical Nash scenario an, when Stackelberg Leadership scenario is preferable.

Analyzing the impact of price subsidy on rice self-sufficiency level in Malaysia: A preliminary finding

Science.gov (United States)

Rahim, Farah Hanim Abdul; Abidin, Norhaslinda Zainal; Hawari, Nurul Nazihah

2017-11-01

The Malaysian government had targeted for the rice industry in the country to achieve 100% rice self-sufficiency where Malaysia's rice self-sufficiency level (SSL) is currently at 65% to 75%. Thus, the government had implemented few policies to increase the rice production in Malaysia in order to meet the growing demand of rice. In this paper, the effect of price support on the rice production system in Malaysia is investigated. This study utilizes the system dynamics approach of the rice production system in Malaysia where the complexity of the factor is interrelated and changed dynamically through time. Scenario analysis was conducted using system dynamics model by making changes on the price subsidy to see its effect on the rice production and rice SSL. The system dynamics model provides a framework for understanding the effect of price subsidy on the rice self-sufficiency level. The scenario analysis of the model shows that a 50% increase in the price subsidy leads to a substantial increase in demand as the rice price drops. Accordingly, the local production increases by 15%. However, the SSL slightly decreases as the local production is insufficient to meet the large demand.

Pricing and Remanufacturing Decisions of a Decentralized Fuzzy Supply Chain

Directory of Open Access Journals (Sweden)

Jing Zhao

2013-01-01

costs, and the collecting scaling parameters of the two retailers. The purpose of this paper is to explore how the manufacturer and the two retailers make their own decisions about wholesale price, retail prices, and the remanufacturing rates in the expected value model. Using game theory and fuzzy theory, we examine each firm’s strategy and explore the role of the manufacturer and the two retailers over three different game scenarios. We get some insights into the economic behavior of firms, which can serve as the basis for empirical study in the future.

Optimal Ordering and Pricing Policies for Seasonal Products: Impacts of Demand Uncertainty and Capital Constraint

Directory of Open Access Journals (Sweden)

Jinzhao Shi

2016-01-01

Full Text Available With a stochastic price-dependent market demand, this paper investigates how demand uncertainty and capital constraint affect retailer’s integrated ordering and pricing policies towards seasonal products. The retailer with capital constraint is normalized to be with zero capital endowment while it can be financed by an external bank. The problems are studied under a low and high demand uncertainty scenario, respectively. Results show that when demand uncertainty level is relatively low, the retailer faced with demand uncertainty always sets a lower price than the riskless one, while its order quantity may be smaller or larger than the riskless retailer’s which depends on the level of market size. When adding a capital constraint, the retailer will strictly prefer a higher price but smaller quantity policy. However, in a high demand uncertainty scenario, the impacts are more intricate. The retailer faced with demand uncertainty will always order a larger quantity than the riskless one if demand uncertainty level is high enough (above a critical value, while the capital-constrained retailer is likely to set a lower price than the well-funded one when demand uncertainty level falls within a specific interval. Therefore, it can be further concluded that the impact of capital constraint on the retailer’s pricing decision can be influenced by different demand uncertainty levels.

Pricing decision model for new and remanufactured short-life cycle products with time-dependent demand

Directory of Open Access Journals (Sweden)

Shu San Gan

2015-12-01

Full Text Available In this study we develop a model that optimizes the price for new and remanufactured short life-cycle products where demands are time-dependent and price sensitive. While there has been very few published works that attempt to model remanufacturing decisions for products with short life cycle, we believe that there are many situations where remanufacturing short life cycle products is rewarding economically as well as environmentally. The system that we model consists of a retailer, a manufacturer, and a collector of used product from the end customers. Two different scenarios are evaluated for the system. The first is the independent situation where each party attempts to maximize his/her own total profit and the second is the joint profit model where we optimize the combined total profit for all three members of the supply chain. Manufacturer acts as the Stackelberg leader in the independently optimized scenario, while in the other the intermediate prices are determined by coordinated pricing policy. The results suggest that (i reducing the price of new products during the decline phase does not give better profit for the whole system, (ii the total profit obtained from optimizing each player is lower than the total profit of the integrated model, and (iii speed of change in demand influences the robustness of the prices as well as the total profit gained.

Strategies for cost-effective carbon reductions: A sensitivity analysis of alternative scenarios

International Nuclear Information System (INIS)

Gumerman, Etan; Koomey, Jonathan G.; Brown, Marilyn

2001-01-01

Analyses of alternative futures often present results for a limited set of scenarios, with little if any sensitivity analysis to identify the factors affecting the scenario results. This approach creates an artificial impression of certainty associated with the scenarios considered, and inhibits understanding of the underlying forces. This paper summarizes the economic and carbon savings sensitivity analysis completed for the Scenarios for a Clean Energy Future study (IWG, 2000). Its 19 sensitivity cases provide insight into the costs and carbon-reduction impacts of a carbon permit trading system, demand-side efficiency programs, and supply-side policies. Impacts under different natural gas and oil price trajectories are also examined. The results provide compelling evidence that policy opportunities exist to reduce carbon emissions and save society money

Analysis on 'new fundamentals' and range of oil price trend in the long run

Energy Technology Data Exchange (ETDEWEB)

Rui, Chen

2010-09-15

The range of trend of oil price will be decided by marginal production cost of crude oil and production cost of alternative energy consumed as transportation fuel on a large scale. The former factor determines the lower limit and the latter determines the upper limit of oil price. financial factors and the value of USD will not only affect the short-term change of oil price, they may become fundamentals factors that exert influence on the mid-long term change of oil price, namely, New Fundamentals, which will determine the fluctuation degree of oil price in the long run.

The energy consumption of private households 1990 - 2035 - Results of scenarios I - IV

International Nuclear Information System (INIS)

Hofer, P.

2007-01-01

This comprehensive report for the Swiss Federal Office of Energy (SFOE) presents four scenarios concerning the development of energy consumption in Swiss private households for the period 1990 - 2035. The four scenarios - status quo, increased co-operation between the state and the economy with various levies, global reduction of energy consumption and, finally, scenario IV 'on the way to a 2000-Watt Society' - are briefly described. In particular, the scenarios are examined for various sensitivities: high gross domestic product GDP, high prices and warmer climate. The results of the sensitivity analyses are compared and discussed and the necessary instruments are examined. This comprehensive report contains a large number of data-tables and graphical representations

Phasing out nuclear in Germany: scenarios of energy policy

International Nuclear Information System (INIS)

Knopf, Brigitte; Pahle, Michael; Kondziella, Hendrik; Goetz, Mario; Bruckner, Thomas; Edenhofer, Ottmar; Stark, Hans; Rittelmeyer, Yann-Sven; Wissmann, Nele; Vitasse, Thomas

2012-02-01

After the German decision taken in 2011 to phase out nuclear, the authors analyse different scenarios of energy transition, and study the consequences of this phasing out in terms of energy needs provided by fossil fuel plants, of electricity price for households and for industries, and of CO 2 emissions. Independently from the development of renewable energies, the different effects of gas and coal plants replacing nuclear energy have been calculated and compared, and other possible scenarios have been explored. The author also discuss requirements in terms of governance for grid development, for a coordinated European policy of energy and climate, and for transparency and scientific follow-up

Impact of future price increase on ordering policies for deteriorating items under quadratic demand

Directory of Open Access Journals (Sweden)

Nita H. Shah

2016-06-01

Full Text Available When a supplier announces a price increase at a certain time in the future, for each retailer it is important to choose whether to purchase supplementary stock to take benefit of the current lower price or procure at a new price. This article focuses on the possible effects of price increase on a retailer’s replenishment strategy for constant deterioration of items. Here, quadratic demand is debated; which is appropriate for the products for which demand increases initially and subsequently it starts to decrease with the new version of the substitute. We discuss two scenarios in this study: (I when the special order time coincides with the retailer’s replenishment time and (II when the special order time falls during the retailer’s sales period. We determine an optimal ordering policy for each case by maximizing total cost savings between special and regular orders during the depletion time of the special order quantity. Scenarios are established and illustrated with numerical examples. Through, sensitivity analysis important inventory parameters are classified. Graphical results, in two and three dimensions, are exhibited with supervisory decision.

Total cost estimates for large-scale wind scenarios in UK

International Nuclear Information System (INIS)

Dale, Lewis; Milborrow, David; Slark, Richard; Strbac, Goran

2004-01-01

The recent UK Energy White Paper suggested that the Government should aim to secure 20% of electricity from renewable sources by 2020. A number of estimates of the extra cost of such a commitment have been made, but these have not necessarily included all the relevant cost components. This analysis sets out to identify these and to calculate the extra cost to the electricity consumer, assuming all the renewable electricity is sourced from wind energy. This enables one of the more controversial issues--the implications of wind intermittency--to be addressed. The basis of the assumptions associated with generating costs, extra balancing costs and distribution and transmission system reinforcement costs are all clearly identified and the total costs of a '20% wind' scenario are compared with a scenario where a similar amount of energy is generated by gas-fired plant. This enables the extra costs of the renewables scenario to be determined. The central estimate of the extra costs to electricity consumers is just over 0.3 p/kW h in current prices (around 5% extra on average domestic unit prices). Sensitivity analyses examine the implications of differing assumptions. The extra cost would rise if the capital costs of wind generation fall slower than anticipated, but would fall if gas prices rise more rapidly than has been assumed, or if wind plant are more productive. Even if it is assumed that wind has no capacity displacement value, the added cost to the electricity consumer rises by less than 0.1 p/kW h. It is concluded that there does not appear to be any technical reason why a substantial proportion of the country's electricity requirements could not be delivered by wind

Australian retail electricity prices: Can we avoid repeating the rising trend of the past?

International Nuclear Information System (INIS)

Graham, Paul W.; Brinsmead, Thomas; Hatfield-Dodds, Steve

2015-01-01

After a stable or declining real trend that persisted for more than half a century, Australian retail electricity prices have experienced a substantial increase, in real terms, since 2007. This has mainly been driven by increases in the cost of electricity distribution and to a lesser degree in the cost of electricity generation. Reducing greenhouse gas emissions, which is a bipartisan political goal in Australia, will likely deliver further increases in generation costs due to the expected higher cost of low emission technology. Participating in global negotiations on emission reduction targets and designing efficient policy mechanisms have been a major focus of governments over the last several decades. In contrast, managing distribution system costs has received less attention. While there were a number of factors which drove historical increases in distribution costs, management of peak demand growth could help contain or reduce the extent to which consumers, particularly households, experience further increases in distribution costs. The paper demonstrates how different combinations of carbon price and peak demand scenarios could impact future residential and industrial retail electricity prices to 2050 and discusses some behavioural and technological solutions to manage peak demand and potential barriers to their deployment. - Highlights: • We identify the causes of the increase in Australian retail electricity prices. • We identify two sources of likely further cost pressures on electricity prices. • We estimate future retail electricity prices under five scenarios. • We discuss barriers and solutions to controlling peak demand growth.

Afforestation to mitigate climate change: impacts on food prices under consideration of albedo effects

Science.gov (United States)

Kreidenweis, Ulrich; Humpenöder, Florian; Stevanović, Miodrag; Bodirsky, Benjamin Leon; Kriegler, Elmar; Lotze-Campen, Hermann; Popp, Alexander

2016-08-01

Ambitious climate targets, such as the 2 °C target, are likely to require the removal of carbon dioxide from the atmosphere. Afforestation is one such mitigation option but could, through the competition for land, also lead to food prices hikes. In addition, afforestation often decreases land-surface albedo and the amount of short-wave radiation reflected back to space, which results in a warming effect. In particular in the boreal zone, such biophysical warming effects following from afforestation are estimated to offset the cooling effect from carbon sequestration. We assessed the food price response of afforestation, and considered the albedo effect with scenarios in which afforestation was restricted to certain latitudinal zones. In our study, afforestation was incentivized by a globally uniform reward for carbon uptake in the terrestrial biosphere. This resulted in large-scale afforestation (2580 Mha globally) and substantial carbon sequestration (860 GtCO2) up to the end of the century. However, it was also associated with an increase in food prices of about 80% by 2050 and a more than fourfold increase by 2100. When afforestation was restricted to the tropics the food price response was substantially reduced, while still almost 60% cumulative carbon sequestration was achieved. In the medium term, the increase in prices was then lower than the increase in income underlying our scenario projections. Moreover, our results indicate that more liberalised trade in agricultural commodities could buffer the food price increases following from afforestation in tropical regions.

Wind energy and electricity prices. Exploring the 'merit order effect'

International Nuclear Information System (INIS)

Morthost, P.E.; Ray, S.; Munksgaard, J.; Sinner, A.F.

2010-04-01

This report focuses on the effect of wind energy on the electricity price in the power market. As the report will discuss, adding wind into the power mix has a significant influence on the resulting price of electricity, the so called merit order effect (MOE). The merit order effect has been quantified and discussed in many scientific publications. This report ends the first phase of a study on the MOE, evaluating the impact of EWEA's 2020 scenarios on future European electricity prices. The basic principles of the merit order effect are provided in the first part of the document. The literature review itself contains methods and tools not only to quantify the merit order effect but also in order to forecast its future range and volume.

Reactive Power Pricing Model Considering the Randomness of Wind Power Output

Science.gov (United States)

Dai, Zhong; Wu, Zhou

2018-01-01

With the increase of wind power capacity integrated into grid, the influence of the randomness of wind power output on the reactive power distribution of grid is gradually highlighted. Meanwhile, the power market reform puts forward higher requirements for reasonable pricing of reactive power service. Based on it, the article combined the optimal power flow model considering wind power randomness with integrated cost allocation method to price reactive power. Meanwhile, considering the advantages and disadvantages of the present cost allocation method and marginal cost pricing, an integrated cost allocation method based on optimal power flow tracing is proposed. The model realized the optimal power flow distribution of reactive power with the minimal integrated cost and wind power integration, under the premise of guaranteeing the balance of reactive power pricing. Finally, through the analysis of multi-scenario calculation examples and the stochastic simulation of wind power outputs, the article compared the results of the model pricing and the marginal cost pricing, which proved that the model is accurate and effective.

Analysis of Medicine Prices in New Zealand and 16 European Countries.

Science.gov (United States)

Vogler, Sabine; Kilpatrick, Kate; Babar, Zaheer-Ud-Din

2015-06-01

To compare prices of medicines, both originators and generics, in New Zealand and 16 European countries. Ex-factory price data as of December 2012 from New Zealand and 16 European countries were compared for a basket of 14 medicines, most of which were at least partially funded by the state in the 17 countries. Five medicines had, at least in some countries, generic versions on the market whose prices were also analyzed. Medicine price data for the 16 European countries were provided by the Pharma Price Information service. New Zealand medicine prices were retrieved from the New Zealand Pharmaceutical Schedule. Unit prices converted into euro were compared at the ex-factory price level. For the 14 medicines surveyed, considerable price differences at the ex-factory price level were identified. Within the European countries, prices in Greece, Portugal, the United Kingdom, and Spain ranked at the lower end, whereas prices in Switzerland, Germany, Denmark, and Sweden were at the upper end. The results for New Zealand compared with Europe were variable. New Zealand prices were found in the lowest quartile for five medicines and in the highest quartile for seven other products. Price differences between the originator products and generic versions ranged from 0% to 90% depending on the medicine and the country. Medicine prices varied considerably between European countries and New Zealand as well as among the European countries. These differences are likely to result from national pricing and reimbursement policies. Copyright © 2015 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Planning for Higher Oil Prices : Power Sector Impact in Latin America and the Caribbean

OpenAIRE

Yépez-García, Rigoberto Ariel; San Vicente Portes, Luis; García, Luis Enrique

2013-01-01

A scenario with higher oil prices has important implications for diverting from oil-based technologies to renewables, as well as gas, coal, and nuclear alternatives. By 2030, energy demand in Latin America and the Caribbean (LAC) is expected to double from 2008 levels. A key issue is deciding on the most appropriate mix of fuels for power generation, given the various prices of energy sour...

Spot volume exceeds 2 million lbs (again); restricted price hits $10/lb

International Nuclear Information System (INIS)

Anon.

1995-01-01

This article is the January 1995 uranium market summary. Volume on the spot concentrates market exceeded 2 million lbs equivalent for the second consecutive month. Six deals took place; four in the spot concentrates market, one in the conversion market, and one in the enrichment market. No deals took place in the medium or long-term market. The upper end of the restricted price range reached $10.00 per lb U3O8, its highest level since December 1993. The lower end of the restricted price range strengthened to $9.75. The lower end of the spot conversion price range strengthed to $5.70 per kg U, and SWU prices firmed to the $75.00 to $87.00 level

Alternative scenarios for implementing the E U bio fuels directive in Italy: the potential of bio ethanol

International Nuclear Information System (INIS)

Di Tucci, F.; Lodi, A.; Massarutto, A.

2008-01-01

This article discusses the perspective scenarios of the Italian market for bi oethanol, face to the Eu 2003/30 directive and more generally to the world market for oil and fuels. We examine first the convenience of substituting bio ethanol for gasoline; we discuss alternative scenarios for gathering ethanol to the Italian market, comparing import with internal production. We finally try to forecast the impact on the final price of gasoline for final consumption. We show that rising oil prices, more than the internalization of environmental cost, is the main driver that increases the convenience of introducing bio fuels. We also argue that for the Italian market imports are actually cheaper than internal product, although this judgment might change in the future in case the world price of agricultural commodities increases and/or tropical ethanol from sugar cane will not be sufficient to satisfy demand. [it

REAL OPTIONS ANALYSIS OF RENEWABLE ENERGY INVESTMENT SCENARIOS IN THE PHILIPPINES

Directory of Open Access Journals (Sweden)

Casper Agaton

2017-12-01

Full Text Available Abstract - With the continuously rising energy demand and much dependence on imported fossil fuels, the Philippines is developing more sustainable sources of energy. Renewable energy seems to be a better alternative solution to meet the country’s energy supply and security concerns. Despite its huge potential, investment in renewable energy sources is challenged with competitive prices of fossil fuels, high start-up cost and lower feed-in tariff rates for renewables. To address these problems, this study aims to analyze energy investment scenarios in the Philippines using real options approach. This compares the attractiveness of investing in renewable energy over continuing to use coal for electricity generation under uncertainties in coal prices, investments cost, electricity prices, growth of investment in renewables, and imposing carbon tax for using fossil fuels.

The impact of carbon prices on generation-cycling costs

International Nuclear Information System (INIS)

Denny, Eleanor; O'Malley, Mark

2009-01-01

The introduction of mechanisms aimed at reducing greenhouse gas emissions can have a serious impact on electricity system costs. A carbon mechanism that forces generators to internalise their emissions costs may alter the merit order in which generators are dispatched in the market. Heavy carbon dioxide polluters may switch from operating continuously to having to operate on the margin more often. This results in these units being required to switch on and off and vary their output more frequently, which has a significant impact on their costs. In this paper, the impact of carbon prices on the operating profiles of generators in a real electricity system is investigated. A large number of potential scenarios are considered and it is found that carbon prices significantly increase the cycling costs. These increased cycling costs significantly offset the carbon dioxide reduction benefits of the carbon price

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

Impact of the Kyoto Protocol on the Iberian Electricity Market: A scenario analysis

International Nuclear Information System (INIS)

Reneses, Javier; Centeno, Efraim

2008-01-01

This paper presents an assessment of the impact of the Kyoto Protocol on the Iberian Electricity Market during two periods: the first phase (2005-2007) and the second phase (2008-2012). A market-equilibrium model is used in order to analyze different conditions faced by generation companies. Scenarios involving CO 2 -emission prices, hydro conditions, demand, fuel prices and renewable generation are considered. This valuation will show the significance of CO 2 -emission prices as regards Spanish and Portuguese electricity prices, generation mix, utilities profits and the total CO 2 emissions. Furthermore, the results will illustrate how energy policies implemented by regulators are critical for Spain and Portugal in order to mitigate the negative impact of the Kyoto Protocol. In conclusion, the Iberian electricity system will not be able to reach the Kyoto targets, except in very favorable conditions (CO 2 -emission prices over Euro 15/ton and the implementation of very efficient energy policies)

The impact of gasoline price fluctuations on lodging demand for US brand hotels

International Nuclear Information System (INIS)

Walsh, Kate; Enz, Cathy A.; Canina, Linda

2004-01-01

Analyzing US brand hotels, over a 13-year period, this study provides empirical evidence of a significant negative relationship between gasoline prices and demand for certain lodging products, controlling for economic factors (i.e. gross domestic product and population density). Applying principles from microeconomic demand theory to the literature on gasoline price elasticities, consumer demographics and lodging demand, a set of hypotheses were devised to test the relationship between gasoline prices and lodging demand for specific hotel locations and price segments. Using fixed effects models, the results reveal that lodging demand decreases as gasoline prices rise in all segments except upper-upscale and all locations except urban areas. Hotels in midscale without food and beverage and economy market segments, in resort, suburban and highway locations, exhibit the greatest association between gasoline price shifts and demand. Implications of these findings are discussed for both hospitality research and practice. (Author)

The impact of gasoline price fluctuations on lodging demand for US brand hotels

Energy Technology Data Exchange (ETDEWEB)

Walsh, Kate; Enz, Cathy A.; Canina, Linda [Cornell Univ., School of Hotel Administration, Ithaca, NY (United States)

2004-12-01

Analyzing US brand hotels, over a 13-year period, this study provides empirical evidence of a significant negative relationship between gasoline prices and demand for certain lodging products, controlling for economic factors (i.e. gross domestic product and population density). Applying principles from microeconomic demand theory to the literature on gasoline price elasticities, consumer demographics and lodging demand, a set of hypotheses were devised to test the relationship between gasoline prices and lodging demand for specific hotel locations and price segments. Using fixed effects models, the results reveal that lodging demand decreases as gasoline prices rise in all segments except upper-upscale and all locations except urban areas. Hotels in midscale without food and beverage and economy market segments, in resort, suburban and highway locations, exhibit the greatest association between gasoline price shifts and demand. Implications of these findings are discussed for both hospitality research and practice. (Author)

Global Energy Scenarios to 2040. Understanding our energy future - 2016 Edition

International Nuclear Information System (INIS)

2016-01-01

The energy world is in rapid evolution, driven in particular by policy developments (like the INDCs agreed at COP-21) but also economic, geopolitical, technological as well as social considerations. Enerdata regularly produces scenario based energy outlooks to analyze and forecast the supply and demand of energy commodities, energy prices, as well as the impact of climate change and energy policies on energy markets and their consequences for the energy industry. After the COP-21 in Paris, Enerdata has again done such an exercise. The Ener-Blue scenario provides an outlook of energy systems up to 2040 based on the achievement of the 2030 targets defined in the INDCs as announced at the COP-21. Ener-Green explores the implications of more stringent energy and climate policies to limit the global temperature increase at around 1.5-2 deg. C by the end of the century. Finally, Ener-Brown describes a world with abundant fossil fuel resource and durably low energy prices, affecting the entire energy system over a long period. These different scenarios explore the consequences on energy supply and demand, energy mix, energy prices by fuel and region, as well as the implications on climate issues. In the Ener-Blue scenario, the future energy mix remains dominated by fossil fuels, but INDCs planned policies regarding climate mitigation, energy efficiency and renewable energy sources lead to a diversification towards other sources of energy. Among others, the EU successfully achieves its triple objective of its climate and energy package, while China and India expand their renewable capacities to achieve their renewable targets. Within this international context of climate coordinated policies, CO_2 emission growth slows down. However, the efforts defined in INDCs are not ambitious enough to limit the increase of the average global temperature to 2 deg. C in 2050, but these efforts are compatible with 3-4 deg. C objective. In the Ener-Green scenario, there is a clear

Adaptive scenarios: a training model for today's public health workforce.

Science.gov (United States)

Uden-Holman, Tanya; Bedet, Jennifer; Walkner, Laurie; Abd-Hamid, Nor Hashidah

2014-01-01

With the current economic climate, money for training is scarce. In addition, time is a major barrier to participation in trainings. To meet the public health workforce's rising demand for training, while struggling with less time and fewer resources, the Upper Midwest Preparedness and Emergency Response Learning Center has developed a model of online training that provides the public health workforce with individually customized, needs-based training experiences. Adaptive scenarios are rooted in case-based reasoning, a learning approach that focuses on the specific knowledge needed to solve a problem. Proponents of case-based reasoning argue that learners benefit from being able to remember previous similar situations and reusing information and knowledge from that situation. Adaptive scenarios based on true-to-life job performance provide an opportunity to assess skills by presenting the user with choices to make in a problem-solving context. A team approach was used to develop the adaptive scenarios. Storylines were developed that incorporated situations aligning with the knowledge, skills, and attitudes outlined in the Public Health Preparedness and Response Core Competency Model. This article examines 2 adaptive scenarios: "Ready or Not? A Family Preparedness Scenario" and "Responding to a Crisis: Managing Emotions and Stress Scenario." The scenarios are available on Upper Midwest Preparedness and Emergency Response Learning Center's Learning Management System, the Training Source (http://training-source.org). Evaluation data indicate that users' experiences have been positive. Integrating the assessment and training elements of the scenarios so that the training experience is uniquely adaptive to each user is one of the most efficient ways to provide training. The opportunity to provide individualized, needs-based training without having to administer separate assessments has the potential to save time and resources. These adaptive scenarios continue to be

Price comparison of high-cost originator medicines in European countries.

Science.gov (United States)

Vogler, Sabine; Zimmermann, Nina; Babar, Zaheer-Ud-Din

2017-04-01

In recent years, high-cost medicines have increasingly been challenging the public health budget in all countries including high-income economies. In this context, this study aims to survey, analyze and compare prices of medicines that likely contribute to high expenditure for the public payers in high-income countries. We chose the following 16 European countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Portugal, Sweden, Slovakia, Spain and United Kingdom. The ex-factory price data of 30 medicines in these countries were collected in national databases accessible through the Pharmaceutical Price Information (PPI) service of Gesundheit Österreich GmbH (Austrian Public Health Institute). The ex-factory prices (median) per unit (e.g. per tablet, vial) ranged from 10.67 cent (levodopa + decarboxylase inhibitor) to 17,000 euro (ipilimumab). A total of 53% of the medicines surveyed had a unit ex-factory price (median) above 200 Euro. For two thirds of the medicines, price differences between the highest-priced country and lowest-priced country ranged between 25 and 100%; the remaining medicines, mainly low-priced medicines, had higher price differential, up to 251%. Medicines with unit prices of a few euros or less were medicines for the treatment of diseases in the nervous system (anti-depressants, medicines to treat Parkinson and for the management of neuropathic pain), of obstructive airway diseases and cardio-vascular medicines (lipid modifying agents). High-priced medicines were particularly cancer medicines. Medicine prices of Greece, Hungary, Slovakia and UK were frequently at the lower end, German and Swedish, as well as Danish and Irish prices at the upper end. For high-priced medicines, actual paid prices are likely to be lower due to confidential discounts and similar funding arrangements between industry and public payers. Pricing authorities refer to the higher undiscounted prices when they use

Splitting the EU ETS. Strengthening the scheme by differentiating its sectoral carbon prices

Energy Technology Data Exchange (ETDEWEB)

Sijm, J.P.M.; Wetzels, W.; Koutstaal, P.R. [ECN Policy Studies, Petten (Netherlands); Pollitt, H.; Chewpreecha, U. [Cambridge Econometrics, Cambridge (United Kingdom)

2013-05-15

The current EU ETS faces a dilemma. To induce low-carbon investments in the power sector, higher carbon prices are needed, while low carbon prices are needed to reduce the risk of carbon leakage and loss of industrial competitiveness. This study analyses the effects and implications of two alternative policy options to address this price dilemma, i.e. (1) splitting the ETS into two separated sector regimes: one more ambitious regime with a relatively high carbon price for the power sector and a less ambitious regime with a relatively low carbon price for the other sectors covered by the EU ETS (called 'industry'), and (2) imposing a carbon tax on power sector emissions additional to a single ETS carbon price for both industry and the power sector. The study uses modelling scenarios and qualitative assessments to analyse the effects and implications of these policy options. It concludes that, in a world with unequal carbon prices, there is a case for differentiating ETS sectoral carbon prices and that the first-best option to achieve this differentiation is to impose a carbon tax on power sector emissions additional to a single ETS carbon price.

Hydrological Responses to Land-Use Change Scenarios under Constant and Changed Climatic Conditions.

Science.gov (United States)

Zhang, Ling; Nan, Zhuotong; Yu, Wenjun; Ge, Yingchun

2016-02-01

This study quantified the hydrological responses to land-use change scenarios in the upper and middle Heihe River basin (HRB), northwest China, under constant and changed climatic conditions by combining a land-use/cover change model (dynamic conversion of land use and its effects, Dyna-CLUE) and a hydrological model (soil and water assessment tool, SWAT). Five land-use change scenarios, i.e., historical trend (HT), ecological protection (EP), strict ecological protection (SEP), economic development (ED), and rapid economic development (RED) scenarios, were established. Under constant climatic condition, hydrological variations are only induced by land-use changes in different scenarios. The changes in mean streamflow at the outlets of the upper and the middle HRB are not pronounced, although the different scenarios produce different outcomes. However, more pronounced changes are observed on a subbasin level. The frequency of extreme flood is projected to decrease under the SEP scenario, while under the other scenarios, no changes can be found. Two emission scenarios (A1B and B1) of three general circulation models (HadCM3, CGCM3, and CCSM3) were employed to generate future possible climatic conditions. Under changed climatic condition, hydrological variations are induced by the combination of land-use and climatic changes. The results indicate that the impacts of land-use changes become secondary when the changed climatic conditions have been considered. The frequencies of extreme flood and drought are projected to decrease and increase, respectively, under all climate scenarios. Although some agreements can be reached, pronounced difference of hydrological responses can be observed for different climate scenarios of different GCMs.

A Stochastic Market Design With Revenue Adequacy and Cost Recovery by Scenario: Benefits and Costs

DEFF Research Database (Denmark)

Kazempour, Jalal; Pinson, Pierre; Hobbs, Benjamin F.

2018-01-01

Two desirable properties of electricity market mechanisms include: i) revenue adequacy for the market, and ii) cost recovery for all generators. Previously proposed stochastic market-clearing mechanisms satisfy both properties in expectation only, or satisfy one property by scenario and another...... scheme that ensures both properties by scenario. However, this approach is cost-inefficient in general and may sacrifice other desirable market attributes. Undesirable consequences include: one group of participants will have to pay more to ensure that all other participants have their costs covered......, and thus their prices will not be equilibrium supporting; and day-ahead and real-time prices are not arbitraged in expectation, although this can be fixed by allowing virtual bidders to arbitrage but at the potential cost of increased market inefficiency. Considering these pros and cons, we propose our...

Decrease of oil prices: economic boom, ecologic challenge

International Nuclear Information System (INIS)

Saussay, Aurelien; Guillou, Antoine; Boissel, Charles

2015-01-01

After having outlined how oil price collapse changes the economic deal, the authors analyse the determining factors of this collapse: slowing demand, exceeding supply, financialization of oil markets, no decision of reduction of production by the OPEC, decision by major companies to postpone investments rather than to re-balance short-term supply, production adjustment related to shale oil production. The second part analyses and discusses the economic consequences of oil price collapse: immediate impact on the French economy (reduction of the energy bill, different effects on the different economic actors, main related risks), economic scenarios on a medium term (contribution of models of macro-economic balance, possible economic growth of 0.4 due to oil price reduction, uncertain behaviour of economic actors, risk of deflation). In the third part, the authors make some proposals aimed at adapting the economy in order to take advantage of oil price reduction: to support energy transition with a required reform of energy taxing (for example for automotive fuels), to invest associated savings in energy transition and in transport infrastructure, to help households and companies in their energy transition

EU emission trading scheme and the effect on the price of electricity

International Nuclear Information System (INIS)

2004-01-01

The Electricity Market Working Group and the Climate Change Policy Working Group of the Nordic Council of Ministers, has commissioned ECON Analysis to prepare this report. The report analyses the demand and supply of GHG emission allowances and the price of emission allowances for the period 2005-2007 and 2008-2012 and the effect on the electricity price in the Nordic electricity market. The demand for emissions allowances has then been estimated for different scenarios, with different assumption on burden sharing between sectors and international participation and the supply of emission allowances is determined by the marginal abatement costs. Based on available information on abatement costs the supply of allowances is then estimated. The market balance between the demand and supply for allowances then determines the price of emission allowances. The effect on the electricity price is simulated with ECON's model for the Nordic power market to quantitatively estimate the effect from emissions trading on the electricity price, production, consumption, trade, etc. (BA)

Food prices and food shopping decisions of black women.

Science.gov (United States)

DiSantis, Katherine I; Grier, Sonya A; Oakes, J Michael; Kumanyika, Shiriki K

2014-06-01

Identifying food pricing strategies to encourage purchases of lower-calorie food products may be particularly important for black Americans. Black children and adults have higher than average obesity prevalence and disproportionate exposure to food marketing environments in which high calorie foods are readily available and heavily promoted. The main objective of this study was to characterize effects of price on food purchases of black female household shoppers in conjunction with other key decision attributes (calorie content/healthfulness, package size, and convenience). Factorial discrete choice experiments were conducted with 65 low- and middle-/higher-income black women. The within-subject study design assessed responses to hypothetical scenarios for purchasing frozen vegetables, bread, chips, soda, fruit drinks, chicken, and cheese. Linear models were used to estimate the effects of price, calorie level (or healthfulness for bread), package size, and convenience on the propensity to purchase items. Moderating effects of demographic and personal characteristics were assessed. Compared with a price that was 35% lower, the regular price was associated with a lesser propensity to purchase foods in all categories (β = -0.33 to -0.82 points on a 1 to 5 scale). Other attributes, primarily calorie content/healthfulness, were more influential than price for four of seven foods. The moderating variable most often associated with propensity to pay the regular versus lower price was the reported use of nutrition labels. Price reductions alone may increase purchases of certain lower-calorie or more healthful foods by black female shoppers. In other cases, effects may depend on combining price changes with nutrition education or improvements in other valued attributes. Copyright © 2014 Elsevier Ltd. All rights reserved.

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. ...

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

The effects of utility DSM programs on electricity costs and prices

Energy Technology Data Exchange (ETDEWEB)

Hirst, E.

1991-11-01

More and more US utilities are running more and larger demand-side management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. Should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity? This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios. In these cases, fossil-fuel prices, load growth, the amount of excess capacity the utility has in 1990, planned retirements of power plants, the financial treatment of DSM programs, and the costs of energy- efficient programs vary. These analyses are conducted for three utilities: a ``base`` that is typical of US utilities; a ``surplus`` utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a ``deficit`` utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes. 28 refs.

Optimal Energy Management for the Integrated Power and Gas Systems via Real-time Pricing

DEFF Research Database (Denmark)

Shu, KangAn; Ai, Xiaomeng; Wen, Jinyu

2018-01-01

This work proposed a bi-level formulation for energy management in the integrated power and natural gas system via real-time price signals. The upper-level problem minimizes the operational cost, in which dynamic electricity price and dynamic gas tariff are proposed. The lower level problem...... and P2Gs plants follow the system operator’s preferences such as wind power accommodation, mitigation of unsupplied load and relieving the network congestion....

Lowering Saudi Arabia's fuel consumption and energy system costs without increasing end consumer prices

International Nuclear Information System (INIS)

Matar, Walid; Murphy, Frederic; Pierru, Axel; Rioux, Bertrand

2015-01-01

Using a multi-sector equilibrium model of the Saudi energy system that handles administered prices in a mixed-complementarity formulation, we present results from a set of policy scenarios that lower oil consumption in the country. Some of these scenarios are the solutions to Mathematical Programs subject to Equilibrium Constraints (MPECs) that maximize the net economic gain for the Saudi economy. The policies examined have the potential to generate economic gains exceeding 23 billion USD in 2011, or about 4% of Saudi Arabia's GDP. This economic gain comes mainly from inter-sectoral fuel pricing policies that incent shifting the mix in technologies that generate electricity and produce water from energy intensive technologies to more efficient ones. We show that when complemented by credits for investments in solar and nuclear power generation capacities, a modest increase in the transfer prices of fuels among sectors is sufficient to produce economic gains close to those achieved by deregulating transfer prices. The approach we develop here is an alternative to the classic recommendation of deregulating inter-sectoral fuel prices in situations where the conditions for successful liberalized markets do not exist. It is a template for introducing the notions of incentivizing behavior using prices into countries that rely more on administrative procedures than markets, leading to a deeper understanding of how markets can lead to economic gain. - Highlights: • The policies examined would have potentially generated economic gains exceeding 23 billion USD in 2011. • We design policies that produce economic benefits close to those achieved by deregulating inter-sectoral fuel prices. • This paper provides a template for building multi-sector models when transfer prices between sectors are administered

Numerical Methods for Pricing American Options with Time-Fractional PDE Models

Directory of Open Access Journals (Sweden)

Zhiqiang Zhou

2016-01-01

Full Text Available In this paper we develop a Laplace transform method and a finite difference method for solving American option pricing problem when the change of the option price with time is considered as a fractal transmission system. In this scenario, the option price is governed by a time-fractional partial differential equation (PDE with free boundary. The Laplace transform method is applied to the time-fractional PDE. It then leads to a nonlinear equation for the free boundary (i.e., optimal early exercise boundary function in Laplace space. After numerically finding the solution of the nonlinear equation, the Laplace inversion is used to transform the approximate early exercise boundary into the time space. Finally the approximate price of the American option is obtained. A boundary-searching finite difference method is also proposed to solve the free-boundary time-fractional PDEs for pricing the American options. Numerical examples are carried out to compare the Laplace approach with the finite difference method and it is confirmed that the former approach is much faster than the latter one.

Renewable energies and their effect on electricity prices: the case of the German nuclear phase-out

Energy Technology Data Exchange (ETDEWEB)

Comtesse, Daniel; Schroeer, Sebastian

2010-07-01

plants. The price effect therefore highly depends on the cost structure of the back-up power plants. In our article we use the example of the nuclear-phase out in Germany. This analysis is particularly in the current economic and political context relevant: while on the one hand in Germany, a country committed so far to a nuclear phase-out until 2020, the new government seems to reconsider this initial plan, on the other hand, worldwide we experience a fall in the share of nuclear power plants - with more nuclear power plants being closed than new ones build. Data and methodology Our analysis of price effects is based on spot market outcomes. Though only a minority of the market volume is traded at the spot markets, spot market prices have a strong impact on future transactions and bilateral contracts. In line with this idea, spot market prices are a good measurement for price effects. We use a basic spot market model, where the merit-order supply function aggregates different energy sources according to their marginal cost. This leads to an upward sloping supply function. We model the supply side by a stylized power plant fleet using International Energy Agency (IEA) data on marginal costs. Since in reality consumers can not change their usage grid and do not change their behaviour in the short run, the demand function is for simplicity assumed to be perfectly inelastic. We use data of the European Energy Exchange (EEX) on an hourly basis to model electricity demand. Based on comparative statics, we develop different scenarios and check for different base load capacities of renewable energies. The basic assumption of all scenarios is the substitutability of nuclear power plants by renewable energy sources. In order to show the effects of a nuclear phaseout against fluctuations of base load capacity of renewable energies, several back-up scenarios for base load capacity with other energy sources are developed. These scenarios contain extreme case settings in order to

"Overreaction" of Asset Prices in General Equilibrium

OpenAIRE

Aiyagari, S.R.; Gertler, M.

1998-01-01

We attempt to explain the overreaction of asset prices to movements in short-term interest rates, dividends, and asset supplies. The key element of our explanation is a margin constraint that traders face which limits their leverage to a fraction of the value of their assets. Traders may lever themselves, further, either directly by borrowing short term or indirectly by engaging in futures and options trading, so that the scenario is relevant to contemporary financial markets. When some shock...

Report on the inquiry into sale price fluctuations of gasoline and diesel fuel in the regions of Abitibi-Temiscamingue, Saguenay-Lac Saint Jean and the Upper Mauricie, October 1998 to 31 December 1999

International Nuclear Information System (INIS)

Lambert, L.; Dumais, M. A.

2000-01-01

An inquiry was initiated by the President of the Quebec Energy Board (Regie de l'energie) on October 7, 1999 to review the reasons for the wide fluctuations in the retail sale prices of gasoline and diesel fuel in the regions of Abitibi-Temiscamingue, Saguenay/Lac-Saint-Jean and the Upper Mauricie, although the Board has no jurisdiction over the prices charged for petroleum products or anti-competitive practices. Consequently, the inquiry confined itself to an analysis of the information pertaining to the structure and forces driving the petroleum products market, and an examination of price mechanisms and consumer reactions in these regions. The inquiry reviewed the relevant legislation and regulation, the social, economic and energy situations in the affected regions, and the structure and functioning of the market for gasoline and diesel fuel. The inquiry came to the conclusion that the price fluctuations during the period under review reflected the wholesale prices recorded at Montreal and Quebec, which are determined by national and international market forces over which Quebec has no significant control. Furthermore, the inquiry concluded that although market forces are present and functioning in the regions, there are relatively few outlets affiliated with major oil companies, and a large number of independent retail outlets with relatively small volumes of annual sales. They essentially set their own prices at a level that reflect their cost of operation. Appendices contain the Inquiry's mandate, a list of those who testified before the Inquiry, a map showing the geographic profile of the regions surveyed and a list of figures and tables. 18 tabs., 31 figs

Investigating Impacts of Alternative Crop Market Scenarios on Land Use Change with an Agent-Based Model

Directory of Open Access Journals (Sweden)

Deng Ding

2015-11-01

Full Text Available We developed an agent-based model (ABM to simulate farmers’ decisions on crop type and fertilizer application in response to commodity and biofuel crop prices. Farm profit maximization constrained by farmers’ profit expectations for land committed to biofuel crop production was used as the decision rule. Empirical parameters characterizing farmers’ profit expectations were derived from an agricultural landowners and operators survey and integrated in the ABM. The integration of crop production cost models and the survey information in the ABM is critical to producing simulations that can provide realistic insights into agricultural land use planning and policy making. Model simulations were run with historical market prices and alternative market scenarios for corn price, soybean to corn price ratio, switchgrass price, and switchgrass to corn stover ratio. The results of the comparison between simulated cropland percentage and crop rotations with satellite-based land cover data suggest that farmers may be underestimating the effects that continuous corn production has on yields. The simulation results for alternative market scenarios based on a survey of agricultural land owners and operators in the Clear Creek Watershed in eastern Iowa show that farmers see cellulosic biofuel feedstock production in the form of perennial grasses or corn stover as a more risky enterprise than their current crop production systems, likely because of market and production risks and lock in effects. As a result farmers do not follow a simple farm-profit maximization rule.

On the value and price-responsiveness of ramp-constrained storage

International Nuclear Information System (INIS)

Faghih, Ali; Roozbehani, Mardavij; Dahleh, Munther A.

2013-01-01

Highlights: • Derived the optimal policy and value function for ramp-constrained storage. • Gave analytic bound on long-term value, and explicit formulas for policy thresholds. • Value of storage saturates as capacity increases, regardless of price volatility. • In expectation, storage can induce high price elasticity near the mean price. • The buy/sell phase transition region in the price-state plane is steep. - Abstract: The primary concerns of this paper are twofold: understanding the value of storage in the presence of ramp constraints and exogenous energy prices, and understanding the implications of the associated optimal storage management policy for qualitative and quantitative characteristics of storage response to real-time prices. The optimal policy, along with the associated finite-horizon time-averaged value of storage, are analytically characterized in this paper. An analytical upper bound on the infinite-horizon time-averaged value of storage is also derived. This bound is valid for any achievable realization of prices when the support of the distribution is fixed, and highlights the dependence of the value of storage on ramp constraints and storage capacity. It is shown that while the value of storage is a non-decreasing function of price volatility, due to the finite ramp rate, the value of storage saturates quickly as the capacity increases, regardless of volatility. To study the implications of the optimal policy, computational experiments are presented that suggest optimal utilization of storage can, in expectation, induce a considerable amount of price elasticity near the average price. Then, a computational framework is presented for characterization of the behavior of storage as a function of price and the state of charge, which illustrates a steep buy/sell phase transition in the price-state plane

Entropy, pricing and macroeconomics of pumped-storage systems

Science.gov (United States)

Karakatsanis, Georgios; Mamassis, Nikos; Koutsoyiannis, Demetris; Efstratiadis, Andreas

2014-05-01

We propose a pricing scheme for the enhancement of macroeconomic performance of pumped-storage systems, based on the statistical properties of both geophysical and economic variables. The main argument consists in the need of a context of economic values concerning the hub energy resource; defined as the resource that comprises the reference energy currency for all involved renewable energy sources (RES) and discounts all related uncertainty. In the case of pumped-storage systems the hub resource is the reservoir's water, as a benchmark for all connected intermittent RES. The uncertainty of all involved natural and economic processes is statistically quantifiable by entropy. It is the relation between the entropies of all involved RES that shapes the macroeconomic state of the integrated pumped-storage system. Consequently, there must be consideration on the entropy of wind, solar and precipitation patterns, as well as on the entropy of economic processes -such as demand preferences on either current energy use or storage for future availability. For pumped-storage macroeconomics, a price on the reservoir's capacity scarcity should also be imposed in order to shape a pricing field with upper and lower limits for the long-term stability of the pricing range and positive net energy benefits, which is the primary issue of the generalized deployment of pumped-storage technology. Keywords: Entropy, uncertainty, pricing, hub energy resource, RES, energy storage, capacity scarcity, macroeconomics

ELMO model predicts the price of electric power; ELMO-malli saehkoen hinnan ennustamiseksi

Energy Technology Data Exchange (ETDEWEB)

Antila, H. [Electrowatt-Ekono Oy, Helsinki (Finland)

2001-07-01

Electrowatt-Ekono has developed a new model, by which it is possible to make long-term prognoses on the development of electricity prices in the Nordic Countries. The ELMO model can be used as an analysis service of the electricity markets and estimation of the profitability of long-term power distribution contracts with different scenarios. It can also be applied for calculation of technical and economical fundamentals for new power plants, and for estimation of the effects of different taxation models on the emissions of power generation. The model describes the whole power generation system, the power and heat consumption and transmission. The Finnish power generation system is based on the Electrowatt-Ekono's boiler database by combining different data elements. Calculation is based on the assumption that the Nordic power generation system is used optimally, and that the production costs are minimised. In practise the effectively operated electricity markets ensure the optimal use of the production system. The market area to be described consists of Finland and Sweden. The spot prices have long been the same. Norway has been treated as a separate market area. The most potential power generation system, the power consumption and the power transmission system are presumed for the target year during a normal rainfall situation. The basic scenario is calculated on the basis of the preconditional data. The calculation is carried out on hourly basis, which enables the estimation of the price variation of electric power between different times during the day and seasons. The system optimises the power generation on the basis of electricity and heat consumption curves and fuel prices. The result is an hourly limit price for electric power. Estimates are presented as standard form reports. Prices are presented as average annuals, in the seasonal base, and in hourly or daily basis for different seasons.

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

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.

Scenario-based potential effects of carbon trading in China: An integrated approach

International Nuclear Information System (INIS)

Zhang, Cheng; Wang, Qunwei; Shi, Dan; Li, Pengfei; Cai, Wanhuan

2016-01-01

Highlights: • Carbon dioxide shadow price shows a negative asymmetrical correlation with carbon dioxide emissions in China. • The implements of carbon trading can bring Porter Hypothesis effect significantly. • Provincial carbon trading can reduce carbon intensity by 19.79–25.24% in China. - Abstract: Using China’s provincial panel data and national panel data of OECD (Organization for Economic Co-operation and Development) and BRICS (Five major emerging national economies: Brazil, Russia, India, China and South Africa), this paper simulates the scenario-based potential effect of carbon trading in China. Analysis methods included Stochastic Frontier Analysis, Difference-in-differences Model, and Nonlinear Programming Technique. Results indicated that in a theory-based view of carbon trading, the shadow price of carbon dioxide generally rises, with a non-linear negative correlation with carbon dioxide emissions. In different regions, the shadow price of carbon dioxide presents a digressive tendency among eastern, central, and western areas, with divergent gaps between and within areas. When the greatest goal is assumed to reduce national carbon intensity as much as possible at the given national GDP (Gross Domestic Product) (Scenario I), carbon trading has the effect of reducing carbon intensity by 19.79%, with the consideration of Porter Hypothesis effect. If the rigid constraint of national GDP is relaxed, and the dual constraint of both economic growth and environment protection in each region is introduced (Scenario II), the resulting effect is a reduced carbon intensity of 25.24%. China’s general carbon intensity in 2012 was higher than goals set at the Copenhagen Conference, but lagged behind the goal of Twelfth Five-Year Plan for National Economy. This study provides realistic and significant technical support for the government to use in designing and deploying a national carbon trading market.

World Energy Scenarios 2050: Impact of the Energy Governance Models to the Future of the European Energy Sector

International Nuclear Information System (INIS)

Kisel, E.

2014-01-01

World Energy Council has explored the impact of two extreme governance models of energy sector to the global economic and climate developments. Scenario 'Jazz' describes the world, where investments in the energy markets are made by the companies on the purely economic basis. Scenario 'Symphony' describes the world, where decisions about the energy investments are made by the governments. It appears that in case of Scenario 'Jazz' we would reach lower energy prices, but it would also bring along higher and wider consumption of energy, and much higher environmental impact. In case of Scenario 'Symphony' energy prices would be somewhat higher, but environmental and energy efficiency would deliver better results, and there will be more energy-poor people around the world. It can also be observed, that resulting energy mixes of these two scenarios are very different. When Scenario 'Jazz' would leave the share of fossil fuels nearly to the current levels, then Scenario 'Symphony' supports strongly development of Solar and Carbon Capture, Utilisation and Sequestration Technologies. The modelling was also made separately for different regions of the world, the results for Europe can be observed from the report as well. This provides a fruit for thought about the role of the governments in the implementation of the EU 2030 Energy and Climate Strategy. The presentation would describe shortly the methodology of the study, clarifies the assumptions of the scenarios and highlights the main outcomes of the study in for the world and for European energy sector. (author).

Agriculture energy prospective by 2030: scenarios and action patterns; Prospective Agriculture Energie 2030: scenarios et pistes d'action

Energy Technology Data Exchange (ETDEWEB)

NONE

2010-07-01

This paper presents and comments the main results of a work-group focused on the evolution of agriculture in France in relationship with the new energetic context. Four scenarios have been defined, corresponding to different energetic, but also social, political and economic contexts by 2030. The first one corresponds to a severe energy crisis with an emergence of regional governance. The second one corresponds to a high volatility of energy prices, an increased easing of restrictions on trade, and a decrease of public supports and subsidies for agriculture. The third one corresponds to a strong reduction of the use of phyto-sanitary products in agriculture, a continuous urban sprawl, and the prevalence of road transport. The fourth one corresponds to agriculture respectful of the environment and a good management of energy consumption. Direct and indirect energy consumptions are assessed for the four scenarios. Some general and operational objectives are thus identified

The energy consumption of traffic 1990 - 2035 - Results of scenarios I - IV

International Nuclear Information System (INIS)

Keller, M.

2007-01-01

This comprehensive report for the Swiss Federal Office of Energy (SFOE) presents four scenarios concerning the development of energy consumption in the traffic sector for the period 1990 - 2035. The four scenarios - status quo, increased co-operation between the state and the economy with various energy levies, global reduction of energy consumption and, finally, scenario IV 'on the way to a 2000-Watt Society' - are briefly described. The areas examined include road, rail and air traffic as well as 'off-road' traffic. Infrastructure developments are commented on. The four scenarios are examined for various sensitivities including high gross domestic product GDP, high prices and warmer climate. Alternative fuels are looked at, as are further factors such as fuel tourism, pollutant emissions and costs. The results of the sensitivity analyses are compared and discussed and the necessary instruments are examined. This comprehensive report is completed with a comprehensive appendix

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. ...

Reimbursement, system prices, profits. To stand or to fall; Einspeiseverguetung, Systempreise und Renditen

Energy Technology Data Exchange (ETDEWEB)

Fuhs, Michael

2012-07-01

It is difficult to forecast the perspectives of photovoltaic conversion in Germany for 2012 as the energy-political boundary conditions are quite uncertain. Two different scenarios are possible, but both of them are difficult. The contribution presents reimbursement rates, system prices, and profits.

Influence of different technologies on dynamic pricing in district heating systems: Comparative case studies

DEFF Research Database (Denmark)

Dominkovic, Dominik Franjo; Wahlroos, Mikko; Syri, Sanna

2018-01-01

District heating markets are often dominated by monopolies in both Denmark and Finland. The same companies, often owned by local municipalities, are usually operating both supplying plants and district heating networks, while the pricing mechanisms are rigid, often agreed upon for one year...... in advance. The mentioned ownership scheme may cause problems, when one tries to gain a third party access in order to deliver excess heat or heat from cheaper heating plants. In this paper, two case studies were carried out to simulate the district heating systems based on dynamic pricing. Case studies were...... carried out for Sønderborg, Denmark and Espoo, Finland. The results showed that dynamic pricing fosters feeding the waste heat into the grid, as dynamic pricing reduced the total primary energy consumption and CO2 emissions in both case studies. In the best scenarios, the weighted average heat price...

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. ...

Hydrological scenarios of future seasonal runoff distribution in Central Slovakia

International Nuclear Information System (INIS)

Hlavcova, K; Szolgay, J; Kohnova, S; Balint, G

2008-01-01

The hydrological scenarios of future seasonal distributions of runoff in the upper Hron River basin, which was chosen as a representative mountainous region in Central Slovakia, were evaluated. Changes in the future climate were expressed by three different climate change scenarios developed within the framework of the Central and Eastern Europe Climate Change Impact and Vulnerability Assessment Project (CECILIA). The climate change scenarios were constructed using the pattern scaling method from the outputs of transient simulations made by 3 GCMs - ECHAM4/OPYC3, HadCM2 and NCAR DOE-PCM. A conceptual hydrological balance model calibrated with data from the period 1971-2000 was used for modelling changes in runoff with monthly time steps. The runoff change scenarios for the selected basin in the future time horizons of 2025, 2050 and 2100 show changes in the seasonal runoff distribution.

Effects of long-term price increases for oil

International Nuclear Information System (INIS)

Voehringer, F.; Mueller, A.; Boehringer, C.

2007-03-01

This comprehensive report for the Swiss Federal Office of Energy (SFOE) takes a look at the effects of higher oil prices in the long-term. Scenarios examined include those with high oil prices of 80 to 140 dollars per barrel and those with drastic shortages resulting from peak extraction in the years 2010 and 2020. Long-term economic balances form the basis of the report, short-term influences and psychological effects are not addressed. The possible dangers for the earth's climate caused by the substitution of oil by coal-based products are discussed, as well as the sequestration of carbon dioxide. Ethanol and the associated conflicts of land use are examined and the decreasing cost-effectiveness of co-generation power generation is looked at. Alternatives such as atomic power, hydropower, solar energy, geothermal energy, biogas and wind power are discussed. The effect of the changing energy scene on economic growth and welfare aspects in Switzerland are examined. The authors conclude that high oil prices have considerable impacts on the economy and are not a substitute for an internationally co-ordinated climate policy

Key factors affecting the deployment of electricity generation technologies in energy technology scenarios

International Nuclear Information System (INIS)

Ruoss, F.; Turton, H.; Hirschberg, S.

2009-12-01

This report presents the findings of a survey of key factors affecting the deployment of electricity generation technologies in selected energy scenarios. The assumptions and results of scenarios, and the different models used in their construction, are compared. Particular attention is given to technology assumptions, such as investment cost or capacity factors, and their impact on technology deployment. We conclude that the deployment of available technologies, i.e. their market shares, can only be explained from a holistic perspective, and that there are strong interactions between driving forces and competing technology options within a certain scenario. Already the design of a scenario analysis has important impacts on the deployment of technologies: the choice of the set of available technologies, the modeling approach and the definition of the storylines determine the outcome. Furthermore, the quantification of these storylines into input parameters and cost assumptions drives technology deployment, even though differences across the scenarios in cost assumptions are not observed to account for many of the observed differences in electricity technology deployment. The deployment can only be understood after a consideration of the interplay of technology options and the scale of technology deployment, which is determined by economic growth, end-use efficiency, and electrification. Some input parameters are of particular importance for certain technologies: CO 2 prices, fuel prices and the availability of carbon capture and storage appear to be crucial for the deployment of fossil-fueled power plants; maximum construction rates and safety concerns determine the market share of nuclear power; the availability of suitable sites represents the most important factor for electricity generation from hydro and wind power plants; and technology breakthroughs are needed for solar photovoltaics to become cost-competitive. Finally, this analysis concludes with a review

Key factors affecting the deployment of electricity generation technologies in energy technology scenarios

Energy Technology Data Exchange (ETDEWEB)

Ruoss, F.; Turton, H.; Hirschberg, S.

2009-12-15

This report presents the findings of a survey of key factors affecting the deployment of electricity generation technologies in selected energy scenarios. The assumptions and results of scenarios, and the different models used in their construction, are compared. Particular attention is given to technology assumptions, such as investment cost or capacity factors, and their impact on technology deployment. We conclude that the deployment of available technologies, i.e. their market shares, can only be explained from a holistic perspective, and that there are strong interactions between driving forces and competing technology options within a certain scenario. Already the design of a scenario analysis has important impacts on the deployment of technologies: the choice of the set of available technologies, the modeling approach and the definition of the storylines determine the outcome. Furthermore, the quantification of these storylines into input parameters and cost assumptions drives technology deployment, even though differences across the scenarios in cost assumptions are not observed to account for many of the observed differences in electricity technology deployment. The deployment can only be understood after a consideration of the interplay of technology options and the scale of technology deployment, which is determined by economic growth, end-use efficiency, and electrification. Some input parameters are of particular importance for certain technologies: CO{sub 2} prices, fuel prices and the availability of carbon capture and storage appear to be crucial for the deployment of fossil-fueled power plants; maximum construction rates and safety concerns determine the market share of nuclear power; the availability of suitable sites represents the most important factor for electricity generation from hydro and wind power plants; and technology breakthroughs are needed for solar photovoltaics to become cost-competitive. Finally, this analysis concludes with a

Energy consumption in industry, 1990 - 2035 - Scenarios I to IV for various sensitivities

International Nuclear Information System (INIS)

Baumgartner, W.; Ebert, O.; Weber, F.

2006-12-01

This comprehensive, illustrated report for the Swiss Federal Office of Energy (SFOE) takes a look at the results of a study with respect to industrial energy consumption which provided scenarios for future Swiss energy consumption. Four scenarios were elaborated: Continuation of present policy, increased co-operation between state and industry, more ambitious energy policy priorities and a scenario with even more ambitious goals - the so-called '2000 Watt Society'. For each of these scenarios several variants and a selection of sub-variants were defined, including increased prices, higher gross domestic product GDP, warmer climate and various carbon levies. The specific energy consumption of 16 different industrial sectors is examined and the effects of the various scenarios on several factors are considered. Data and results are presented in tabular and graphical form. Various measures that could influence energy consumption are listed and discussed, as are the modelling methods employed and the plausibility of the results obtained

The reference energy scenario of the DGEMP for 2030,there's many a slip twixt the cup and the lip; Le scenario energetique de reference de la DGEMP pour 2030, ou il y a loin de la coupe aux levres

Energy Technology Data Exchange (ETDEWEB)

Acket, C.; Nifenecker, H

2008-05-15

The authors discuss the energy reference scenario for 2030, proposed by the DGEMP. This scenario is published every 4 years. It represents the french energy situation in 2030, if no new energy policy was decided, in particularly no new measure from the Grenelle of the environment. The scenario supposes also no energy crisis in the fossil fuels supply and the fuels prices. In this topic, the objective of a contribution of 20% of renewable energies in the final energy consumption, seems possible. (A.L.B.)

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 ...

The effects of utility DSM programs on electricity costs and prices

Energy Technology Data Exchange (ETDEWEB)

Hirst, E.

1991-11-01

More and more US utilities are running more and larger demand-side management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. Should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios. In these cases, fossil-fuel prices, load growth, the amount of excess capacity the utility has in 1990, planned retirements of power plants, the financial treatment of DSM programs, and the costs of energy- efficient programs vary. These analyses are conducted for three utilities: a base'' that is typical of US utilities; a surplus'' utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a deficit'' utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes. 28 refs.

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration

International Nuclear Information System (INIS)

Joergensen, Claus; Ropenus, Stephanie

2008-01-01

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm 3 . The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration

Energy Technology Data Exchange (ETDEWEB)

Joergensen, Claus [Materials Research Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark); Ropenus, Stephanie [Systems Analysis Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark)

2008-10-15

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm{sup 3}. The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Production price of hydrogen from grid connected electrolysis in a power market with high wind penetration.

Energy Technology Data Exchange (ETDEWEB)

Joergensen, Claus [Materials Research Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark); Ropenus, Stephanie [Systems Analysis Department, Risoe National Laboratory for Sustainable Energy, Technical University of Denmark, P.O. Box 49, Frederiksborgvej 399, DK-4000 Roskilde (Denmark)

2008-10-15

In liberalized power markets, there are significant power price fluctuations due to independently varying changes in demand and supply, the latter being substantial in systems with high wind power penetration. In such systems, hydrogen production by grid connected electrolysis can be cost optimized by operating an electrolyzer part time. This paper presents a study on the minimization of the hydrogen production price and its dependence on estimated power price fluctuations. The calculation of power price fluctuations is based on a parameterization of existing data on wind power production, power consumption and power price evolution in the West Danish power market area. The price for hydrogen is derived as a function of the optimal electrolyzer operation hours per year for four different wind penetration scenarios. It is found to amount to 0.41-0.45 EUR/Nm{sup 3}. The study further discusses the hydrogen price sensitivity towards investment costs and the contribution from non-wind power sources. (author)

Climate change and peak demand for electricity: Evaluating policies for reducing peak demand under different climate change scenarios

Science.gov (United States)

Anthony, Abigail Walker

This research focuses on the relative advantages and disadvantages of using price-based and quantity-based controls for electricity markets. It also presents a detailed analysis of one specific approach to quantity based controls: the SmartAC program implemented in Stockton, California. Finally, the research forecasts electricity demand under various climate scenarios, and estimates potential cost savings that could result from a direct quantity control program over the next 50 years in each scenario. The traditional approach to dealing with the problem of peak demand for electricity is to invest in a large stock of excess capital that is rarely used, thereby greatly increasing production costs. Because this approach has proved so expensive, there has been a focus on identifying alternative approaches for dealing with peak demand problems. This research focuses on two approaches: price based approaches, such as real time pricing, and quantity based approaches, whereby the utility directly controls at least some elements of electricity used by consumers. This research suggests that well-designed policies for reducing peak demand might include both price and quantity controls. In theory, sufficiently high peak prices occurring during periods of peak demand and/or low supply can cause the quantity of electricity demanded to decline until demand is in balance with system capacity, potentially reducing the total amount of generation capacity needed to meet demand and helping meet electricity demand at the lowest cost. However, consumers need to be well informed about real-time prices for the pricing strategy to work as well as theory suggests. While this might be an appropriate assumption for large industrial and commercial users who have potentially large economic incentives, there is not yet enough research on whether households will fully understand and respond to real-time prices. Thus, while real-time pricing can be an effective tool for addressing the peak load

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...

NPP electrical price and tariff in the world

International Nuclear Information System (INIS)

Mochamad Nasrullah and Sriyana

2010-01-01

Construction of a Nuclear Power Plant (NPP) is always become a controversial issue. Nuclear utility and other party which support the NPP present a calculation of NPP electricity cost too optimistic. However for utility and other party that contra to nuclear present a calculation of NPP electricity cost too pessimistic. This study present to reduce the controversy of nuclear cost. In this study, capital cost (Engineering Procurement Construction, EPC) was taken from Asian, America and Europe, operating and maintenance cost uses experience data of PLN, and nuclear fuel cost uses data year of 2008 with high price, low price and average price scenario. The methodological tools used to compare electricity generation cost was LEGECOST, a program developed by IAEA (International Atomic Energy Agency), while for electricity tariff- price calculation using a program developed by PLN research and development center. With the discount rate 10%, the result shows that the cheapest electricity generation cost of NPP is less than 40 mills/kWh, and average electricity tariff was 55 mills/kWh. In the Europe countries the electricity tariff more expensive than NPP in Asia. However generating cost and electricity tariff of NPP in United Stated of America (USA) less competitive because investment cost more expensive. Generating cost and electricity tariff was different at each country depend on salary, labor wage, materials price, construction specification, regulation related to NPP and environment aspect. (author)

Extreme scenarios for nuclear waste repositories

Energy Technology Data Exchange (ETDEWEB)

Brown, M J [Harvard Univ., Cambridge, MA (USA). Div. of Applied Sciences; Crouch, E [Harvard Univ., Cambridge, MA (USA). Energy and Environmental Policy Center

1982-09-01

Two extreme scenarios for release of radioactive waste have been constructed. In the first, a volcanic eruption releases 1 km/sup 2/ of an underground nuclear waste repository, while in the second, waste enters the drinking water reservoir of a major city. With pessimistic assumptions, upper bounds on the number of cancers due to radiation are calculated. In the volcano scenario, the effects of the waste are smaller than the effects of natural radioactivity in the volcanic dust if the delay between emplacement and eruption exceeds 2000 yr. The consequences of the waste in drinking water depend on the survival time of the canisters and the rate of leaching of the nuclides from the waste matrix. For a canister life of 400 yr and a leach time of 6300 yr the cancer rate in the affected area would increase by 25%.

Extreme scenarios for nuclear waste repositories

Energy Technology Data Exchange (ETDEWEB)

Brown, M J; Crouch, E

1982-09-01

Two extreme scenarios for release of radioactive waste have been constructed. In the first, a volcanic eruption releases 1 km2 of an underground nuclear waste repository, while in the second, waste enters the drinking water reservoir of a major city. With pessimistic assumptions, upper bounds on the number of cancers due to radiation are calculated. In the volcano scenario, the effects of the water are smaller than the effects of natural radioactivity in the volcanic dust if the delay between emplacement and eruption exceeds 2000 yr. The consequences of the waste in drinking water depend on the survival time of the canisters and the rate of leaching of the nuclides from the waste matrix. For a canister life of 400 yr and a leach time of 6300 yr the cancer rate in the affected area would increase by 25%.

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...

The impact of peak oil on tourism in Spain: An input-output analysis of price, demand and economy-wide effects

NARCIS (Netherlands)

Logar, I.; van den Bergh, J.C.J.M.

2013-01-01

This article examines the potential effects of peak oil on Spanish tourism and indirectly on the rest of the economy. We construct several scenarios of price increases in oil, related fossil fuels and their inflationary effects. These scenarios provide the context for an input-output (I/O) analysis

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...

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.

Sensitivities and Tipping Points of Power System Operations to Fluctuations Caused by Water Availability and Fuel Prices

Science.gov (United States)

O'Connell, M.; Macknick, J.; Voisin, N.; Fu, T.

2017-12-01

The western US electric grid is highly dependent upon water resources for reliable operation. Hydropower and water-cooled thermoelectric technologies represent 67% of generating capacity in the western region of the US. While water resources provide a significant amount of generation and reliability for the grid, these same resources can represent vulnerabilities during times of drought or low flow conditions. A lack of water affects water-dependent technologies and can result in more expensive generators needing to run in order to meet electric grid demand, resulting in higher electricity prices and a higher cost to operate the grid. A companion study assesses the impact of changes in water availability and air temperatures on power operations by directly derating hydro and thermo-electric generators. In this study we assess the sensitivities and tipping points of water availability compared with higher fuel prices in electricity sector operations. We evaluate the impacts of varying electricity prices by modifying fuel prices for coal and natural gas. We then analyze the difference in simulation results between changes in fuel prices in combination with water availability and air temperature variability. We simulate three fuel price scenarios for a 2010 baseline scenario along with 100 historical and future hydro-climate conditions. We use the PLEXOS electricity production cost model to optimize power system dispatch and cost decisions under each combination of fuel price and water constraint. Some of the metrics evaluated are total production cost, generation type mix, emissions, transmission congestion, and reserve procurement. These metrics give insight to how strained the system is, how much flexibility it still has, and to what extent water resource availability or fuel prices drive changes in the electricity sector operations. This work will provide insights into current electricity operations as well as future cases of increased penetration of variable

Model checking coalitional games in shortage resource scenarios

Directory of Open Access Journals (Sweden)

Dario Della Monica

2013-07-01

Full Text Available Verification of multi-agents systems (MAS has been recently studied taking into account the need of expressing resource bounds. Several logics for specifying properties of MAS have been presented in quite a variety of scenarios with bounded resources. In this paper, we study a different formalism, called Priced Resource-Bounded Alternating-time Temporal Logic (PRBATL, whose main novelty consists in moving the notion of resources from a syntactic level (part of the formula to a semantic one (part of the model. This allows us to track the evolution of the resource availability along the computations and provides us with a formalisms capable to model a number of real-world scenarios. Two relevant aspects are the notion of global availability of the resources on the market, that are shared by the agents, and the notion of price of resources, depending on their availability. In a previous work of ours, an initial step towards this new formalism was introduced, along with an EXPTIME algorithm for the model checking problem. In this paper we better analyze the features of the proposed formalism, also in comparison with previous approaches. The main technical contribution is the proof of the EXPTIME-hardness of the the model checking problem for PRBATL, based on a reduction from the acceptance problem for Linearly-Bounded Alternating Turing Machines. In particular, since the problem has multiple parameters, we show two fixed-parameter reductions.

Analysis of ITER upper port plug remote handling maintenance scenarios

International Nuclear Information System (INIS)

Koning, J.F.; Baar, M.R. de; Elzendoorn, B.S.Q.; Heemskerk, C.J.M.; Ronden, D.M.S.; Schuth, W.J.

2012-01-01

Highlights: ► Remote Handling Study Centre: providing RH compatibility analysis. ► Simulation: virtual reality including kinematics and realtime physics simulator. ► Applied on analysis of RH compatibility of Upper Launcher component replacement. ► Resulting in lowered maintenance procedure time and lessons learned. - Abstract: The ITER tokamak has a modular design, with port plugs, blanket modules and divertor cassettes. This set-up allows for maintenance of diagnostics, heating systems and first wall elements. The maintenance can be done in situ, or in the Hot Cell. Safe and effective remote handling (RH) will be ensured by the RH requirements and standards. Compliance is verified through remote handling compatibility assessments at the ITER Design Review milestones. The Remote Handling Study Centre at FOM Institute DIFFER is created to study ITER RH maintenance processes at different levels of complexity, from relatively simple situational awareness checks using snap-shots in the CAD system, time studies using virtual reality (VR) animations, to extensive operational sequence validation with multiple operators in real-time. The multi-operator facility mimics an RH work-cell as presently foreseen in the ITER RH control room. Novel VR technology is used to create a realistic setting in which a team of RH operators can interact with virtual ITER environments. A physics engine is used to emulate real-time contact interaction as to provide realistic haptic feed-back. Complex interactions between the RH operators and the control room system software are tested. RH task performance is quantified and operational resource usage estimated. The article provides a description and lessons learned from a recent study on replacement of the Steering Mirror Assembly on the ECRH (Electron Cyclotron Resonance Heating) Upper Launcher port plug.

Analysis of ITER upper port plug remote handling maintenance scenarios

Energy Technology Data Exchange (ETDEWEB)

Koning, J.F., E-mail: j.f.koning@heemskerk-innovative.nl [FOM Institute DIFFER - Dutch Institute for Fundamental Energy Research, Association EURATOM-FOM, Partner in the Trilateral Euregio Cluster and ITER-NL, PO Box 1207, 3430 BE Nieuwegein (Netherlands); Baar, M.R. de; Elzendoorn, B.S.Q. [FOM Institute DIFFER - Dutch Institute for Fundamental Energy Research, Association EURATOM-FOM, Partner in the Trilateral Euregio Cluster and ITER-NL, PO Box 1207, 3430 BE Nieuwegein (Netherlands); Heemskerk, C.J.M. [Heemskerk Innovative Technology, Noordwijk (Netherlands); Ronden, D.M.S.; Schuth, W.J. [FOM Institute DIFFER - Dutch Institute for Fundamental Energy Research, Association EURATOM-FOM, Partner in the Trilateral Euregio Cluster and ITER-NL, PO Box 1207, 3430 BE Nieuwegein (Netherlands)

2012-08-15

Highlights: Black-Right-Pointing-Pointer Remote Handling Study Centre: providing RH compatibility analysis. Black-Right-Pointing-Pointer Simulation: virtual reality including kinematics and realtime physics simulator. Black-Right-Pointing-Pointer Applied on analysis of RH compatibility of Upper Launcher component replacement. Black-Right-Pointing-Pointer Resulting in lowered maintenance procedure time and lessons learned. - Abstract: The ITER tokamak has a modular design, with port plugs, blanket modules and divertor cassettes. This set-up allows for maintenance of diagnostics, heating systems and first wall elements. The maintenance can be done in situ, or in the Hot Cell. Safe and effective remote handling (RH) will be ensured by the RH requirements and standards. Compliance is verified through remote handling compatibility assessments at the ITER Design Review milestones. The Remote Handling Study Centre at FOM Institute DIFFER is created to study ITER RH maintenance processes at different levels of complexity, from relatively simple situational awareness checks using snap-shots in the CAD system, time studies using virtual reality (VR) animations, to extensive operational sequence validation with multiple operators in real-time. The multi-operator facility mimics an RH work-cell as presently foreseen in the ITER RH control room. Novel VR technology is used to create a realistic setting in which a team of RH operators can interact with virtual ITER environments. A physics engine is used to emulate real-time contact interaction as to provide realistic haptic feed-back. Complex interactions between the RH operators and the control room system software are tested. RH task performance is quantified and operational resource usage estimated. The article provides a description and lessons learned from a recent study on replacement of the Steering Mirror Assembly on the ECRH (Electron Cyclotron Resonance Heating) Upper Launcher port plug.

Power sector scenarios for Thailand: An exploratory analysis 2002-2022

International Nuclear Information System (INIS)

Mulugetta, Yacob; Mantajit, Nathinee; Jackson, Tim

2007-01-01

Power sector scenarios for Thailand are constructed in this paper to represent the range of opportunities and constraints associated with divergent set of technical and policy options. They include Business-As-Usual (BAU), No-New-Coal (NNC), and Green Futures (GF) scenarios over a 20-year period (2002-2022). The results from the BAU scenario show that fossil fuels will continue to dominate electricity generation in Thailand during the study period. Similar results are obtained for the NNC option, although the dependence shifts from coal and oil towards natural gas-based power generation. This may represent a better environmental pathway but an all out shift from coal to natural gas is likely to increase Thailand's dependence on imported fuel, making it more vulnerable to unstable global oil and gas prices. The GF scenario offers a more optimistic route that allows the country to confront its energy security dilemma whilst fulfilling its environmental commitments by giving renewable energy technologies a prominent place in the country's power generation mix. Over the study period, our result showed little difference between the three scenarios in terms of financing new generation plants despite an early misgiving about the viability of an ambitious renewable energy programme. This paper also goes beyond the financial evaluation of each scenario to provide a comparison of the scenarios in terms of their greenhouse gas emissions together with the comparative costs of emissions reductions. Indeed, if such externalities are taken into account to determine 'viability', the GF scenario represents an attractive way forward for the Thai power sector

Economic and financial viability of small-scale dairy systems in central Mexico: economic scenario 2010-2018.

Science.gov (United States)

Posadas-Domínguez, R R; Callejas-Juárez, N; Arriaga-Jordán, C M; Martínez-Castañeda, F E

2016-12-01

A simulation Monte Carlo model was used to assess the economic and financial viability of 130 small-scale dairy farms in central Mexico, through a Representative Small-Scale Dairy Farm. Net yields were calculated for a 9-year planning horizon by means of simulated values for the distribution of input and product prices taking 2010 as base year and considering four scenarios which were compared against the scenario of actual production. The other scenarios were (1) total hiring in of needed labour; (2) external purchase of 100 % of inputs and (3) withdrawal of subsidies to production. A stochastic modelling approach was followed to determine the scenario with the highest economic and financial viability. Results show a viable economic and financial situation for the real production scenario, as well as the scenarios for total hiring of labour and of withdrawal of subsidies, but the scenario when 100 % of feed inputs for the herd are bought-in was not viable.

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...

Multi-path transportation futures study : vehicle characterization and scenario analyses.

Energy Technology Data Exchange (ETDEWEB)

Plotkin, S. E.; Singh, M. K.; Energy Systems; TA Engineering; ORNL

2009-12-03

Projecting the future role of advanced drivetrains and fuels in the light vehicle market is inherently difficult, given the uncertainty (and likely volatility) of future oil prices, inadequate understanding of likely consumer response to new technologies, the relative infancy of several important new technologies with inevitable future changes in their performance and costs, and the importance - and uncertainty - of future government marketplace interventions (e.g., new regulatory standards or vehicle purchase incentives). This Multi-Path Transportation Futures (MP) Study has attempted to improve our understanding of this future role by examining several scenarios of vehicle costs, fuel prices, government subsidies, and other key factors. These are projections, not forecasts, in that they try to answer a series of 'what if' questions without assigning probabilities to most of the basic assumptions.

Introduction to the mathematics of finance from risk management to options pricing

CERN Document Server

Roman, Steven

2004-01-01

The Mathematics of Finance has become a hot topic in applied mathematics ever since the discovery of the Black-Scholes option pricing formulas in 1973. Unfortunately, there are very few undergraduate textbooks in this area. This book is specifically written for upper division undergraduate or beginning graduate students in mathematics, finance or economics. With the exception of an optional chapter on the Capital Asset Pricing Model, the book concentrates on discrete derivative pricing models, culminating in a careful and complete derivation of the Black-Scholes option pricing formulas as a limiting case of the Cox-Ross-Rubinstein discrete model. The final chapter is devoted to American options. The mathematics is not watered down but is appropriate for the intended audience. No measure theory is used and only a small amount of linear algebra is required. All necessary probability theory is developed in several chapters throughout the book, on a "need-to-know" basis. No background in finance is required, sinc...

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.

Freight transport in 2010 : An exploration of future prices and quality of freight transport in three scenarios

NARCIS (Netherlands)

Runhaar, H.A.C.; Kuipers, Bart; Heijden, R.E.C.M. van der; Melody, W.H.

2001-01-01

Background Central to this report is the question what effects government policy can have on rates, transit times, and the reliability of freight transport. In this context, two policy scenarios were examined: one scenario where all social costs that are currently ‘external’, are passed on to

A fresh look into the interacting dark matter scenario

Science.gov (United States)

Escudero, Miguel; Lopez-Honorez, Laura; Mena, Olga; Palomares-Ruiz, Sergio; Villanueva-Domingo, Pablo

2018-06-01

The elastic scattering between dark matter particles and radiation represents an attractive possibility to solve a number of discrepancies between observations and standard cold dark matter predictions, as the induced collisional damping would imply a suppression of small-scale structures. We consider this scenario and confront it with measurements of the ionization history of the Universe at several redshifts and with recent estimates of the counts of Milky Way satellite galaxies. We derive a conservative upper bound on the dark matter-photon elastic scattering cross section of σγ DM non-cold dark matter candidates, such as interacting and warm dark matter scenarios. Let us emphasize that bounds of similar magnitude to the ones obtained here could be also derived for models with dark matter-neutrino interactions and would be as constraining as the tightest limits on such scenarios.

The Optimal Price Ratio of Typical Energy Sources in Beijing Based on the Computable General Equilibrium Model

Directory of Open Access Journals (Sweden)

Yongxiu He

2014-04-01

Full Text Available In Beijing, China, the rational consumption of energy is affected by the insufficient linkage mechanism of the energy pricing system, the unreasonable price ratio and other issues. This paper combines the characteristics of Beijing’s energy market, putting forward the society-economy equilibrium indicator R maximization taking into consideration the mitigation cost to determine a reasonable price ratio range. Based on the computable general equilibrium (CGE model, and dividing four kinds of energy sources into three groups, the impact of price fluctuations of electricity and natural gas on the Gross Domestic Product (GDP, Consumer Price Index (CPI, energy consumption and CO2 and SO2 emissions can be simulated for various scenarios. On this basis, the integrated effects of electricity and natural gas price shocks on the Beijing economy and environment can be calculated. The results show that relative to the coal prices, the electricity and natural gas prices in Beijing are currently below reasonable levels; the solution to these unreasonable energy price ratios should begin by improving the energy pricing mechanism, through means such as the establishment of a sound dynamic adjustment mechanism between regulated prices and market prices. This provides a new idea for exploring the rationality of energy price ratios in imperfect competitive energy markets.

Quantifying the effects of oil shocks on long-term public debt: A review of empirical data and a scenario analysis of future projections

Science.gov (United States)

McMichael, Jillian Taylor

Various authors have shown that each oil shock in the past 40 years has had statistically significant impacts on subsequent macroeconomic activity in the United States. Through these economic effects, oil shocks affect Federal revenues and expenditures and hence public debt. Published Federal budget scenarios do not currently reflect these impacts of oil shocks. I synthesize, in this paper, literature quantifying the impact of oil price increases on GDP growth and use that information to modify current long-term Federal budget models to present scenarios of how oil shocks are likely to affect long-term Federal debt. I argue that modeling the impact of oil price increases on long-term public debt could inform public policies, particularly those relating to Federal investments in energy conservation. Key Words: crude oil, oil shock, oil price spike, oil shock, Federal debt, debt projections, Congressional Budget Office

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.

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...

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...

Improved Lower Bounds on the Price of Stability of Undirected Network Design Games

Science.gov (United States)

Bilò, Vittorio; Caragiannis, Ioannis; Fanelli, Angelo; Monaco, Gianpiero

Bounding the price of stability of undirected network design games with fair cost allocation is a challenging open problem in the Algorithmic Game Theory research agenda. Even though the generalization of such games in directed networks is well understood in terms of the price of stability (it is exactly H n , the n-th harmonic number, for games with n players), far less is known for network design games in undirected networks. The upper bound carries over to this case as well while the best known lower bound is 42/23 ≈ 1.826. For more restricted but interesting variants of such games such as broadcast and multicast games, sublogarithmic upper bounds are known while the best known lower bound is 12/7 ≈ 1.714. In the current paper, we improve the lower bounds as follows. We break the psychological barrier of 2 by showing that the price of stability of undirected network design games is at least 348/155 ≈ 2.245. Our proof uses a recursive construction of a network design game with a simple gadget as the main building block. For broadcast and multicast games, we present new lower bounds of 20/11 ≈ 1.818 and 1.862, respectively.

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.

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.

Global economic-biophysical assessment of midterm scenarios for agricultural markets—biofuel policies, dietary patterns, cropland expansion, and productivity growth

Science.gov (United States)

Delzeit, Ruth; Klepper, Gernot; Zabel, Florian; Mauser, Wolfram

2018-02-01

Land-use decisions are made at the local level. They are influenced both by local factors and by global drivers and trends. These will most likely change over time e.g. due to political shocks, market developments or climate change. Hence, their influence should be taken into account when analysing and projecting local land-use decisions. We provide a set of mid-term scenarios of global drivers (until 2030) for use in regional and local studies on agriculture and land-use. In a participatory process, four important drivers are identified by experts from globally distributed regional studies: biofuel policies, increase in preferences for meat and dairy products in Asia, cropland expansion into uncultivated areas, and changes in agricultural productivity growth. Their impact on possible future developments of global and regional agricultural markets are analysed with a modelling framework consisting of a global computable general equilibrium model and a crop growth model. The business as usual (BAU) scenario causes production and prices of crops to rise over time. It also leads to a conversion of pasture land to cropland. Under different scenarios, global price changes range between -42 and +4% in 2030 compared to the BAU. An abolishment of biofuel targets does not significantly improve food security while an increased agricultural productivity and cropland expansion have a stronger impact on changes in food production and prices.

Crude oil prices : how high, how much harm?

International Nuclear Information System (INIS)

Levesque, M.; Alexander, C.

2002-01-01

This paper discussed the issue of crude oil prices and the economy. Crude oil prices are on the rise due to the recent events in the Middle East. In early April, West Texas Intermediate crude oil climbed to nearly US$28 a barrel. Most of the increase reflects the expectation of stronger world oil demand combined with supply constraints on the part of OPEC. Although there has been some concern expressed that rising oil prices may hinder economic recovery, the authors of this report do not see evidence that rising oil prices would throw economic recovery off course, arguing that the current spike will be short-lived. They stated that even under a worse-case scenario where prices remain inflated, there is little reason to fear for the health of the Canadian economy. OPEC is expected to increase its low production quotas in June. In addition, non-OPEC nations (Russia in particular) are expected to increase oil production in the coming months. The authors also indicated that it is unlikely that conflict in the West Bank will disrupt oil supply because Israel is not an oil-exporting nation. However, oil supply could be affected if other Arab nations were drawn into the issue. It was also noted that military action against Iraq would increase oil prices, possibly as high as US$40 a barrel, but the full extent of this hike in price will probably be unsustainable. In addition, the authors emphasized that the increase in energy costs would not be enough to seriously jeopardize the economic recovery in the United States. As for Canada, it is estimated that a US$10 per barrel increase in crude oil prices would have a small, but positive impact on Canadian GDP because in contrast to the United States, Canada produces much more energy than it consumers. In 2001, Canada ran a trade surplus of $2.8 billion. The report ended by stating that although higher oil prices could add a full percentage point to headline inflation by the end of the year, core inflation is likely to remain

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

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...

Are electricity prices affected by the US dollar to Euro exchange rate? The Spanish case

International Nuclear Information System (INIS)

Munoz, M. Pilar; Dickey, David A.

2009-01-01

The objective of this paper is to investigate the relationships between Spanish electricity spot prices and the US dollar/Euro (USD/Euro) exchange rate during the period 2005-2007, taking into account the study of the association between dollar and oil prices, in order to better understand the evolution of the former over time. The first finding in this study is that Spanish electricity spots prices, the USD/Euro exchange rate and oil prices are cointegrated; therefore there is a long-run equilibrium relationship between the three variables. Short-run relationships have been detected between oil prices and Spanish electricity prices and USD/Euro exchange rate in the sense that Spanish electricity prices and USD/Euro exchange rate are affected by oil prices in the short run. There is a transmission of volatility between USD/Euro exchange rate and oil prices to Spanish electricity prices; so although Spanish electricity prices are not affected in level by the movements of USD/Euro exchange rate, they are in volatility. In this kind of scenario the conclusions confirm that for countries so dependent on external causes as Spain, one possible solution for guarantying the energy security would be the promotion of the renewable energies. Therefore we cannot ignore the impact in the internal expenses of the cost of installation and generation of green energies so there must be a balance between the increase in renewables and the reasonable market price of the electricity. (author)

The impact of house price index specification levels on the risk profile of housing corporations

NARCIS (Netherlands)

Kramer, B.; Kuijl, T.; Francke, M.

2009-01-01

Asset Liability Management (ALM) for housing corporations is based on stochastic scenario models for important risk and return drivers such as interest and inflation rates, construction costs and sales prices of houses. Given the situation of the housing corporation (current real estate portfolio,

Pricing of contract options for electric power; Precificacao de contrato de opcoes de energia eletrica

Energy Technology Data Exchange (ETDEWEB)

Takahashi, Leticia; Gunn, Laura Keiko; Correia, Paulo B. [Universidade Estadual de Campinas (FEM/UNICAMP), SP (Brazil). Fac. de Engenharia Mecanica. Dept. de Energia

2008-07-01

The reorganization of the electric sector has improved the opportunity of energy trade through contracts, which have to be considered on the risk evaluation for generating companies. Different types of contracts have been used in electric energy commercialization. This work develops a model for option contract pricing. The classic model of options pricing used in the financial market is based in Black- Scholes. Due to the inherent feature of the Brazilian electrical system, with a strong predominance of hydroelectricity, the seasonal swing of the electricity price is the main source of contractual risk. So, the Black-Scholes model very is not adjusted. To deal with the uncertainties, this work uses an approach based on analysis of scenarios and binomial trees. Case studies are analyzed with binomial tree to calculate the price of the option contract. (author)

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.

Battery prices and capacity sensitivity: Electric drive vehicles

DEFF Research Database (Denmark)

Juul, Nina

2012-01-01

, the prices at which the electric drive vehicles become of interest to the power system are found. Smart charge, including the opportunity to discharge (vehicle-to-grid) is used in all scenarios. Analyses show that the marginal benefits decrease the larger the battery. For very high battery prices, large......The increase in fluctuating power production requires an increase in flexibility in the system as well. Flexibility can be found in generation technologies with fast response times or in storage options. In the transport sector, the proportion of electric drive vehicles is expected to increase over...... the next decade or two. These vehicles can provide some of the flexibility needed in the power system, in terms of both flexible demand and electricity storage. However, what are the batteries worth to the power system? And does the value depend on battery capacity? This article presents an analysis...

The energy consumption of the services and farming sectors 1990 - 2035 - Results of scenarios I - IV

International Nuclear Information System (INIS)

Aebischer, B.; Catenazzi, G.

2007-01-01

This comprehensive report for the Swiss Federal Office of Energy (SFOE) presents four scenarios concerning the development of energy consumption in the services sector and for farming for the period 1990 - 2035. The four scenarios - status quo, increased co-operation between the state and the economy with various levies, global reduction of energy consumption and, finally, scenario IV 'on the way to a 2000-Watt Society' - are briefly described. In particular, the scenarios are examined for various sensitivities: high gross domestic product GDP, CO 2 levy, high prices and warmer climate. The models and methods used are examined and examples of their use are quoted. The results of the sensitivity analyses are compared and discussed and the necessary instruments are examined. This comprehensive report contains a large number of data-tables and graphical representations

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)

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

Directory of Open Access Journals (Sweden)

Zhichao Zhang

2018-01-01

Full Text Available Remanufacturing of returned products has been increasingly recognized in industries as an effective approach to face environmental responsibility, government regulations, and increased awareness of consumers. In this paper, we address a closed-loop supply chain (CLSC in which the manufacturer produces the brand-new products, as well as the remanufactured goods while the retailer sells these products to customers. We consider several different scenarios: the manufacturer and the retailer adopt a steady-state price or a dynamic price with reference quality effects in a centralized case; either, neither or both the manufacturer and the retailer price dynamically with reference quality effects, respectively, in a decentralized model. We solve the problem with the retailer recycling the sold copies and deduce the optimal pricing strategies while the manufacturer in charge of recovering the used items in such a CLSC. The result shows that dynamic pricing strategies are much more profitable for the supply chain and its members when compared with pricing statically; the dynamic pricing strategies with time-varying quality characterized by reference quality are more suited to a long-term and cooperative closed-loop supply chain. Moreover, the optimal recycling fraction relies on the recovery cost coefficient and proves to be uniform despite adopting a dynamic price and quality in all distinct cases.

Opening the gas market - Effects on energy consumption, energy prices and the environment and compensation measures

International Nuclear Information System (INIS)

Dettli, R.; Signer, B.; Kaufmann, Y.

2001-01-01

This final report for the Swiss Federal Office of Energy (SFOE) examines the effects of a future liberalisation of the gas market in Switzerland. The report first examines the current situation of the gas supply industry in Switzerland. The contents of European Union Guidelines are described and their implementation in Switzerland is discussed. Experience already gained in other countries is looked at, including market opening already implemented in the USA and Great Britain. The effect of market-opening on gas prices is discussed; the various components of the gas price are examined and comparisons are made with international figures. The pressure of competition on the individual sectors of the gas industry are looked at and the perspectives in the gas purchasing market are examined. The report presents basic scenarios developed from these considerations. Further effects resulting from a market opening are discussed, including those on the structure of the gas industry, its participants, electricity generation, energy use and the environment, consumers in general, security of supply and the national economy. Possible compensatory measures are discussed and factors for increasing efficiency and the promotion of a competitive environment are discussed. In the appendix, two price scenarios are presented

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.

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.

Upper bounds for Neyman-Pearson cooperative spectrum sensing

KAUST Repository

Zahabi, Sayed Jalal; Tadaion, Ali Akbar; Aissa, Sonia

2011-01-01

We consider a cooperative spectrum sensing scenario where the local sensors at the secondary users are viewed as one-level quantizers, and the quantized data are to be fused under Neyman-Pearson (N-P) criterion. We demonstrate how the N-P fusion results in a randomized test, which represents the total performance of our spectrum sensing scheme. We further introduce an upper performance bound for the overall primary user signal detection. An analytical procedure towards the upper bound and its relevant quantization setup at the local sensors are proposed and examined through simulations. © 2011 IEEE.

Upper bounds for Neyman-Pearson cooperative spectrum sensing

KAUST Repository

Zahabi, Sayed Jalal

2011-06-01

We consider a cooperative spectrum sensing scenario where the local sensors at the secondary users are viewed as one-level quantizers, and the quantized data are to be fused under Neyman-Pearson (N-P) criterion. We demonstrate how the N-P fusion results in a randomized test, which represents the total performance of our spectrum sensing scheme. We further introduce an upper performance bound for the overall primary user signal detection. An analytical procedure towards the upper bound and its relevant quantization setup at the local sensors are proposed and examined through simulations. © 2011 IEEE.

A scenario elicitation methodology to identify the drivers of electricity infrastructure cost in South America

Science.gov (United States)

Moksnes, Nandi; Taliotis, Constantinos; Broad, Oliver; de Moura, Gustavo; Howells, Mark

2017-04-01

Developing a set of scenarios to assess a proposed policy or future development pathways requires a certain level of information, as well as establishing the socio-economic context. As the future is difficult to predict, great care in defining the selected scenarios is needed. Even so it can be difficult to assess if the selected scenario is covering the possible solution space. Instead, this paper's methodology develops a large set of scenarios (324) in OSeMOSYS using the SAMBA 2.0 (South America Model Base) model to assess long-term electricity supply scenarios and applies a scenario-discovery statistical data mining algorithm, Patient Rule Induction Method (PRIM). By creating a multidimensional space, regions related to high and low cost can be identified as well as their key driver. The six key drivers are defined a priori in three (high, medium, low) or two levers (high, low): 1) Demand projected from GDP, population, urbanization and transport, 2) Fossil fuel price, 3) Climate change impact on hydropower, 4) Renewable technology learning rate, 5) Discount rate, 6) CO2 emission targets.

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...

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

Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources - A comparison of marginal pricing and pay-as-bid

International Nuclear Information System (INIS)

Nielsen, Steffen; Sorknaes, Peter; Ostergaard, Poul Alberg

2011-01-01

The long-term goal for Danish energy policy is to be free of fossil fuels through the increasing use of renewable energy sources (RES) including fluctuating renewable electricity (FRE). The Danish electricity market is part of the Nordic power exchange, which uses a Marginal Price auction system (MPS) for the day-ahead auctions. The market price is thus equal to the bidding price of the most expensive auction winning unit. In the MPS, the FRE bid at prices of or close to zero resulting in reduced market prices during hours of FRE production. In turn, this reduces the FRE sources' income from market sales. As more FRE is implemented, this effect will only become greater, thereby reducing the income for FRE producers. Other auction settings could potentially help to reduce this problem. One candidate is the pay-as-bid auction setting (PAB), where winning units are paid their own bidding price. This article investigates the two auction settings, to find whether a change of auction setting would provide a more suitable frame for large shares of FRE. This has been done with two energy system scenarios with different shares of FRE. From the analysis, it is found that MPS is generally better for the FRE sources. The result is, however, very sensitive to the base assumptions used for the calculations. -- Highlights: → In this study two different auction settings for the Danish electricity market are compared. → Two scenarios are used in the analyses, one representing the present system and one representing a future 100% renewable energy system. → We find that marginal price auction system is most suitable for supporting fluctuating renewable energy in both scenarios. → The results are very sensitive to the assumptions about bidding prices for each technology.

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)

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 ...

Water: The Only Factor Influencing the Price of Energy in the Spot Market?

Directory of Open Access Journals (Sweden)

Vinicius Mothé Maia

2016-04-01

Full Text Available The Brazilian electric energy generation system is based on its hydroelectric power plants, making the country dependent on proper rainfall and, thus, raising the possibility of energy stress situations, such as the energy-rationing scenario observed in the beginning of the century and the latest water crisis (2014. Moments of water scarcity are followed by an increase in energy prices, which affects the economy as whole. Therefore, it is relevant to understand which factors in the Brazilian Electric System affect the energy price and the individual importance of each. This paper aimed to analyze which the key variables influencing the energy price in the spot market are by using official data from the National Electric System Operator. The used data was from the period July/2001 to July/2014, which was employed in a multiple regression methodology along with time series. The results suggest an inverse relationship between the natural flow of rivers (directly related to rainfall and the energy price. Moreover, they also point to an inverse relationship between the potential energy stored in reservoirs as water and the energy price.

Agriculture energy prospective by 2030: scenarios and action patterns

International Nuclear Information System (INIS)

2010-01-01

This paper presents and comments the main results of a work-group focused on the evolution of agriculture in France in relationship with the new energetic context. Four scenarios have been defined, corresponding to different energetic, but also social, political and economic contexts by 2030. The first one corresponds to a severe energy crisis with an emergence of regional governance. The second one corresponds to a high volatility of energy prices, an increased easing of restrictions on trade, and a decrease of public supports and subsidies for agriculture. The third one corresponds to a strong reduction of the use of phyto-sanitary products in agriculture, a continuous urban sprawl, and the prevalence of road transport. The fourth one corresponds to agriculture respectful of the environment and a good management of energy consumption. Direct and indirect energy consumptions are assessed for the four scenarios. Some general and operational objectives are thus identified

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,…

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.

Upper Limit for Regional Sea Level Projections

Science.gov (United States)

Jevrejeva, Svetlana; Jackson, Luke; Riva, Riccardo; Grinsted, Aslak; Moore, John

2016-04-01

With more than 150 million people living within 1 m of high tide future sea level rise is one of the most damaging aspects of warming climate. The latest Intergovernmental Panel on Climate Change report (AR5 IPCC) noted that a 0.5 m rise in mean sea level will result in a dramatic increase the frequency of high water extremes - by an order of magnitude, or more in some regions. Thus the flood threat to the rapidly growing urban populations and associated infrastructure in coastal areas are major concerns for society. Hence, impact assessment, risk management, adaptation strategy and long-term decision making in coastal areas depend on projections of mean sea level and crucially its low probability, high impact, upper range. With probabilistic approach we produce regional sea level projections taking into account large uncertainties associated with Greenland and Antarctica ice sheets contribution. We calculate the upper limit (as 95%) for regional sea level projections by 2100 with RCP8.5 scenario, suggesting that for the most coastlines upper limit will exceed the global upper limit of 1.8 m.

On maximizing profit of wind-battery supported power station based on wind power and energy price forecasting

DEFF Research Database (Denmark)

Khalid, Muhammad; Aguilera, Ricardo P.; Savkin, Andrey V.

2017-01-01

This paper proposes a framework to develop an optimal power dispatch strategy for grid-connected wind power plants containing a Battery Energy Storage System (BESS). Considering the intermittent nature of wind power and rapidly varying electricity market price, short-term forecasting...... Dynamic Programming tool which can incorporate the predictions of both wind power and market price simultaneously as inputs in a receding horizon approach. The proposed strategy is validated using real electricity market price and wind power data in different scenarios of BESS power and capacity...... of these variables is used for efficient energy management. The predicted variability trends in market price assist in earning additional income which subsequently increase the operational profit. Then on the basis of income improvement, optimal capacity of the BESS can be determined. The proposed framework utilizes...

PRICING STRATEGY FOR QUASI-PUBLIC FOREST TOURISM PARK Case Study in Gunung Pancar Forest Tourism Park, Bogor Indonesia

Directory of Open Access Journals (Sweden)

Ricky Avenzora

2016-10-01

Full Text Available The dynamic of 3-parties conflict of interests (investor, local people and government in having actual income from the nature tourism park business in Indonesia became worse since a “very  progressive” Government Regulation on Forestry Related Services Tariff (so called PP 12/2014 was issued.  On one hand, everybody agrees to improve the 17 years old tariff regulation of PP 59/1998. On the other hand, the “unclear reason” of the new tariffs in PP 12/2014 has shocked many parties and created many difficulties while implemented. This paper studies visitors’ expenditures and their willingness to pay (WTP for every recreation services scenario by using contingent valuation method (CVM survey with open-ended eliciting questionnaire instrument. Regarding the characteristic of Gunung Pancar Forest Tourism Park (GPFTP the method was used to justify a reasonable and eligible ticket pricing strategy at the GPFTP as a quasi-public recreation park. The survey has also specifically addressed the reasonable ticket-price that aligns with the financial assumption of investor's business plan and local people's economic activities. Results of the survey  show that the continuum of visitors’ WTP is ranging from 3.4 times (as the response to scenario-1 up to 12.7 times (as the response to scenario-5 of the recent ticket price. The WTP of scenario-2, 3 and 4 are ranging from 4.7, 6.2 and 7.5 times, respectively. Furthermore, the results of Tobit Regression Analysis show that seven important variables are positively correlated, while six variables are negatively correlated with the WTP.

What to think about the shortage of oil resources and of the evolution of crude oil price?

International Nuclear Information System (INIS)

Babusiaux, Denis; Bauquis, Pierre-Rene

2007-09-01

Produced by the 'Oil' work-group of the French Academy of Technologies, this report first proposes a synthesis of different points of view (optimistic, pessimistic, public bodies) on the issue of oil reserves and of oil world peak production. A second part analyzes the mechanisms of oil pricing while highlighting the long term dimension, but without addressing the market short-term operation. The last part discusses various possible evolution scenarios for production and price profiles on a middle and on a long term

Pricing Mining Concessions Based on Combined Multinomial Pricing Model

Directory of Open Access Journals (Sweden)

Chang Xiao

2017-01-01

Full Text Available A combined multinomial pricing model is proposed for pricing mining concession in which the annualized volatility of the price of mineral products follows a multinomial distribution. First, a combined multinomial pricing model is proposed which consists of binomial pricing models calculated according to different volatility values. Second, a method is provided to calculate the annualized volatility and the distribution. Third, the value of convenience yields is calculated based on the relationship between the futures price and the spot price. The notion of convenience yields is used to adjust our model as well. Based on an empirical study of a Chinese copper mine concession, we verify that our model is easy to use and better than the model with constant volatility when considering the changing annualized volatility of the price of the mineral product.

Analytical pricing of geometric Asian power options on an underlying driven by a mixed fractional Brownian motion

Science.gov (United States)

Zhang, Wei-Guo; Li, Zhe; Liu, Yong-Jun

2018-01-01

In this paper, we study the pricing problem of the continuously monitored fixed and floating strike geometric Asian power options in a mixed fractional Brownian motion environment. First, we derive both closed-form solutions and mixed fractional partial differential equations for fixed and floating strike geometric Asian power options based on delta-hedging strategy and partial differential equation method. Second, we present the lower and upper bounds of the prices of fixed and floating strike geometric Asian power options under the assumption that both risk-free interest rate and volatility are interval numbers. Finally, numerical studies are performed to illustrate the performance of our proposed pricing model.

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%

Effects of SO2 emission regulations and fuel prices on levellized energy costs for industrial steam generation options

International Nuclear Information System (INIS)

Ozdogan, Sibel; Arikol, Mahir

1992-01-01

We discuss the impacts of SO 2 emission regulations and fuel prices on levellized energy costs of industrial steam generation options. A computer model called INDUSTEAM has been utilized. The steam-supply options comprise conventional grate-firing, bubbling and circulating fluidized beds, fuel-oil, and natural-gas-fired systems. Fuels of different SO 2 pollution potential have been evaluated assuming six environmental scenarios and varying fuel prices. A capacity range of 10-90 MW th is covered. (author)

Pricing Policies in Managing Water Resources in Agriculture: An Application of Contract Theory to Unmetered Water

Directory of Open Access Journals (Sweden)

Davide Viaggi

2013-09-01

Full Text Available The paper explores how agricultural water pricing could contribute to lowering water demand when uses are unobserved (asymmetric information. The topic of the paper is justified by the fact that most water authorities worldwide do not control water uses at the farm scale. The study draws inspiration from the pricing policies of a Reclamation and Irrigation Board in Northern Italy. It analyses the optimal design of current tariff strategies with respect both to the actual regulator’s goals and the cost recovery objective of an ideal regulator driven by European Water Framework Directive principles and having full information. The analysis is based on the logic of a Principal-Agent model implemented as a mathematical non-linear programming model. Given the current pricing structure and assuming zero transaction costs, the results show a relevant increase in net benefits for the ideal scenario with respect to the actual one as water use costs increase. Benefits differences between the two scenarios mark a limit in value below which mechanisms able to solve the existing asymmetries between the principal and the agents are economically desirable. The study concludes by showing that the current regulator’s discriminatory strategy (pricing structure would be better justified with higher levels of cost for water use. However, the existence of non-zero transaction costs related to the control of water uses points to the need for further research in order to analyze incentive mechanisms in the absence of water metering.

The blessings of energy efficiency in an enhanced EU sustainability scenario. Volume 1

International Nuclear Information System (INIS)

Lechtenboehmer, Stefan

2007-01-01

Although the anticipated 'end of cheap oil' has boosted the interest in energy efficiency as a cornerstone of energy and climate strategies, it is usually taken into account on the basis of rather narrowly defined cost-benefit considerations. As a consequence, substantial ancillary benefits are usually barely considered.In a recent study for the European Parliament (EP), the authors assessed two enhanced climate strategies compared to a more conventional strategy. One enhanced climate policy scenario relies, in particular, on raising the annual pace of energy efficiency improvement. The other aims at a radical boost of the market share of renewable energy forms, which, however, presupposes an equally radical improvement of energy efficiency.The present article presents the scenario results and places them in the context of risk characterisation of the considered climate policy scenarios. Risks of international turmoil and energy price hikes could be reduced if dependency rates for fossil fuel imports went down. A more ambitious climate policy can also strengthen the EU position in post-Kyoto global climate agreements and a moderated need for emission trading can, for example, reduce conflicting pressures on clean technology transfer. On the other hand, the implementation of the efficiency strategy will entail increased domestic risks because it will involve a re-prioritisation of resource allocation and will thus affect the current distribution of wealth in both the energy sector and some other closely related sectors.The article outlines the main drivers behind the ambitious energy efficiency scenario and it attaches tentative price tags to the ancillary effects, with special emphasis on the above sketched swapping of risks. It will, therefore, strongly argue for a more holistic view, which underscores the need for political action and the benefits of such proactive policies in favour of energy efficiency

Cost, price and profit: what influences students' decisions about fundraising?

Science.gov (United States)

Sawatzki, Carly; Goos, Merrilyn

2018-02-01

This article examines some of the complexities associated with developing financially literate, enterprising young Australians through school education. We aimed to explore what seems to influence students in pricing goods for sale within their school community. Data were collected from more than 300 years 5 and 6 students (10-12 years of age) in four government primary schools in urban Darwin. Students were asked to respond to problem contexts involving fundraising as an example of an enterprise activity. The findings reveal that familiarity with fundraising initiatives, personal values, and language and literacy skills shaped the responses students gave. Students who gave loss-making and break-even responses were price conscious, but also tended to confuse terminology influencing mathematisation—i.e., "cost", "price" and "profit". Students who gave profit-making responses applied reasoning that was mathematical, financial and entrepreneurial, giving explanations that distinguished between these terms. We argue that these insights contribute to our understanding how upper primary school students interpret and respond to financial problems, with useful implications for schools and teachers.

Economic assessment of solar and conventional biomass gasification technologies: Financial and policy implications under feedstock and product gas price uncertainty

International Nuclear Information System (INIS)

Nickerson, Thomas A.; Hathaway, Brandon J.; Smith, Timothy M.; Davidson, Jane H.

2015-01-01

Four configurations of a novel solar-heated biomass gasification facility and one configuration of conventional biomass gasification are analyzed through financial and policy scenarios. The purpose of this study is to determine the potential financial position for varying configurations of a novel technology, as compared to the current state-of-the-art gasification technology. Through the use of project finance and policy scenario development, we assess the baseline breakeven syngas price (normalized against natural gas prices and based upon annual feedstock consumption), the sensitivity of major cost components for the novel facilities, and the implications of policy levers on the economic feasibility of the solar facilities. Findings show that certain solar configurations may compete with conventional facilities on a straightforward economic basis. However, with renewable energy policy levers in place the solar technologies become increasingly attractive options. - Highlights: • We model four solar and one conventional biomass gasification systems. • We assess economic feasibility of these systems with and without policy incentives. • Solar facilities compete with the conventional system in certain scenarios. • Feedstock costs are the largest contributor to system cost sensitivity. • Policy incentives create an economically favorable scenario for solar facilities

Optimal hydro scheduling and offering strategies considering price uncertainty and risk management

International Nuclear Information System (INIS)

Catalão, J.P.S.; Pousinho, H.M.I.; Contreras, J.

2012-01-01

Hydro energy represents a priority in the energy policy of Portugal, with the aim of decreasing the dependence on fossil fuels. In this context, optimal hydro scheduling acquires added significance in moving towards a sustainable environment. A mixed-integer nonlinear programming approach is considered to enable optimal hydro scheduling for the short-term time horizon, including the effect of head on power production, start-up costs related to the units, multiple regions of operation, and constraints on discharge variation. As new contributions to the field, market uncertainty is introduced in the model via price scenarios and risk management is included using Conditional Value-at-Risk to limit profit volatility. Moreover, plant scheduling and pool offering by the hydro power producer are simultaneously considered to solve a realistic cascaded hydro system. -- Highlights: ► A mixed-integer nonlinear programming approach is considered for optimal hydro scheduling. ► Market uncertainty is introduced in the model via price scenarios. ► Risk management is included using conditional value-at-risk. ► Plant scheduling and pool offering by the hydro power producer are simultaneously considered. ► A realistic cascaded hydro system is solved.

Techno-economic viability assessments of greener propulsion technology under potential environmental regulatory policy scenarios

International Nuclear Information System (INIS)

Nalianda, D.K.; Kyprianidis, K.G.; Sethi, V.; Singh, R.

2015-01-01

Highlights: • An advanced method is presented for techno-economic assessment under potential environmental regulatory policy scenarios. • The viability of the contra-rotating open rotor concept is investigated under various environmental policies. • CO_2 taxation is needed to drive the aerospace industry towards greener solutions. - Abstract: Sustainability of the aviation industry, as any other industry, depends on the elasticity of demand for the product and profitability through minimising operating costs. Of paramount importance is assessing and understanding the interdependency and effects of environmentally optimised solutions and emission mitigation policies. This paper describes the development and application of assessment methodologies to better understand the effects of environmental taxation/energy policies aimed at environmental pollution reduction and the future potential economic impact they may have on the adaptation of “greener” novel technologies. These studies are undertaken using a Techno-economic Environmental Risk Assessment approach. The methodology demonstrated allows the assessment of the economic viability of new technologies compared to conventional technologies, for various CO_2 emission taxation and fuel price scenarios. It considers relative increases in acquisition price and maintenance costs. A study undertaken as a ‘proof of concept’ compares a Counter Rotating Open Rotor aircraft with a conventional aircraft for short range operations. It indicates that at current fuel price and with no carbon taxation, a highly fuel efficient technology, such as the one considered, could be rendered economically unviable. The work goes on to demonstrate that in comparison to the conventional aircraft, any economic benefits that may be accrued from improvement in fuel consumption through such a technology, may well be negated through increases in acquisition price and maintenance costs. The work further demonstrates that if policy

Framing scenarios of electricity generation and gas use: EPRI report series on gas demands for power generation. Final report

International Nuclear Information System (INIS)

Thumb, S.; Glover, W.; Hughes, W.R.

1996-07-01

Results of three EPRI projects have been combined to analyze power industry consumption of gas and other generating fuels. The report's capstone is a scenario analysis of power industry generation and fuel consumption. The Utility Fuel Consumption Model (UFCM), developed for the project, predicts generating capacity and generation by region and fuel through 2015, based on load duration curves, generation dispatch, and expected capacity additions. Scenarios embody uncertain factors, such as electricity demand growth, fuel switching, coal-gas competition, the merit order of gas-coal dispatch, and retirement of nuclear units, that substantially affect gas consumption. Some factors, especially electricity demand have very large effects. The report includes a consistent database on NUG (non-utility generation) capacity and generation and assesses historical and prospective trends in NUG generation. The report shows that NUG capacity growth will soon decline substantially. The study assesses industry capability for price-induced fuel switching from gas to oil and coal, documenting conversions of coal units to dual coal-gas capability and determining that gas-to-oil switching remains a strong influence on fuel availability and gas prices, though regulation and taxation have increased trigger prices for switching. 61 tabs

Price fairness

OpenAIRE

Diller, Hermann

2013-01-01

Purpose – The purpose of this article is to integrate the various strands of fair price research into a concise conceptual model. Design/methodology/approach – The proposed price fairness model is based on a review of the fair pricing literature, incorporating research reported in not only English but also German. Findings – The proposed fair price model depicts seven components of a fair price: distributive fairness, consistent behaviour, personal respect and regard for the partner, fair dea...

Effect of oil price on Nigeria’s food price volatility

Directory of Open Access Journals (Sweden)

Ijeoma C. Nwoko

2016-12-01

Full Text Available This study examines the effect of oil price on the volatility of food price in Nigeria. It specifically considers the long-run, short-run, and causal relationship between these variables. Annual data on oil price and individual prices of maize, rice, sorghum, soya beans, and wheat spanning from 2000 to 2013 were used. The price volatility for each crop was obtained using Generalized Autoregressive Conditional Heteroskedascity (GARCH (1, 1 model. Our measure of oil price is the Refiner acquisition cost of imported crude oil. The Augmented Dickey–Fuller and Phillip–Perron unit root tests show that all the variables are integrated of order one, I (1. Therefore, we use the Johansen co-integration test to examine the long-run relationship. Our results show that there is no long-run relationship between oil price and any of the individual food price volatility. Thus, we implement a VAR instead of a VECM to investigate the short-run relationship. The VAR model result revealed a positive and significant short-run relationship between oil price and each of the selected food price volatility with exception of that of rice and wheat price volatility. These results were further confirmed by the impulse response functions. The Granger causality test result indicates a unidirectional causality from oil price to maize, soya bean, and sorghum price volatilities but does not show such relationship for rice and wheat price volatilities. We draw some policy implications of these findings.

Delivered Pricing, FOB Pricing, and Collusion in Spatial Markets

OpenAIRE

Maria Paz Espinosa

1992-01-01

This article examines price discrimination and collusion in spatial markets. The problem is analyzed in the context of a repeated duopoly game. I conclude that the prevailing pricing systems depend on the structural elements of the market. Delivered pricing systems emerge in equilibrium in highly monopolistic and highly competitive industries, while FOB is used in intermediate market structures. The fact driving this result is that delivered pricing policies allow spatial price discrimination...

Research on Urban Road Congestion Pricing Strategy Considering Carbon Dioxide Emissions

Directory of Open Access Journals (Sweden)

Yitian Wang

2015-08-01

Full Text Available Congestion pricing strategy has been recognized as an effective countermeasure in the practical field of urban traffic congestion mitigation. In this paper, a bi-level programming model considering carbon dioxide emission is proposed to mitigate traffic congestion and reduce carbon dioxide emissions. The objective function of the upper level model is to minimize the sum of travel costs and the carbon dioxide emissions costs. The lower level is a multi-modal transportation network equilibrium model. To solve the model, the method of successive averages (MSA and the shuffled frog leaping algorithm (SFLA are introduced. The proposed method and algorithm are tested through the numerical example. The results show that the proposed congestion pricing strategy can mitigate traffic congestion and reduce carbon emissions effectively.

Exploring the impact of co-varying water availability and energy price on productivity and profitability of Alpine hydropower

Science.gov (United States)

Anghileri, Daniela; Botter, Martina; Castelletti, Andrea; Burlando, Paolo

2016-04-01

Alpine hydropower systems are experiencing dramatic changes both from the point of view of hydrological conditions, e.g., water availability and frequency of extremes events, and of energy market conditions, e.g., partial or total liberalization of the market and increasing share of renewable power sources. Scientific literature has, so far, mostly focused on the analysis of climate change impacts and associated uncertainty on hydropower operation, underlooking the consequences that socio-economic changes, e.g., energy demand and/or price changes, can have on hydropower productivity and profitability. In this work, we analyse how hydropower reservoir operation is affected by changes in both water availability and energy price. We consider stochastically downscaled climate change scenarios of precipitation and temperature to simulate reservoir inflows using a physically explicit hydrological model. We consider different scenarios of energy demand and generation mix to simulate energy prices using an electricity market model, which includes different generation sources, demand sinks, and features of the transmission lines. We then use Multi-Objective optimization techniques to design the operation of hydropower reservoirs for different purposes, e.g. maximization of revenue and/or energy production. The objective of the work is to assess how the tradeoffs between the multiple operating objectives evolve under different co-varying climate change and socio-economic scenarios and to assess the adaptive capacity of the system. The modeling framework is tested on the real-world case study of the Mattmark reservoir in Switzerland.

Pricing and Trust

DEFF Research Database (Denmark)

Huck, Steffen; Ruchala, Gabriele K.; Tyran, Jean-Robert

-competitive (monopolistic) markets. We then introduce a regulated intermediate price above the oligopoly price and below the monopoly price. The effect in monopolies is more or less in line with standard intuition. As price falls volume increases and so does quality, such that overall efficiency is raised by 50%. However......We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and high prices coupled with low quality in non...

Breakeven prices for recording of indicator traits to reduce the environmental impact of milk production

DEFF Research Database (Denmark)

Axelsson, Helen Hansen; Thomasen, Jørn Rind; Sørensen, Anders Christian

2015-01-01

A breeding scheme using genomic selection and an indicator trait for environmental impact (EI) was studied to find the most effective recording strategy in terms of annual monetary genetic gain and breakeven price for the recording of indicator traits. The breakeven price shows the investment space......) or small scale (residual feed intake and total enteric methane measured in a respiration chamber). In the scenario with stayability, the genetic gain in EI was over 11% higher than it was in NoIT. The breakeven price of recording stayability was €8 per record. Stayability is easy to record in the national...... of the cow was used as indicator trait. The breakeven price for this indicator trait was €29 per record in the reference population. Ideally the recording of a specific indicator trait for EI would take place when: (i) the genetic correlation between the IT and EI is high; and (ii) the number of phenotypic...

Price elasticities, policy measures and actual developments in household energy consumption - A bottom up analysis for the Netherlands

International Nuclear Information System (INIS)

Boonekamp, Piet G.M.

2007-01-01

In the Netherlands it seems likely that the large number of new policy measures in the past decade has influenced the response of households to changing prices. To investigate this issue the energy trends in the period 1990-2000 have been simulated with a bottom-up model, applied earlier for scenario studies, and extensive data from surveys. For a number of alternative price cases the elasticity values found are explained using the bottom-up changes in energy trends. One finding is that the specific set of saving options defines for a great part the price response. The price effect has been analysed too in combination with the policy measures standards, subsidies and energy taxes. The simulation results indicate that the elasticity value could be 30-40% higher without these measures. (author)

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)

Energy prices and agricultural commodity prices: Testing correlation using copulas method

International Nuclear Information System (INIS)

Koirala, Krishna H.; Mishra, Ashok K.; D'Antoni, Jeremy M.; Mehlhorn, Joey E.

2015-01-01

The linear relationships between energy prices and prices for agricultural commodities such as corn and soybeans may have been affected, over the last several years, by policy legislations in the farm sector, the Energy Independence and Security Act of 2007, and the Renewable Fuel Standard Program for 2014. Using high-frequency data and newer methodology, this study investigates dependence between agricultural commodity futures prices and energy futures prices. Results reveal that agricultural commodity and energy future prices are highly correlated and exhibit positive and significant relationship. Findings from this study highlight that an increase in energy price increases the price of agricultural commodities. - Highlights: • Energy policy mandates production of 15 billion gallons of corn ethanol by 2015. • Energy-intensive agriculture has a link between energy sector and crop production costs. • We investigate correlation between energy prices and agricultural commodity prices. • Agricultural commodity and energy future prices are highly correlated. • Increase in energy price increases the price of agricultural commodity

Impact of European pharmaceutical price regulation on generic price competition: a review.

Science.gov (United States)

Puig-Junoy, Jaume

2010-01-01

Although economic theory indicates that it should not be necessary to intervene in the generic drug market through price regulation, most EU countries intervene in this market, both by regulating the maximum sale price of generics (price cap) and by setting the maximum reimbursement rate, especially by means of reference pricing systems. We analyse current knowledge of the impact of direct price-cap regulation of generic drugs and the implementation of systems regulating the reimbursement rate, particularly through reference pricing and similar tools, on dynamic price competition between generic competitors in Europe. A literature search was carried out in the EconLit and PubMed databases, and on Google Scholar. The search included papers published in English or Spanish between January 2000 and July 2009. Inclusion criteria included that studies had to present empirical results of a quantitative nature for EU countries of the impact of price capping and/or regulation of the reimbursement rate (reference pricing or similar systems) on price dynamics, corresponding to pharmacy sales, in the generic drug market. The available evidence indicates that price-cap regulation leads to a levelling off of generic prices at a higher level than would occur in the absence of this regulation. Reference pricing systems cause an obvious and almost compulsory reduction in the consumer price of all pharmaceuticals subject to this system, to a varying degree in different countries and periods, the reduction being greater for originator-branded drugs than for generics. In several countries with a reference pricing system, it was observed that generics with a consumer price lower than the reference price do not undergo price reductions until the reference price is reduced, even when there are other lower-priced generics on the market (absence of price competition below the reference price). Beyond the price reduction forced by the price-cap and/or reference pricing regulation itself

Optimal pricing of default customers in electrical distribution systems: Effect behavior performance of demand response models

International Nuclear Information System (INIS)

Yusta, J.M.; Khodr, H.M.; Urdaneta, A.J.

2007-01-01

The response of a non-linear mathematical model is analyzed for the calculation of the optimal prices for electricity assuming default customers under different scenarios and using five different mathematical functions for the consumer response: linear, hyperbolic, potential, logarithmic and exponential. The mathematical functions are defined to simulate the hourly changes in the consumer response according to the load level, the price of electricity, and also depending on the elasticity at every hour. The behavior of the optimization model is evaluated separately under two different objective functions: the profit of the electric utility and the social welfare. The optimal prices as well as the served load are calculated for two different operation schemes: in an hourly basis and also assuming a single constant price for the 24 h of the day. Results obtained by the optimization model are presented and compared for the five different consumer load functions. (author)

Analysis of cigarette demand in Argentina: the impact of price changes on consumption and government revenues

Directory of Open Access Journals (Sweden)

German Rodríguez-Iglesias

2017-01-01

Full Text Available Objective. To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Materials and methods. Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Results. Changes in real income and the real price of cigarettes affect the demand for cigarettes in Argentina. The long term price elasticity is 0.279 (a 10% increase in real prices reduces cigarette consumption by 2.79% per quarter and the long term income elasticity is 0.411 (a 10% increase in real income raises consumption by 4.11% per quarter. Even in a conservative scenario, imulations show that increasing the price of cigarettes by 100% using excise taxes would maximize revenues and reduce cigarette consumption. Conclusion. There is sufficient room to increase taxes, reducing cigarette consumption, while still increasing tax revenues.

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...

Assessment of OPEC's oil pricing policy from 1970 to 2000

International Nuclear Information System (INIS)

Kazim, A.

2007-01-01

The Organization of the Petroleum Exporting Countries (OPEC) is an international organization, composed of eleven developing countries that rely on oil revenues as their main source of income. The member countries include: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, United Arab Emirates, Saudi Arabia and Venezuela. These member countries collectively supply approximately 40 per cent of the world's oil output, and possess more than three-quarters of the world's total proven crude oil reserves. Currently, OPEC's approximate rate of oil production and export is 25 million barrels per day with Saudi Arabia alone contributing about one third of this rate. However, in the recent years the economy of major OPEC countries mainly Saudi Arabia, Venezuela, Algeria, Indonesia and Iran has been significantly hindered by the instability of oil price as a result of fluctuations in the American dollar. This paper presented a simple economical assessment of OPEC's oil pricing policy from 1970 to 2000. Fluctuations of the oil price in American dollars were analysed against other major currencies. Their influences on the generated revenues were determined. In order to explore the most advantageous scenario, the oil pricing policy during that period was compared with two baskets of currencies. It was concluded that results indicated that OPEC members could have achieved a total current savings of at least 170 billion dollars if the price of oil was linked to a basket of currencies from 1970 to 2000. These savings were approximately equivalent to the revenues generated in at least 1 year of OPEC's average rate of oil production and export. It was recommended that OPEC members should consider restructuring their oil pricing policy by taking effective measures such as linking the price of oil to a basket of currencies in order to stabilize the price of oil and secure stable revenue generated from their oil production and export. 17 refs., 1 tab., 4 figs

Separated influence of crude oil prices on regional natural gas import prices

International Nuclear Information System (INIS)

Ji, Qiang; Geng, Jiang-Bo; Fan, Ying

2014-01-01

This paper analyses the impact of global economic activity and international crude oil prices on natural gas import prices in three major natural gas markets using the panel cointegration model. It also investigates the shock impacts of the volatility and the increase and decrease of oil prices on regional natural gas import prices. The results show that both global economic activity and international crude oil prices have significant long-term positive effects on regional natural gas import prices. The volatility of international crude oil prices has a negative impact on regional natural gas import prices. The shock impact is weak in North America, lags in Europe and is most significant in Asia, which is mainly determined by different regional policies for price formation. In addition, the response of natural gas import prices to increases and decreases in international crude oil prices shows an asymmetrical mechanism, of which the decrease impact is relatively stronger. - Highlights: • Impacts of world economy and oil prices on regional natural gas prices are analysed • North American natural gas prices are mainly affected by world economy • Asian and European natural gas prices are mainly affected by oil prices • The volatility of oil prices has a negative impact on regional natural gas prices • The response of natural gas import prices to oil prices up and down shows asymmetry

Auction-Based Cloud Service Pricing and Penalty with Availability on Demand

Directory of Open Access Journals (Sweden)

Xiaohong Wu

2018-04-01

Full Text Available Availability is one of the main concerns of cloud users, and cloud providers always try to provide higher availability to improve user satisfaction. However, higher availability results in higher provider costs and lower social welfare. In this paper, taking into account both the users’ valuation and desired availability, we design resource allocation, pricing and penalty mechanisms with availability on demand. Considering two scenarios: public availability in which the desired availabilities of all users are public information, and private availability in which the desired availabilities are private information of users, and, analyzing the possible behaviours of users, we design a truthful deterministic mechanism with 2-approximation in public availability scenario and a universal truthful mechanism with 1 1 + γ approximation in private availability scenario, where γ is the backup ratio of resources with the highest availability. The experiment results show that our mechanisms significantly improve the social welfare compared to the mechanism without considering availability demand of users.

Price performance following stock's IPO in different price limit systems

Science.gov (United States)

Wu, Ting; Wang, Yue; Li, Ming-Xia

2018-01-01

An IPO burst occurred in China's stock markets in 2015, while price limit trading rules usually help to reduce the short-term trading mania on individual stocks. It is interesting to make clear the function of the price limits after IPOs. We firstly make a statistical analysis based on all the IPO stocks listed from 1990 to 2015. A high dependency exists between the activities in stock's IPO and various market environment. We also focus on the price dynamics in the first 40 trading days after the stock listed. We find that price limit system will delay the price movement, especially for the up-trend movements, which may lead to longer continuous price limit hits. Similar to our previous work, many results such as ;W; shape can be also observed in the future daily return after the price limit open. At last, we find most IPO measures show evident correlations with the following price limit hits. IPO stocks with lower first-day turnover and earning per share will be followed with a longer continuous price limit hits and lower future daily return under the newest trading rules, which give us a good way to estimate the occurrence of price limit hits and the following price dynamics. Our analysis provides a better understanding of the price dynamics after IPO events and offers potential practical values for investors.

Renewable Energy Generation in India: Present Scenario and Future Prospects

DEFF Research Database (Denmark)

Singh, Sri Niwas; Singh, Bharat; Østergaard, Jacob

2009-01-01

The development of Renewable Energy Sources (RES) is necessary for the sustainable development of any country due to depleting fossil fuel level, climbing fossil fuel prices across the world and more recently pressure for reduction emission level. In India, several schemes and policies are launched...... by the government to support the use of RES to achieve energy security and self-sufficiency. This paper discusses the present scenario and future prospects of RES in India. Various schemes such as financial assistance, tax holiday etc for promoting RESs development and utilization are also discussed. The present...

Preliminary Study on Bidding Price Ratio Pattern of Public Works in Taiwan - a Case Study of Bridges, Elevated Highways, Tunnels and Subways

Science.gov (United States)

Tseng, Paoshan; Wang, Hanhsiang; Chen, Pingfu; Yeh, Lihsu

2018-01-01

Commonly seen tender bid price information of the public works in Taiwan are the budget amount, floor price, awarding price and so on. The ratio of the awarding price to the floor price or budget price is the so-called bidding price ratio. This ratio is influenced by multifaceted factor interactions and is significant to decision making management in engineering projects. Low bidding price ratio may imply that the budget allocation by the tendering agency is inconsiderate or due to the improper market competition of low price bid rigging. High bidding price ratio in turn may indicate that the allocated budget is relatively low, bidder risks in increased contract execution uncertainty or even exclusive bidding scenario. Therefore, the correlation between the bidding price ratio and the aforementioned tender award information is the key issue of this study. This study gathered the tender information of the civil engineering projects in Taiwan within the past seven years. By performing statistical analysis and clustering the gathered data by bidding price ratio, this study investigated the influencing factors and regulations of bidding price ratio using data mining approach.

Estimating the commodity market price of risk for energy prices

International Nuclear Information System (INIS)

Kolos, Sergey P.; Ronn, Ehud I.

2008-01-01

The purpose of this paper is to estimate the ''market price of risk'' (MPR) for energy commodities, the ratio of expected return to standard deviation. The MPR sign determines whether energy forward prices are upward- or downward-biased predictors of expected spot prices. We estimate MPRs using spot and futures prices, while accounting for the Samuelson effect. We find long-term MPRs generally positive and short-term negative, consistent with positive energy betas and hedging, respectively. In spot electricity markets, MPRs in Day-Ahead Prices agree with short-dated futures. Our results relate risk premia to informed hedging decisions, and futures prices to forecast/expected prices. (author)

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.

Assessing the environmental costs and benefits of plantations under future carbon pricing scenarios

Science.gov (United States)

Jackson, R. B.; Barrett, D. J.; Farley, K.; Guenther, A.; Jobbágy, E. G.; Murray, B. C.; McCarl, B. A.; Schlesinger, W. H.

2004-12-01

Carbon sequestration programs are gaining attention globally as a means to offset increasing fossil fuel emissions and atmospheric carbon dioxide concentrations. We are examining scenarios of C sequestration in four regions of the world: the U.S., South America, China, and Australia. The analysis uses economic models to predict where the plantations will be grown and then categorizes the other biogeochemical changes that will likely occur. The goals of the project include: 1) Evaluating the assumptions behind C sequestration programs for plantations, including the importance of rotation rates, a full accounting of carbon costs (e.g., planting and site preparation), and how the C would be stored and safeguarded. 2) Examining the scale of the process needed to make a substantial contribution to offset fossil fuel emissions (see below). The scenario we have chosen to evaluate is one that addresses the consequences of storing 1 PgC yr-1 for 50 years. 3) Determining and summarizing the evidence for other biogeochemical changes that will likely occur. Some of the factors to be evaluated include soil acidification, changes in water fluxes and water-table dynamics, nutrient losses, changes in soil fauna and biodiversity, volatile organic carbon emissions, and erosion. 4) A final goal of the project is to make concrete recommendations for where plantations may be the most beneficial in terms of C storage and other environmental benefits, such as the amelioration of salinity and groundwater upwelling in Australia.

Why do stumpage prices increase more than lumber prices?

Science.gov (United States)

William G. Luppold; John E. Baumgras; John E. Baumgras

1998-01-01

Every sawmiller who has been in business more than 5 years realizes that hardwood stumpage prices tend to increase faster than lumber prices, decreasing the margin between these two prices. Although increases in stumpage versus lumber prices are readily apparent, the reason for the decrease in the margin is not. Recent research findings indicate that the stumpage/...

The Effect of Price on Surgeons' Choice of Implants: A Randomized Controlled Survey.

Science.gov (United States)

Wasterlain, Amy S; Melamed, Eitan; Bello, Ricardo; Karia, Raj; Capo, John T

2017-08-01

Surgical costs are under scrutiny and surgeons are being held increasingly responsible for cost containment. In some instances, implants are the largest component of total procedure cost, yet previous studies reveal that surgeons' knowledge of implant prices is poor. Our study aims to (1) understand drivers behind implant selection and (2) assess whether educating surgeons about implant costs affects implant selection. We surveyed 226 orthopedic surgeons across 6 continents. The survey presented 8 clinical cases of upper extremity fractures with history, radiographs, and implant options. Surgeons were randomized to receive either a version with each implant's average selling price ("price-aware" group), or a version without prices ("price-naïve" group). Surgeons selected a surgical implant and ranked factors affecting implant choice. Descriptive statistics and univariate, multivariable, and subgroup analyses were performed. For cases offering implants within the same class (eg, volar locking plates), price-awareness reduced implant cost by 9% to 11%. When offered different models of distal radius volar locking plates, 25% of price-naïve surgeons selected the most expensive plate compared with only 7% of price-aware surgeons. For cases offering different classes of implants (eg, plate vs external fixator), there was no difference in implant choice between price-aware and price-naïve surgeons. Familiarity with the implant was the most common reason for choosing an implant in both groups (35% vs 46%). Price-aware surgeons were more likely to rank cost as a factor (29% vs 21%). Price awareness significantly influences surgeons' choice of a specific model within the same implant class. Merely including prices with a list of implants leads surgeons to select less expensive implants. This implies that an untapped opportunity exists to reduce surgical expenditures simply by enhancing surgeons' cost awareness. Economic/Decision Analyses I. Copyright © 2017 American

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.

Shale gas technology innovation rate impact on economic Base Case – Scenario model benchmarks

International Nuclear Information System (INIS)

Weijermars, Ruud

2015-01-01

Highlights: • Cash flow models control which technology is affordable in emerging shale gas plays. • Impact of technology innovation on IRR can be as important as wellhead price hikes. • Cash flow models are useful for technology decisions that make shale gas plays economic. • The economic gap can be closed by appropriate technology innovation. - Abstract: Low gas wellhead prices in North America have put its shale gas industry under high competitive pressure. Rapid technology innovation can help companies to improve the economic performance of shale gas fields. Cash flow models are paramount for setting effective production and technology innovation targets to achieve positive returns on investment in all global shale gas plays. Future cash flow of a well (or cluster of wells) may either improve further or deteriorate, depending on: (1) the regional volatility in gas prices at the wellhead – which must pay for the gas resource extraction, and (2) the cost and effectiveness of the well technology used. Gas price is an externality and cannot be controlled by individual companies, but well technology cost can be reduced while improving production output. We assume two plausible scenarios for well technology innovation and model the return on investment while checking against sensitivity to gas price volatility. It appears well technology innovation – if paced fast enough – can fully redeem the negative impact of gas price decline on shale well profits, and the required rates are quantified in our sensitivity analysis

Consistent Estimation of Pricing Kernels from Noisy Price Data

OpenAIRE

Vladislav Kargin

2003-01-01

If pricing kernels are assumed non-negative then the inverse problem of finding the pricing kernel is well-posed. The constrained least squares method provides a consistent estimate of the pricing kernel. When the data are limited, a new method is suggested: relaxed maximization of the relative entropy. This estimator is also consistent. Keywords: $\\epsilon$-entropy, non-parametric estimation, pricing kernel, inverse problems.

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

Energy savings in drastic climate change policy scenarios

International Nuclear Information System (INIS)

Isoard, Stephane; Wiesenthal, Tobias

2005-01-01

This paper reports a climate change policy scenario compatible with long-term sustainable objectives set at EU level (6th Environment Action Plan). By setting ambitious targets for GHG emissions reduction by 2030, this normative scenario relies on market-based instruments and flexible mechanisms. The integrated policy that is simulated (i.e. addressing energy, transport, agriculture and environmental impacts) constitutes a key outlook for the next 5-year report of the European Environment Agency (EEA). This scenario highlights what it would take to drastically curb EU GHG emissions and how much it might cost. The findings show that such a 'deep reduction' climate policy could work as a powerful catalyst for (1) substantial energy savings, and (2) promoting sustainable energy systems in the long term. The implications of this policy lever on the energy system are many-fold indeed, e.g. a substantial limitation of total energy demand or significant shifts towards energy and environment-friendly technologies on the supply side. Clear and transparent price signals, which are associated with market-based instruments, appear to be a key factor ensuring sufficient visibility for capital investment in energy efficient and environment-friendly options. Finally it is suggested that market-based policy options, which are prone to lead to win-win situations and are of particular interest from an integrated policy-making perspective, would also significantly benefit from an enhanced energy policy framework

Effects of Increased Commercial Navigation Traffic on Freshwater Mussels in the Upper Mississippi River: Ten-Year Evaluation

National Research Council Canada - National Science Library

Miller, Andrew

2002-01-01

... traffic at five historically prominent mussel beds in the upper Mississippi River (UMR). The purpose was to assess effects of increased navigation traffic caused by the newly completed Melvin Price Locks and Dam at Alton, IL...

48 CFR 216.203 - Fixed-price contracts with economic price adjustment.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Fixed-price contracts with economic price adjustment. 216.203 Section 216.203 Federal Acquisition Regulations System DEFENSE... CONTRACTS Fixed-Price Contracts 216.203 Fixed-price contracts with economic price adjustment. ...

The geopolitical impact of the shale revolution: Exploring consequences on energy prices and rentier states

International Nuclear Information System (INIS)

Auping, Willem L.; Pruyt, Erik; Jong, Sijbren de; Kwakkel, Jan H.

2016-01-01

While the shale revolution was largely a US’ affair, it affects the global energy system. In this paper, we look at the effects of this spectacular increase in natural gas, and oil, extraction capacity can have on the mix of primary energy sources, on energy prices, and through that on internal political stability of rentier states. We use two exploratory simulation models to investigate the consequences of the combination of both complexity and uncertainty in relation to the global energy system and state stability. Our simulations show that shale developments could be seen as part of a long term hog-cycle, with a short term drop in oil prices if unconventional supply substitutes demand for oil. These lower oil prices may lead to instability in rentier states neighbouring the EU, especially when dependence on oil and gas income is high, youth bulges are present, or buffers like sovereign wealth funds are too limited to bridge the negative economic effects of temporary low oil prices. - Highlights: • We quantitatively explore geopolitical consequences of the shale gas revolution. • We use a multi-model approach to generate and use energy price scenarios. • Simulations show that current low oil prices could be part of a hog cycle. • The shale gas boom was an early warning for the drop in oil prices. • Low prices due to shale gas can reduce internal stability in rentier states.

Price Regulations in a Multi-unit Uniform Price Auction

DEFF Research Database (Denmark)

Boom, Anette

not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small......Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does...

Price Regulations in a Multi-unit Uniform Price Auction

DEFF Research Database (Denmark)

Boom, Anette

Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does...... not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small...

48 CFR 3016.203 - Fixed price contracts with economic price adjustments.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 7 2010-10-01 2010-10-01 false Fixed price contracts with economic price adjustments. 3016.203 Section 3016.203 Federal Acquisition Regulations System DEPARTMENT OF... TYPES OF CONTRACTS Fixed-Price Contracts 3016.203 Fixed price contracts with economic price adjustments. ...

The Volatility of Oil Prices on Stock Exchanges in the Context of Recent Events

Directory of Open Access Journals (Sweden)

Popescu Maria-Floriana

2016-04-01

Full Text Available Oil along with currencies and gold are the main indicators of the most important processes which take place in the world economy, quotations’ volatility being always followed by economic and social events. Quiet periods of oil prices, when quotations have a constant evolution or only suffer minor fluctuations, are very rare. Most of the time, very sharp price increases or decreases are happening over night or week. This is mostly due to the fact that the oil market is extremely speculative, being influenced by political, military, social, or meteorological events. Since the major oil price shocks of the 70s, the impact of oil price changes on the economic reality of a country or region has been widely studied by academic researchers. Moreover, the stock market plays an important role in the economic welfare and development of a country. Therefore, a vast number of studies have investigated the relationship between oil prices and stock market returns, being discovered significant effects of oil price shocks on the macroeconomic activity for both developed and emerging countries. The purpose of this study is to investigate the volatility of oil prices on stock exchanges taking into consideration the recent events that have affected the oil markets around the globe. Furthermore, based on the findings of this research, some possible scenarios will be developed, taking into account various events that might take place and their potential outcome for oil prices’ future.

Exporter Price Premia?

DEFF Research Database (Denmark)

Jäkel, Ina Charlotte; Sørensen, Allan

This paper provides new evidence on manufacturing firms' output prices: in Denmark, on average, exported varieties are sold at a lower price (i.e. a negative exporter price premium) relative to only domestically sold varieties. This finding stands in sharp contrast to previous studies, which have...... found positive exporter price premia. We also document that the exporter price premium varies substantially across products (both in terms of sign and magnitude). We show that in a standard heterogeneous firms model with heterogeneity in quality as well as production efficiency there is indeed no clear......-cut prediction on the sign of the exporter price premium. However, the model unambiguously predicts a negative exporter price premium in terms of quality-adjusted prices, i.e. prices per unit of quality. This prediction is broadly borne out in the Danish data: while the magnitude of the premium varies across...

Beyond the sticker price: including and excluding time in comparing food prices.

Science.gov (United States)

Yang, Yanliang; Davis, George C; Muth, Mary K

2015-07-01

An ongoing debate in the literature is how to measure the price of food. Most analyses have not considered the value of time in measuring the price of food. Whether or not the value of time is included in measuring the price of a food may have important implications for classifying foods based on their relative cost. The purpose of this article is to compare prices that exclude time (time-exclusive price) with prices that include time (time-inclusive price) for 2 types of home foods: home foods using basic ingredients (home recipes) vs. home foods using more processed ingredients (processed recipes). The time-inclusive and time-exclusive prices are compared to determine whether the time-exclusive prices in isolation may mislead in drawing inferences regarding the relative prices of foods. We calculated the time-exclusive price and time-inclusive price of 100 home recipes and 143 processed recipes and then categorized them into 5 standard food groups: grains, proteins, vegetables, fruit, and dairy. We then examined the relation between the time-exclusive prices and the time-inclusive prices and dietary recommendations. For any food group, the processed food time-inclusive price was always less than the home recipe time-inclusive price, even if the processed food's time-exclusive price was more expensive. Time-inclusive prices for home recipes were especially higher for the more time-intensive food groups, such as grains, vegetables, and fruit, which are generally underconsumed relative to the guidelines. Focusing only on the sticker price of a food and ignoring the time cost may lead to different conclusions about relative prices and policy recommendations than when the time cost is included. © 2015 American Society for Nutrition.

Price Recall, Bertrand Paradox and Price Dispersion With Elastic Demand

NARCIS (Netherlands)

Carvalho, M.

2009-01-01

This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the

Analyzing the effects of past prices on reference price formation

NARCIS (Netherlands)

R.D. van Oest (Rutger); R. Paap (Richard)

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

Energy price slump and policy response in the coal-chemical industry district : a case study of Ordos with a system dynamics model

OpenAIRE

Wang, Delu; Ma, Gang; Song, Xuefeng; Liu, Yun

2017-01-01

We employ system dynamics method towards a coal-chemical industry district economy evolution model, using coal industry, the coal-chemical industry, their downstream industries, and the manufacture-related service industry. Moreover, we construct energy price and policy response scenarios based on Ordos’ management experience. The results show that the energy price slump had a negative impact on the overall economic development of the coal-chemical industry district, despite promoting non-res...

Modelling the impact of oil prices on Vietnam's stock prices

International Nuclear Information System (INIS)

Narayan, Paresh Kumar; Narayan, Seema

2010-01-01

The goal of this paper is to model the impact of oil prices on Vietnam's stock prices. We use daily data for the period 2000-2008 and include the nominal exchange rate as an additional determinant of stock prices. We find that stock prices, oil prices and nominal exchange rates are cointegrated, and oil prices have a positive and statistically significant impact on stock prices. This result is inconsistent with theoretical expectations. The growth of the Vietnamese stock market was accompanied by rising oil prices. However, the boom of the stock market was marked by increasing foreign portfolio investment inflows which are estimated to have doubled from US$0.9 billion in 2005 to US$1.9 billion in 2006. There was also a change in preferences from holding foreign currencies and domestic bank deposits to stocks local market participants, and there was a rise in leveraged investment in stock as well as investments on behalf of relatives living abroad. It seems that the impact of these internal and domestic factors were more dominant than the oil price rise on the Vietnamese stock market. (author)

Drug Pricing Reforms

DEFF Research Database (Denmark)

Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas

2015-01-01

Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug...... prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures...... for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account....

On the Reliability of Optimization Results for Trigeneration Systems in Buildings, in the Presence of Price Uncertainties and Erroneous Load Estimation

Directory of Open Access Journals (Sweden)

Antonio Piacentino

2016-12-01

Full Text Available Cogeneration and trigeneration plants are widely recognized as promising technologies for increasing energy efficiency in buildings. However, their overall potential is scarcely exploited, due to the difficulties in achieving economic viability and the risk of investment related to uncertainties in future energy loads and prices. Several stochastic optimization models have been proposed in the literature to account for uncertainties, but these instruments share in a common reliance on user-defined probability functions for each stochastic parameter. Being such functions hard to predict, in this paper an analysis of the influence of erroneous estimation of the uncertain energy loads and prices on the optimal plant design and operation is proposed. With reference to a hotel building, a number of realistic scenarios is developed, exploring all the most frequent errors occurring in the estimation of energy loads and prices. Then, profit-oriented optimizations are performed for the examined scenarios, by means of a deterministic mixed integer linear programming algorithm. From a comparison between the achieved results, it emerges that: (i the plant profitability is prevalently influenced by the average “spark-spread” (i.e., ratio between electricity and fuel price and, secondarily, from the shape of the daily price profiles; (ii the “optimal sizes” of the main components are scarcely influenced by the daily load profiles, while they are more strictly related with the average “power to heat” and “power to cooling” ratios of the building.

ACCOUNTING ASPECTS OF PRICING AND TRANSFER PRICING

OpenAIRE

TÜNDE VERES

2011-01-01

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 m...

Transfer Pricing

DEFF Research Database (Denmark)

Nielsen, Søren Bo

2014-01-01

Against a background of rather mixed evidence about transfer pricing practices in multinational enterprises (MNEs) and varying attitudes on the part of tax authorities, this paper explores how multiple aims in transfer pricing can be pursued across four different transfer pricing regimes. A MNE h...

Structural change in Europe's gas markets: three scenarios for the development of the European gas market to 2020

International Nuclear Information System (INIS)

Ellis, A.; Bowitz, E.; Roland, K.

2000-01-01

Against the background of the European Union's Gas Directive, and the emergence of new players and markets in Europe's gas sector, this paper explores how company actions could shape the future for the gas industry. Starting with an examination of company strategies this paper develops three scenarios for the future: a 'Gradual Transformation' scenario where a single European gas market develops that is essentially oligopolistic in nature; a 'Vertical Integration' scenario, where upstream and downstream gas companies merge to form a vertically integrated gas supplier; and a 'Pull the Plug' scenario, where the current market structure decomposes into a competitive market. These scenarios are examined in terms of their impact on gas prices, demand and the distribution of gas rent along the supply chain. The paper highlights the fact that the EU's gas Directive is not sufficient for the introduction of competition into Europe's gas markets, but that company actions will be the key determinant, and they may favour alternative market structures. (Author)

Development of predictive weather scenarios for early prediction of rice yield in South Korea

Science.gov (United States)

Shin, Y.; Cho, J.; Jung, I.

2017-12-01

International grain prices are becoming unstable due to frequent occurrence of abnormal weather phenomena caused by climate change. Early prediction of grain yield using weather forecast data is important for stabilization of international grain prices. The APEC Climate Center (APCC) is providing seasonal forecast data based on monthly climate prediction models for global seasonal forecasting services. The 3-month and 6-month seasonal forecast data using the multi-model ensemble (MME) technique are provided in their own website, ADSS (APCC Data Service System, http://adss.apcc21.org/). The spatial resolution of seasonal forecast data for each individual model is 2.5°×2.5°(about 250km) and the time scale is created as monthly. In this study, we developed customized weather forecast scenarios that are combined seasonal forecast data and observational data apply to early rice yield prediction model. Statistical downscale method was applied to produce meteorological input data of crop model because field scale crop model (ORYZA2000) requires daily weather data. In order to determine whether the forecasting data is suitable for the crop model, we produced spatio-temporal downscaled weather scenarios and evaluated the predictability by comparison with observed weather data at 57 ASOS stations in South Korea. The customized weather forecast scenarios can be applied to various application fields not only early rice yield prediction. Acknowledgement This work was carried out with the support of "Cooperative Research Program for Agriculture Science and Technology Development (Project No: PJ012855022017)" Rural Development Administration, Republic of Korea.

Natural gas pricing

International Nuclear Information System (INIS)

Freedenthal, C.

1993-01-01

Natural gas pricing is the heart and soul of the gas business. Price specifically affects every phase of the industry. Too low a price will result in short supplies as seen in the mid-1970s when natural gas was scarce and in tight supply. To fully understand the pricing of this energy commodity, it is important to understand the total energy picture. In addition, the effect and impact of world and US economies, and economics in general are crucial to understanding natural gas pricing. The purpose of this presentation will be to show the parameters going into US natural gas pricing including the influence of the many outside industry factors like crude oil and coal pricing, market drivers pushing the gas industry, supply/demand parameters, risk management for buyers and sellers, and other elements involved in pricing analysis

A framework for diagnosing the regional impacts of energy price policies. An application to natural gas deregulation

Energy Technology Data Exchange (ETDEWEB)

Bender, S.; Kalt, J.P.; Lee, H.

1986-03-01

Energy policy debates in the U.S. have frequently centered upon asserted regional effects. 'Consuming' regions are commonly pitted against 'producing' regions, with the latter purportedly gaining/losing at the expense of the former under higher/lower energy prices. Such simple views ignore regional trade linkages, the geographic distribution of ownership in energy using and producing firms, and the microeconomics of the incidence of energy price changes. This study presents a framework which incorporates these factors and allows assessment of the net regional income effects of changing energy prices. When applied to U.S. natural gas policy, the study's results indicate that the income effects of a rise in gas prices tend to be much more evenly spread than a naive assignment of increased costs and revenues to consuming and producing regions, respectively, would indicate. Under a number of plausible scenarios, in fact, it is likely that certain net gas consuming regions (e.g., the Pacific Northwest) have benefitted from the recent deregulation of U.S. gas prices. 14 refs. (A.V.)

Towards a user's guide to scenarios - a report on scenario types and scenario techniques

Energy Technology Data Exchange (ETDEWEB)

Boerjeson, Lena; Hoejer, Mattias; Dreborg, Karl-Henrik; Finnveden, Goeran [Royal Inst. of Technology, Stockholm (Sweden). Environmental Strategies Research - fms; Ekvall, Tomas [Chalmers Univ. of Technology, Goeteborg (Sweden). Dept. of Energy and Environment

2005-11-01

Futures studies consist of a vast variation of studies and approaches. The aim of this paper is to contribute to the understanding of for what purposes scenarios are useful and what methods and procedures are useful for furthering these purposes. We present a scenario typology with an aim to better suit the context in which the scenarios are used. The scenario typology is combined with a new way of looking at scenario techniques, i.e. practical methods and procedures for scenario development. Finally, we look at the usefulness of scenarios in the light of the scenario typology and the scenario techniques. As a start, we distinguish between three main categories of scenario studies. The classification is based on the principal questions we believe a user may want to pose about the future. The resolution is then increased by letting each category contain two different scenario types. These are distinguished by different angles of approach of the questions defining the categories. The first question, What will happen?, is responded to by Predictive scenarios. In fact, the response to a question like this will always be conditional, e.g. of a stable and peaceful world, or by a certain continuous development of some kind. We have utilized this fact when defining the two predictive scenario types, Forecasts and What-if scenarios. The second question, What can happen?, is responded to by Explorative scenarios. The scenarios are thus explorations of what might happen in the future, regardless of beliefs of what is likely to happen or opinions of what is desirable. This category is further divided into external and strategic scenarios. The final question, How can a specific target be reached?, is responded to by Normative scenarios. Such studies are explicitly normative, since they take a target as a starting point. They are often directed towards how the target could be reached. This category is divided into preserving and transforming scenarios. If the user wants to

Testing causal relationships between wholesale electricity prices and primary energy prices

International Nuclear Information System (INIS)

Nakajima, Tadahiro; Hamori, Shigeyuki

2013-01-01

We apply the lag-augmented vector autoregression technique to test the Granger-causal relationships among wholesale electricity prices, natural gas prices, and crude oil prices. In addition, by adopting a cross-correlation function approach, we test not only the causality in mean but also the causality in variance between the variables. The results of tests using both techniques show that gas prices Granger-cause electricity prices in mean. We find no Granger-causality in variance among these variables. -- Highlights: •We test the Granger-causality among wholesale electricity and primary energy prices. •We test not only the causality in mean but also the causality in variance. •The results show that gas prices Granger-cause electricity prices in mean. •We find no Granger-causality in variance among these variables

Consumer food choices: the role of price and pricing strategies.

Science.gov (United States)

Steenhuis, Ingrid H M; Waterlander, Wilma E; de Mul, Anika

2011-12-01

To study differences in the role of price and value in food choice between low-income and higher-income consumers and to study the perception of consumers about pricing strategies that are of relevance during grocery shopping. A cross-sectional study was conducted using structured, written questionnaires. Food choice motives as well as price perceptions and opinion on pricing strategies were measured. The study was carried out in point-of-purchase settings, i.e. supermarkets, fast-food restaurants and sports canteens. Adults (n 159) visiting a point-of-purchase setting were included. Price is an important factor in food choice, especially for low-income consumers. Low-income consumers were significantly more conscious of value and price than higher-income consumers. The most attractive strategies, according to the consumers, were discounting healthy food more often and applying a lower VAT (Value Added Tax) rate on healthy food. Low-income consumers differ in their preferences for pricing strategies. Since price is more important for low-income consumers we recommend mainly focusing on their preferences and needs.

An electricity price model with consideration to load and gas price effects.

Science.gov (United States)

Huang, Min-xiang; Tao, Xiao-hu; Han, Zhen-xiang

2003-01-01

Some characteristics of the electricity load and prices are studied, and the relationship between electricity prices and gas (fuel) prices is analyzed in this paper. Because electricity prices are strongly dependent on load and gas prices, the authors constructed a model for electricity prices based on the effects of these two factors; and used the Geometric Mean Reversion Brownian Motion (GMRBM) model to describe the electricity load process, and a Geometric Brownian Motion(GBM) model to describe the gas prices; deduced the price stochastic process model based on the above load model and gas price model. This paper also presents methods for parameters estimation, and proposes some methods to solve the model.

Tiered co-payments, pricing, and demand in reference price markets for pharmaceuticals.

Science.gov (United States)

Herr, Annika; Suppliet, Moritz

2017-12-01

Health insurance companies curb price-insensitive behavior and the moral hazard of insureds by means of cost-sharing, such as tiered co-payments or reference pricing in drug markets. This paper evaluates the effect of price limits - below which drugs are exempt from co-payments - on prices and on demand. First, using a difference-in-differences estimation strategy, we find that the new policy decreases prices by 5 percent for generics and increases prices by 4 percent for brand-name drugs in the German reference price market. Second, estimating a nested-logit demand model, we show that consumers appreciate co-payment exempt drugs and calculate lower price elasticities for brand-name drugs than for generics. This explains the different price responses of brand-name and generic drugs and shows that price-related co-payment tiers are an effective tool to steer demand to low-priced drugs. Copyright © 2017 Elsevier B.V. All rights reserved.

Recovering a time-homogeneous stock price process from perpetual option prices

OpenAIRE

Ekström, Erik; Hobson, David

2009-01-01

It is well known how to determine the price of perpetual American options if the underlying stock price is a time-homogeneous diffusion. In the present paper we consider the inverse problem, that is, given prices of perpetual American options for different strikes, we show how to construct a time-homogeneous stock price model which reproduces the given option prices.

Comparing recent uranium supply scenarios

International Nuclear Information System (INIS)

Arnold, N.; Gufler, K.

2014-01-01

For more than one decade – even after the Fukushima accidents - an increase in global nuclear energy generation capacity is widely expected. At the same time a variety of uranium supply scenarios were published by industry, academics or international organizations, drawing different pictures of future uranium supply. They were created with the background of a uranium market facing several challenges. First an excursion in the uranium market price, in 2007, then reduced nuclear growth expectations after 2011, at least in non-Asian countries, also implying considerable changes to the supply side. For this publication a meta-study was carried out identifying, evaluating and comparing different recent scenarios on the availability of uranium. While there are some differences in the frame conditions (e.g. the expected uranium demand, the time fame, the considered mining projects,..), there are also notable similarities in these scenarios. This concerns long lead times for mine openings as well as the dependence on large mining projects (e.g. Olympic Dam, Cigar Lake). Generally, a decline in production in about 10 years is assumed, and thus the necessity of the timely development of mining projects is pointed out. In addition the omission of uranium from Russian nuclear weapons and the chances of keeping the changes in secondary supplies in balance with primary production have been widely discussed. Here, the production growth in Kazakhstan but also the role of the current market situation are central aspects. As another aspect the possible contribution from unconventional resources is of interest, particularly against the background of rising production costs for conventional resources. Finally, it shall be reflected how well older scenarios were able to map the reality and which trends could or could not be anticipated. It is relevant to identify which aspects in the development of mining capacities are essential for security of supply, and can therefore be regarded

An economic evaluation of alternative biofuel deployment scenarios in the USA

Directory of Open Access Journals (Sweden)

Gbadebo Oladosu

2017-05-01

Full Text Available Energy market conditions have shifted dramatically since the USA renewable fuel standards (RFS1 in 2005; RFS2 in 2007 were enacted. The USA has transitioned from an increasing dependence on oil imports to abundant domestic oil production. In addition, increases in the use of ethanol, the main biofuel currently produced in the USA, is now limited by the blend wall constraint. Given this, the current study evaluates alternative biofuel deployment scenarios in the USA, accounting for changes in market conditions. The analysis is performed with a general equilibrium model that reflects the structure of the USA biofuel market as the transition to advanced biofuels begins. Results suggest that ethanol consumption would increase, albeit slowly, if current biofuel deployment rates of about 10% are maintained as persistently lower oil prices lead to a gradual increase in the consumption of liquid transportation fuels. Without the blend wall constraint, this study finds that the overall economic impact of a full implementation of the USA RFS2 policy is largely neutral before 2022. However, the economic impacts become slightly negative under the blend wall constraint since more expensive bio-hydrocarbons are needed to meet the RFS2 mandates. Results for a scenario with reduced advanced biofuel deployment based on current policy plans show near neutral economic impacts up to 2027. This scenario is also consistent with another scenario where the volume of bio-hydrocarbons deployed is reduced to adjust for its higher cost and energy content relative to deploying the mandated RFS2 advanced biofuel volumes as ethanol. The important role of technological change is demonstrated under pioneer and accelerated technology scenarios, with the latter leading to neutral or positive economic effects up to 2023 under most blend wall scenarios. All scenarios evaluated in this study are found to have positive long-term benefits for the USA economy.

How Does Pricing of Day-ahead Electricity Market Affect Put Option Pricing?

Directory of Open Access Journals (Sweden)

H. Raouf Sheybani

2016-09-01

Full Text Available In this paper, impacts of day-ahead market pricing on behavior of producers and consumers in option and day-ahead markets and on option pricing are studied. To this end, two comprehensive equilibrium models for joint put option and day-ahead markets under pay-as-bid and uniform pricing in day-ahead market are presented, respectively. Interaction between put option and day-ahead markets, uncertainty in fuel price, day-ahead market pricing, and elasticity of consumers to strike price, premium price, and day-ahead price are taken into account in these models. By applying the presented models to a test system impact of day-ahead market pricing on equilibrium of joint put option and day-ahead markets are studied.

Gold prices

OpenAIRE

Joseph G. Haubrich

1998-01-01

The price of gold commands attention because it serves as an indicator of general price stability or inflation. But gold is also a commodity, used in jewelry and by industry, so demand and supply affect its pricing and need to be considered when gold is a factor in monetary policy decisions.

Role of carbon price signal on the investment decisions of companies

International Nuclear Information System (INIS)

Herve, Morgan

2011-01-01

This PhD thesis focuses on the impact of the European Union Emissions Trading Scheme (EU ETS) on investment decisions in the European power sector. We provide the policy background on the EU ETS and contemporary policy and economic developments. We discuss the main types of compliance buyers' responses to the EU ETS constraint: emissions reductions, acquisitions of additional compliance assets, and other responses. We present the results of an empirical survey of the most carbon constrained European utilities. We show that strategic and economic considerations prevailed over the introduction of the carbon price. We discuss the impact of those investments on European utilities' EU ETS profile by looking at the potentially locked-in emissions, changes in the compliance perimeter and some specific developments relative to carbon leakage and Kyoto offsets. We offer a review of the investment decision-making approaches. Exploring the impact of carbon price scenarios on generation investment portfolios, we are able to identify that: the EU ETS has a moderate but central reallocation role in power generation investment portfolios; insights into the long-term carbon price trend are particularly helpful to unlock investment; some much discussed policy provisions only have a relatively small impact on investment portfolios; carbon price expectations impact decisions relative to power generation investment portfolios; while the EU ETS has a central role, the climate and non-climate policy mix matters most. (author)

Point Climat no. 13 'Will there still be a market price for CERs and ERUs in two years time?'

International Nuclear Information System (INIS)

Bellassen, Valentin; Stephan, Nicolas; Leguet, Benoit

2012-01-01

Among the publications of CDC Climat Research, 'Climate Briefs' presents, in a few pages, hot topics in climate change policy. This issue addresses the following points: Medium-term (i.e. pre-2015) demand for credits from the EU ETS and secondary sources of demand appears to be limited to 1.6 billion tCO 2 e. The supply of Kyoto credits is relatively predictable, and will cover demand between now and 2013-2014 according to our base-case scenario. Our view is that the demand-supply equilibrium will lead to a de-correlation between the price of Kyoto credits and the EUA price, and may lead to a price for Kyoto credits that is very low, or almost nil. Unless CER and ERU demand-side policies are modified, we do not foresee any rebound in CER and ERU prices beyond the current year

Value-based differential pricing: efficient prices for drugs in a global context.

Science.gov (United States)

Danzon, Patricia; Towse, Adrian; Mestre-Ferrandiz, Jorge

2015-03-01

This paper analyzes pharmaceutical pricing between and within countries to achieve second-best static and dynamic efficiency. We distinguish countries with and without universal insurance, because insurance undermines patients' price sensitivity, potentially leading to prices above second-best efficient levels. In countries with universal insurance, if each payer unilaterally sets an incremental cost-effectiveness ratio (ICER) threshold based on its citizens' willingness-to-pay for health; manufacturers price to that ICER threshold; and payers limit reimbursement to patients for whom a drug is cost-effective at that price and ICER, then the resulting price levels and use within each country and price differentials across countries are roughly consistent with second-best static and dynamic efficiency. These value-based prices are expected to differ cross-nationally with per capita income and be broadly consistent with Ramsey optimal prices. Countries without comprehensive insurance avoid its distorting effects on prices but also lack financial protection and affordability for the poor. Improving pricing efficiency in these self-pay countries includes improving regulation and consumer information about product quality and enabling firms to price discriminate within and between countries. © 2013 The Authors. Health Economics published by John Wiley & Sons Ltd.

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

Evaluation of alternative future energy scenarios for Brazil using an energy mix model

Science.gov (United States)

Coelho, Maysa Joppert

The purpose of this study is to model and assess the performance and the emissions impacts of electric energy technologies in Brazil, based on selected economic scenarios, for a time frame of 40 years, taking the year of 1995 as a base year. A Base scenario has been developed, for each of three economic development projections, based upon a sectoral analysis. Data regarding the characteristics of over 300 end-use technologies and 400 energy conversion technologies have been collected. The stand-alone MARKAL technology-based energy-mix model, first developed at Brookhaven National Laboratory, was applied to a base case study and five alternative case studies, for each economic scenario. The alternative case studies are: (1) minimum increase in the thermoelectric contribution to the power production system of 20 percent after 2010; (2) extreme values for crude oil price; (3) minimum increase in the renewable technologies contribution to the power production system of 20 percent after 2010; (4) uncertainty on the cost of future renewable conversion technologies; and (5) model is forced to use the natural gas plants committed to be built in the country. Results such as the distribution of fuel used for power generation, electricity demand across economy sectors, total CO2 emissions from burning fossil fuels for power generation, shadow price (marginal cost) of technologies, and others, are evaluated and compared to the Base scenarios previous established. Among some key findings regarding the Brazilian energy system it may be inferred that: (1) diesel technologies are estimated to be the most cost-effective thermal technology in the country; (2) wind technology is estimated to be the most cost-effective technology to be used when a minimum share of renewables is imposed to the system; and (3) hydroelectric technologies present the highest cost/benefit relation among all conversion technologies considered. These results are subject to the limitations of key input

Modeling the relationship between the oil price and global food prices

International Nuclear Information System (INIS)

Chen, Sheng-Tung; Kuo, Hsiao-I; Chen, Chi-Chung

2010-01-01

The growth of corn-based ethanol production and soybean-based bio-diesel production following the increase in the oil prices have significantly affect the world agricultural grain productions and its prices. The main purpose of this paper is to investigate the relationships between the crude oil price and the global grain prices for corn, soybean, and wheat. The empirical results show that the change in each grain price is significantly influenced by the changes in the crude oil price and other grain prices during the period extending from the 3rd week in 2005 to the 20th week in 2008 which implies that grain commodities are competing with the derived demand for bio-fuels by using soybean or corn to produce ethanol or bio-diesel during the period of higher crude oil prices in these recent years. The subsidy policies in relation to the bio-fuel industries in some nations engaging in bio-fuel production should be considered to avoid the consequences resulting from high oil prices. (author)

Investigation of whiplash injuries in the upper cervical spine using a detailed neck model.

Science.gov (United States)

Fice, Jason B; Cronin, Duane S

2012-04-05

Whiplash injuries continue to have significant societal cost; however, the mechanism and location of whiplash injury is still under investigation. Recently, the upper cervical spine ligaments, particularly the alar ligament, have been identified as a potential whiplash injury location. In this study, a detailed and validated explicit finite element model of a 50th percentile male cervical spine in a seated posture was used to investigate upper cervical spine response and the potential for whiplash injury resulting from vehicle crash scenarios. This model was previously validated at the segment and whole spine levels for both kinematics and soft tissue strains in frontal and rear impact scenarios. The model predicted increasing upper cervical spine ligament strain with increasing impact severity. Considering all upper cervical spine ligaments, the distractions in the apical and alar ligaments were the largest relative to their failure strains, in agreement with the clinical findings. The model predicted the potential for injury to the apical ligament for 15.2 g frontal or 11.7 g rear impacts, and to the alar ligament for a 20.7 g frontal or 14.4 g rear impact based on the ligament distractions. Future studies should consider the effect of initial occupant position on ligament distraction. Copyright © 2012 Elsevier Ltd. All rights reserved.

Energy prices and taxes

International Nuclear Information System (INIS)

2004-01-01

Energy Prices and Taxes contains a major international compilation of energy prices at all market levels: import prices, industry prices and consumer prices. The statistics cover main petroleum products, gas, coal and electricity, giving for imported products an average price both for importing country and country of origin. Every issue includes full notes on sources and methods and a description of price mechanisms in each country

Evaluating nitrogen taxation scenarios using the dynamic whole farm simulation model FASSET

DEFF Research Database (Denmark)

Berntsen, Jørgen; Petersen, Bjørn Molt; Jacobsen, B.H.

2003-01-01

The whole farm model FASSET ver. 1.0 was used for evaluation of the environmental and economic consequences of implementing different nitrogen taxes. The taxation policies analysed were a tax on nitrogen in mineral fertiliser, a tax on nitrogen in mineral fertiliser and imported animal feedstuff......, and a tax on the farm nitrogen surplus. In these scenarios, the tax price was equal to the price of the nitrogen in mineral fertilisers (0.67 € kg N−1). Four farm types were considered: arable on sandy soil, arable on loamy soil, pig production on sandy soil and pig production on loamy soil. Impacts...... of the taxes for each farm type on crop rotation, fertiliser use and pig production were estimated by the Linear Programming module of FASSET. The dynamic simulation module of FASSET evaluated the environmental and economic consequences of the new production plans. The social abatement cost of reducing nitrate...

Psychological Prices and Price Rigidity in Grocery Retailing: Analysis of German Scanner Data

OpenAIRE

Herrmann, Roland; Moeser, Anke

2005-01-01

A substantial degree of price rigidity has been reported for branded foods in various studies with scanner data. One possible explanation for price rigidity is the existence of psychological pricing points. We analyze to which extent psychological pricing plays a role in grocery retailing and whether it contributes to price rigidity of branded foods in Germany. Psychological pricing defined here as just-below-the-round-figure-pricing is empirically analyzed with scanner data of weekly prices ...

Value-based pricing

OpenAIRE

Netseva-Porcheva Tatyana

2010-01-01

The main aim of the paper is to present the value-based pricing. Therefore, the comparison between two approaches of pricing is made - cost-based pricing and value-based pricing. The 'Price sensitively meter' is presented. The other topic of the paper is the perceived value - meaning of the perceived value, the components of perceived value, the determination of perceived value and the increasing of perceived value. In addition, the best company strategies in matrix 'value-cost' are outlined. .

How do minimum cigarette price laws affect cigarette prices at the retail level?

Science.gov (United States)

Feighery, E C; Ribisl, K M; Schleicher, N C; Zellers, L; Wellington, N

2005-04-01

Half of US states have minimum cigarette price laws that were originally passed to protect small independent retailers from unfair price competition with larger retailers. These laws prohibit cigarettes from being sold below a minimum price that is set by a formula. Many of these laws allow cigarette company promotional incentives offered to retailers, such as buydowns and master-type programmes, to be calculated into the formula. Allowing this provision has the potential to lower the allowable minimum price. This study assesses whether stores in states with minimum price laws have higher cigarette prices and lower rates of retailer participation in cigarette company promotional incentive programmes. Retail cigarette prices and retailer participation in cigarette company incentive programmes in 2001 were compared in eight states with minimum price laws and seven states without them. New York State had the most stringent minimum price law at the time of the study because it excluded promotional incentive programmes in its price setting formula; cigarette prices in New York were compared to all other states included in the study. Cigarette prices were not significantly different in our sample of US states with and without cigarette minimum price laws. Cigarette prices were significantly higher in New York stores than in the 14 other states combined. Most existing minimum cigarette price laws appear to have little impact on the retail price of cigarettes. This may be because they allow the use of promotional programmes, which are used by manufacturers to reduce cigarette prices. New York's strategy to disallow these types of incentive programmes may result in higher minimum cigarette prices, and should also be explored as a potential policy strategy to control cigarette company marketing practices in stores. Strict cigarette minimum price laws may have the potential to reduce cigarette consumption by decreasing demand through increased cigarette prices and reduced

48 CFR 5416.203 - Fixed-price contracts with economic price adjustment.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 7 2010-10-01 2010-10-01 false Fixed-price contracts with economic price adjustment. 5416.203 Section 5416.203 Federal Acquisition Regulations System DEFENSE LOGISTICS AGENCY, DEPARTMENT OF DEFENSE TYPES OF CONTRACTS Fixed Price Contracts 5416.203 Fixed-price...

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.

Transport energy demand in Andorra. Assessing private car futures through sensitivity and scenario analysis

International Nuclear Information System (INIS)

Travesset-Baro, Oriol; Gallachóir, Brian P.Ó.; Jover, Eric; Rosas-Casals, Marti

2016-01-01

This paper presents a model which estimates current car fleet energy consumption in Andorra and forecasts such consumption as a reference scenario. The base-year model is built through a bottom-up methodology using vehicle registration and technical inspection data. The model forecasts energy consumption up to 2050, taking into account the fleet structure, the car survival profile, trends in activity of the various car categories, and the fuel price and income elasticities that affect car stock and total fleet activity. It provides an initial estimate of private car energy demand in Andorra and charts a baseline scenario that describes a hypothetical future based on historical trends. A local sensitivity analysis is conducted to determine the most sensitive input parameters and study the effect of its variability. In addition, the scenario analysis explores the most uncertain future aspects which can cause important variability in the results with respect to the Reference scenario and provides a broad estimate of potential energy savings related to different policy strategies. - Highlights: •A private car energy model is built using aggregated available data. •Andorra's current car fleet energy consumption is estimated and forecasted to 2050. •Potential energy savings have been estimated using sensitivity and scenario analysis.

The case for Ofsmoke: the potential for price cap regulation of tobacco to raise £500 million per year in the UK.

Science.gov (United States)

Branston, J Robert; Gilmore, Anna B

2014-01-01

A system of price-cap regulation has previously been suggested to address the market failure inherent to the tobacco industry. This would benefit public health directly (eg, by making it extremely difficult for the industry to sell cut-price cigarettes, or use price as a marketing strategy) and indirectly (eg, by reducing the available money the industry has for spending on marketing and lobbying). This paper explores the feasibility of applying such a scheme in the UK. The impact of price-capping is modelled using optimistic and conservative scenarios, each with different assumptions, and using 2009 and 2010 profit data for the major companies selling tobacco in the UK. The models are used to calculate by how much would profit be reduced through the imposition of price caps, and thus, how much revenue could be raised in additional taxes, assuming the end price the consumer pays does not change. Tobacco companies enjoy massive profit margins, up to 67%, in the UK. The optimistic scenario suggests a potential increase in UK tobacco tax revenue of £585.7 million in 2010 (£548.4 million in 2009), while the conservative model suggests an increase in revenue of £433.6 million in 2010 (£399.2 million in 2009). This would be approximately enough to fund, twice over, UK-wide antitobacco smuggling measures, and smoking cessation services in England, including the associated pharmacotherapies, to help people stop smoking. Applying a system of price-cap regulation in the UK would raise around £500 million per annum (US$750 million). This is likely to be an underestimate because of cautious assumptions used in the model. These significant financial benefits, in addition to the public health benefits that would be generated, suggest this is a policy that should be given serious consideration.

THE CASE FOR OFSMOKE: THE POTENTIAL FOR PRICE CAP REGULATION OF TOBACCO TO RAISE £500M PER YEAR IN THE UK

Science.gov (United States)

Robert Branston, J.; Gilmore, Anna B.

2013-01-01

Objective A system of price-cap regulation has previously been suggested to address the market failure inherent to the tobacco industry. This would benefit public health directly (for example, by making it extremely difficult for the industry to sell cut price cigarettes or use price as a marketing strategy) and indirectly (for example, by reducing the money industry has available to spend on marketing and lobbying). This paper explores the feasibility of applying such a scheme in the UK. Methods The impact of price-capping is modelled using optimistic and conservative scenarios, each with different assumptions, and using 2009 and 2010 profit data for the major companies selling tobacco in the UK. The models are used to calculate by how much profit would be reduced through the imposition of price caps, and thus how much revenue could be raised in additional taxes, assuming the end price the consumer pays does not change. Results Tobacco companies enjoy massive profit margins, up to 67%, in the UK. The optimistic scenario suggests a potential increase in UK tobacco tax revenue of £585.7m in 2010 (£548.4m in 2009), while the conservative model suggests an increase in revenue of £433.6m in 2010 (£399.2m in 2009). This would be approximately enough to fund, twice over, UK wide anti-tobacco smuggling measures and smoking cessation services in England including the associated pharmacotherapies. Conclusions Applying a system of price cap regulation in the UK would raise around £500m per annum (US$750m). This is likely to be an under-estimate because of cautious assumptions used in the model. These significant financial benefits, in addition to the public health benefits that would be generated, suggest this is a policy that should be given serious consideration. PMID:23322310

The linkage between oil price shocks and economic growth with inflation in the presence of technological advances: a CGE model

International Nuclear Information System (INIS)

Doroodian, K.; Boyd, Roy

2003-01-01

This study examines whether oil price shocks are inflationary in the US. We increase the price of oil in the year 2000 in a manner consistent with the oil price shock of 1973-74 and let the economy experience a Hicksian technological change. Then using a dynamic computable general equilibrium (CGE) model, we conduct our analyses under two separate cases: (1) regular economic growth, and (2) low economic growth. We also run three technological scenarios: (1) no technology change, (2) technological advances in the manufacturing and refining sectors, and (3) technological advances in the manufacturing, refining, chemical, and service sectors. The effects of these changes are analyzed over the next 20 years until the year 2020. Our results suggest that while a shock of the magnitude experienced in the 1970s will have a fairly severe effect on such things as gasoline and refinery prices, the aggregate price changes will be largely dissipated over time at the aggregate level. Furthermore, the aggregate level of prices (CPI and PPI) will fall over time as the level of technological advances rise under both growth scenarios. There are several reasons why we would obtain such results. First of all, the structure of the US economy has changed remarkably since the early 1970s. Rather than being a manufacturing based economy, the US is largely a service based economy today and hence it is more protected form raw materials shortages. Second, the economy has had a steady history of strong growth and the faster an economy grows the quicker disruptions to that economy are dissipated. Finally, our economy is experiencing rapid technological advances in information systems which have served to reduce costs and maintain output in a wide number of economic sectors

The linkage between oil price shocks and economic growth with inflation in the presence of technological advances: a CGE model

International Nuclear Information System (INIS)

Doroodian, K.; Boyd, R.

2003-01-01

This study examines whether oil price shocks are inflationary in the US. We increase the price of oil in the year 2000 in a manner consistent with the oil price shock of 1973-74 and let the economy experience a Hicksian technological change. Then using a dynamic computable general equilibrium (CGE) model, we conduct our analyses under two separate cases: (1) regular economic growth, and (2) low economic growth. We also run three technological scenarios: (1) no technology change, (2) technological advances in the manufacturing and refining sectors, and (3) technological advances in the manufacturing, refining, chemical, and service sectors. The effects of these changes are analyzed over the next 20 years until the year 2020. Our results suggest that while a shock of the magnitude experienced in the 1970s will have a fairly severe effect on such things as gasoline and refinery prices, the aggregate price changes will be largely dissipated over time at the aggregate level. Furthermore, the aggregate level of prices (CPI and PPI) will fall over time as the level of technological advances rise under both growth scenarios. There are several reasons why we would obtain such results. First of all, the structure of the US economy has changed remarkably since the early 1970s. Rather than being a manufacturing based economy, the US is largely a service based economy today and hence it is more protected from raw materials shortages. Second, the economy has had a steady history of strong growth and the faster an economy grows the quicker disruptions to that economy are dissipated. Finally, our economy is experiencing rapid technological advances in information systems which have served to reduce costs and maintain output in a wide number of economic sectors.(author)

48 CFR 16.203 - Fixed-price contracts with economic price adjustment.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Fixed-price contracts with economic price adjustment. 16.203 Section 16.203 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 16.203 Fixed-price...

IMPLICATIONS OF GLOBAL PRICING POLICIES ON ACCESS TO INNOVATIVE DRUGS: THE CASE OF TRASTUZUMAB IN SEVEN LATIN AMERICAN COUNTRIES.

Science.gov (United States)

Pichon-Riviere, Andres; Garay, Osvaldo Ulises; Augustovski, Federico; Vallejos, Carlos; Huayanay, Leandro; Bueno, Maria del Pilar Navia; Rodriguez, Alarico; de Andrade, Carlos José Coelho; Buendía, Jefferson Antonio; Drummond, Michael

2015-01-01

Differential pricing, based on countries' purchasing power, is recommended by the World Health Organization to secure affordable medicines. However, in developing countries innovative drugs often have similar or even higher prices than in high-income countries. We evaluated the potential implications of trastuzumab global pricing policies in terms of cost-effectiveness (CE), coverage, and accessibility for patients with breast cancer in Latin America (LA). A Markov model was designed to estimate life-years (LYs), quality-adjusted life-years (QALYs), and costs from a healthcare perspective. To better fit local cancer prognosis, a base case scenario using transition probabilities from clinical trials was complemented with two alternative scenarios with transition probabilities adjusted to reflect breast cancer epidemiology in each country. Incremental discounted benefits ranged from 0.87 to 1.00 LY and 0.51 to 0.60 QALY and incremental CE ratios from USD 42,104 to USD 110,283 per QALY (2012 U.S. dollars), equivalent to 3.6 gross domestic product per capita (GDPPC) per QALY in Uruguay and to 35.5 GDPPC in Bolivia. Probabilistic sensitivity analysis showed 0 percent probability that trastuzumab is CE if the willingness-to-pay threshold is one GDPPC per QALY, and remained so at three GDPPC threshold except for Chile and Uruguay (4.3 percent and 26.6 percent, respectively). Trastuzumab price would need to decrease between 69.6 percent to 94.9 percent to became CE in LA. Although CE in other settings, trastuzumab was not CE in LA. The use of health technology assessment to prioritize resource allocation and support price negotiations is critical to making innovative drugs available and affordable in developing countries.

Potential impacts of electricity price changes on price formation in the economy: a social accounting matrix price modeling analysis for Turkey

International Nuclear Information System (INIS)

Akkemik, K. Ali

2011-01-01

Recent reforms in the Turkish electricity sector since 2001 aim to introduce a tariff system that reflects costs. This is expected to affect the production and consumer prices of electricity. The changes in electricity prices are then reflected in production costs in other segments of the economy. Subsequently, producer and consumer prices will be affected. The potential impact of the changes in electricity prices that the ongoing electricity reforms in Turkey will bring about may have important implications on the price formation in economic activities and the cost of living for households. This paper evaluates the potential impacts of changes in electricity prices from a social accounting matrix (SAM) price modeling perspective. It is found that based on the estimated price multipliers that prices in the energy-producing sectors, mining, and iron and steel manufacturing sectors would be affected more severely than the remaining sectors of the economy. Consumer prices are affected slightly less than producer prices. - Research Highlights: → The impact of electricity generation costs on prices in other sectors is modeled. → A micro-SAM emphasizing electricity supply is constructed using 2002 I-O tables. → Energy, mining, and steel sectors are more responsive to electricity costs. → Living costs are less responsive to electricity cost changes than producer prices.

An impact assessment of electricity and emission allowances pricing in optimised expansion planning of power sector portfolios

International Nuclear Information System (INIS)

Tolis, Athanasios I.; Rentizelas, Athanasios A.

2011-01-01

Highlights: → The impact of electricity and CO 2 allowance pricing in power sector is researched. → A stochastic programming approach without recourse is used for the optimisation. → Higher electricity prices may be proportionally beneficial for the power system. → The CO 2 allowance prices may be inversely proportionate with the expected yields. → High CO 2 allowance prices are inhibitors for conventional technology projects. -- Abstract: The present work concerns a systematic investigation of power sector portfolios through discrete scenarios of electricity and CO 2 allowance prices. The analysis is performed for different prices, from regulated to completely deregulated markets, thus representing different electricity market policies. The modelling approach is based on a stochastic programming algorithm without recourse, used for the optimisation of power sector economics under multiple uncertainties. A sequential quadratic programming routine is applied for the entire investigation period whilst the time-dependent objective function is subject to various social and production constraints, usually confronted in power sectors. The analysis indicated the optimal capacity additions that should be annually ordered from each competitive technology in order to substantially improve both the economy and the sustainability of the system. It is confirmed that higher electricity prices lead to higher financial yields of power production, irrespective of the CO 2 allowance price level. Moreover, by following the proposed licensing planning, a medium-term reduction of CO 2 emissions per MW h by 30% might be possible. Interestingly, the combination of electricity prices subsidisation with high CO 2 allowance prices may provide favourable conditions for investors willing to engage on renewable energy markets.

Value-based pricing

Directory of Open Access Journals (Sweden)

Netseva-Porcheva Tatyana

2010-01-01

Full Text Available The main aim of the paper is to present the value-based pricing. Therefore, the comparison between two approaches of pricing is made - cost-based pricing and value-based pricing. The 'Price sensitively meter' is presented. The other topic of the paper is the perceived value - meaning of the perceived value, the components of perceived value, the determination of perceived value and the increasing of perceived value. In addition, the best company strategies in matrix 'value-cost' are outlined. .

Transfer Pricing

DEFF Research Database (Denmark)

Rohde, Carsten; Rossing, Christian Plesner

trade internally as the units have to decide what prices should be paid for such inter-unit transfers. One important challenge is to uncover the consequences that different transfer prices have on the willingness in the organizational units to coordinate activities and trade internally. At the same time...... the determination of transfer price will affect the size of the profit or loss in the organizational units and thus have an impact on the evaluation of managers‟ performance. In some instances the determination of transfer prices may lead to a disagreement between coordination of the organizational units...

CO2 Price Impacts on Nuclear Power Plant Competitiveness in Croatia

International Nuclear Information System (INIS)

Tomsic, Z.; Pasicko, R.

2010-01-01

Long term power system planning faces growing number of concerns and uncertainties, which is especially true for nuclear power plants due to their high investment costs and financial risk. In order to analyze competitiveness of nuclear power plants and optimize energy mix, existing models are not sufficient anymore and planners need to think differently in order to face these challenges. Croatia will join EU ETS (European Emission Trading Scheme) with accession to EU (probably in 2012). Thus, for Croatian electrical system it is very important to analyze possible impacts of CO 2 emissions. Analysis presented in this paper is done by electricity market simulation model PLEXOS which was used for modelling Croatian electrical system during development of the Croatian Energy Strategy in 2008. Paper analyzes impacts of CO 2 price on competitiveness of nuclear power plant within Croatian power system between 2020 and 2025. Analyzes are focused on how nuclear power plant influences total emission from the power system regarding coal and gas prices, average electricity price regarding CO 2 , coal and gas prices price. Results of this paper are showing that with emissions from Energy strategy development scenario with two new coal power plants (600 MW each) and two new gas power plants (400 MW each) until 2020, Croatia does not meet Kyoto target due to this emissions from power system. On the other side, introduction of nuclear power plants presented in this paper (1000 MW instead of one coal and one gas power plant) means nearly 6.5 Mt CO 2 emissions less annually and gives possibility to achieve Kyoto target (as this reduced amount represents nearly 22 % of Croatian Kyoto target). Results are also showing how increase in CO 2 price is enhancing competitiveness of a nuclear power plant.(author).

Electricity structure and the impact on pricing, trade and the environment

International Nuclear Information System (INIS)

Pineau, P.O.

2007-01-01

The feasibility of integrating different electricity markets was discussed along with the benefits that can be derived. It was noted that some important differences in Canadian electricity markets create distortions that are harmful both economically and environmentally. Indirect subsidies provided to electricity consumers in British Columbia, Saskatchewan, Manitoba and Quebec result in inefficient consumption levels and in missed opportunities to reduce greenhouse gas (GHG) emissions. The structure of the Canadian electricity sector is characterized by public ownership and decentralization at the provincial level. The impact that this structure has on pricing policies, independent planning and environmental strategies was discussed. Alberta and Ontario have an hourly spot market fixing the market price for electricity, but all the other provinces use a pricing policy based on average cost, including a return on investment. This article also addressed the issue of electric generating units (EGUs) within each province and and their role in meeting provincial electricity demands. It was shown that electricity prices do not reflect the value of the resource across Canada. It was cautioned that subsidies create low electricity prices that result in inefficient consumption levels, thereby preventing clean hydropower to be exported to market-based provinces as a substitute to diesel, natural gas or coal-fuelled EGUs. An estimate of the indirect subsidies was presented in this article along with an analysis of possible consumption reduction scenarios if market prices were used. Carbon dioxide-equivalent emissions reductions that could be obtained if the saved energy was entirely exported were also estimated. Transmission issues involved in exporting electricity were also reviewed. It was argued that once strong financial incentives are in place to induce change, then economic and environmental gains will be proven. 9 tabs., 3 figs

The discount framing in different pricing schemes: Combined versus partitioned pricing

OpenAIRE

Matthew Lee; Dr. Frankie Law

2015-01-01

Pricing is one of the most sophisticated and critical issues which managers have to face. It is obvious that managers have been undervaluing the behavioural and psychological perspective of pricing for many years. With a clear understanding of behavioural pricing, managers are able to make extra profit for their firms. In the current study, it was interesting to investigating exactly how manipulation of discounts in the combined pricing scheme and partitioned pricing scheme affects the purcha...

Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

International Nuclear Information System (INIS)

Miller, Mark; Alberini, Anna

2016-01-01

Price elasticity estimates of residential electricity demand vary widely across the energy economics and policy literature. In this paper, we seek to explain these findings using three nationwide datasets from the U.S. – the American Housing Survey, Forms EIA-861, and the Residential Energy Consumption Survey. We examine the role of the sample period, level of aggregation, use of panel data, use of instrumental variables, and inclusion of housing characteristics and capital stock. Our findings suggest that price elasticities have remained relatively constant over time. Upon splitting our panel datasets into annual cross sections, we do observe a negative relationship between price elasticities and the average price. Whether prices are rising or falling appears to have little effect on our estimates. We also find that aggregating our data can result in both higher and lower price elasticity estimates, depending on the dataset used, and that controlling for unit-level fixed effects with panel data generally results in more inelastic demand functions. Addressing the endogeneity of price and/or measurement error in price with instrumental variables has a small but noticeable effect on the price elasticities. Finally, controlling for housing characteristics and capital stock produces a lower price elasticity. - Highlights: • The price elasticity of residential electricity demand varies widely across studies. • We use three large datasets from the US to examine reasons for such wide variation. • Some assessed effects include aggregation, unobserved heterogeneity, and price trends. • Correcting for such issues can change the estimated price elasticity by 50–100%.

MARKET ECONOMICS PRICING PARTICULARS

Directory of Open Access Journals (Sweden)

V. I. Parshin

2011-01-01

Full Text Available The price performs several economic functions: accounting, stimulation, distribution, demand and offer balancing, serving as production site rational choice criterion, information. Most important pricing principles are: price scientific and purpose-aimed substantiation, single pricing and price control process. Pricing process factors are external, internal, basic (independent on money-market, market-determined and controlling. Different pricing methods and models are to be examined, recommendations on practical application of those chosen are to be written.

Target Price Accuracy

Directory of Open Access Journals (Sweden)

Alexander G. Kerl

2011-04-01

Full Text Available This study analyzes the accuracy of forecasted target prices within analysts’ reports. We compute a measure for target price forecast accuracy that evaluates the ability of analysts to exactly forecast the ex-ante (unknown 12-month stock price. Furthermore, we determine factors that explain this accuracy. Target price accuracy is negatively related to analyst-specific optimism and stock-specific risk (measured by volatility and price-to-book ratio. However, target price accuracy is positively related to the level of detail of each report, company size and the reputation of the investment bank. The potential conflicts of interests between an analyst and a covered company do not bias forecast accuracy.

STS pricing policy

Science.gov (United States)

Lee, C. M.; Stone, B.

1982-01-01

In 1977 NASA published Shuttle Reimbursement Policies for Civil U.S. Government, DOD and Commercial and Foreign Users. These policies were based on the principle of total cost recovery over a period of time with a fixed flat price for initial period to time to enhance transition. This fixed period was to be followed with annual adjustments thereafter, NASA is establishing a new price for 1986 and beyond. In order to recover costs, that price must be higher than the initial fixed price through FY 1985. NASA intends to remain competitive. Competitive posture includes not only price, but other factors such as assured launch, reliability, and unique services. NASA's pricing policy considers all these factors.