Firm Decisions: Determinants of Investments

OpenAIRE

Ionescu Alexandra

2011-01-01

The investment decision is part of a companies’ investment strategy. Defined as a logical set of technical and economic information, the investment strategy determines the main objectives of the firm regarding its investments, based on studies, analysis and simulations. It also establishes the actions to be undertaken in order to achieve the objectives, methods of achieving them, sources of funding and resource allocation methods. Still, all these are influenced by several factors. The invest...

Technology Infusion Challenges from a Decision Support Perspective

Science.gov (United States)

Adumitroaie, V.; Weisbin, C. R.

2009-01-01

In a restricted science budget environment and increasingly numerous required technology developments, the technology investment decisions within NASA are objectively more and more difficult to make such that the end results are satisfying the technical objectives and all the organizational constraints. Under these conditions it is rationally desirable to build an investment portfolio, which has the highest possible technology infusion rate. Arguably the path to infusion is subject to many influencing factors, but here only the challenges associated with the very initial stages are addressed: defining the needs and the subsequent investment decision-support process. It is conceivable that decision consistency and possibly its quality suffer when the decision-making process has limited or no traceability. This paper presents a structured decision-support framework aiming to provide traceable, auditable, infusion- driven recommendations towards a selection process in which these recommendations are used as reference points in further discussions among stakeholders. In this framework addressing well-defined requirements, different measures of success can be defined based on traceability to specific selection criteria. As a direct result, even by using simplified decision models the likelihood of infusion can be probed and consequently improved.

The evolution of investments decision mode in China's telecommunication

Institute of Scientific and Technical Information of China (English)

ZHANG Ai-hua; ZHAO Lian-qiang; SHU Hua-ying

2007-01-01

This essay analyzes the data of Chinese telecommunication market, telecommunication investments and investment benefits over the past 20 years. On the basis of these data, the essay reviews Chinese changing telecommunication policies and discusses the major events in the course of China's telecommunication development. It is argued that telecommunication policies, regime backgrounds and market demand characteristics have a significant impact on investment decision mode in telecommunication industry. The evolution of network investments decision mode in China's telecommunication has corresponded to the transformation of these key factors. Considering the special events in the development of Chinese telecommunication as divisions, the essay discusses three stages of the evolution of investments decision mode in China's telecommunication. With the firm environment and problems that Chinese telecommunication operators have been facing since 2000 analyzed. it is demonstrated that Chinese telecommunication operators should change their mode of investment decision into the "profit-oriented investment decision mode" in order to achieve a high growth performance in the capital market,. This investment decision mode will result in increase of the investment profit with limited investment capital. The main procedure of profit-oriented investment decision mode is set out, which is abstracted to a mathematical model eventually.

Decision-making model of generation technology under uncertainty based on real option theory

International Nuclear Information System (INIS)

Ming, Zeng; Ping, Zhang; Shunkun, Yu; Ge, Zhang

2016-01-01

Highlights: • A decision-making model of generation technology investment is proposed. • The irreversible investment concept and real option theory is introduced. • Practical data was used to prove the validity of the model. • Impact of electricity and fuel price fluctuation on investment was analyzed. - Abstract: The introduction of market competition and the increased uncertainty factors makes the generators have to decide not only on whether to invest generation capacity or not but also on what kind of generation technology to choose. In this paper, a decision-making model of generation technology investment is proposed. The irreversible investment concept and real option theory is introduced as the fundamental of the model. In order to explain the decision-making process of generator’s investment, the decision-making optimization model was built considering two generation technologies, i.e., the heat-only system and the combined heat and power generation. Also, we discussed the theory deducing process, which explained how to eliminate the overrated economic potential caused by risk hazard, based on economic evaluation of both generation technologies. Finally, practical data from electricity market of Inner Mongolia was used to prove the validity of the model and the impact of uncertainties of electricity and fuel price fluctuation on investment was analyzed according to the simulated results.

Investment and Usage of New Technologies : Evidence from a Shared ATM Network

NARCIS (Netherlands)

Ferrari, S.; Verboven, F.L.; Degryse, H.A.

2007-01-01

When new technologies become available, it is not only essential that firms have the correct investment incentives, but often also that consumers make the proper usage decisions. This paper studies investment and usage in a shared ATM network. Be- cause all banks coordinate their ATM investment

Investment and Usage of New Technologies : Evidence from a Shared ATM Network

NARCIS (Netherlands)

Ferrari, S.; Verboven, F.L.; Degryse, H.A.

2008-01-01

When new technologies become available, it is not only essential that firms have the correct investment incentives, but often also that consumers make the proper usage decisions. This paper studies investment and usage in a shared ATM network. Be- cause all banks coordinate their ATM investment

The Importance of Investment Decisions in Project Management

Directory of Open Access Journals (Sweden)

Cosmina Mădălina Pop

2008-10-01

Full Text Available The financing decision alongside with investment decision represents the core of financial management. The paper presents the main steps in realizing investment projects, the option criteria used in pre-investment analysis, the techniques of financing the investments project, but also the methods of evaluation applied in selecting the most suitable project, accordingly with company’s developlment strategy and policy.

Developing long-term scenario forecasts to support electricity generation investment decisions

CSIR Research Space (South Africa)

Koen, Renée

2014-09-01

Full Text Available Many decisions regarding capital investment in electricity generation technologies need to be made well in advance, usually when there is still a large amount of uncertainty regarding the favourability of future conditions. There may be uncertainty...

Optimal technology choice and investment timing: A stochastic model of industrial cogeneration vs. heat-only production

International Nuclear Information System (INIS)

Wickart, Marcel; Madlener, Reinhard

2007-01-01

In this paper we develop an economic model that explains the decision-making problem under uncertainty of an industrial firm that wants to invest in a process technology. More specifically, the decision is between making an irreversible investment in a combined heat-and-power production (cogeneration) system, or to invest in a conventional heat-only generation system (steam boiler) and to purchase all electricity from the grid. In our model we include the main economic and technical variables of the investment decision process. We also account for the risk and uncertainty inherent in volatile energy prices that can greatly affect the valuation of the investment project. The dynamic stochastic model presented allows us to simultaneously determine the optimal technology choice and investment timing. We apply the theoretical model and illustrate our main findings with a numerical example that is based on realistic cost values for industrial oil- or gas-fired cogeneration and heat-only generation in Switzerland. We also briefly discuss expected effects of a CO 2 tax on the investment decision

Does Gender Difference Impact Investment Decisions? Evidence from Oman

OpenAIRE

Jamil, Syed Ahsan; Khan, Khaliquzzaman

2016-01-01

Humans are believed to be rational decision makers and documentary evidence proves a significant heterogeneity across individuals when it comes to investment decision making and risk bearing. The study is an attempt to explore and understand the heterogeneity of investment decision when it comes to gender behavior with focus on women. The aim of this research is to explore role of gender in investment decision making and to identify the points of difference between the two genders with respec...

Characterizing uncertain sea-level rise projections to support investment decisions.

Science.gov (United States)

Sriver, Ryan L; Lempert, Robert J; Wikman-Svahn, Per; Keller, Klaus

2018-01-01

Many institutions worldwide are considering how to include uncertainty about future changes in sea-levels and storm surges into their investment decisions regarding large capital infrastructures. Here we examine how to characterize deeply uncertain climate change projections to support such decisions using Robust Decision Making analysis. We address questions regarding how to confront the potential for future changes in low probability but large impact flooding events due to changes in sea-levels and storm surges. Such extreme events can affect investments in infrastructure but have proved difficult to consider in such decisions because of the deep uncertainty surrounding them. This study utilizes Robust Decision Making methods to address two questions applied to investment decisions at the Port of Los Angeles: (1) Under what future conditions would a Port of Los Angeles decision to harden its facilities against extreme flood scenarios at the next upgrade pass a cost-benefit test, and (2) Do sea-level rise projections and other information suggest such conditions are sufficiently likely to justify such an investment? We also compare and contrast the Robust Decision Making methods with a full probabilistic analysis. These two analysis frameworks result in similar investment recommendations for different idealized future sea-level projections, but provide different information to decision makers and envision different types of engagement with stakeholders. In particular, the full probabilistic analysis begins by aggregating the best scientific information into a single set of joint probability distributions, while the Robust Decision Making analysis identifies scenarios where a decision to invest in near-term response to extreme sea-level rise passes a cost-benefit test, and then assembles scientific information of differing levels of confidence to help decision makers judge whether or not these scenarios are sufficiently likely to justify making such investments

The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings

International Nuclear Information System (INIS)

Masini, Andrea; Menichetti, Emanuela

2012-01-01

Investments in renewable energy (RE) technologies are regarded with increasing interest as an effective means to stimulate growth and accelerate the recovery from the recent financial crisis. Yet, despite their appeal, and the numerous policies implemented to promote these technologies, the diffusion of RE projects remains somehow below expectations. This limited penetration is also due to a lack of appropriate financing and to a certain reluctance to invest in these technologies. In order to shed light on this phenomenon, in this paper we examine the decision making process underlying investments in RE technologies. We propose and test a conceptual model that examines the structural and behavioural factors affecting the investors decisions as well as the relationship between RE investments and portfolio performance. Applying econometric techniques on primary data collected from a sample of European investors, we study how the investors’ a-priori beliefs, their preferences over policy instruments and their attitude toward technological risk affect the likelihood of investing in RE projects. We also demonstrate that portfolio performance increases with an increase of the RE share in the portfolio. Implications for scholars, investors, technology managers and policy makers are derived and discussed.

Retention payoff-based cost per day open regression equations: Application in a user-friendly decision support tool for investment analysis of automated estrus detection technologies.

Science.gov (United States)

Dolecheck, K A; Heersche, G; Bewley, J M

2016-12-01

Assessing the economic implications of investing in automated estrus detection (AED) technologies can be overwhelming for dairy producers. The objectives of this study were to develop new regression equations for estimating the cost per day open (DO) and to apply the results to create a user-friendly, partial budget, decision support tool for investment analysis of AED technologies. In the resulting decision support tool, the end user can adjust herd-specific inputs regarding general management, current reproductive management strategies, and the proposed AED system. Outputs include expected DO, reproductive cull rate, net present value, and payback period for the proposed AED system. Utility of the decision support tool was demonstrated with an example dairy herd created using data from DairyMetrics (Dairy Records Management Systems, Raleigh, NC), Food and Agricultural Policy Research Institute (Columbia, MO), and published literature. Resulting herd size, rolling herd average milk production, milk price, and feed cost were 323 cows, 10,758kg, $0.41/kg, and $0.20/kg of dry matter, respectively. Automated estrus detection technologies with 2 levels of initial system cost (low: $5,000 vs. high: $10,000), tag price (low: $50 vs. high: $100), and estrus detection rate (low: 60% vs. high: 80%) were compared over a 7-yr investment period. Four scenarios were considered in a demonstration of the investment analysis tool: (1) a herd using 100% visual observation for estrus detection before adopting 100% AED, (2) a herd using 100% visual observation before adopting 75% AED and 25% visual observation, (3) a herd using 100% timed artificial insemination (TAI) before adopting 100% AED, and (4) a herd using 100% TAI before adopting 75% AED and 25% TAI. Net present value in scenarios 1 and 2 was always positive, indicating a positive investment situation. Net present value in scenarios 3 and 4 was always positive in combinations using a $50 tag price, and in scenario 4, the $5

Impact of Real-world Factors Influencing Investment Decisions on the Costs and Distribution of Climate Change Mitigation

Science.gov (United States)

Edmonds, J.; Iyer, G.; McJeon, H. C.; Leon, C.; Hultman, N.

2015-12-01

Strategies to mitigate dangerous anthropogenic climate change require a dramatic transformation of the energy system to reduce greenhouse gas emissions, that in turn requires large-scale investments. Investment decisions depend not only on investment capital availability but also on investment risks. A number of factors such as national policy environments, quality of public and private institutions, sector, firm and technology specific characteristics can affect investors' assessments of risks, leading to a wide variation in the business climate for investment. Such heterogeneity in investment risks can have important implications, as investors usually respond to risks by requiring higher returns for riskier projects; delaying or forgoing the investments; or preferring to invest in existing, familiar projects. We study the impact of variation in investment risks on regional patterns of emissions mitigation, the cost of emissions mitigation and patterns of technology deployment. We modify an integrated assessment model, widely used in global climate policy analyses (the Global Change Assessment Model) and incorporate decisions on investments based on risks along two dimensions. Along the first dimension, we vary perceived risks associated with particular technologies. To do so, we assign a higher cost of capital for investment in low-carbon technologies as these involve intrinsically higher levels of regulatory and market risk. The second dimension uses a proxy to vary investment risks across regions, based on an institutional quality metric published by the World Economic Forum. Explicit representation of investment risks has two major effects. First, it raises the cost of emissions mitigation relative to a world with uniform investment risks. Second, it shifts the pattern of emissions mitigation, with industrialized countries mitigating more, and developing countries mitigating less. Our results suggest that institutional reforms aimed at lowering investment

STRATEGIC EXERCISE OF REAL OPTIONS:INVESTMENT DECISIONS IN TECHNOLOGICAL SYSTEMS

Institute of Scientific and Technical Information of China (English)

Kevin ZHU; John WEYANT

2003-01-01

Viewing investment projects in new technologies as real options, this paper studies the effects of endogenous competition and asymmetric information on the strategic exercise of real options. We first develop a multi-period, game-theoretic model and show how competition leads to early exercise and aggressive investment behaviors and how competition erodes option values. We then relax the typical full-information assumption found in the literature and allow information asymmetry to exist across firms. Our model shows, in contrast to the literature that payoff is independent of the ordering of exercise, that the sequential exercise of real options may generate both informational and payoff externalities. We also find some surprising but interesting results such as having more information is not necessarily better.

Characterizing uncertain sea-level rise projections to support investment decisions

Science.gov (United States)

Lempert, Robert J.; Wikman-Svahn, Per; Keller, Klaus

2018-01-01

Many institutions worldwide are considering how to include uncertainty about future changes in sea-levels and storm surges into their investment decisions regarding large capital infrastructures. Here we examine how to characterize deeply uncertain climate change projections to support such decisions using Robust Decision Making analysis. We address questions regarding how to confront the potential for future changes in low probability but large impact flooding events due to changes in sea-levels and storm surges. Such extreme events can affect investments in infrastructure but have proved difficult to consider in such decisions because of the deep uncertainty surrounding them. This study utilizes Robust Decision Making methods to address two questions applied to investment decisions at the Port of Los Angeles: (1) Under what future conditions would a Port of Los Angeles decision to harden its facilities against extreme flood scenarios at the next upgrade pass a cost-benefit test, and (2) Do sea-level rise projections and other information suggest such conditions are sufficiently likely to justify such an investment? We also compare and contrast the Robust Decision Making methods with a full probabilistic analysis. These two analysis frameworks result in similar investment recommendations for different idealized future sea-level projections, but provide different information to decision makers and envision different types of engagement with stakeholders. In particular, the full probabilistic analysis begins by aggregating the best scientific information into a single set of joint probability distributions, while the Robust Decision Making analysis identifies scenarios where a decision to invest in near-term response to extreme sea-level rise passes a cost-benefit test, and then assembles scientific information of differing levels of confidence to help decision makers judge whether or not these scenarios are sufficiently likely to justify making such investments

Characterizing uncertain sea-level rise projections to support investment decisions.

Directory of Open Access Journals (Sweden)

Ryan L Sriver

Full Text Available Many institutions worldwide are considering how to include uncertainty about future changes in sea-levels and storm surges into their investment decisions regarding large capital infrastructures. Here we examine how to characterize deeply uncertain climate change projections to support such decisions using Robust Decision Making analysis. We address questions regarding how to confront the potential for future changes in low probability but large impact flooding events due to changes in sea-levels and storm surges. Such extreme events can affect investments in infrastructure but have proved difficult to consider in such decisions because of the deep uncertainty surrounding them. This study utilizes Robust Decision Making methods to address two questions applied to investment decisions at the Port of Los Angeles: (1 Under what future conditions would a Port of Los Angeles decision to harden its facilities against extreme flood scenarios at the next upgrade pass a cost-benefit test, and (2 Do sea-level rise projections and other information suggest such conditions are sufficiently likely to justify such an investment? We also compare and contrast the Robust Decision Making methods with a full probabilistic analysis. These two analysis frameworks result in similar investment recommendations for different idealized future sea-level projections, but provide different information to decision makers and envision different types of engagement with stakeholders. In particular, the full probabilistic analysis begins by aggregating the best scientific information into a single set of joint probability distributions, while the Robust Decision Making analysis identifies scenarios where a decision to invest in near-term response to extreme sea-level rise passes a cost-benefit test, and then assembles scientific information of differing levels of confidence to help decision makers judge whether or not these scenarios are sufficiently likely to justify making

HOSPITAL MANAGERS' NEED FOR INFORMATION ON HEALTH TECHNOLOGY INVESTMENTS.

Science.gov (United States)

Ølholm, Anne Mette; Kidholm, Kristian; Birk-Olsen, Mette; Christensen, Janne Buck

2015-01-01

There is growing interest in implementing hospital-based health technology assessment (HB-HTA) as a tool to facilitate decision making based on a systematic and multidisciplinary assessment of evidence. However, the decision-making process, including the informational needs of hospital decision makers, is not well described. The objective was to review empirical studies analysing the information that hospital decision makers need when deciding about health technology (HT) investments. A systematic review of empirical studies published in English or Danish from 2000 to 2012 was carried out. The literature was assessed by two reviewers working independently. The identified informational needs were assessed with regard to their agreement with the nine domains of EUnetHTA's Core Model. A total of 2,689 articles were identified and assessed. The review process resulted in 14 relevant studies containing 74 types of information that hospital decision makers found relevant. In addition to information covered by the Core Model, other types of information dealing with political and strategic aspects were identified. The most frequently mentioned types of information in the literature related to clinical, economic and political/strategic aspects. Legal, social, and ethical aspects were seldom considered most important. Hospital decision makers are able to describe their information needs when deciding on HT investments. The different types of information were not of equal importance to hospital decision makers, however, and full agreement between EUnetHTA's Core Model and the hospital decision-makers' informational needs was not observed. They also need information on political and strategic aspects not covered by the Core Model.

CEO emotional bias and investment decision, Bayesian network method

Directory of Open Access Journals (Sweden)

Jarboui Anis

2012-08-01

Full Text Available This research examines the determinants of firms’ investment introducing a behavioral perspective that has received little attention in corporate finance literature. The following central hypothesis emerges from a set of recently developed theories: Investment decisions are influenced not only by their fundamentals but also depend on some other factors. One factor is the biasness of any CEO to their investment, biasness depends on the cognition and emotions, because some leaders use them as heuristic for the investment decision instead of fundamentals. This paper shows how CEO emotional bias (optimism, loss aversion and overconfidence affects the investment decisions. The proposed model of this paper uses Bayesian Network Method to examine this relationship. Emotional bias has been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some 100 Tunisian executives. Our results have revealed that the behavioral analysis of investment decision implies leader affected by behavioral biases (optimism, loss aversion, and overconfidence adjusts its investment choices based on their ability to assess alternatives (optimism and overconfidence and risk perception (loss aversion to create of shareholder value and ensure its place at the head of the management team.

Investment decisions with benefits of control

DEFF Research Database (Denmark)

Poulsen, Thomas

This paper studies how large shareholders with benefits of control affect firms' equity issue behavior and investment decisions. I introduce an explicit agency cost structure based on the large shareholder's benefits of control. In a simple extension of Myers and Majluf [1984], I show that underi......This paper studies how large shareholders with benefits of control affect firms' equity issue behavior and investment decisions. I introduce an explicit agency cost structure based on the large shareholder's benefits of control. In a simple extension of Myers and Majluf [1984], I show...... that underinvestment is aggravated when there are benefits of being in control, and these benefits are diluted if equity is issued to finance the investment project. I assume that large shareholders are constrained from further investments in their firms, and that they maximize their own wealth, which includes...... as a representation of the large shareholders' expected private benefits. Using a large panel of U.S. data, I find that large shareholders' concern with dilution of ownership and control cause firms to issue less equity and to invest less. I also find that it has no significant effect whether new shares are issued...

Market Power and Investment in Renewable Electricity Generation

DEFF Research Database (Denmark)

Ernstsen, Rune Ramsdal; Misir, Nihat

while incurring lower investment costs. We additionally find that highly convex investment cost greatly diminishes the impact of market power on the investment decisions. Furthermore, for both the strategic firm and the social planner, fixed baseload generation is preferable during low installed...... approach to evaluate the investment decisions. In our paper we do not only focus on the differences in costs for different technologies but also on the differences in operation of those technologies and how those differences impact the optimal investment decisions. In our model, the one-time investment...... decision requires the determination of demand shock trigger level, choice of technology and level of optimal capacity. We specifically investigate how the investment triggers, optimal capacities and technology choices change with the changes to the investment cost function, demand uncertainty and the level...

Do Older Investors Make Better Investment Decisions?

OpenAIRE

George M Korniotis; Alok Kumar

2011-01-01

This paper examines the investment decisions of older individual investors. We find that older and experienced investors are more likely to follow rules of thumb that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated, earn lower income, and belong to minority racial/ethnic groups. Overall, the adverse effects of aging dominate the positive effects of ...

Transportation Energy Futures Series: Vehicle Technology Deployment Pathways: An Examination of Timing and Investment Constraints

Energy Technology Data Exchange (ETDEWEB)

Plotkin, S.; Stephens, T.; McManus, W.

2013-03-01

Scenarios of new vehicle technology deployment serve various purposes; some will seek to establish plausibility. This report proposes two reality checks for scenarios: (1) implications of manufacturing constraints on timing of vehicle deployment and (2) investment decisions required to bring new vehicle technologies to market. An estimated timeline of 12 to more than 22 years from initial market introduction to saturation is supported by historical examples and based on the product development process. Researchers also consider the series of investment decisions to develop and build the vehicles and their associated fueling infrastructure. A proposed decision tree analysis structure could be used to systematically examine investors' decisions and the potential outcomes, including consideration of cash flow and return on investment. This method requires data or assumptions about capital cost, variable cost, revenue, timing, and probability of success/failure, and would result in a detailed consideration of the value proposition of large investments and long lead times. This is one of a series of reports produced as a result of the Transportation Energy Futures (TEF) project, a Department of Energy-sponsored multi-agency effort to pinpoint underexplored strategies for abating GHGs and reducing petroleum dependence related to transportation.

Transportation Energy Futures Series. Vehicle Technology Deployment Pathways. An Examination of Timing and Investment Constraints

Energy Technology Data Exchange (ETDEWEB)

Plotkin, Steve [Argonne National Lab. (ANL), Argonne, IL (United States); Stephens, Thomas [Argonne National Lab. (ANL), Argonne, IL (United States); McManus, Walter [Oakland Univ., Rochester, MI (United States)

2013-03-01

Scenarios of new vehicle technology deployment serve various purposes; some will seek to establish plausibility. This report proposes two reality checks for scenarios: (1) implications of manufacturing constraints on timing of vehicle deployment and (2) investment decisions required to bring new vehicle technologies to market. An estimated timeline of 12 to more than 22 years from initial market introduction to saturation is supported by historical examples and based on the product development process. Researchers also consider the series of investment decisions to develop and build the vehicles and their associated fueling infrastructure. A proposed decision tree analysis structure could be used to systematically examine investors' decisions and the potential outcomes, including consideration of cash flow and return on investment. This method requires data or assumptions about capital cost, variable cost, revenue, timing, and probability of success/failure, and would result in a detailed consideration of the value proposition of large investments and long lead times. This is one of a series of reports produced as a result of the Transportation Energy Futures (TEF) project, a Department of Energy-sponsored multi-agency effort to pinpoint underexplored strategies for abating GHGs and reducing petroleum dependence related to transportation.

Effects of the provisions of the corporate and personal income tax codes on solar investment decisions

Science.gov (United States)

Sedmak, M. R.

The effects of the provisions of the existing corporate and personal income tax codes on solar investment decisions are analyzed. It is shown that the provisions of a tax code do not discriminate against investment in solar technologies if the present value of depreciation and interest expense tax deductions over the relevant decision period is equal to the present value of actual capital expenses. However, on the basis of a quantitative analyses, it is concluded that the existing corporate income tax code does discriminate against solar investments for the majority of corporations, although the 25 percent tax credit available to businesses for solar investments is sufficient to alleviate the distortion in most cases. In contrast, the provisions of the existing personal income tax code favor solar investments over investments in less capital intensive energy generating units, as the interest paid on loads used to finance solar investments made by individuals is tax deductible, while conventional fuel expenses are not deductible.

Making optimal investment decisions for energy service companies under uncertainty: A case study

International Nuclear Information System (INIS)

Deng, Qianli; Jiang, Xianglin; Zhang, Limao; Cui, Qingbin

2015-01-01

Varied initial energy efficiency investments would result in different annual energy savings achievements. In order to balance the savings revenue and the potential capital loss through EPC (Energy Performance Contracting), a cost-effective investment decision is needed when selecting energy efficiency technologies. In this research, an approach is developed for the ESCO (Energy Service Company) to evaluate the potential energy savings profit, and thus make the optimal investment decisions. The energy savings revenue under uncertainties, which are derived from energy efficiency performance variation and energy price fluctuation, are first modeled as stochastic processes. Then, the derived energy savings profit is shared by the owner and the ESCO according to the contract specification. A simulation-based model is thus built to maximize the owner's profit, and at the same time, satisfy the ESCO's expected rate of return. In order to demonstrate the applicability of the proposed approach, the University of Maryland campus case is also presented. The proposed method could not only help the ESCO determine the optimal energy efficiency investments, but also assist the owner's decision in the bidding selection. - Highlights: • An optimization model is built for determining energy efficiency investment for ESCO. • Evolution of the energy savings revenue is modeled as a stochastic process. • Simulation is adopted to calculate investment balancing the owner and the ESCO's profit. • A campus case is presented to demonstrate applicability of the proposed approach

ACCOUNTING INFORMATION – A BASIS FOR ACHIEVING THE DECISION FOR THE REALIZATION OF PUBLIC INVESTMENT PROJECT

Directory of Open Access Journals (Sweden)

2012-12-01

Full Text Available Accounting information plays a key role in the foundation process of public sector decisions. Financing budget deficits, treasury risk identification (availability risk, formation of tax claims, foundation of financial sustainability for public investment projects are just some examples of using accounting information in decision-making process of credit accountant. How can we use and process accounting information in the foundation of public investment projects? We will try to answer this question in the content of this paper. The revenues and expenses, as accounting information, are necessary for determining the actual financial net value and/or the actual economic net value. These indicators have decisive information power in accepting and / or rejecting public investment projects. In the current economic context, the importance of investments is major for at least three reasons: the first one is a highly circulated reason in the last 20 years: the increase of technology, the alignment of the technology used in the alignment of competitors from the European market and even worldwide; the second reason is linked to the support of economic growth in crisis conditions through a policy of major investments especially in the infrastructure sector; the third reason, which derives from the second one, is that of post-accession grant funds available for investment both in private and public sectors. The importance given to public investments is also revealed by the authorities' approach to establishing key areas of interventions under grant programs (with programs designed to both public and private environment designed exclusively to carry out public investment programs (for example the POS Transport. In this context, the present research is intended to be a documentary of the role that accounting information plays in decision-making process that precedes the development of an investment, especially as most major investments are made in the public

Market research on factors influencing women's preferences in investment decision making

OpenAIRE

Sharma, Abhishek.; Douglas, Tony.; Jaworski, Piotr.

2017-01-01

This study aims to gain knowledge on the factors that influence the investment decision making of women in Singapore. The research explores the fact that investment decision is being affected by the demographic, psychographic factors of the individuals. The individuals may be equal in all aspects but their investment decision varies with their own perception towards various investment plans. The research was conducted among 200 respondents through a survey so as to get an empirical findings o...

THE INFLUENCE OF THE NET PROFIT OVER THE INVESTMENT DECISION MAKING

Directory of Open Access Journals (Sweden)

Mihaela GADOIU

2017-12-01

Full Text Available This article aims at analysing how the investment decision is influenced by the final result of the activity of an entity after paying the profit tax. Starting from the need to make investments in order to ensure the economic efficiency and subsequently the economic growth, we sought to capture both the advantages and the disadvantages of the various versions that must be considered for the selection of the investment project. From the perspective of the presentation of this topic, we have analysed, in addition to the aspects related to the notion of investment, the investment typology, the decision to invest in a certain environment, and a number of economic and financial indicators used in order to make an investment decision.

Information Aggregation and Investment Decisions

OpenAIRE

Christian Hellwig; Aleh Tsyvinski; Elias Albagli

2010-01-01

This paper studies an environment in which information aggregation interacts with investment decisions. The first contribution of the paper is to develop a tractable model of such interactions. The second contribution is to solve the model in closed form and derive a series of implications that result from the interplay between information aggregation and the value of market information for the firms' decision problem. We show that the model generates an information aggregation wedge between ...

Applying the Theory of the Firm to Examine a Technology Startup at the Investment Stage

Directory of Open Access Journals (Sweden)

Michael Ayukawa

2012-05-01

Full Text Available The investment stage of a new technology firm is when resources, opportunities, investors, and early customers first converge. Currently, technology entrepreneurs make many expensive mistakes. They invest in assets and develop capabilities that prove to have limited value. They take too long to discover and validate the product-market fit for their firms during the investment stage and run out of time and money. Understanding how theory can help entrepreneurs make decisions during the investment stage is important to accelerate new-firm formation and growth as well as to reduce the uncertainty of founders and stakeholders of technology firms. This article introduces a model developed to examine deal making during the investment stage of a new technology firm. It is an extension of a model of lateral firm scope proposed by Oliver Hart and Bengt Holmstrom. The extensions come from considering a technology firm as being both a deal-making entity and a pool of resources during the investment stage. A deal is the result of a decision the entrepreneur and others make to coordinate (i.e., work together to achieve a common objective. Benefits from a deal include cash profits for the firm and private benefits for the entrepreneur. This extended model is then applied to examine the author’s firm which is still in the investment stage. Application of the extended model to a real-life situation generated two important insights: i when private benefits include learning from experimentation, the number of deals increases and ii at the start of the investment stage, private benefits drive deal-making, whereas at the end of the investment stage, cash profits derived from asset ownership drive deal-making.

Transnational Energy Companies' Investment Allocation Decisions

International Nuclear Information System (INIS)

Osmundsen, Petter; Emhjellen, Magne; Halleraker, Morten

2001-10-01

When making international capital budgeting decisions, energy companies are often faced with capital and organisational constraints. The constraints may be real or management imposed. In addition, when entering into a new country or region the companies will incur fixed new area costs that must be considered before investment approval. The decision problem is therefore not a linear problem where the standard net present value rule applies, but a non-linear problem of selecting the combination of projects with the maximum aggregate net present value. New project investments will therefore be selected based on the size of the net present value (often referred to as financial volume or materiality) compared to the projects' use of capital and scarce personnel and organisational capacity. Consequently, projects with a positive net present value, but with low materiality, may not be approved. The portfolio choice has a parallel to the company's choice of core areas. Instead of complex portfolio models, the companies often apply simpler allocation mechanisms, e.g., combinations of fixed investment budgets and materiality requirements. Analysing petroleum cases, we compare the allocations decisions generated by portfolio models and simpler mechanisms. We also discuss the implications of this capital allocation pattern for governments' design of tax systems and license conditions. (author)

Literature Review on Cyber Security Investment Decisions

OpenAIRE

ŞENTÜRK, Hakan; ÇİL, Celal Zaim; SAĞIROĞLU, Şeref

2016-01-01

Severe financial losses incurred by cyber security attacks with increasing complexity and frequency, as well as booming cyber security sector offering variety of products as investment options have led the focus of the research in the field to the economic dimension of cyber security. The need for determination of methods to be used when making cyber security investment decisions under budget constraints have become prominent. In five sections as the cyber security investment strategies, risk...

Policy Uncertainty, Investment and Commitment Periods

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

Today's investment decisions in key sectors such as energy, forestry or transport have significant impacts on the levels of greenhouse gas (GHG) emissions over the coming decades. Given the economic and environmental long-term implications of capital investment and retirement, a climate mitigation regime should aim to encourage capital investment in climate-friendly technologies. Many factors affect technology choice and the timing of investment, including investor expectations about future prices and policies. Recent international discussions have focused on the importance of providing more certainty about future climate policy stringency. The design of commitment periods can play a role in creating this environment. This paper assesses how the length of commitment periods influences policy uncertainty and investment decisions. In particular, the paper analyses the relationship between commitment period length and near term investment decisions in climate friendly technology.

INFLUENCE OF THE INVESTMENT DECISIONS ON THE RETURN OF THE COMPANY

Directory of Open Access Journals (Sweden)

Pop Mugurel Gabriel Sorin

2012-12-01

Full Text Available We propose in this study, to make an analysis of the influence of the investment decision on the return of the company. The goal of our research is the quantification of the influence of investment activity on profitability. Fulfilling such a goal has forced us to research the existing literature in this field, both in our country and abroad, ascertaining the existence of a unitary meaning of the criteria for investment projects’ evaluation. Of course, the realization of such research was possible only after close consideration of the opinions expressed in the relevant literature on this area. Our research aims to be a theoretical-applied one. It is based on comparisons we make between the two criteria for assessing investment projects namely: that of net present value (VAN and internal rate of return (RIR. By creating a suite of phase calculations, based on information from economic and financial documentation of corporate investments, we separated the influence of the policy investment decisions on profitability. We are convinced that the most accurate determination of the influence of policy investment decisions on profitability helps the financial management, facilitating the process of adopting the most appropriate policy decisions that ultimately leads to the objectives formulated by the financial policy. The result of our research is the quantification of the influence of investment policy decisions of the firm on profitability.

INVESTMENT DEPOSITS DECISION-MAKING IN BANK: A BEHAVIORAL FINANCE PERSPECTIVE

Directory of Open Access Journals (Sweden)

Hanopia B.L.

2018-02-01

Full Text Available This research was conducted using behavioral finance theories. The objectives of this research was to analyze influencing factors of investment deposits decision-making for the depositor, and to analyze the most dominant factor of investment deposits decision-making in Bank NTB of Pejanggik Principle Branches. The instrument of this research was questionnaire with the total sample of 90 respondents who were the deposit customers. The research results show that deposits’ interest, gain and cost, feelings of disappointment and satisfaction, worries, reluctances, good companies, budget allocation, self-control, net interest income, belief in net interest income, overestimate and underestimate are factors influencing investment deposits decision-making in Bank NTB of Pejanggik Principle Branches. Dominant factors determining investment deposits decision-making are deposits cost, interest and feelings of satisfaction, budget allocation, overestimate and self-control. Those factors are included in the factor group of deposits cost.

Option Strike Price and Managerial Investment Decisions

Institute of Scientific and Technical Information of China (English)

刘鸿雁; 张维

2003-01-01

The manager′s investment decisions is modeled when the manager is risk-averse and has stock options as compensation. It is found that the strike price of options is crucial to the investment incentives of managers, and that the correct value, or interval of values, of managerial stock option strike price can bring stockholder and manager interests in agreement.

A dynamic decision model for portfolio investment and assets management

Institute of Scientific and Technical Information of China (English)

QIAN Edward Y.; FENG Ying; HIGGISION James

2005-01-01

This paper addresses a dynamic portfolio investment problem. It discusses how we can dynamically choose candidate assets, achieve the possible maximum revenue and reduce the risk to the minimum level. The paper generalizes Markowitz's portfolio selection theory and Sharpe's rule for investment decision. An analytical solution is presented to show how an institutional or individual investor can combine Markowitz's portfolio selection theory, generalized Sharpe's rule and Value-at-Risk(VaR) to find candidate assets and optimal level of position sizes for investment (dis-investment). The result shows that the generalized Markowitz's portfolio selection theory and generalized Sharpe's rule improve decision making for investment.

10 CFR 603.1340 - Technology investment agreement.

Science.gov (United States)

2010-01-01

... 10 Energy 4 2010-01-01 2010-01-01 false Technology investment agreement. 603.1340 Section 603.1340 Energy DEPARTMENT OF ENERGY (CONTINUED) ASSISTANCE REGULATIONS TECHNOLOGY INVESTMENT AGREEMENTS Definitions of Terms Used in this Part § 603.1340 Technology investment agreement. A TIA is a special type of...

The role of investment, fundamental Q and financing frictions in agricultural investment decisions: an analysis pre and post financial crisis

OpenAIRE

Conor M. O'Toole; Carol Newman; Thia Hennessy

2011-01-01

This paper uses a fundamental Q model of investment to consider the role played by financing frictions in agricultural investment decisions, controlling econometrically for censoring, heterogeneity and errors-in-variables. Our findings suggest that farmer's in- vestment decisions are not driven by market fundamentals. We find some evidence that debt overhang restricts investment but investment is not dependent on liquidity or internal funds. The role of nancing frictions in determining invest...

Investment Decision In Micro, Small And Medium Enterprises In Indonesia*

Directory of Open Access Journals (Sweden)

Siti Aisyah Tri Rahayu

2013-06-01

Full Text Available The purpose of this study are: First, to analyze is there any significant influence among debt ratio, internal capital, cash flow, inflation expectations and the expectations of rupiah exchange rate against the decisions of businessmen in the real sector to invest or not to invest; Second, to analyze the impact of the variables perception mortgage interest rates, perceptions of bank regulation, internal capital and cash flow on debt ratio of the real sector (leverage. Investment decision model is estimated using logit models. The results of regression estimates the overall good for business and risk analysis for financial risk shows that almost all explanatory variables in the equation are statistically significant. There are three variables have a positive influence on the investment decisions taken by the businesses i.e. the debt ratio, cash flow and exchange rate expectations.

A System Model of Increasing the Investment Potential of Technologically Unrelated Sectors

Directory of Open Access Journals (Sweden)

Melnyk Alexander G.

2016-02-01

Full Text Available The article presents a theoretical substantiation and the progress of practical application of the method for evaluating lagged effects of increasing the investment potential of interaction between industries in meso-level innovation systems on the example of the high-tech sector of Ukraine. The interaction data are considered in terms of their formation in such technologically unrelated sectors as the industrial sector and sector of education and sciences. It has been determined that the analytical basis to form the models of increasing the investment potential in innovation systems of meso-level should be presented by a comprehensive integrated assessment of all sectors involved in the reproduction process including technologically unrelated sectors of highly structured innovative systems. There has been proposed a system model of increasing the investment potential of the high-tech sector taking into account the optimization and synergy effects for system decisions concerning technologically unrelated sectors in economic systems of innovation type of reproduction.

Peer effects in decision-making: Evidence from corporate investment

Directory of Open Access Journals (Sweden)

Shenglan Chen

2017-06-01

Full Text Available We show that peer effects influence corporate investment decisions. Using a sample of China’s listed firms from 1999 to 2012, we show that a one standard deviation increase in peer firms’ investments is associated with a 4% increase in firm i’s investments. We further identify the mechanisms, conditions and economic consequences of peer effects in firms’ investment decisions. We find that peer effects are more pronounced when firms have information advantages and the information disclosure quality of peer firms is higher, or if they face more fierce competition. When firms are industry followers, are young or have financial constraints, they are highly sensitive to their peers firms. We also quantify the economic consequences generated by peer effects, which can increase firm performance in future periods.

Transnational Energy Companies' Investment Allocation Decisions

Energy Technology Data Exchange (ETDEWEB)

Osmundsen, Petter; Emhjellen, Magne; Halleraker, Morten

2001-10-01

When making international capital budgeting decisions, energy companies are often faced with capital and organisational constraints. The constraints may be real or management imposed. In addition, when entering into a new country or region the companies will incur fixed new area costs that must be considered before investment approval. The decision problem is therefore not a linear problem where the standard net present value rule applies, but a non-linear problem of selecting the combination of projects with the maximum aggregate net present value. New project investments will therefore be selected based on the size of the net present value (often referred to as financial volume or materiality) compared to the projects' use of capital and scarce personnel and organisational capacity. Consequently, projects with a positive net present value, but with low materiality, may not be approved. The portfolio choice has a parallel to the company's choice of core areas. Instead of complex portfolio models, the companies often apply simpler allocation mechanisms, e.g., combinations of fixed investment budgets and materiality requirements. Analysing petroleum cases, we compare the allocations decisions generated by portfolio models and simpler mechanisms. We also discuss the implications of this capital allocation pattern for governments' design of tax systems and license conditions. (author)

Evaluation of NASA-sponsored research on capital investment decision making in the civil aviation industry

Science.gov (United States)

Donovan, D. J.

1977-01-01

Significant findings of three studies undertaken to provide the NASA Aircraft Energy Efficiency (ACEE) Office with information regarding how aircraft manufacturers and commercial airlines make investment decisions concerning the acquisition of new and derivative technology are analyzed and their general implications explored. Topics discussed include: the market for airline aircraft, factors affecting the corporate decision making process of air transport manufacturers, and flight equipment purchasing practices of representative air carriers.

PRODUCTIVITY AND LAND ENHANCING TECHNOLOGIES IN NORTHERN ETHIOPIA: HEALTH, PUBLIC INVESTMENTS, AND SEQUENTIAL ADOPTION

OpenAIRE

Ersado, Lire; Amacher, Gregory S.; Alwang, Jeffrey Roger

2003-01-01

The adoption of more efficient farming practices and technologies that enhance agricultural productivity and improve environmental sustainability is instrumental for achieving economic growth, food security and poverty alleviation in sub-Saharan Africa. Our research examines the interaction between public investments, community health, and adoption of productivity and land enhancing technologies by households in the northern Ethiopian state of Tigray. Agricultural technology adoption decision...

Investment Decision Support for Engineering Projects Based on Risk Correlation Analysis

Directory of Open Access Journals (Sweden)

Yan Liu

2012-01-01

Full Text Available Investment decisions are usually made on the basis of the subjective judgments of experts subjected to the information gap during the preliminary stages of a project. As a consequence, a series of errors in risk prediction and/or decision-making will be generated leading to out of control investment and project failure. In this paper, the variable fuzzy set theory and intelligent algorithms integrated with case-based reasoning are presented. The proposed algorithm manages the numerous fuzzy concepts and variable factors of a project and also sets up the decision-making process in accordance with past cases and experiences. Furthermore, it decreases the calculation difficulty and reduces the decision-making reaction time. Three types of risk correlations combined with different characteristics of engineering projects are summarized, and each of these correlations is expounded at the project investment decision-making stage. Quantitative and qualitative change theories of variable fuzzy sets are also addressed for investment risk warning. The approach presented in this paper enables the risk analysis in a simple and intuitive manner and realizes the integration of objective and subjective risk assessments within the decision-makers' risk expectation.

Environmental, Social and Governance (ESG and Investment Decision in Bangladesh

Directory of Open Access Journals (Sweden)

Sayema Sultana

2018-06-01

Full Text Available As a key facet of sustainable development, environmental, social and governance (ESG discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, and accountability aspects of investments. This study is an exploration of the individual stock market investors’ preferences for ESG issues and the influence that purpose of investment has on investment decision-making, by testing the investment horizon as a moderator. The theoretical background was taken from the theory of planned behavior (TPB, goal setting theory (GST, and the behavioral asset pricing model (BAPM. The study uses the sequential mix method of research, starting with an interview followed by a survey, which was conducted among individual stock market investors in Bangladesh, using simple random sampling. Structural equation modeling (SEM analysis was carried out using Warp PLS version 6.0. The key findings of this study delineate the effect of ESG issues and the purpose of investment on investment decision-making. The contribution of the study signifies the moderating role of the investment horizon, which confirms the importance of the long-term horizon as a time and risk diversification factor. The sparse utilization of the United Nations Global Compact (UNGC (2004 and Thomson Reuters Corporate Responsibility Index (TRCRI (2013 as measurement scales in this study is mentioned. This study has made practical contributions for managers, investors, and regulators.

Investor’s Commitment Bias and Escalation of Firm’s Investment Decision

Directory of Open Access Journals (Sweden)

Anis JARBOUI

2012-12-01

Full Text Available This study examines the reasons of perseverance in firm’s investment decision. It shows the possible influence of three closely related features which are: firm’s financial indicators, investor’s risk profile, and investor’s commitment bias, on a firm’s investment decisions escalation. This study aims to provide evidence as to whether investor considers the financial and risk’s perception features (financial strength and risk profile to persevere his initial investment decision while he notes a high level of commitment bias. The proposed model of this paper uses GLM univariate data analyses to examine this relationship. Investor’s risk profile and his commitment bias have been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some 360 Tunisian individual investors. Our results have revealed that investors pay more attention to keep their psychology comfort than their financial comfort. It exposed the importance of the investor’s commitment bias and its risk perception in explaining investment decision escalation. Moreover results shows that there is strong and significant empirical relationship linking the escalatory behavior in investment decision and the interaction effects between the three independent variables. This means that, in practice, investors consider the three factors simultaneously.

Understanding power plant investment decision processes

NARCIS (Netherlands)

Groot, J.; Richstein, J.C.; De Vries, L.J.

2013-01-01

In order to understand how companies make investment decisions under conditions of deep uncertainty, we interviewed a number of actors in the Dutch electricity sector. Most of the economic literature that is devoted to this question is prescriptive in nature, describing rational methods to the

The effect of environmental information on investment allocation decisions

DEFF Research Database (Denmark)

Rikhardsson, Pall M.; Holm, Claus

2008-01-01

This paper focuses on the use of environmental information in investment decision making. The research approach employed is based on an experiment where three groups of final year finance students were asked to allocate investment funds between two companies based on financial accounts...... information categories affect their decision making. Hence, this has implications for how the potential value of environmental information is to be assessed. Finally, experimental studies as a methodology seem to be better suited to indicate actual effects of different types of information on decision making...... and information material from these companies in which environmental information was included in varying degrees. The overall conclusion is that the qualitative environmental information affects short term allocation decisions, hence indicating a risk reduction potential of environmental information comparable...

Concentrating solar power plant investment and operation decisions under different price and support mechanisms

International Nuclear Information System (INIS)

Kost, Christoph; Flath, Christoph M.; Möst, Dominik

2013-01-01

The dispatch opportunities provided by storage-enhanced Concentrating Solar Power (CSP) plants have direct implications on the investment decisions as not only nameplate capacity but also the storage capacity and the solar multiple play a crucial role for the viability of the plant investment. By integrating additional technical aspects and operation strategies, this paper extends the optimization model proposed by Madaeni et al., How Thermal Energy Storage Enhances the Economic Viability of Concentrating Solar Power. Using a mixed integer maximization approach the paper yields both the optimal layout decision and the operation of CSP plants. Subsequently, the economic value of CSP storage is analyzed via energy modeling of a Spanish plant location under the respective wholesale market prices as well as the local feed-in tariff. The analysis shows that investment incentives for CSP plants with storage need to appropriately account for the interdependency between the price incentives and the plant operating strategy. As the resulting revenue characteristics influence the optimal size of solar field and storage differing operating strategies also give rise to differing optimal plant layouts. Most noteworthy, the current Spanish support scheme offers only limited incentives for larger thermal storage capacity. - Highlights: • Dispatch opportunities of CSP have direct implications on both investment and operational decisions. • Valuation approach with a single mixed integer maximization problem. • Profitability of CSP plants under the premium feed-in tariff in Spain was assessed. • Layout decision and storage size are influenced by remuneration scheme. • Discuss alternative remuneration schemes for “dispatchable” RE technologies

Framework for Assessing Financial Literacy and Superannuation Investment Choice Decisions

Directory of Open Access Journals (Sweden)

Natalie Gallery

2011-06-01

Full Text Available There is a worldwide trend towards rapidly growing defined contribution pension funds in terms of assets andmembership, and the choices available to individuals. This has shifted the decisionmaking responsibility tofund members for managing the investment of their retirement savings. This change has given rise to aphenomenon where most superannuation fund members are responsible for either actively choosing orpassively relying on their funds’ default investment options. Prior research identifies that deficiencies infinancial literacy is one of the causes of inertia in financial decision-making and findings from internationaland Australian studies show that financial illiteracy is wide-spread. Given the potential significant economicand social consequences of poor financial decision-making in superannuation matters, this paper proposes aframework by which the various demographic, social and contextual factors that influence fund members’financial literacy and its association with investment choice decisions are explored. Enhanced theoretical andempirical understanding of the factors that are associated with active/passive investment choice decisionswould enable development of well-targeted financial education programs.

Design, Development and Implementation of Decision Support Systems for Private Equity Investment

OpenAIRE

Vroomen, Paul

2017-01-01

The objective of this research is to design, develop and implement an intelligent decision support system (IDSS) for making rational private equity investment decisions. (Private equity investments are capital investments in enterprises that are not traded on public equity markets; they include Equity Buy-Out, Venture Capital, and the new Equity Crowd Funding (ECF) asset classes). The design and development of the IDSS requires the integration of investment science (valuation theory, portfoli...

Decision support for redesigning wastewater treatment technologies.

Science.gov (United States)

McConville, Jennifer R; Künzle, Rahel; Messmer, Ulrike; Udert, Kai M; Larsen, Tove A

2014-10-21

This paper offers a methodology for structuring the design space for innovative process engineering technology development. The methodology is exemplified in the evaluation of a wide variety of treatment technologies for source-separated domestic wastewater within the scope of the Reinvent the Toilet Challenge. It offers a methodology for narrowing down the decision-making field based on a strict interpretation of treatment objectives for undiluted urine and dry feces and macroenvironmental factors (STEEPLED analysis) which influence decision criteria. Such an evaluation identifies promising paths for technology development such as focusing on space-saving processes or the need for more innovation in low-cost, energy-efficient urine treatment methods. Critical macroenvironmental factors, such as housing density, transportation infrastructure, and climate conditions were found to affect technology decisions regarding reactor volume, weight of outputs, energy consumption, atmospheric emissions, investment cost, and net revenue. The analysis also identified a number of qualitative factors that should be carefully weighed when pursuing technology development; such as availability of O&M resources, health and safety goals, and other ethical issues. Use of this methodology allows for coevolution of innovative technology within context constraints; however, for full-scale technology choices in the field, only very mature technologies can be evaluated.

Innovation investment decisions: are post(transition economies different from the rest of the EU?

Directory of Open Access Journals (Sweden)

Ljiljana BOZIĆ

2017-12-01

Full Text Available The slow progress of innovation in transition economies is not related just to firms’ decision to invest in innovation activities. Rather, it is worth distinguishing between their decision to increase investment, reduce it, keep their investments at the same level or not invest in innovation activities at all. To understand these decisions we develop and estimate models for post-transition and developed European countries employing multinomial probit. The analysis relies on responses of 2580 firms from 11 post-transition countries and 4058 firms from 18 European countries collected by the Flash Eurobarometer 433 - Innobarometer 2016 survey. We have established that the firms’ decision making process in general is mostly related to previous innovation investment experience. In transition countries, the higher the percent of turnover invested in innovation, the lower the probability of an increase in the future. In the firms operating in developed economies, lower turnover from new products is related to the decision to decrease innovation investment in the future.

Interactions Among Insider Ownership, Dividend Policy, Debt Policy, Investment Decision, and Business Risk

OpenAIRE

F., Indri Erkaningrum

2013-01-01

The study of interaction among insider ownership, dividend policy, debt policy, investment decision, and business risk is still conducted. This research aims at investigating theinfluencing factors of insider ownership, dividend policy, debt policy, investment decision, business risk, and the interaction among insider ownership, dividend policy, debt policy, investment decision, and business risk. The samples of the research are 137 manufacturing companies listed in the Indonesia Stock Exchan...

EU policy objectives and energy investment decisions

OpenAIRE

Alario, Juan

2007-01-01

EU energy policies have changed focus in the last few years with a view to substantially reducing energy import dependency and greenhouse gas emissions. The EU Commission has played a leading role in defining the new orientations. The implementation of the EU policy objectives approved by the Council of March 2007 will require a substantial expansion of energy investments. However, the degree of uncertainty affecting investment decisions remains high, notably in relation to the pricing of CO2...

NASA/ESTO investments in remote sensing technologies (Conference Presentation)

Science.gov (United States)

Babu, Sachidananda R.

2017-02-01

For more then 18 years NASA Earth Science Technology Office has been investing in remote sensing technologies. During this period ESTO has invested in more then 900 tasks. These tasks are managed under multiple programs like Instrument Incubator Program (IIP), Advanced Component Technology (ACT), Advanced Information Systems Technology (AIST), In-Space Validation of Earth Science Technologies (InVEST), Sustainable Land Imaging - Technology (SLI-T) and others. This covers the whole spectrum of technologies from component to full up satellite in space and software. Over the years many of these technologies have been infused into space missions like Aquarius, SMAP, CYGNSS, SWOT, TEMPO and others. Over the years ESTO is actively investing in Infrared sensor technologies for space applications. Recent investments have been for SLI-T and InVEST program. On these tasks technology development is from simple Bolometers to Advanced Photonic waveguide based spectrometers. Some of the details on these missions and technologies will be presented.

ESTO Investments in Innovative Sensor Technologies for Remote Sensing

Science.gov (United States)

Babu, Sachidananda R.

2017-01-01

For more then 18 years NASA Earth Science Technology Office has been investing in remote sensing technologies. During this period ESTO has invested in more then 900 tasks. These tasks are managed under multiple programs like Instrument Incubator Program (IIP), Advanced Component Technology (ACT), Advanced Information Systems Technology (AIST), In-Space Validation of Earth Science Technologies (InVEST), Sustainable Land Imaging - Technology (SLI-T) and others. This covers the whole spectrum of technologies from component to full up satellite in space and software. Over the years many of these technologies have been infused into space missions like Aquarius, SMAP, CYGNSS, SWOT, TEMPO and others. Over the years ESTO is actively investing in Infrared sensor technologies for space applications. Recent investments have been for SLI-T and InVEST program. On these tasks technology development is from simple Bolometers to Advanced Photonic waveguide based spectrometers. Some of the details on these missions and technologies will be presented.

INTERACTIONS AMONG INSIDER OWNERSHIP, DIVIDEND POLICY, DEBT POLICY, INVESTMENT DECISION, AND BUSINESS RISK

OpenAIRE

F., Indri Erkaningrum

2015-01-01

The study of interaction among insider ownership, dividend policy, debt policy, investment decision, and business risk is still conducted. This research aims at investigating theinfluencing factors of insider ownership, dividend policy, debt policy, investment decision, business risk, and the interaction among insider ownership, dividend policy, debt policy, investment decision, and business risk. The samples of the research are 137 manufacturing companies listed in the Indonesia Stock Exchan...

An Investigation of Psychological Factors Inluencing Investment Decision Making

Directory of Open Access Journals (Sweden)

Hsin Hue Chang

2014-08-01

Full Text Available This  study  applies  a  second-order  conirmatory  factor  analysis  (CFA  approach  to investigate  psychological  factors  inluencing  individuals'  investment  decision-making.  A second-order  CFA  approach  consists  of  ive  irst-order  psychological  factors  in  terms  of mental  accounting,  regret  avoidance,  self-control,  heuristic  and  overconidence,  and  one second-order factor in terms of investment decision-making. Quantitative data was yielded by the questionnaire, and an effective sample of 752 responses was used to execute the estimation procedure.  The  results  reveal  that  there  exist  statistically  signiicant  relationships  between ive psychological factors and investment decision-making. Investors are likely to consider a product with different functions as one with different mental accounts (gains. Thus, inancial institutions  are  advised  to  provide  their  potential  customers  with  multi-function  products. Since self-control is  a  signiicant self-imposed mechanism  for  investment decision-making, inancial institutions can merchandise products that can help their customers to execute the self-imposed rules of thumb. ";} // -->activate javascript

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)

Geothermal power plant investment decisions. Interim report, June 1-November 30, 1979

Energy Technology Data Exchange (ETDEWEB)

Cassel, T.A.V.; Amundsen, C.B.; Edelstein, R.H.; Blair, P.D.

1979-12-01

Investment decisions for financing the construction of geothermal power plants are discussed. Discussed here are the investment objectives of investor-owned electric utilities, municipal electric utilities, and potential third party financiers as determined from extensive reviews of literature, executive interviews and responses to mailed surveys. The framework is provided for a computerized quantitative decision model currently being developed at Technecon for investment and policy analysis applications. (MHR)

INTEGRATING ABC AND EVA TO EVALUATE INVESTMENT DECISIONS

Directory of Open Access Journals (Sweden)

N. Chiadamrong

2017-12-01

Full Text Available The significance of investment is transparent in the world of competitive business. Traditional costing systems in which their emphasizes are for short term savings rather than long term benefits have shown some lacking in providing accurate and reliable cost data for the investment decisions. Activity-based Costing (ABC, which is developed to satisfy some of the weaknesses of the traditional costing systems, can provide valuable insights into the operating processes and come up with more accurate cost data. In this paper, ABC is used to provide significant information for investment decisions. Although, the ABC method provides accurate operating product costs, it does not identify which products are economic valued added creators and so contribute to companies’ wealth. This drawback can be overcome by applying Economic Value Added (EVA. The adoption of ABC and EVA can represent a considerable change in the managerial thinking and to corporate strategies and business performance.

Determinants of investment decisions in a crisis: Perspective of Croatian small firms

Directory of Open Access Journals (Sweden)

Jelena Đurkin

2015-01-01

Full Text Available The aim of the paper is to determine the investment activity of small firms in Croatia during the crisis year 2012 and further analyse the effect of selected factors on capital investment decisions. For this purpose, an on-line survey of small businesses was conducted. The research sample consisted of small firms in Primorsko-Goranska County that earned the highest revenue in 2011, because it was assumed they would have greater investment potential in 2012. Research results show that almost half of the firms invested in new fixed assets in 2012. Their investment decisions were primarily motivated by mere "survival" purpose, since the investment activities were mostly oriented toward the replacement of worn-out assets.

Outsourced Investment Management: An Overview for Institutional Decision-Makers

Science.gov (United States)

Griswold, John S.; Jarvis, William F.

2013-01-01

Outsourcing of investment management is a growing trend among institutional investors. With a broad range of institutions using or exploring the outsourced chief investment officer (OCIO) model, portfolio size is no longer the determining factor driving the outsourcing decision. For all but the largest institutional investors--those with deep…

Decision-making for new technology: A multi-actor, multi-objective method

OpenAIRE

Cunningham, S.W.; van der Lei, T.E.

2007-01-01

Technology managers increasingly face problems of group decision. The scale and complexity of research, development and alliance efforts in emerging fields of technology mandate a correspondingly sophisticated form of group coordination. Information technology, biotechnology and nanotechnology are good examples of sectors with complex coordination problems. Choices made include the selection of projects, the choice of investment alternatives, and the formation of technology licensing agreemen...

INVESTMENT DEPOSITS DECISION-MAKING IN BANK: A BEHAVIORAL FINANCE PERSPECTIVE

OpenAIRE

Hanopia B.L.; Surasni N.K.; Hidayati S.A.

2018-01-01

This research was conducted using behavioral finance theories. The objectives of this research was to analyze influencing factors of investment deposits decision-making for the depositor, and to analyze the most dominant factor of investment deposits decision-making in Bank NTB of Pejanggik Principle Branches. The instrument of this research was questionnaire with the total sample of 90 respondents who were the deposit customers. The research results show that deposits’ interest, gain and cos...

Application of GIS in foreign direct investment decision support system

Science.gov (United States)

Zhou, Jianlan; Sun, Koumei

2007-06-01

It is important to make decisions on how to attract foreign direct investment (FDI) to China and know how the inequality of FDI introduction by locational different provinces. Following background descriptions on China's FDI economic environments and FDI-related policies, this paper demonstrates the uses of geographical information system (GIS) and multi-criterion decision-making (MCDM) framework in solving a spatial multi-objective problem of evaluating and ranking China's provinces for FDI introduction. It implements a foreign direct investment decision support system, which reveals the main determinants of FDI in China and gives some results of regional geographical analysis over spatial data.

Output-based allocation and investment in clean technologies

Energy Technology Data Exchange (ETDEWEB)

Rosendahl, Knut Einar; Storroesten, Halvor Briseid

2011-07-01

Allocation of emission allowances may affect firms' incentives to invest in clean technologies. In this paper we show that so-called output-based allocation tends to stimulate such investments as long as individual firms do not assume the regulator to tighten the allocation rule as a consequence of their investments. The explanation is that output-based allocation creates an implicit subsidy to the firms' output, which increases production, leads to a higher price of allowances, and thus increases the incentives to invest in clean technologies. On the other hand, if the firms expect the regulator to tighten the allocation rule after observing their clean technology investment, the firms' incentives to invest are moderated. If strong, this last effect may outweigh the enhanced investment incentives induced by increased output and higher allowance price. (Author)

Emotional Intelligence and risk taking in investment decision-making

OpenAIRE

Enrico Rubaltelli; Sergio Agnoli; Michela Rancan; Tiziana Pozzoli

2015-01-01

Previous work on investment decision-making suggested that emotions prevent investors from taking risks and from investing in a rational way, whereas other work found that there is great variability in people’s ability to manage and use emotional feedbacks. We hypothesized that people with high trait emotional intelligence should be more willing, than people with low trait emotional intelligence, to accept risks when making an investment. Data supported a model in which trait emotional intell...

Decisions on investments in photovoltaics and carbon capture and storage: A comparison between two different greenhouse gas control strategies

International Nuclear Information System (INIS)

Vögele, Stefan; Rübbelke, Dirk

2013-01-01

Decisions of electricity suppliers on investments in low-carbon energy technologies like PV (photovoltaics) and CCS (carbon capture and storage) depend on the expected profits or surpluses that can be earned. For an assessment of the profitability of investments in PV (and other renewable energy technologies), additional costs caused by the fluctuation in PV power plants' productivity and by the need for backup capacities have to be taken into account. Changes in the rest of the power plant stock will via their influence on the merit-order curve also affect the return on investment. Bearing these aspects in mind, it might become more attractive to invest in alternative technologies like CCS than to channel the investments towards PV in combination with backup power plants. In our study we compare investments in CCS and PV regarding possible merit-order effects and profitability, using investments in Germany as an example. - Highlights: • We compare CCS and PV as CO 2 reduction strategies and focus on merit-order effects. • CCS has higher marginal cost than PV, but CCS does not need backup capacities. • Merit-order effects influence the profitability of investments in CCS and PV. • CCS investments at moderate rates tend to be more beneficial than investments in PV. • However, legal restrictions and lack of acceptance constitute limiting factors

Technology Investment Agendas to Expand Human Space Futures

Science.gov (United States)

Sherwood, Brent

2012-01-01

The paper develops four alternative core-technology advancement specifications, one for each of the four strategic goal options for government investment in human space flight. Already discussed in the literature, these are: Explore Mars; Settle the Moon; accelerate commercial development of Space Passenger Travel; and enable industrial scale-up of Space Solar Power for Earth. In the case of the Explore Mars goal, the paper starts with the contemporary NASA accounting of ?55 Mars-enabling technologies. The analysis decomposes that technology agenda into technologies applicable only to the Explore Mars goal, versus those applicable more broadly to the other three options. Salient technology needs of all four options are then elaborated to a comparable level of detail. The comparison differentiates how technologies or major developments that may seem the same at the level of budget lines or headlines (e.g., heavy-lift Earth launch) would in fact diverge widely if developed in the service of one or another of the HSF goals. The paper concludes that the explicit choice of human space flight goal matters greatly; an expensive portfolio of challenging technologies would not only enable a particular option, it would foreclose the others. Technologies essential to enable human exploration of Mars cannot prepare interchangeably for alternative futures; they would not allow us to choose later to Settle the Moon, unleash robust growth of Space Passenger Travel industries, or help the transition to a post-petroleum future with Space Solar Power for Earth. The paper concludes that a decades-long decision in the U.S.--whether made consciously or by default--to focus technology investment toward achieving human exploration of Mars someday would effectively preclude the alternative goals in our lifetime.

IT investment decision making : Usability of a normative model

NARCIS (Netherlands)

Wijnhoven, Alphonsus B.J.M.; Heerkens, Johannes M.G.

This article analyzes the usability of a multi-criteria decision analysis based on a real options AHP (ROAHP) method for IT-investment decisions. The study presents ROAHP to Chief Information Officers (CIO’s) and collects their opinions on prerequisites for usability, strengths and weaknesses. To

The financial management as a tool for development investment decision

Directory of Open Access Journals (Sweden)

Damnjanović Radovan M.

2017-01-01

Full Text Available Investment decisions, which influence the investment of financial resources to achieve economic, non-economic, or of both objectives and effects in the future, the central subject of financial management. Using the methods of financial mathematics can predict the effects of the investment which is from the standpoint of efficiency ratings are expressed in the form of cash future income. Periods, the investments and the use of investment, may be the same or different lengths. From an economic standpoint it is desirable that the period of the investment is short, and the economic effects of the eyelids investments as long as possible. For an investment is said to be cost-effective or cost-effective if the current value of the investment is less than the present value of income from investments.

The energy investment decision in the nonresidential building sector: Research into the areas of influence

Energy Technology Data Exchange (ETDEWEB)

Harkreader, S.A.; Ivey, D.L.

1987-04-01

The purpose of this report is to describe and to characterize the decision process in the nonresidential building sector as well as the variables influencing energy investment decisions, both of which impact the development of R and D agendas for the Office of Building and Community Systems (BCS). The report reviews the available information on the factors that influence energy investment decisions and identifies information gaps where additional research is needed. This report focuses on variables and combinations of these variables (descriptive states) that influence the non residential energy investment decision maker. Economic and demographic descriptors, energy investment decision maker characteristics, and variables affecting energy investments are identified. This response examines the physical characteristics of buildings, characteristics of the legal environment surrounding buildings, demographic factors, economic factors, and decision processes, all of which impact the nonresidential energy investment market. The emphasis of the report is on providing possible methodologies for projecting the future of the nonresidential energy investment market, as well as, collecting the data necessary for such projections. The use of alternate scenarios is suggested as a projection tool and suggestions for collecting the appropriate data are made in the recommendations.

Advanced Information Technology Investments at the NASA Earth Science Technology Office

Science.gov (United States)

Clune, T.; Seablom, M. S.; Moe, K.

2012-12-01

The NASA Earth Science Technology Office (ESTO) regularly makes investments for nurturing advanced concepts in information technology to enable rapid, low-cost acquisition, processing and visualization of Earth science data in support of future NASA missions and climate change research. In 2012, the National Research Council published a mid-term assessment of the 2007 decadal survey for future spacemissions supporting Earth science and applications [1]. The report stated, "Earth sciences have advanced significantly because of existing observational capabilities and the fruit of past investments, along with advances in data and information systems, computer science, and enabling technologies." The report found that NASA had responded favorably and aggressively to the decadal survey and noted the role of the recent ESTO solicitation for information systems technologies that partnered with the NASA Applied Sciences Program to support the transition into operations. NASA's future missions are key stakeholders for the ESTO technology investments. Also driving these investments is the need for the Agency to properly address questions regarding the prediction, adaptation, and eventual mitigation of climate change. The Earth Science Division has championed interdisciplinary research, recognizing that the Earth must be studied as a complete system in order toaddress key science questions [2]. Information technology investments in the low-mid technology readiness level (TRL) range play a key role in meeting these challenges. ESTO's Advanced Information Systems Technology (AIST) program invests in higher risk / higher reward technologies that solve the most challenging problems of the information processing chain. This includes the space segment, where the information pipeline begins, to the end user, where knowledge is ultimatelyadvanced. The objectives of the program are to reduce the risk, cost, size, and development time of Earth Science space-based and ground

Investment decision making in Dutch greenhouse horticulture

NARCIS (Netherlands)

Oude Lansink, A.G.J.M.; Verstegen, J.A.A.M.; Hengel, van den J.J.

2001-01-01

Panel data from Dutch horticultural firms over the period 1986-1998 were used to analyse the effects of different factors on investment decisions. The factors analysed relate to the firm operator and his family, the firm structure and the economic environment. Results show that firm-operator and

Cost Estimates and Investment Decisions

International Nuclear Information System (INIS)

Emhjellen, Kjetil; Emhjellen Magne; Osmundsen, Petter

2001-08-01

When evaluating new investment projects, oil companies traditionally use the discounted cashflow method. This method requires expected cashflows in the numerator and a risk adjusted required rate of return in the denominator in order to calculate net present value. The capital expenditure (CAPEX) of a project is one of the major cashflows used to calculate net present value. Usually the CAPEX is given by a single cost figure, with some indication of its probability distribution. In the oil industry and many other industries, it is common practice to report a CAPEX that is the estimated 50/50 (median) CAPEX instead of the estimated expected (expected value) CAPEX. In this article we demonstrate how the practice of using a 50/50 (median) CAPEX, when the cost distributions are asymmetric, causes project valuation errors and therefore may lead to wrong investment decisions with acceptance of projects that have negative net present values. (author)

Innovation investment area: Technology summary

Energy Technology Data Exchange (ETDEWEB)

1994-03-01

The mission of Environmental Management`s (EM) Office of Technology Development (OTD) Innovation Investment Area is to identify and provide development support for two types of technologies that are developed to characterize, treat and dispose of DOE waste, and to remediate contaminated sites. They are: technologies that show promise to address specific EM needs, but require proof-of-principle experimentation; and (2) already proven technologies in other fields that require critical path experimentation to demonstrate feasibility for adaptation to specific EM needs. The underlying strategy is to ensure that private industry, other Federal Agencies, universities, and DOE National Laboratories are major participants in developing and deploying new and emerging technologies. To this end, about 125 different new and emerging technologies are being developed through Innovation Investment Area`s (IIA) two program elements: RDDT&E New Initiatives (RD01) and Interagency Agreements (RD02). Both of these activities are intended to foster research and development partnerships so as to introduce innovative technologies into other OTD program elements for expedited evaluation.

Innovation investment area: Technology summary

International Nuclear Information System (INIS)

1994-03-01

The mission of Environmental Management's (EM) Office of Technology Development (OTD) Innovation Investment Area is to identify and provide development support for two types of technologies that are developed to characterize, treat and dispose of DOE waste, and to remediate contaminated sites. They are: technologies that show promise to address specific EM needs, but require proof-of-principle experimentation; and (2) already proven technologies in other fields that require critical path experimentation to demonstrate feasibility for adaptation to specific EM needs. The underlying strategy is to ensure that private industry, other Federal Agencies, universities, and DOE National Laboratories are major participants in developing and deploying new and emerging technologies. To this end, about 125 different new and emerging technologies are being developed through Innovation Investment Area's (IIA) two program elements: RDDT ampersand E New Initiatives (RD01) and Interagency Agreements (RD02). Both of these activities are intended to foster research and development partnerships so as to introduce innovative technologies into other OTD program elements for expedited evaluation

Framing effects in group investment decision making: role of group polarization.

Science.gov (United States)

Cheng, Pi-Yueh; Chiou, Wen-Bin

2008-02-01

Prospect theory proposes that framing effects result in a preference for risk-averse choices in gain situations and risk-seeking choices in loss situations. However, in group polarization situations, groups show a pronounced tendency to shift toward more extreme positions than those they initially held. Whether framing effects in group decision making are more prominent as a result of the group-polarization effect was examined. Purposive sampling of 120 college students (57 men, 63 women; M age = 20.1 yr., SD = 0.9) allowed assessment of relative preference between cautious and risky choices in individual and group decisions. Findings indicated that both group polarization and framing effects occur in investment decisions. More importantly, group decisions in a gain situation appear to be more cautious, i.e., risk averse, than individual decisions, whereas group decisions in the loss situation appear to be more risky than individual decisions. Thus, group decision making may expand framing effects when it comes to investment choices through group polarization.

Impact of Sustainability Balanced Scorecard Types on Environmental Investment Decision-Making

Directory of Open Access Journals (Sweden)

Suaad Jassem

2018-02-01

Full Text Available Investment decision-making based on aspects of sustainability is gaining importance among organizations around the globe. In this context, there is a need for quality investment decisions, which require sufficient knowledge among organizational managers about managing sustainability information to achieve environmental objectives that meet stakeholder expectations. This has led to the emergence of organizational performance measuring tools such as the Sustainability Balanced Scorecard, which integrates the environmental perspective into the traditional Balanced Scorecard. Using experimental research method, the objective of this study is to investigate the indirect effect of Eco-efficiency knowledge and Sustainability Balanced Scorecard knowledge as mediators influencing the relationship between Sustainability Balanced Scorecard types and their impact on environmental investment decision-making. Findings of the current research are based on 60 respondents who were randomly assigned to one of the following two types of Sustainability Balanced Scorecard architecture: (1 environmental data embedded within the traditional Balanced Scorecard perspectives; and (2 standalone environmental data as an additional fifth perspective along with the traditional Balanced Scorecard architecture. The traditional Balanced Scorecard without any information on environmental perspective is included in the experiment as the control condition. The findings indicate that the combined effect of eco-efficiency knowledge and Sustainability Balanced Scorecard knowledge has a significant positive influence on the relationship between the Balanced Scorecard type versus Sustainability Balanced Scorecard type and environmental investment decision-making.

The role of financing frictions in agricultural investment decisions: an analysis pre and post financial crisis

OpenAIRE

O'Toole, Conor M.; Newman, Carol F.; Hennessy, Thia C.

2011-01-01

This paper uses a fundamental Q model of investment to consider the role played by financing frictions in agricultural investment decisions, controlling econometrically for censoring, heterogeneity and errors-in-variables. Our findings suggest that farmer's investment decisions are not driven by market fundamentals. We find some evidence that debt overhang restricts investment but investment is not dependent on liquidity or internal funds. The role of financing frictions in determining invest...

Modeling energy technology choices. Which investment analysis tools are appropriate?

International Nuclear Information System (INIS)

Johnson, B.E.

1994-01-01

A variety of tools from modern investment theory appear to hold promise for unraveling observed energy technology investment behavior that often appears anomalous when analyzed using traditional investment analysis methods. This paper reviews the assumptions and important insights of the investment theories most commonly suggested as candidates for explaining the apparent ''energy technology investment paradox''. The applicability of each theory is considered in the light of important aspects of energy technology investment problems, such as sunk costs, uncertainty and imperfect information. The theories addressed include the capital asset pricing model, the arbitrage pricing theory, and the theory of irreversible investment. Enhanced net present value methods are also considered. (author)

Advocating investments in information technology

International Nuclear Information System (INIS)

Nirenberg, L.M.

1992-01-01

Information and communication systems can improve the timeliness and quality of decisions. These benefits are strategically important to the utility industry in an era of increasing competition. Because these systems often do not reduce labor cost, however, they can be difficult to evaluate. This report presents a new process for reaching consensus of the value of capital investment in information and communication systems. The results of this project is A Strategic Advocacy Process (ASAP), a methodology that can be used to evaluate investments in information technology. ASAP uses belief graphs to produce a living business case showing facts, assumptions, goals, and metrics for measuring progress toward those goals; shows how to use option pricing theory to quantify the value of managerial flexibility; ASAP uses an organizational impact assessment tool to identify the potential impact of new information systems and how to realize the benefits of managerial flexibility. The ASAP methodology addresses the critical problem of correctly valuing information and communication systems. The methodology offers a way to account for the ''intangible'' value of these systems by recognizing the managerial flexibility these systems can provide in addressing risks and uncovering new business opportunities. Metrics for measuring progress toward new goals can be defined, and plans for achieving the goals can be made. As a result, agreement can be reached on the uses, value, and priority of projects based on a metric other than on labor replacement savings

Investing in New Technology in Pulmonary Medicine: Navigating the Tortuous Path to Success.

Science.gov (United States)

Kruklitis, Robert; French, Kim; Cangelosi, Michael Joseph; Kovitz, Kevin L

2017-09-01

The introduction of new technologies offers the promise to advance medicine. This occurs alongside improved efforts to control costs of health care by hospital administrators, the Centers for Medicare & Medicaid Services' (CMS) pivot to value programs, and commercial payers' efforts to reduce reimbursement. These trends present a challenge for the pulmonologist, among others, who must navigate increasingly complex and highly scrutinized evaluation processes used to secure new technology (NT). Health-care providers are turning toward value assessments while simultaneously tasked with the mission of offering state of the art technologies and services. Pulmonologists desiring NT are thus faced with increased scrutiny in their evaluation of costs and clinical data to support investments. Consideration of this scrutiny and further evidence to temper the evaluation will improve the likelihood of adoption and patient access to clinically impactful technology. The identification of this evidence may provide a comprehensive view of the clinical and economic benefits of such technologies to both administrators and pulmonary clinicians. It is imperative that all parties involved in the decision process work collaboratively to deploy value added and clinically impactful technologies. Although a physician group might invest in such NT, the capital required often leads such decisions to a larger organization such as a hospital, health-care system, or privately owned entity. This article aims to provide a framework for pulmonary clinicians to better understand the processes that purchasers use to evaluate NT, the pressures that influence their consideration, and what resources may be leveraged toward success. Copyright © 2017 American College of Chest Physicians. Published by Elsevier Inc. All rights reserved.

Information Technology Investment Strategy Planning: Balance Scorecard Approach

Directory of Open Access Journals (Sweden)

Henny Hendarti

2011-05-01

Full Text Available Purpose of this research are to prepare the IT investment strategy using Balanced Scorecard approach in the company where the appropriate planning of this IT investment strategy can maximize the competitive benefit in the company, and it also to recommended a strategy of IT investment that can be implemented and measure the rate of return from the IT investment in the company. Research Method used book studies, field studies, and analysis system. Book studies from the books and journal. Field studies done by observation, interview, and questioner, and analysis system done by analyzed the ongoing system in the company. The result from this analysis is a recommendation in investment IT such as sales module, payment module, and report module. Then for the conclusion, this information technology investment planning can be develop to another investment implementation such authorized website of the company and using PDA (Personal Digital AssistantIndex Terms - Planning, Information Technology, Investment, Balance Scorecard

Assessing the capital efficiency of healthcare information technologies investments: an econometric perspective.

Science.gov (United States)

Meyer, Rodolphe; Degoulet, Patrice

2008-01-01

To examine the different methods that can be used in the quantification of the added value of information technologies (IT) in the health care sector. This quantification represents a major issue for decision-makers and health care professionals when they have to plan an IT investment. Articles were chosen via Medline, internet and the University of Geneva bibliographic portal. Some of the papers were obtained directly from their authors. We examine the most current methods used to evaluate IT return on investment (ROI) in the general business and in the health care sector, drawing attention on methods traditionally used in macroeconomic studies that could reveal themselves disruptive for IT ROI impact evaluation in hospitals. Financial and accounting methods can provide interesting data on a specific IT project but are usually incomplete for revealing the global IT investment influence. Econometric methods tend to demonstrate the positive impact of health care IT (HIT) on hospital production and productivity. Hospitals having higher levels of IT investment tend to deliver a higher level of clinical quality and show improved hospital cost performances. Information technologies are so intermingled with people and processes that the identification of specific IT benefit remains questionable. Using macroeconomic tools could be the best way to analyze and compute IT ROI in health care. Econometric tools take into account all types investments (inputs) and all the returns (outputs) enabling the precise measurement of IT investments impact, breakeven points, and possible threshold levels, thus providing helpful intelligence to reach the higher levels of IT governance in hospitals.

A System Dynamics Analysis of Investment, Technology and Policy that Affect Natural Gas Exploration and Exploitation in China

Directory of Open Access Journals (Sweden)

Jianzhong Xiao

2017-01-01

Full Text Available Natural gas has an increasing role in Chinese energy transformation. We present a system dynamics model of the natural gas industry in China. A new system dynamics model for natural gas companies based on reserve exploration and well construction as well as investment dynamics is proposed. The contribution of the paper is to analyze the influence of technology, investment and policy factors on the natural gas industry. We found that the dynamics of the main variables, including gas policy, cost of investment, accounting depreciation and exploitation technology, are sensitive to the sustainable development of resources. The simulations and results presented here will be helpful for government to reform policies, and for upstream companies to make decisions.

Decision support for selecting exportable nuclear technology using the analytic hierarchy process: A Korean case

International Nuclear Information System (INIS)

Lee, Deok Joo; Hwang, Jooho

2010-01-01

The Korean government plans to increase strategically focused R and D investment in some promising nuclear technology areas to create export opportunities of technology in a global nuclear market. The purpose of this paper is to present a decision support process for selecting promising nuclear technology with the perspective of exportability by using the AHP based on extensive data gathered from nuclear experts in Korea. In this study, the decision criteria for evaluating the export competitiveness of nuclear technologies were determined, and a hierarchical structure for the decision-making process was systematically developed. Subsequently relative weights of decision criteria were derived using AHP methodology and the export competitiveness of nuclear technology alternatives was quantified to prioritize them. We discuss the implications of our results with a viewpoint toward national nuclear technology policy.

Network models for solving the problem of multicriterial adaptive optimization of investment projects control with several acceptable technologies

Science.gov (United States)

Shorikov, A. F.; Butsenko, E. V.

2017-10-01

This paper discusses the problem of multicriterial adaptive optimization the control of investment projects in the presence of several technologies. On the basis of network modeling proposed a new economic and mathematical model and a method for solving the problem of multicriterial adaptive optimization the control of investment projects in the presence of several technologies. Network economic and mathematical modeling allows you to determine the optimal time and calendar schedule for the implementation of the investment project and serves as an instrument to increase the economic potential and competitiveness of the enterprise. On a meaningful practical example, the processes of forming network models are shown, including the definition of the sequence of actions of a particular investment projecting process, the network-based work schedules are constructed. The calculation of the parameters of network models is carried out. Optimal (critical) paths have been formed and the optimal time for implementing the chosen technologies of the investment project has been calculated. It also shows the selection of the optimal technology from a set of possible technologies for project implementation, taking into account the time and cost of the work. The proposed model and method for solving the problem of managing investment projects can serve as a basis for the development, creation and application of appropriate computer information systems to support the adoption of managerial decisions by business people.

A multi-objective decision framework for lifecycle investment

NARCIS (Netherlands)

Timmermans, S.H.J.T.; Schumacher, J.M.; Ponds, E.H.M.

2017-01-01

In this paper we propose a multi-objective decision framework for lifecycle investment choice. Instead of optimizing individual strategies with respect to a single-valued objective, we suggest evaluation of classes of strategies in terms of the quality of the tradeoffs that they provide. The

ECONOMIC EFFICIENCY - DETERMINED ELEMENT IN INVESTMENT DECISION

Directory of Open Access Journals (Sweden)

Claudia MUNGIU-PUPAZAN

2010-03-01

Full Text Available Economic activity of a country are conducted by industry, under branches and production sectors, each with special characteristics and conditions of work, which, of course, put their imprint on the organization manner of the production process By an analysis of the concept of economic efficiency of investment is found that this is an amount of qualitative factors, which gives the latter a complex character, aimed to improving activity in the area where are taking place to the putting into service of such investment, which can be modernization, bringing new equipments, reconstruction and development. Study the economic efficiency of investment involves, as a base, an analysis of causal factors that determine the decision in the afferent medium of risk. Corresponding to peculiarities of the production process, it requires a proper methodology of assessment the economic efficiency of investment, with specification to maintain the general principles for calculating the economic efficiency indicators and specific indicators come only to complete the picture of indicators of general, basic and supplementary already calculated in order to provide additional clues, afferent to branch, under-branch or sector of activity.

U.S. infrastructure : funding trends and opportunities to improve investment decisions

Science.gov (United States)

2000-02-01

Given the profound economic and social importance of the public infrastructure, it is crucial that federal, state, and local governments make prudent decisions on how to invest limited available resources. In making these decisions, governments will ...

Study on generation investment decision-making considering multi-agent benefit for global energy internet

Science.gov (United States)

Li, Pai; Huang, Yuehui; Jia, Yanbing; Liu, Jichun; Niu, Yi

2018-02-01

Abstract . This article has studies on the generation investment decision in the background of global energy interconnection. Generation investment decision model considering the multiagent benefit is proposed. Under the back-ground of global energy Interconnection, generation investors in different clean energy base not only compete with other investors, but also facing being chosen by the power of the central area, therefor, constructing generation investment decision model considering multiagent benefit can be close to meet the interests demands. Using game theory, the complete information game model is adopted to solve the strategies of different subjects in equilibrium state.

The decision making on mutual investment of thai investors ...

African Journals Online (AJOL)

The decision making on mutual investment of thai investors. ... Journal of Fundamental and Applied Sciences. Journal Home ... The study was a research survey that used questionnaires to collect data from 400 samples of Thai investors.

Choosing the right amount of healthcare information technologies investments.

Science.gov (United States)

Meyer, Rodolphe; Degoulet, Patrice

2010-04-01

Choosing and justifying the right amount of investment in healthcare information technologies (HITECH or HIT) in hospitals is an ever increasing challenge. Our objectives are to assess the financial impact of HIT on hospital outcome, and propose decision-helping tools that could be used to rationalize the distribution of hospital finances. We used a production function and microeconomic tools on data of 21 Paris university hospitals recorded from 1998 to 2006 to compute the elasticity coefficients of HIT versus non-HIT capital and labor as regards to hospital financial outcome and optimize the distribution of investments according to the productivity associated with each input. HIT inputs and non-HIT inputs both have a positive and significant impact on hospital production (elasticity coefficients respectively of 0.106 and 0.893; R(2) of 0.92). We forecast 2006 results from the 1998 to 2005 dataset with an accuracy of +0.61%. With the model used, the best proportion of HIT investments was estimated to be 10.6% of total input and this was predicted to lead to a total saving of 388 million Euros for the 2006 dataset. Considering HIT investment from the point of view of a global portfolio and applying econometric and microeconomic tools allow the required confidence level to be attained for choosing the right amount of HIT investments. It could also allow hospitals using these tools to make substantial savings, and help them forecast their choices for the following year for better HITECH governance in the current stimulation context. (c) 2010 Elsevier Ireland Ltd. All rights reserved.

Modelling Investment Attractiveness of a Public Joint Stock Company as the Basis of Managerial Decision Making

Directory of Open Access Journals (Sweden)

Brukhovetskaya Natalia E.

2014-01-01

Full Text Available The article analyses factors of influence upon investment attractiveness of a public joint stock company, which are factors by the sphere of origin. The article identifies the degree and direction of influence of the factors by the sphere of origin upon investment attractiveness of a public joint stock company; factors are divided into two groups, which could be regulated directly by society and which cannot be regulated. It justifies the necessity of modelling investment attractiveness of a public joint stock company under influence of the factors with the aim of managerial decision making of two groups of stakeholders: owners and managers, shareholders and investors. It conducts modelling of investment attractiveness of a public joint stock company using the decision tree method. It develops a decision matrix, on the basis of which the owners, managers, shareholders and investors can make decisions regarding directions of increase of investment attractiveness of a public joint stock company and expediency of initial or further investing into society development.

Improving IT Portfolio Management Decision Confidence Using Multi-Criteria Decision Making and Hypervariate Display Techniques

Science.gov (United States)

Landmesser, John Andrew

2014-01-01

Information technology (IT) investment decision makers are required to process large volumes of complex data. An existing body of knowledge relevant to IT portfolio management (PfM), decision analysis, visual comprehension of large volumes of information, and IT investment decision making suggest Multi-Criteria Decision Making (MCDM) and…

Including climate change in energy investment decisions

International Nuclear Information System (INIS)

Ybema, J.R.; Boonekamp, P.G.M.; Smit, J.T.J.

1995-08-01

To properly take climate change into account in the analysis of energy investment decisions, it is required to apply decision analysis methods that are capable of considering the specific characteristics of climate change (large uncertainties, long term horizon). Such decision analysis methods do exist. They can explicitly include evolving uncertainties, multi-stage decisions, cumulative effects and risk averse attitudes. Various methods are considered in this report and two of these methods have been selected: hedging calculations and sensitivity analysis. These methods are applied to illustrative examples, and its limitations are discussed. The examples are (1a) space heating and hot water for new houses from a private investor perspective and (1b) as example (1a) but from a government perspective, (2) electricity production with an integrated coal gasification combined cycle (ICGCC) with or without CO 2 removal, and (3) national energy strategy to hedge for climate change. 9 figs., 21 tabs., 42 refs., 1 appendix

Investment in Electricity Generation and Transmission: Decision Making Under Uncertainty

DEFF Research Database (Denmark)

Conejo, Antonio J.; Baringo, Luis; Kazempour, Jalal

This book provides an in-depth analysis of investment problems pertaining to electric energy infrastructure, including both generation and transmission facilities. The analysis encompasses decision-making tools for expansion planning, reinforcement, and the selection and timing of investment...... undergraduate and graduate students in the fields of electric energy systems, operations research, management science, and economics. Practitioners in the electric energy sector will also benefit from the concepts and techniques presented here....

Using Real Option Thinking to Improve Decision Making in Security Investment

NARCIS (Netherlands)

Nunes Leal Franqueira, V.; Houmb, S.H.; Daneva, Maia

2010-01-01

Making well-founded security investment decisions is hard: several alternatives may need to be considered, the alternatives' space is often diffuse, and many decision parameters that are traded-off are uncertain or incomplete. We cope with these challenges by proposing a method that supports

R & D STRATEGIC INVESTMENT IN AN ASYMMETRICAL CASE

Institute of Scientific and Technical Information of China (English)

Minggao XUE; Pu GONG

2006-01-01

This article analyzes R & D investment decisions in an asymmetrical case. The investment decisions share three important characteristics. First, the investment is completely irreversible. Second,there are two kinds of uncertainties over the future returns from the investment and over technology in R & D process, respectively. Third, there is strategic competition in the asymmetrical case. This article presents the optimal investment threshold values and the optimal investment rule of high-efficient firm (leader), and shows that the investment threshold values are reduced by competition of two firms.Finally, the mixed investment strategies for two firms, the probability that each firm separately exercises the option to invest, and the probability that two firms simultaneously exercise the option are given in the paper.

The Impact Of The Foreign Direct Investment On Romania’s Economy

OpenAIRE

Mihaela Ioneci; Georgiana Mîndreci

2010-01-01

Foreign direct investment can be regarded as a factor out of the crisis of the Romanian economy. The relationship between the foreign direct investment and the gross domestic product is beneficial for the economy to the extent to which investment is directed towards innovation and new technologies. The virtuous circle diversity - change - technology needs investment to take effect. Microeconomic level investment completes the strategies and the investment decisions at macroeconomic level.

\\t Capital Planning and Investment Control (CPIC) for the Management of Information Technology Investments

Science.gov (United States)

Capital Planning and Investment Control (CPIC) is the Information Technology (IT) governance and management methodology in use at EPA for selecting, controlling and evaluating the performance of EPA IT investments throughout the full lifecycle.

A Method on the Item Investment Risk Interval Decision-making of Processing Ranking Style

Institute of Scientific and Technical Information of China (English)

CHEN Li-wen

2002-01-01

In this paper, on the bases of the defeot of riskful type and indefinite type decisions, the concept of the type of item investment probability scheduling decision is given, and a linear programming model and its solution are made out. The feasibility of probability scheduling type item investment plan is studied by applying the quality of interval arithmetic.

Investment sensitivity and managerial decision making behaviour of Indian firms

Directory of Open Access Journals (Sweden)

Pankaj Kumar Gupta

2013-01-01

Full Text Available Contemporary models of the financial theory support the proposition that the stock prices should be fundamentally a reflection of the discounted value of earnings. Accordingly the investors and analysts should base their expectations on the expected future cash flows that are logically correlated or have a carry over effect vis-ŕ-vis present stream of cash flows. This logically implies that the managers would have an incentive to manipulate investor’s expectation of future cash flows. The zeal to maximize the firm’s value based on market capitalization is expected to have a detrimental effect on the investment decisions leading to sub optimality. Given the imperfect information structure and market pressures, the Indian firms suffer from mispricing and as such the conventional robust theoretical models of agency conflicts cannot be refuted. This motivates us to examine the interrelation ship between the concerns for valuation and investment sensitivity. We use a sample statistics of selected listed firms that represent the CNX Nifty Index and test for the dependence of the investment behavior of the firm, on the sensitivity of the firms’ share prices to its current cash flow represented by surprise earings. We use the earnings response coefficient (ERC framework proposed by Ball and Brown (1968 for 11 key industries in India. We find that the surpise in accounting earnings announcements is negatively associated with abnormal stock returns and the investment decisions taken by the firms are negatively sensitive to changes in investment opportunities.

Exploring the evolution of investment pattern on advanced manufacturing technology

DEFF Research Database (Denmark)

Yang, Cheng; Matthiesen, Rikke Vestergaard; Johansen, John

2014-01-01

This paper explores the evolution of investment pattern on advanced manufacturing technology in a manner that builds on a longitudinal perspective. Based on the data of investments in AMTs from 567 manufacturing companies this paper develops a longitudinal taxonomy defined by the evolution of inv...... of technology management, which is comprised primarily of cross-sectional studies that do not address the dynamic nature of investments in AMTs.......This paper explores the evolution of investment pattern on advanced manufacturing technology in a manner that builds on a longitudinal perspective. Based on the data of investments in AMTs from 567 manufacturing companies this paper develops a longitudinal taxonomy defined by the evolution...... of investment patterns on AMT followed by companies over time; identifies the possible evolutionary features of different groups of companies; and suggests the possible explanatory and outcome factors on the evolution of investment pattern on AMTs. By doing so, this study seeks to fill a void in the area...

Differences in decision-making criteria towards the return on marketing investment: A project business perspective

OpenAIRE

Smyth, H.; Lecoeuvre, L.

2015-01-01

Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance–marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at th...

The impact of health technology assessment reports on decision making in Austria.

Science.gov (United States)

Zechmeister, Ingrid; Schumacher, Ines

2012-01-01

Health technology assessment (HTA) was established in Austria in the 1990s and, since then, it has gained considerable importance. In this study, we aim to analyze whether the HTA reports that have been produced at the Institute for Technology Assessment (ITA) and at the Ludwig Boltzmann Institute for HTA (LBI-HTA) have had an impact on decision making within the Austrian health care system. We selected all reports that were intended for supporting (i) reimbursement/investment or (ii) disinvestment decisions. Eleven full HTA reports and fifty-eight rapid assessments fulfilled the inclusion criteria. We used interview data and administrative data on volumes, tariffs and expenditure of products/services to analyze whether and how reports were in reality used in decision making and what the consequences for health care expenditure and resource distribution have been. Five full HTA reports and fifty-six rapid technology assessments were used for reimbursement decisions. Four full HTA reports and two rapid assessments were used for disinvestment decisions and resulted in reduced volumes and expenditure. Two full HTA reports showed no impact on decision making. Impact was most evident for hospital technologies. HTA has played some role in reducing volumes of over-supplied hospital technologies, resulting in reduced expenditure for several hospital providers. Additionally, it has been increasingly included in prospective planning and reimbursement decisions of late, indicating re-distribution of resources toward evidence-based technologies. However, further factors may have influenced the decisions, and the impact could be considerably increased by systematically incorporating HTA into the decision-making process in Austria.

Ambiguity and Investment Decisions: An Empirical Analysis on Mutual Fund Investor Behaviour

Directory of Open Access Journals (Sweden)

Chao Tang

2017-09-01

Full Text Available The paper empirically studies the relationship between ambiguity and mutual fund investor behaviour. Theoretical models for investment decisions incorporating ambiguity motivate our analyses. While the models indicate that investors would less likely to invest in financial markets when ambiguity increases, there is rare empirical evidence in natural occurring financial data to examine this hypothesis. In this paper, we test the hypothesis with equity fund flow data as for investment decisions and ambiguity with the degree of disagreement in equity analysts’ prediction about asset returns. Our results support the hypothesis that increases in ambiguity could lead to less fund flows and this result remains consistently when adding various control variables affecting fund flows. Besides, we find that heterogeneous impacts of ambiguity: equity funds with high yield targets and active management style are affected more than funds investing in stable stocks; funds with larger proportion of institutional investors are more sensitive and affected by the ambiguity.

Renewable energy investment: Policy and market impacts

International Nuclear Information System (INIS)

Reuter, Wolf Heinrich; Szolgayová, Jana; Fuss, Sabine; Obersteiner, Michael

2012-01-01

Highlights: ► Feedback of decisions to the market: large companies can have an impact on prices in the market. ► Multiple uncertainties: analysis of uncertainties emanating from both markets and environment. ► Policy analysis: impact of uncertainty about the durability of feed-in tariffs. -- Abstract: The liberalization of electricity markets in recent years has enhanced competition among power-generating firms facing uncertain decisions of competitors and thus uncertain prices. At the same time, promoting renewable energy has been a key ingredient in energy policy seeking to de-carbonize the energy mix. Public incentives for companies to invest in renewable technologies range from feed-in tariffs, to investment subsidies, tax credits, portfolio requirements and certificate systems. We use a real options model in discrete time with lumpy multiple investments to analyze the decisions of an electricity producer to invest into new power generating capacity, to select the type of technology and to optimize its operation under price uncertainty and with market effects. We account for both the specific characteristics of renewables and the market effects of investment decisions. The prices are determined endogenously by the supply of electricity in the market and by exogenous electricity price uncertainty. The framework is used to analyze energy policy, as well as the reaction of producers to uncertainty in the political and regulatory framework. In this way, we are able to compare different policies to foster investment into renewables and analyze their impacts on the market.

Investment Decision Making: A Guide to Good Practice.

Science.gov (United States)

Higher Education Funding Council for England, Bristol.

This "good practice" guide is aimed at anyone in higher education in England who is involved in making decisions on investments. It focuses on the principles to be followed, rather than the techniques of appraisal. The guide outlines the steps for developing an outline business case and then refining it into a full business case for the…

Assessing survivability to support power grid investment decisions

International Nuclear Information System (INIS)

Koziolek, Anne; Avritzer, Alberto; Suresh, Sindhu; Menasché, Daniel S.; Diniz, Morganna; Souza e Silva, Edmundo de; Leão, Rosa M.; Trivedi, Kishor; Happe, Lucia

2016-01-01

The reliability of power grids has been subject of study for the past few decades. Traditionally, detailed models are used to assess how the system behaves after failures. Such models, based on power flow analysis and detailed simulations, yield accurate characterizations of the system under study. However, they fall short on scalability. In this paper, we propose an efficient and scalable approach to assess the survivability of power systems. Our approach takes into account the phased-recovery of the system after a failure occurs. The proposed phased-recovery model yields metrics such as the expected accumulated energy not supplied between failure and full recovery. Leveraging the predictive power of the model, we use it as part of an optimization framework to assist in investment decisions. Given a budget and an initial circuit to be upgraded, we propose heuristics to sample the solution space in a principled way accounting for survivability-related metrics. We have evaluated the feasibility of this approach by applying it to the design of a benchmark distribution automation circuit. Our empirical results indicate that the combination of survivability and power flow analysis can provide meaningful investment decision support for power systems engineers. - Highlights: • We propose metrics and models for scalable survivability analysis of power systems. • The survivability model captures the system phased-recovery, from failure to repair. • The survivability model is used as a building block of an optimization framework. • Heuristics assist in investment options accounting for survivability-related metrics.

Investment, regulation, and uncertainty

Science.gov (United States)

Smyth, Stuart J; McDonald, Jillian; Falck-Zepeda, Jose

2014-01-01

As with any technological innovation, time refines the technology, improving upon the original version of the innovative product. The initial GM crops had single traits for either herbicide tolerance or insect resistance. Current varieties have both of these traits stacked together and in many cases other abiotic and biotic traits have also been stacked. This innovation requires investment. While this is relatively straight forward, certain conditions need to exist such that investments can be facilitated. The principle requirement for investment is that regulatory frameworks render consistent and timely decisions. If the certainty of regulatory outcomes weakens, the potential for changes in investment patterns increases.   This article provides a summary background to the leading plant breeding technologies that are either currently being used to develop new crop varieties or are in the pipeline to be applied to plant breeding within the next few years. Challenges for existing regulatory systems are highlighted. Utilizing an option value approach from investment literature, an assessment of uncertainty regarding the regulatory approval for these varying techniques is undertaken. This research highlights which technology development options have the greatest degree of uncertainty and hence, which ones might be expected to see an investment decline. PMID:24499745

Two-part payments for the reimbursement of investments in health technologies.

Science.gov (United States)

Levaggi, Rosella; Moretto, Michele; Pertile, Paolo

2014-04-01

The paper studies the impact of alternative reimbursement systems on two provider decisions: whether to adopt a technology whose provision requires a sunk investment cost and how many patients to treat with it. Using a simple economic model we show that the optimal pricing policy involves a two-part payment: a price equal to the marginal cost of the patient whose benefit of treatment equals the cost of provision, and a separate payment for the partial reimbursement of capital costs. Departures from this scheme, which are frequent in DRG tariff systems designed around the world, lead to a trade-off between the objective of making effective technologies available to patients and the need to ensure appropriateness in use. Copyright © 2013 Elsevier Ireland Ltd. All rights reserved.

Investment appraisal of technology innovations on dairy farm electricity consumption.

Science.gov (United States)

Upton, J; Murphy, M; De Boer, I J M; Groot Koerkamp, P W G; Berentsen, P B M; Shalloo, L

2015-02-01

The aim of this study was to conduct an investment appraisal for milk-cooling, water-heating, and milk-harvesting technologies on a range of farm sizes in 2 different electricity-pricing environments. This was achieved by using a model for electricity consumption on dairy farms. The model simulated the effect of 6 technology investment scenarios on the electricity consumption and electricity costs of the 3 largest electricity-consuming systems within the dairy farm (i.e., milk-cooling, water-heating, and milking machine systems). The technology investment scenarios were direct expansion milk-cooling, ice bank milk-cooling, milk precooling, solar water-heating, and variable speed drive vacuum pump-milking systems. A dairy farm profitability calculator was combined with the electricity consumption model to assess the effect of each investment scenario on the total discounted net income over a 10-yr period subsequent to the investment taking place. Included in the calculation were the initial investments, which were depreciated to zero over the 10-yr period. The return on additional investment for 5 investment scenarios compared with a base scenario was computed as the investment appraisal metric. The results of this study showed that the highest return on investment figures were realized by using a direct expansion milk-cooling system with precooling of milk to 15°C with water before milk entry to the storage tank, heating water with an electrical water-heating system, and using standard vacuum pump control on the milking system. Return on investment figures did not exceed the suggested hurdle rate of 10% for any of the ice bank scenarios, making the ice bank system reliant on a grant aid framework to reduce the initial capital investment and improve the return on investment. The solar water-heating and variable speed drive vacuum pump scenarios failed to produce positive return on investment figures on any of the 3 farm sizes considered on either the day and night

Investigation of Multi-Criteria Decision Consistency: A Triplex Approach to Optimal Oilfield Portfolio Investment Decisions

Science.gov (United States)

Qaradaghi, Mohammed

Complexity of the capital intensive oil and gas portfolio investments is continuously growing. It is manifested in the constant increase in the type, number and degree of risks and uncertainties, which consequently lead to more challenging decision making problems. A typical complex decision making problem in petroleum exploration and production (E&P) is the selection and prioritization of oilfields/projects in a portfolio investment. Prioritizing oilfields maybe required for different purposes, including the achievement of a targeted production and allocation of limited available development resources. These resources cannot be distributed evenly nor can they be allocated based on the oilfield size or production capacity alone since various other factors need to be considered simultaneously. These factors may include subsurface complexity, size of reservoir, plateau production and needed infrastructure in addition to other issues of strategic concern, such as socio-economic, environmental and fiscal policies, particularly when the decision making involves governments or national oil companies. Therefore, it would be imperative to employ decision aiding tools that not only address these factors, but also incorporate the decision makers' preferences clearly and accurately. However, the tools commonly used in project portfolio selection and optimization, including intuitive approaches, vary in their focus and strength in addressing the different criteria involved in such decision problems. They are also disadvantaged by a number of drawbacks, which may include lacking the capacity to address multiple and interrelated criteria, uncertainty and risk, project relationship with regard to value contribution and optimum resource utilization, non-monetary attributes, decision maker's knowledge and expertise, in addition to varying levels of ease of use and other practical and theoretical drawbacks. These drawbacks have motivated researchers to investigate other tools and

A Duopoly Manufacturers’ Game Model Considering Green Technology Investment under a Cap-and-Trade System

Directory of Open Access Journals (Sweden)

Yi Zheng

2018-03-01

Full Text Available This research studied the duopoly manufacturers’ decision-making considering green technology investment and under a cap-and-trade system. It was assumed there were two manufacturers producing products which were substitutable for one another. On the basis of this assumption, the optimal production capacity, price, and green technology investment of the duopoly manufacturers under a cap-and-trade system were obtained. The increase or decrease of the optimal production quantity of the duopoly manufacturers under a cap-and-trade system was decided by their green technology level. The increase of the optimal price as well as the increase or decrease of the maximum expected profits were decided by the initial carbon emission quota granted by the government. Our research indicates that the carbon emission of unit product is inversely proportional to the market share of an enterprise and becomes an important index to measure the core competitiveness of an enterprise.

Optimal Strategies for Low Carbon Supply Chain with Strategic Customer Behavior and Green Technology Investment

Directory of Open Access Journals (Sweden)

Wen Jiang

2016-01-01

Full Text Available Climate change is mainly caused by excessive emissions of carbon dioxide and other greenhouse gases. In order to reduce carbon emissions, cap and trade policy is implemented by governments in many countries, which has significant impacts on the decisions of companies at all levels of the low carbon supply chain. This paper investigates the decision-making and coordination of a low carbon supply chain consisting of a low carbon manufacturer who produces one product and is allowed to invest in green technology to reduce carbon emissions in production and a retailer who faces stochastic demands formed by homogeneous strategic customers. We investigate the optimal production, pricing, carbon trading, and green technology investment strategies of the low carbon supply chain in centralized (including Rational Expected Equilibrium scenario and quantity commitment scenario and decentralized settings. It is demonstrated that quantity commitment strategy can improve the profit of the low carbon supply chain with strategic customer behavior. We also show that the performance of decentralized supply chain is lower than that of quantity commitment scenario. We prove that the low carbon supply chain cannot be coordinated by revenue sharing contract but by revenue sharing-cost sharing contract.

NASA ESTO Lidar Technologies Investment Strategy: 2016 Decadal Update

Science.gov (United States)

Valinia, Azita; Komar, George J.; Tratt, David M.; Lotshaw, William T.; Gaab, Kevin M.

2017-01-01

The NASA Earth Science Technology Office (ESTO) recently updated its investment strategy in the area of lidar technologies as it pertains to NASA's Earth Science measurement goals in the next decade. The last ESTO lidar strategy was documented in 2006. The current (2016) report assesses the state-of-the-art in lidar technologies a decade later. Lidar technology maturation in the past decade has been evaluated, and the ESTO investment strategy is updated and laid out in this report according to current NASA Earth science measurement needs and new emerging technologies.

Development of an investment decision tool for aged nuclear power plants under uncertainty

International Nuclear Information System (INIS)

Takashima, Ryuta; Nagano, Koji

2010-01-01

The nuclear power generating stock in Japan, which provides 30% or more of the nationwide electricity supply in recent years, is heading into the era of plant aging as those units over 40 years of operation emerge in 2010 and onward. Under accumulating uncertainties surrounding investment decisions, one of the key questions is how best to manage the existing capacity by choosing a wisest option among dismantling, refurbishment, and replacement. This report attempts to develop a methodology to analyze investment decision on aged nuclear units based on real-option analysis, and then presents illustrative simulation runs to demonstrate functions of the numerical models. Major findings are summarized as follows: a) When compared with the conventional net present value (NPV) method, the proposed model is capable to deal with uncertainty explicitly by taking volatility in the formula. Also, for the replacement option, one can choose optimal timings of the dismantling the new plant independently. b) As the profitability increases, the model suggests different investment option as optimal, starting from dismantling to replacement, further to refurbishment, and again to replacement as the most basic pattern. Additionally, where two of the strategies have similar values, postponement of both decisions can be optimal. Through these exercises, the proposed methodology proved itself capable for raising valuable implications to investment decisions in managing the production fleet. (author)

Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

Directory of Open Access Journals (Sweden)

Tapan Kumar Datta

2017-01-01

Full Text Available Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries. In the present paper, the author analyzes a production-inventory model under a carbon tax system. The production rate is assumed to be a decision variable and can be set at any level within machine limits. A proportion of items produced are defective, and this proportion depends on the production rate. Demand depends on the selling price. Unit price is a decreasing function of the production rate. Emissions can be reduced to some extent by capital investment on green technology, and this capital investment amount is a decision variable. Customers are categorized as retail customers and wholesale customers. A discount is offered to the wholesale customers on the regular selling price. The results are illustrated by a numerical example and a sensitivity analysis is performed.

Efficient pricing and investment in electricity markets with intermittent resources

International Nuclear Information System (INIS)

Chao, Hung-po

2011-01-01

Facing growing technological and environmental challenges, the electricity industry needs effective pricing mechanism to promote efficient risk management and investment decisions. In a restructured electricity market with competitive wholesale prices and traditionally regulated retail rates, however, there are technical and institutional barriers that prevent dynamic pricing with price responsive demand. In regions with limited energy storage capacity, intermittent renewable resources present special challenges. This could adversely affect the effectiveness of public policies causing inefficient investments in energy technologies. In this paper, we present an updated economic model of pricing and investment in restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms. A key objective of the study is to shed light on the policy issues so that effective decisions can be made to improve efficiency. - Highlights: → Renewable resources present special challenges in regions with limited energy storage capacity. → This paper presents an updated economic model of pricing and investment in restructured electricity market. → A simulation study assesses renewable energy strategy and alternative pricing mechanisms. → The study results inform policy decisions to improve efficient investments in energy technologies.

Essays in Investment Theory

International Nuclear Information System (INIS)

Bobtcheff, C.

2006-01-01

This thesis analyzes different aspects of the investment decision. In the first chapter, we consider an economy in which different energy sources may produce electricity. The model focuses first on the optimal use of a hydroelectric dam from which water can be extracted and which is supplied with a random water flow. The presence of constraints on a minimal and on a maximal storage capacity makes electricity consumption smoothing possible only when the quantity of water available to the agent lies in a certain range that we determine. In a second stage, we introduce a second energy source with unlimited supply at some exogenous cost. The marginal propensity to produce hydroelectricity is an increasing function of the second technology cost. The availability at a low cost of the alternative source improves thus time diversification. Finally, the optimal electric park is composed of a number of dams that is increasing with the cost of the second technology. Chapter 2 studies the decision of an investor who wants to undertake an irreversible investment when he has the choice between two mutually exclusive projects that present input price and/or output price uncertainty. We prove that the investor decides not to invest in any project when each investment generates the same payoff independently of its size. Therefore, some inaction region appears in which the investor prefers not to invest whereas an immediate investment would have been optimal if no choice had been available: a 'choice value' is thus created. A key feature of this bidimensional degree of uncertainty is thus that the payoff generated by each project is not a sufficient statistic to make a rational investment. In this context, our analysis provides a new motive for waiting to invest: the benefits associated with the dominance of one project over the other. In chapter 3, we study the investment decision problem of a duo-poly with price competition on a market of finite size driven by stochastic taste

THE PROFITABILITY – AN ATTRIBUTE OF FINANCIAL AND ACCOUNTING NATURE IN THE DECISION TO INVEST

Directory of Open Access Journals (Sweden)

Mihaela TULVINSCHI

2014-06-01

Full Text Available The investments represent the primary factor in the development strategy of an economic entity. The role of the investments begins with their purpose, meaning that the investments involve the increasing of a stock portfolio. The research methodology that is approached in this article is based on the analysis of two factors: net present value and internal rate of profitability. Capital budgeting in an investment project that, without a prior analysis of the efficiency of such a decision, can lead to the total or partial loss of the invested capital. An investment project is efficient if the net present value is positive and has a larger value. An investment project becomes more profitable as the value of the internal rate of profitability gets higher. If the two factors are correctly interpreted they lead to exactly the same conclusions regarding the determination of an investment profitability. We can conclude that the two efficiency factors are complementary, their simultaneous use leading to a better grounding of the investment decision than their separate use.

Application of Decision Analysis to Evaluate Alternative Research and Development Investments

National Research Council Canada - National Science Library

Artelli, Michael

1998-01-01

.... In contrast to the current ad hoc approach, decision analysis provides an explicit and easily explained rationale for investment choices, complete and consistent incorporation of multiple objectives...

Research on investment decisions model of trans-regional transmission network based on the theory of NPV

Science.gov (United States)

Zai, Wenjiao; Wang, Bo; Liu, Jichun; Shi, Haobo; Zeng, Pingliang

2018-02-01

The investment decision model of trans-regional transmission network in the context of Global Energy Internet was studied in this paper. The key factors affecting the trans-regional transmission network investment income: the income tax rate, the loan interest rate, the expected return on investment of the investment subject, the per capita GDP and so on were considered in the transmission network investment income model. First, according to the principle of system dynamics, the causality diagram of key factors was constructed. Then, the dynamic model of transmission investment decision was established. A case study of the power transmission network between China and Mongolia, through the simulation of the system dynamic model, the influence of the above key factors on the investment returns was analyzed, and the feasibility and effectiveness of the model was proved.

Economic simulation to support investment decisions in pig farming

NARCIS (Netherlands)

Backus, G.B.C.

1994-01-01

The study described in this thesis focuses on the development and use of a model that simulates the consequences of long-term investment decisions in pig farming. The thesis is composed of six parts. Chapter 1 deals with a basic review of the literature on strategic planning under risk and

The investment decision and its financing in a changing institutional environment: the case of an electronuclear facility

International Nuclear Information System (INIS)

Guillerminet, M.L.

2002-09-01

This document analyzes the consequences of the questioning of the hypothesis of independence between the investment and financing decisions, on the investment choice of a nuclear power company in a European market progressively opening to competition. This company, which can get into debts on the financial market, is taxable and can go bankrupt. It is shown that its investment opportunity, totally irreversible in self-financing, can become partially reversible for inter-dependent investment and financing decisions. (J.S.)

Cap-and-trade policy: The influence on investments in carbon dioxide reducing technologies in Indiana

Science.gov (United States)

Fahie, Monique

With most of the energy produced in the state of Indiana coming from coal, the implementation of policy instruments such as cap-and-trade, which is included in the most recent climate bill, will have significant effects. This thesis provides an analysis of the effects that a cap-and-trade policy might have on the investment decisions for alternative technologies in the power plant sector in Indiana. Two economic models of representative coal-fired power plants, Gallagher (600MW) and Rockport (2600MW), are selected and used to evaluate the repowering decision of a plant for several technologies: integrated gasification combined cycle (IGCC), wind farm combined with natural gas combined cycle (NGCC) and supercritical pulverized coal (SCPC). The firm will make its decisions based on the net present value (NPV) of cost estimates for these CO2 reducing technologies, the cost of purchasing offsets and CO 2 allowances. This model is applied to a base case and three American Clean Energy and Security Act of 2009 cases derived from the Energy Information Administration (EIA, 2009b). A sensitivity analysis is done on the discount rate and capital costs. The results of the study indicate that a SCPC plant without carbon capture and storage (CCS) is the least costly compliance option for both plants under all of the cases while retrofitting the existing plant with CCS is the most expensive. Gallagher's three least expensive options across most scenarios were SCPC without CCS, the operation of the existing plant as is and investment in wind plus NGCC. Rockport's three least expensive compliance options across most scenarios were SCPC without CCS, the operation of the existing plant as is and IGCC without CCS. For both plants, when a 12% discount rate is utilized, NPV of costs are generally lower and the operation of the existing plant technology with the aid of allowances and offsets to be in compliance is the cheapest option. If capital costs were to decrease by 30%, a SCPC

Reform of investment policy in the function of sustainable development with special emphasis on investment in information technologies

Directory of Open Access Journals (Sweden)

Dragičević-Radičević Tatjana

2017-01-01

Full Text Available Global economy still records a decline in FDI. The main causes are increased economic instability and geopolitical risks. Given the continued negative trend, it is clear that it is necessary to reform the investment policies at the national, regional, bilateral, multilateral and international level, to ensure sustainable economic development. Key elements of the reforms are: to provide instruments to reduce risks, create mechanisms of responsible investment, improve the structural coherence and promote regional investments. Refer to the current dates of the sectors investments (according to the report of UNCTAD from 2015th shows that the services sector recorded double growth compared to the investment in the manufacturing sector in 2012. Also, if we take into consideration the fact that investment in IT sector investment involves three aspects: transactional (minimizing costs, strategic (innovation technologies, achieving competitiveness and information (improving access to information and communications, it may be assumed that the reforms in the investment policies should be directly correlated with investments in information technology.

Corporate Decision Making and SocioEnvironmental Investments In Brazil: An Analysis Based On Social Audits

Directory of Open Access Journals (Sweden)

André Luiz Bufoni

2012-06-01

indicate a significant correlation between the amount of environmental investments and variables such as age, level of education, professional training of employees and profit-sharing policies. However, no significant correlation between environmental investments and profitability was found. The analysis revealed a linkage between decisions to invest in the environment and social investments outside the firm.

Inducing low-carbon investment in the electric power industry through a price floor for emissions trading

International Nuclear Information System (INIS)

Brauneis, Alexander; Mestel, Roland; Palan, Stefan

2013-01-01

Uncertainty about long-term climate policy is a major driving force in the evolution of the carbon market price. Since this price enters the investment decision process of regulated firms, this uncertainty increases the cost of capital for investors and might deter investments into new technologies at the company level. We apply a real options-based approach to assess the impact of climate change policy in the form of a constant or growing price floor on investment decisions of a single firm in a competitive environment. This firm has the opportunity to switch from a high-carbon “dirty” technology to a low-carbon “clean” technology. Using Monte Carlo simulation and dynamic programming techniques for real data, we determine the optimal CO 2 price floor level and growth rate in order to induce investments into the low-carbon technology. We find that a carbon price floor can be used to induce earlier low-carbon technology investment and show this result to be robust to a large variety of input parameter settings. - Highlights: ► We model the investment decision of an electricity generating company. ► The company can invest in low and high carbon technologies. ► We investigate different carbon price floor designs. ► A carbon price floor leads to earlier investment into low-carbon technology.

Decision-Oriented Health Technology Assessment: One Step Forward in Supporting the Decision-Making Process in Hospitals.

Science.gov (United States)

Ritrovato, Matteo; Faggiano, Francesco C; Tedesco, Giorgia; Derrico, Pietro

2015-06-01

This article outlines the Decision-Oriented Health Technology Assessment: a new implementation of the European network for Health Technology Assessment Core Model, integrating the multicriteria decision-making analysis by using the analytic hierarchy process to introduce a standardized methodological approach as a valued and shared tool to support health care decision making within a hospital. Following the Core Model as guidance (European network for Health Technology Assessment. HTA core model for medical and surgical interventions. Available from: http://www.eunethta.eu/outputs/hta-core-model-medical-and-surgical-interventions-10r. [Accessed May 27, 2014]), it is possible to apply the analytic hierarchy process to break down a problem into its constituent parts and identify priorities (i.e., assigning a weight to each part) in a hierarchical structure. Thus, it quantitatively compares the importance of multiple criteria in assessing health technologies and how the alternative technologies perform in satisfying these criteria. The verbal ratings are translated into a quantitative form by using the Saaty scale (Saaty TL. Decision making with the analytic hierarchy process. Int J Serv Sci 2008;1:83-98). An eigenvectors analysis is used for deriving the weights' systems (i.e., local and global weights' system) that reflect the importance assigned to the criteria and the priorities related to the performance of the alternative technologies. Compared with the Core Model, this methodological approach supplies a more timely as well as contextualized evidence for a specific technology, making it possible to obtain data that are more relevant and easier to interpret, and therefore more useful for decision makers to make investment choices with greater awareness. We reached the conclusion that although there may be scope for improvement, this implementation is a step forward toward the goal of building a "solid bridge" between the scientific evidence and the final decision

Emissions trading and investment decisions in the power sector-a case study in Finland

International Nuclear Information System (INIS)

Laurikka, Harri; Koljonen, Tiina

2006-01-01

Organizations, which consider investment in or divestment of power production licences/capacity within the European Community, are exposed to the impacts of the European Union Emission allowance Trading Scheme (EU ETS). In this paper, the consequences of the EU ETS on investment decisions are explored in a country-specific setting in Finland. First, we review the general mechanisms through which the EU ETS influences size, timing and cashflows of an investment. Next, we discuss the projected changes in Finnish power producers' investment environment and examine the financial impacts due to the EU ETS on a case investment decision, a hypothetical condensing power plant (250 MW e ). The standard discounted cash flow (DCF) analysis is extended to take into account the value of two real options: the option to wait and the option to alter operating scale. In a quantitative investment appraisal, the impact of emissions trading not only depends on the expected level of allowance prices, but also on their volatility and correlation with electricity and fuel prices. The case study shows that the uncertainty regarding the allocation of emission allowances is critical in a quantitative investment appraisal of fossil fuel-fired power plants

Stock Market Liquidity and Investment Decisions of Non-Financial Quoted Companies in Nigeria

Directory of Open Access Journals (Sweden)

Rafiu Oyesola Salawu

2016-01-01

Full Text Available The study examined the impact of market liquidity on investment decision of 50 non-financial quoted companies in Nigeria between 2006 and 2012. The study employed secondary source of data collection. Data collected were analyzed using descriptive statistics and inferential statistics such as pool OLS and fixed effect model. The results showed that Size of the Firm (FS and Firms’ Age (FAGE were the only significant determinants of Return on Investment (ROI. The turnover ratio (TOR which is a proxy for market liquidity had positive but insignificant effect on ROI. Based on the above findings, the study concluded that for most of the companies operating in the non-financial sector of the Nigerian economy, the influence of market liquidity on investment decision is positive, but not significant. The study recommended that management should place more emphasis on the firm age and in particular firm size as they can be employed to predict the return on investment.

Impact of Climate Change. Policy Uncertainty in Power Investment

International Nuclear Information System (INIS)

Blyth, W.; Yang, M.

2006-10-01

Climate change policies are being introduced or actively considered in all IEA member countries, changing the investment conditions and technology choices in the energy sector. Many of these policies are at a formative stage, and policy uncertainty is currently high. The objective of this paper is to quantify the impacts of climate change policy on power investment. We use Real Options Analysis approach in the study and model uncertain carbon price and fuel price with stochastic variables. The analysis compares the effects of climate policy uncertainty with fuel price uncertainty, showing the relative importance of these sources of risk for different technologies. This paper considers views on the importance of climate policy risk, how it is managed, and how it might affect investment behaviour. The implications for policymakers are analyzed, allowing the key messages to be transferred into policy design decisions. We found that in many cases, the dominant risks facing base-load generation investment decisions will be market risks associated with electricity and fuel prices. However, under certain conditions and for some technologies, climate policy uncertainty can be an important risk factor, creating an incentive to delay investment and raising investment thresholds. This paper concludes that government climate change policies to promote investment in low-carbon technologies should aim to overcome this incentive to delay by sending long-term investment signals backed up by strengthened international policy action to enhance domestic policy credibility

Marshall Space Flight Center Technology Investments Overview

Science.gov (United States)

Tinker, Mike

2014-01-01

NASA is moving forward with prioritized technology investments that will support NASA's exploration and science missions, while benefiting other Government agencies and the U.S. aerospace enterprise. center dotThe plan provides the guidance for NASA's space technology investments during the next four years, within the context of a 20-year horizon center dotThis plan will help ensure that NASA develops technologies that enable its 4 goals to: 1.Sustain and extend human activities in space, 2.Explore the structure, origin, and evolution of the solar system, and search for life past and present, 3.Expand our understanding of the Earth and the universe and have a direct and measurable impact on how we work and live, and 4.Energize domestic space enterprise and extend benefits of space for the Nation.

The Investments in Renewable Energy Sources: Do Low Carbon Economies Better Invest in Green Technologies?

Directory of Open Access Journals (Sweden)

Antonio Angelo Romano

2011-01-01

Full Text Available The aim of this study is to analyse the driving of investment in renewable energy sources in low carbon and high carbon economies. To address these issues, a dynamic panel analysis of the renewable investment in a sample of 29 countries was proposed. Results demonstrate that the dynamic of investments in renewable sources is similar in the two panels, and depends by nuclear power generation, GDP and technological efficiency. Results show that countries try to reduce their environmental footprint, decreasing the CO2 intensity. Based on the estimation results, we think that energy sustainability passes through the use of renewable resources that can complement the nuclear technology on condition that both exceed their limits.

Collective Investment Decision Making with Heterogeneous Time Preferences

OpenAIRE

Gollier, Christian; Zeckhauser, Richard

2003-01-01

We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular, they have different discount factors for utility, possibly not exponential. We characterize the properties of efficient allocations of resources and of shadow prices that would decentralize such allocations. We show in particular that the term structure of interest rates is decreasing when all members have DARA preferences. Heterogeneous groups should not use exponential dis...

Do as you say - Say as you do: Measuring the actual use of environmental information in investment decisions

DEFF Research Database (Denmark)

Rikhardsson, Pall M.; Holm, Claus

2005-01-01

This paper focuses on the use of environmental information in investment decision making. The research approach employed was based on an experiment where three groups were asked to allocate investment funds between two companies based on financial accounts and information material from...... these companies. The overall conclusion of the paper is that even though environmental information is not enough in itself to shift decision preferences, it seems to have some impact on decision making. However, there seems to be a discrepancy between what decision makers say they do and what they actually do....... First, environmental information apparently has greater impact on decision making in the short run than the long run despite decision makers saying that they value environmental information more regarding long-run investments. Second, decision makers downplay the value of environmental information...

The Brazilian investment in science and technology

Directory of Open Access Journals (Sweden)

Pinheiro-Machado R.

2001-01-01

Full Text Available An analysis of Brazilian federal expenditures in science and technology is presented is this study. The 1990-1999 data were compiled from records provided by two federal agencies (MCT and CNPq responsible for managing most of the national budget related to these activities. The results indicate that the federal investments in Brazilian science and technology stagnated during the last decade (US$ 2.32 billion in 1990, US$ 2.39 billion in 1996, and US$ 2.36 billion in 1999. In contrast, a great increase in private investments in research was acknowledged both by industry and by the government during the same period, from US$ 2.12 to US$ 4.64 billion. However, this investment did not result in an increase in invention patents granted to residents (492 in 1990 and only 232 in 1997 or in a reduction of patent costs. Despite this unfavorable scenario, the number of graduate programs in the country has increased two-fold in the last decade and the contribution of Brazilians to the database of the Institute for Scientific Information has increased 4.7-fold from 1990 (2,725 scientific publications to 2000 (12,686 scientific publications. Unstable federal resources for science, together with the poor returns of private resources in terms of developing new technologies, may jeopardize the future of Brazilian technological development.

A hierarchical decision making model for the prioritization of distributed generation technologies: A case study for Iran

International Nuclear Information System (INIS)

Zangeneh, Ali; Jadid, Shahram; Rahimi-Kian, Ashkan

2009-01-01

The purpose of this paper is to present an assessment and evaluation model for the prioritization of distributed generation (DG) technologies, both conventional and renewable, to meet the increasing load due to the growth rate in Iran, while considering the issue of sustainable development. The proposed hierarchical decision making strategy is presented from the viewpoint of either the distribution company (DisCo) or the independent power producer (IPP) as a private entity. Nowadays, DG is a broadly-used term that covers various technologies; however, it is difficult to find a unique DG technology that takes into account multiple considerations, such as economic, technical, and environmental attributes. For this purpose, a multi-attribute decision making (MADM) approach is used to assess the alternatives for DG technology with respect to their economic, technical and environmental attributes. In addition, a regional primary energy attribute is also included in the hierarchy to express the potential of various kinds of energy resources in the regions under study. The obtained priority of DG technologies help decision maker in each region how allocate their total investment budget to the various technologies. From the performed analysis, it is observed that gas turbines are almost the best technologies for investing in various regions of Iran. At the end of the decision making process, a sensitivity analysis is performed based on the state regulations to indicate how the variations of the attributes' weights influence the DG alternatives' priority. This proposed analytical framework is implemented in seven parts of Iran with different climatic conditions and energy resources.

Influences of context and culture on singaporean strategic investment decision making practises

OpenAIRE

Soh, Li Khee Christine

2014-01-01

This thesis investigates the interplay of context with culture on strategic investment decision (SID) making practises in strategic management accounting, strategic management, cross cultural management and global strategic management research in Singapore using three research questions. These research questions commence from an inter-country perspective on SID making and narrow down to the theme of foreign versus domestic investments. The three research questions are: Re...

Optimization as investment decision support in a Swedish medium-sized iron foundry - A move beyond traditional energy auditing

International Nuclear Information System (INIS)

Thollander, Patrik; Mardan, Nawzad; Karlsson, Magnus

2009-01-01

Due to increased globalisation, industries are facing greater competition that is pressing companies into decreasing their expenses in order to increase their profits. As regards Swedish industry, it has been faced with substantial increases in energy prices in recent years. Barriers to energy efficiency such as imperfect information inhibit investments in energy efficiency measures, energy audits being one means of reducing barriers and overcoming imperfect information. However, an evaluation of such energy audits in Sweden reveals that it is chiefly low-cost measures that are undertaken as a result of an audit. Moreover, these audits often tend to focus on support processes such as ventilation, lighting, air compressors etc., while measures impacting production processes are often not as extensively covered, which underlines the need for further support in addition to energy audits. Decision support is practised in a variety of different disciplines such as optimization and simulation and the aim of this paper is to explore whether investment decision support practices may be used successfully towards small and medium-sized manufacturers in Sweden when complex production-related investment decisions are taken. The optimization results from the different cases, involving a foundry's investment in a new melting unit, indicate that with no electricity price fluctuations over the day, the investment seems sound as it lowers the overall energy costs. However, with fluctuating electricity prices, there are no large differences in energy costs between the option of retaining the existing five melting furnaces at the foundry and investing in a twin furnace and removing the holding furnaces - which was the initial investment plan for the foundry in the study. It would not have been possible to achieve this outcome without the use of investment decision support such as MIND. One of the main conclusions in this paper is that investment decision support, when strategic

Optimum investment strategy in the power industry mathematical models

CERN Document Server

Bartnik, Ryszard; Hnydiuk-Stefan, Anna

2016-01-01

This book presents an innovative methodology for identifying optimum investment strategies in the power industry. To do so, it examines results including, among others, the impact of oxy-fuel technology on CO2 emissions prices, and the specific cost of electricity production. The technical and economic analysis presented here extend the available knowledge in the field of investment optimization in energy engineering, while also enabling investors to make decisions involving its application. Individual chapters explore the potential impacts of different factors like environmental charges on costs connected with investments in the power sector, as well as discussing the available technologies for heat and power generation. The book offers a valuable resource for researchers, market analysts, decision makers, power engineers and students alike.

Risk-Informed Decision Making: Application to Technology Development Alternative Selection

Science.gov (United States)

Dezfuli, Homayoon; Maggio, Gaspare; Everett, Christopher

2010-01-01

NASA NPR 8000.4A, Agency Risk Management Procedural Requirements, defines risk management in terms of two complementary processes: Risk-informed Decision Making (RIDM) and Continuous Risk Management (CRM). The RIDM process is used to inform decision making by emphasizing proper use of risk analysis to make decisions that impact all mission execution domains (e.g., safety, technical, cost, and schedule) for program/projects and mission support organizations. The RIDM process supports the selection of an alternative prior to program commitment. The CRM process is used to manage risk associated with the implementation of the selected alternative. The two processes work together to foster proactive risk management at NASA. The Office of Safety and Mission Assurance at NASA Headquarters has developed a technical handbook to provide guidance for implementing the RIDM process in the context of NASA risk management and systems engineering. This paper summarizes the key concepts and procedures of the RIDM process as presented in the handbook, and also illustrates how the RIDM process can be applied to the selection of technology investments as NASA's new technology development programs are initiated.

ACCOUNTING INFORMATION - A BASIS FOR ACHIEVING THE DECISION FOR THE REALIZATION OF PUBLIC INVESTMENT PROJECT

OpenAIRE

Sarac Ionut Pavel

2012-01-01

Accounting information plays a key role in the foundation process of public sector decisions. Financing budget deficits, treasury risk identification (availability risk), formation of tax claims, foundation of financial sustainability for public investment projects are just some examples of using accounting information in decision-making process of credit accountant. How can we use and process accounting information in the foundation of public investment projects? We will try to answer this q...

Do Financial Constraints Moderate the Impact of Financing Decisions From Internal-financing Sources on Investment?

Directory of Open Access Journals (Sweden)

Andewi Rokhmawati

2017-07-01

Full Text Available To prevent investment growth in 2013 to 2015 from decreasing, the Industrial Ministry provided fiscal incentives to stimulate investment-growth. Nevertheless, the investment growth of manufacturing firms still declined. This condition indicated that fiscal stimulus might be ineffective to prevent investment-growth from declining. The decline of investment might be influenced by the increase of firm financial constraints to access a source of long term debts. This study aimed to examine the influence of financial constraints in moderating the effect of financing decisions from internal financing sources on investment. The population of the study was all listed-manufacturing firms in Indonesia from 2013 to 2015. Samples were chosen based on the availability of firms’ financial report covering the period of the study. The study concluded that financial constraints significantly weaken the effect of internal funding decision on investment. Unconstrained firms had a higher beta than constrained firms. Although unconstrained firms had an opportunity to choose their source of funding, they preferred to finance their investment from cash flows because the cost of debts might be much higher than the cost of equity.Hence, to help firms to finance their feasible investment opportunity, the government should not only provide tax incentives but also provide a low-interest loan.

The economic rationale for investing decisions innovative projects rationalization of investments for innovative projects

Directory of Open Access Journals (Sweden)

L. O. Zhitinskaya

2017-01-01

Full Text Available The article provides a selection of methods for determining the feasibility of an investment-innovative project. Estimated indicators are identified analytically, on their basis a conclusion is made about the economic efficiency and feasibility of the project, which is the basis of its competitiveness. Such growth analytics is necessary, since the social and economic development of the country and the region largely depends on the investment climate, which is facilitated by the legislation of the Russian Federation (the Tax Code of the Russian Federation, the law of the Russian Federation on the regulation of investment activities, etc.. Since competitiveness is also determined by the economic feasibility and financial solvency of innovative projects, modern information and software, as well as the methodology for project appraisal and the corresponding order of their implementation, are needed. In the Russian Federation, a method is used to assess the efficiency of capital investments in capitalist countries, as well as the methodology of economic (competitive analysis of investment-innovative projects. The basis of the method is that reimbursement of investments occurs in two economic forms: net profit and depreciation (net income. Of the numerous methods for assessing the feasibility of investment, the most often used along with discount methods (taking into account the factor of money changes over time, statistical methods with determining the payback period and the average rate of return on investment. Defined indicators: the net present value (NPV and the internal rate of return (IRR. The methodology specified in the article is useful to the investor in order to rationalize investment flows, helps to achieve the maximum IRR. The implementation of the innovative project serves the competitiveness of the manufacturing enterprise by increasing the technical and technological levels of the products.

Combination of real options and game-theoretic approach in investment analysis

Science.gov (United States)

Arasteh, Abdollah

2016-09-01

Investments in technology create a large amount of capital investments by major companies. Assessing such investment projects is identified as critical to the efficient assignment of resources. Viewing investment projects as real options, this paper expands a method for assessing technology investment decisions in the linkage existence of uncertainty and competition. It combines the game-theoretic models of strategic market interactions with a real options approach. Several key characteristics underlie the model. First, our study shows how investment strategies rely on competitive interactions. Under the force of competition, firms hurry to exercise their options early. The resulting "hurry equilibrium" destroys the option value of waiting and involves violent investment behavior. Second, we get best investment policies and critical investment entrances. This suggests that integrating will be unavoidable in some information product markets. The model creates some new intuitions into the forces that shape market behavior as noticed in the information technology industry. It can be used to specify best investment policies for technology innovations and adoptions, multistage R&D, and investment projects in information technology.

Information Technology Portfolio Management and the Real Options Method (ROM): Managing the Risks of IT Investments in the Department of the Navy (DON)

National Research Council Canada - National Science Library

Davis, Jeffery

2003-01-01

.... The Navy portion of those funds is over 55 billion. Rapid change and increasing uncertainty in the technology field has resulted in a high degree of financial risk associated with IT capital investment decisions...

A boom in energy technology innovation despite decades of stagnant investment

Energy Technology Data Exchange (ETDEWEB)

Bettencourt, Luis M [Los Alamos National Laboratory; Trancik, Jessika A [SANTA FE INSTITUTE; Kaur, Jasleen [INDIANA UNIV

2009-01-01

Rates of patenting in energy technologies in the United States stagnated during a period of low federal investment in the sector from the mid-1980's through 2000. To analyze the current state of the field, we built a new comprehensive database of energy patents in the USA and worldwide aggregated by nation and technology. We show that innovation in energy technologies, as measured by numbers of new patents, has grown dramatically over the last decade both for renewable and fossil fuel-based technologies, but that traditional investment -government and private support for research and development (R&D) -has not risen commensurately. We also show that while venture capital investment in the sector has increased significantly in the last few years it lags the observed uptick in patenting. We find increasing patenting rates in nations worldwide but also differences in regional priorities, as well as a marked divergence in innovation rates across technologies. Renewable energy technologies - especially solar and wind - currently show the fastest rates of innovation, while patenting levels in nuclear fission have remained low despite relatively high levels of sustained investment. While this sharp increase of innovative activity bodes well for change in the energy sector, the future of emerging technologies may hinge on sustained investment in R&D and favorable incentives for market entry.

An exploratory investigation of barriers and enablers affecting investment in renewable companies and technologies in the UK.

Science.gov (United States)

Wells, Victoria; Greenwell, Felicity; Covey, Judith; Rosenthal, Harriet E S; Adcock, Mike; Gregory-Smith, Diana

2013-02-06

The last few years have seen considerable research expenditure on renewable fuel technologies. However, in many cases, the necessary sustained and long-term funding from the investment community has not been realized at a level needed to allow technologies to become reality. According to global consulting firm Deloitte's recent renewable energy report (http://www.deloitte.com/energypredictions2012), many renewable energy projects stalled or were not completed because of issues including the global economy, the state of government finances, difficulties in funding and regulatory uncertainty. This investigation concentrates on the funding aspect and explores the perceived barriers and enablers to renewable technologies within the investment and renewables community. Thematic analysis of 14 in-depth interviews with representatives from renewable energy producers, banks and investment companies identified key factors affecting the psychology of investor behaviour in renewables. Eight key issues are highlighted, including a range of barriers and enablers, the role of the government, balance between cost/risk, value/return on investment, investment time scales, personality/individual differences of investors and the level of innovation in the renewable technology. It was particularly notable that in the findings the role of the government was discussed more than other themes and generally in quite critical terms, highlighting the need to ensure consistency in government funding and policy and a greater understanding of how government decision-making happens. Specific findings such as these illustrate the value of crossing disciplinary boundaries and highlight potential further research. Behavioural science and economic psychology in particular have much to offer at the interface of other disciplines such as political science and financial economics.

An exploratory investigation of barriers and enablers affecting investment in renewable companies and technologies in the UK

Science.gov (United States)

Wells, Victoria; Greenwell, Felicity; Covey, Judith; Rosenthal, Harriet E. S.; Adcock, Mike; Gregory-Smith, Diana

2013-01-01

The last few years have seen considerable research expenditure on renewable fuel technologies. However, in many cases, the necessary sustained and long-term funding from the investment community has not been realized at a level needed to allow technologies to become reality. According to global consulting firm Deloitte's recent renewable energy report (http://www.deloitte.com/energypredictions2012), many renewable energy projects stalled or were not completed because of issues including the global economy, the state of government finances, difficulties in funding and regulatory uncertainty. This investigation concentrates on the funding aspect and explores the perceived barriers and enablers to renewable technologies within the investment and renewables community. Thematic analysis of 14 in-depth interviews with representatives from renewable energy producers, banks and investment companies identified key factors affecting the psychology of investor behaviour in renewables. Eight key issues are highlighted, including a range of barriers and enablers, the role of the government, balance between cost/risk, value/return on investment, investment time scales, personality/individual differences of investors and the level of innovation in the renewable technology. It was particularly notable that in the findings the role of the government was discussed more than other themes and generally in quite critical terms, highlighting the need to ensure consistency in government funding and policy and a greater understanding of how government decision-making happens. Specific findings such as these illustrate the value of crossing disciplinary boundaries and highlight potential further research. Behavioural science and economic psychology in particular have much to offer at the interface of other disciplines such as political science and financial economics. PMID:24427512

State investments in high-technology job growth.

Science.gov (United States)

Leicht, Kevin T; Jenkins, J Craig

2017-07-01

Since the early 1970's state and local governments have launched an array of economic development programs designed to promote high-technology development. The question our analysis addresses is whether these programs promote long-term high-technology employment growth net of state location and agglomeration advantages. Proponents talk about an infrastructure strategy that promotes investment in public research and specialized infrastructure to attract and grow new high technology industries in specific locations, and a more decentralized entrepreneurial strategy that reinforces local agglomeration capacities by investing in new enterprises and products, promoting the development of local networks and partnerships. Our results support the entrepreneurial strategy, suggesting that state governments can accelerate high technology development by adopting market-supportive programs that complement private sector initiatives. In addition to positive direct benefits of technology deployment/transfer programs and SBIR programs, entrepreneurial programs affect change in high-technology employment in concert with existing locational and agglomeration advantages. Rural (i.e. low population density) states tend to benefit by technology development programs. Infrastructure strategy programs also facilitate high technology job growth in places where local advantages already exist. Our results suggest that critics of industrial policy are correct that high technology growth is organic and endogenous, yet state governments are able to "pick winners and losers" in ways that grow their local economy. Copyright © 2017 Elsevier Inc. All rights reserved.

Potentials of Tracking and Tracing Technologies - The Perspective of IT Decision Makers in Germany

OpenAIRE

Knebel, Uta;Leimeister, Jan Marco;Krcmar, Helmut

2015-01-01

RFID-technologies have been described as major enabling technologies for automated, contactless data collection. We conveyed a quantitative survey of 463 executives across various industries in Germany to investigate about the perceived strategic importance of RFID among IT decision makers,current RFID usage, companies' intentions to invest in RFID and visions of RFID application. The survey results showed that: - RFID is currently not very widespread. - The importance of RFID will rise signi...

Applying real options in investment decisions relating to environmental pollution

Energy Technology Data Exchange (ETDEWEB)

Lin, Tyrone T. [Department of International Business, National Dong Hwa University, 1, Sec. 2, Da Hsueh Road, Shou-Feng, Hualien 974, Taiwan (China)]. E-mail: tjlin@mail.ndhu.edu.tw; Ko, C.-C. [Department of International Trade, Jin Wen Institute of Technology, Taiwan (China); Yeh, H.-N. [Graduate School of Management, Ming Chuan University, Taiwan (China)

2007-04-15

This study focuses on how to assess the optimal environmental investment decisions under economic and ecological uncertainty, and establishes the continuous time model using the real option approach to optimize environmental pollution policy. Unlike traditional cost benefit analysis, this work extends the model of [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26(9-10), 1677-1697], and attempts to identify the storage threshold of pollution stocks and the optimal timing for implementing environmental pollution decisions.

Applying real options in investment decisions relating to environmental pollution

International Nuclear Information System (INIS)

Lin, Tyrone T.; Ko, C.-C.; Yeh, H.-N.

2007-01-01

This study focuses on how to assess the optimal environmental investment decisions under economic and ecological uncertainty, and establishes the continuous time model using the real option approach to optimize environmental pollution policy. Unlike traditional cost benefit analysis, this work extends the model of [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26(9-10), 1677-1697], and attempts to identify the storage threshold of pollution stocks and the optimal timing for implementing environmental pollution decisions

Industrial energy efficiency: the need for investment decision support from a manager perspective

International Nuclear Information System (INIS)

Sandberg, Peter; Soederstroem, Mats

2003-01-01

Global competition, commitment to the Kyoto Protocol and a deregulated, integrated European electricity market will in all probability increase the demand for energy efficiency on the part of companies in Sweden. Investment decisions are an important part of meeting the new demands, because they decide the future efficiency of industrial energy systems. The objective of this study is to investigate, from a managerial perspective, the need to improve decision support in some industries, which can help to facilitate and improve investment decisions concerning energy efficiency. This work has been conducted through in-depth interviews with representatives for a number of energy-intensive companies and non-energy-intensive companies from different sectors. One need that was identified was the improvement of working methods in order to support the decision-making process. Here, external players seem to be playing an increasingly important role. Access to correct information, better follow-up activities, and transparent, understandable calculations are also considered to be important. The study will form the foundation for subsequent work on decision support and energy efficiency in industry

Unintended possible consequences of fuel input taxes for individual investments in greenhouse gas mitigation technologies and the resulting emissions

Directory of Open Access Journals (Sweden)

Heinz E. Klingelhöfer

2017-03-01

Full Text Available Background: South Africa is planning to introduce a carbon tax as a Pigouvian measure for the reduction of greenhouse gas emissions, one of the tax bases designed as a fuel input tax. In this form, it is supposed to incentivise users to reduce and/or substitute fossil fuels, leading to a reduction of CO2 emissions. Aim: This article examines how such a carbon tax regime may affect the individual willingness to invest in greenhouse gas mitigation technologies. Setting: Mathematical derivation, using methods of linear programming, duality theory and sensitivity analysis. Methods: By employing a two-step evaluation approach, it allows to identify the factors determining the maximum price an individual investor would pay for such an investment, given the conditions of imperfect markets. Results: This price ceiling depends on the (corrected net present values of the payments and on the interdependencies arising from changes in the optimal investment and production programmes. Although the well-established results of environmental economics usually can be confirmed for a single investment, increasing carbon taxes may entail sometimes contradictory and unexpected consequences for individual investments in greenhouse gas mitigation technologies and the resulting emissions. Under certain circumstances, they may discourage such investments and, when still undertaken, even lead to higher emissions. However, these results can be interpreted in an economically comprehensible manner. Conclusion: Under the usually given conditions of imperfect markets, the impact of a carbon tax regime on individual investment decisions to mitigate greenhouse gas emissions is not as straight forward as under the usually assumed, but unrealistically simplifying perfect market conditions. To avoid undesired and discouraging effects, policy makers cannot make solitary decisions, but have to take interdependencies on the addressee´s side into account. The individual investor

Evaluating the investment decision-making process for business expansion into Africa: A case study

Directory of Open Access Journals (Sweden)

Jason Kasozi

2012-12-01

Full Text Available Africa is a potential domain for international business. However, numerous uncertainties characterize this environment and the challenge for multinationals remains the ability to assess the true value of an Africa-bound investment project. A telecommunications’ survey was conducted on Siemens Southern Africa (Siemens and Mobile Telecommunications’ Network (MTN and the following observations were made: (1 Approaches used by the businesses to value Africa-bound investments were not comprehensive and inclusive. (2 Neutrality existed to the suggestion that Africa is unique and that investment decisions should be customized to suit it. (3 Certain approaches used by the businesses were modified to suit pertaining investment circumstances thereby differing from literature, and (4, participants desired to learn new ways of improving this process suggesting dissatisfaction with the current norm. This paper presents the conflicting ideologies about the decision-making process for business expansion into Africa and suggests ways of improving the process

Breaking up is hard to do: why disinvestment in medical technology is harder than investment.

Science.gov (United States)

Haas, Marion; Hall, Jane; Viney, Rosalie; Gallego, Gisselle

2012-05-01

Healthcare technology is a two-edged sword - it offers new and better treatment to a wider range of people and, at the same time, is a major driver of increasing costs in health systems. Many countries have developed sophisticated systems of health technology assessment (HTA) to inform decisions about new investments in new healthcare interventions. In this paper, we question whether HTA is also the appropriate framework for guiding or informing disinvestment decisions. In exploring the issues related to disinvestment, we first discuss the various HTA frameworks which have been suggested as a means of encouraging or facilitating disinvestment. We then describe available means of identifying candidates for disinvestment (comparative effectiveness research, clinical practice variations, clinical practice guidelines) and for implementing the disinvestment process (program budgeting and marginal analysis (PBMA) and related techniques). In considering the possible reasons for the lack of progress in active disinvestment, we suggest that HTA is not the right framework as disinvestment involves a different decision making context. The key to disinvestment is not just what to stop doing but how to make it happen - that is, decision makers need to be aware of funding disincentives.

Environmental investment funds. Investing into the future. Umweltfonds. Investieren in die Zukunft

Energy Technology Data Exchange (ETDEWEB)

Homolka, W [Bayerische Hypotheken- und Wechsel-Bank AG, Muenchen (Germany)

1990-01-01

The book wants to show that ecologically oriented and socially responsible investment has so far been underrated as a criterion of choice for finance decisions. Environmental investment funds offer the chance to make important investments into the future and the development of new technologies and methods of production, provided the openness of their claim is appreciated which is to go for anything that will improve our environment. Such confidence in the positive forces of the market is adequately rewarded, as international examples show. Environmental investment funds are a form of finance management for far-sighted investors and who are committed to the environment. The author presents the bases of ethic-ecologically oriented fund investment, reports experience abroad, and gives a current overview of the situation, nationally and internationally, in this sector of the finance market. (orig./HSCH).

Optimal Investment Control of Macroeconomic Systems

Institute of Scientific and Technical Information of China (English)

ZHAO Ke-jie; LIU Chuan-zhe

2006-01-01

Economic growth is always accompanied by economic fluctuation. The target of macroeconomic control is to keep a basic balance of economic growth, accelerate the optimization of economic structures and to lead a rapid, sustainable and healthy development of national economies, in order to propel society forward. In order to realize the above goal, investment control must be regarded as the most important policy for economic stability. Readjustment and control of investment includes not only control of aggregate investment, but also structural control which depends on economic-technology relationships between various industries of a national economy. On the basis of the theory of a generalized system, an optimal investment control model for government has been developed. In order to provide a scientific basis for government to formulate a macroeconomic control policy, the model investigates the balance of total supply and aggregate demand through an adjustment in investment decisions realizes a sustainable and stable growth of the national economy. The optimal investment decision function proposed by this study has a unique and specific expression, high regulating precision and computable characteristics.

Sequential Foreign Investments, Regional Technology Platforms and the Evolution of Japanese Multinationals in East Asia

OpenAIRE

Song, Jaeyong

2001-01-01

IVABSTRACTIn this paper, we investigate the firm-level mechanisms that underlie the sequential foreign direct investment (FDI) decisions of multinational corporations (MNCs). To understand inter-firm heterogeneity in the sequential FDI behaviors of MNCs, we develop a firm capability-based model of sequential FDI decisions. In the setting of Japanese electronics MNCs in East Asia, we empirically examine how prior investments in firm capabilities affect sequential investments into existingprodu...

Calculation of Investments for the Distribution of GPON Technology in the village of Bishtazhin through database

Directory of Open Access Journals (Sweden)

MSc. Jusuf Qarkaxhija

2013-12-01

Full Text Available According to daily reports, the income from internet services is getting lower each year. Landline phone services are running at a loss,  whereas mobile phone services are getting too mainstream and the only bright spot holding together cable operators (ISP  in positive balance is the income from broadband services (Fast internet, IPTV. Broadband technology is a term that defines multiple methods of information distribution through internet at great speed. Some of the broadband technologies are: optic fiber, coaxial cable, DSL, Wireless, mobile broadband, and satellite connection.  The ultimate goal of any broadband service provider is being able to provide voice, data and the video through a single network, called triple play service. The Internet distribution remains an important issue in Kosovo and particularly in rural zones. Considering the immense development of the technologies and different alternatives that we can face, the goal of this paper is to emphasize the necessity of a forecasting of such investment and to give an experience in this aspect. Because of the fact that in this investment are involved many factors related to population, geographical factors, several technologies and the fact that these factors are in continuously change, the best way is, to store all the data in a database and to use this database for different results. This database helps us to substitute the previous manual calculations with an automatic procedure of calculations. This way of work will improve the work style, having now all the tools to take the right decision about an Internet investment considering all the aspects of this investment.

Correlated wind-power production and electric load scenarios for investment decisions

International Nuclear Information System (INIS)

Baringo, L.; Conejo, A.J.

2013-01-01

Highlights: ► Investment models require an accurate representation of the involved uncertainty. ► Demand and wind power production are correlated and uncertain parameters. ► Two methodologies are provided to represent uncertainty and correlation. ► An accurate uncertainty representation is crucial to get optimal results. -- Abstract: Stochastic programming constitutes a useful tool to address investment problems. This technique represents uncertain input data using a set of scenarios, which should accurately describe the involved uncertainty. In this paper, we propose two alternative methodologies to efficiently generate electric load and wind-power production scenarios, which are used as input data for investment problems. The two proposed methodologies are based on the load- and wind-duration curves and on the K-means clustering technique, and allow representing the uncertainty of and the correlation between electric load and wind-power production. A case study pertaining to wind-power investment is used to show the interest of the proposed methodologies and to illustrate how the selection of scenarios has a significant impact on investment decisions.

Method of estimating investment decisions effectiveness in power engineering

International Nuclear Information System (INIS)

Kamrat, W.

1996-01-01

A new concept of determining efficient power plants investment decision-making is proposed.The results of research on capital expenditures for building and modernization of power plants are presented. The model introduced is based on the well-known Annual Cost Model which is modified by adding annual risk costs. So the formula for annual costs is: K = K f + K v + K r , where: K f are annual fixed costs, K v - annual variables costs, K r -annual risk costs. The annual risk costs can be calculated by the expression: K r = e i x K c , where e i is the investment risk factor, and K c - leveled capital investment. The risk factor was created on the basis of some elements of the taxonometric method with a high level of estimation probability. The essential problem is the selection of risk investment variables, most important of which are economic, financial, technical, social, political, legal. These variables create a multidimensional space. A so called 'ideal' model of the power plant is created taking into account capacity, type, fuel used, etc. The values of the multidimensional risk factor e i lie within limit and make it possible to rank the planned plants in series according to the estimated level of risk. This method can be used not only for risk evaluation in power engineering but also for investment efficiency studies in different industrial branches

Social rate of return to R&D on various energy technologies: Where should we invest more? A study of G7 countries

International Nuclear Information System (INIS)

Inglesi-Lotz, Roula

2017-01-01

The importance of investment in Research and Development (R&D) in the energy sector is indisputable especially considering the benefits of new technologies to sustainability, security and environmental protection. However, the nature and potential of various energy technologies that are capable of improving the energy and environmental conditions globally is a challenging task for governments and policy makers that have to make decisions on the allocation of funds in R&D. To do so, the optimal resource allocation to R&D should be determined by estimating the social rate of return for R&D investments. This paper aims to estimate the social rate of return of R&D on various energy applications and technologies such as energy efficiency, fossil fuels, renewable energy sources, and nuclear for the G7 countries. The results show that primarily R&D investment on Energy Efficiency technologies and Nuclear are the ones that yield high social benefits for all G7 countries while exactly the opposite holds for Fossil fuels. - Highlights: • Allocation of R&D funding in various energy technologies is a challenging task. • This can be done by estimating the social rate of return for R&D investments • We investigate various technologies’ social rate of return for the G7 countries. • R&D funding yields social benefits from energy efficiency and nuclear technologies. • R&D investment on fossil fuels has negative social rate of return.

Investment risks under uncertain climate change policy

International Nuclear Information System (INIS)

Blyth, William; Bradley, Richard; Yang, Ming; Bunn, Derek; Clarke, Charlie; Wilson, Tom

2007-01-01

This paper describes results from a model of decision-making under uncertainty using a real options methodology, developed by the International Energy Agency (IEA). The model represents investment decisions in power generation from the perspective of a private company. The investments are subject to uncertain future climate policy, which is treated as an external risk factor over which the company has no control. The aims of this paper are to (i) quantify these regulatory risks in order to improve understanding of how policy uncertainty may affect investment behaviour by private companies and (ii) illustrate the effectiveness of the real options approach as a policy analysis tool. The study analysed firms' investment options of coal- and gas-fired power plants and carbon capture and storage (CCS) technologies. Policy uncertainty is represented as an exogenous event that creates uncertainty in the carbon price. Our findings indicate that climate policy uncertainty creates a risk premium for power generation investments. In the case of gas- and coal-fired power generation, the risk premium would lead to an increase in electricity prices of 5-10% in order to stimulate investment. In the case of CCS, the risk premium would increase the carbon price required to stimulate investment by 16-37% compared to a situation of perfect certainty. The option to retrofit CCS acts as a hedge against high future carbon prices, and could accelerate investment in coal plant. This paper concludes that to minimise investment risks in low carbon technologies, policy-makers should aim to provide some long-term regulatory certainty. (author)

INFORMATION TECHNOLOGY IN INVESTMENT PROJECT MANAGEMENT

Directory of Open Access Journals (Sweden)

Vjacheslav A. Kozlov

2014-01-01

Full Text Available In the article it is proved that use of information technology today is not only something innovative distinctive feature and competitive advantage for organizations, but it is a necessary condition for effective business. The article discusses the main functionality of financial-analytical system Project Expert as an effective tool of investment project management and instrument of business planning. The main advantages which organizations get from Project Expert program use are in detail considered. Thus in the article Project Expert is considered as the effective tool of investment project management which allows to receive a number of advantages and to carry out the qualitative analysis of projects.

EPA'S ENVIRONMENTAL TECHNOLOGIES

Science.gov (United States)

The use of innovative technology is impeded by the lack of independent, credible information as to how the technology performs. Such data is needed by technology buyers and regulatory decision makers to make informed decisions on technologies that represent good financial invest...

Study on optimized decision-making model of offshore wind power projects investment

Science.gov (United States)

Zhao, Tian; Yang, Shangdong; Gao, Guowei; Ma, Li

2018-02-01

China’s offshore wind energy is of great potential and plays an important role in promoting China’s energy structure adjustment. However, the current development of offshore wind power in China is inadequate, and is much less developed than that of onshore wind power. On the basis of considering all kinds of risks faced by offshore wind power development, an optimized model of offshore wind power investment decision is established in this paper by proposing the risk-benefit assessment method. To prove the practicability of this method in improving the selection of wind power projects, python programming is used to simulate the investment analysis of a large number of projects. Therefore, the paper is dedicated to provide decision-making support for the sound development of offshore wind power industry.

The investment decision and its funding in an evolving institutional environment: application of the real options theory to the case of nuclear

International Nuclear Information System (INIS)

Guillerminet, Marie-Laure

2002-01-01

This research thesis aims at analysing the investment behaviour of an electric company in a European market which becomes uncertain due to opening to competition. The author studies the problem of company which has the opportunity to invest in nuclear equipment, must take an irreversible investment decision in, and must choose the share of debt with respect to its internal capital. Before addressing these issues, the author discusses the impact of deregulation of the investment rule and develops methodological principles of investment and funding. Then she discusses the influence of the industrial structure of nuclear investments decision, examines the investment decision and its optimal funding in a sector which is being deregulated

LOCAL MEASUREMENTS OF THE IMPACT OF QUANTITATIVE AND QUALITATIVE CHARACTERISTICS OF INVESTMENT AND TECHNOLOGICAL DECISIONS ON THE ENVIRONMENT UNDER THE RISK-RELATED CONDITIONS OF MINING INDUSTRY

Directory of Open Access Journals (Sweden)

Valentin VELEV

2010-09-01

Full Text Available The impact of globalization in a worldwide scale is even more noticeable in the each country during period of world economic crisis due to the differences in the economic status, deformed by the crisis phenomena. In that case, the conflict between global tendencies and local manifestations in the regional aspect of economic phenomena is even more evidently noticeable as a direct reflection of the resource deficiency. The mineral resources are directly related to that process, not only as a first phase of the transformation of the raw material potential for each country, but also as a serious violator of the ecological equilibrium as a result of the applied technologies. Each country is enforced to resolve the various issues related to preserving the own resource potential as much as possible and to subordinate its investment and technological decisions to an integrated and in-depth utilization in compliance with the sustainable development of society

Intelligent Decision Technologies : Proceedings of the 4th International Conference on Intelligent Decision Technologies

CERN Document Server

Watanabe, Toyohide; Phillips-Wren, Gloria; Howlett, Robert; Jain, Lakhmi

2012-01-01

The Intelligent Decision Technologies (IDT) International Conference encourages an interchange of research on intelligent systems and intelligent technologies that enhance or improve decision making. The focus of IDT is interdisciplinary and includes research on all aspects of intelligent decision technologies, from fundamental development to real applications. IDT has the potential to expand their support of decision making in such areas as finance, accounting, marketing, healthcare, medical and diagnostic systems, military decisions, production and operation, networks, traffic management, crisis response, human-machine interfaces, financial and stock market monitoring and prediction, and robotics. Intelligent decision systems implement advances in intelligent agents, fuzzy logic, multi-agent systems, artificial neural networks, and genetic algorithms, among others.  Emerging areas of active research include virtual decision environments, social networking, 3D human-machine interfaces, cognitive interfaces,...

Initial investment to 3D printing technologies in a construction company

OpenAIRE

Cernohorsky, Zdenek; Matejka, Petr

2017-01-01

This article deals with an initial investment to 3D printing technologies in a construction company. The investment refers to the use of building information models and their integration with 3D printing technology within a construction company. In the first part, there will be discussed an introduction of 3D printing scheme in a construction company from a lifecycle perspective in general. As a part of this scheme, the ideal variant of an initial investment will be considered a.k.a a pilot p...

Exploring Best Practice Skills to Predict Uncertainties in Venture Capital Investment Decision-Making

Science.gov (United States)

Blum, David Arthur

Algae biodiesel is the sole sustainable and abundant transportation fuel source that can replace petrol diesel use; however, high competition and economic uncertainties exist, influencing independent venture capital decision making. Technology, market, management, and government action uncertainties influence competition and economic uncertainties in the venture capital industry. The purpose of this qualitative case study was to identify the best practice skills at IVC firms to predict uncertainty between early and late funding stages. The basis of the study was real options theory, a framework used to evaluate and understand the economic and competition uncertainties inherent in natural resource investment and energy derived from plant-based oils. Data were collected from interviews of 24 venture capital partners based in the United States who invest in algae and other renewable energy solutions. Data were analyzed by coding and theme development interwoven with the conceptual framework. Eight themes emerged: (a) expected returns model, (b) due diligence, (c) invest in specific sectors, (d) reduced uncertainty-late stage, (e) coopetition, (f) portfolio firm relationships, (g) differentiation strategy, and (h) modeling uncertainty and best practice. The most noteworthy finding was that predicting uncertainty at the early stage was impractical; at the expansion and late funding stages, however, predicting uncertainty was possible. The implications of these findings will affect social change by providing independent venture capitalists with best practice skills to increase successful exits, lessen uncertainty, and encourage increased funding of renewable energy firms, contributing to cleaner and healthier communities throughout the United States..

Investments in technology subject to uncertainty. Analysis and policy

DEFF Research Database (Denmark)

Pedersen, Jørgen Lindgaard

1997-01-01

Investments in technology are today of such a magnitude that it matters. In the paper there are three important questions. First on the question in which sense technological uncertainty can be said to be a problem. Second on strategies for diminishing technological uncertainties. Three on policy...

Do investment-specific technological changes matter for business fluctuations? Evidence from Japan

OpenAIRE

Hirose, Yasuo; Kurozumi, Takushi

2011-01-01

The observed decline in the relative price of investment goods to consumption goods in Japan suggests the existence of investment-specific technological (IST) changes. We examine whether IST changes are a major source of business fluctuations in Japan, by estimating a dynamic stochastic general equilibrium model with Bayesian methods. We show that IST changes are less important than neutral technological changes in explaining output fluctuations. We also demonstrate that investment fluctuatio...

FINANCING DECISION – THE DETERMINANT ROLE OF MANAGEMENT IN INVESTMENTS OF TOURIST ENTITIES

Directory of Open Access Journals (Sweden)

Luminita PAIUSAN

2018-05-01

Full Text Available Knowledge of investment costs is a basic tool at the hands of managers and is used to increase the efficiency of economic activity. The investment cost study aims to obtain profits under various aspects, both at microeconomic and macroeconomic level. The short-term financing decision refers to the financing of the operating cycle, which gives the purpose of circulating capital management. Tourism investments are materialized through: accommodation units, equipment, and infrastructure works that ensure the operation of the investments. Given that investors want profit in a quicker and shorter timeframe, in this paper we have conducted a case study on an entity's investment, its cost, recovery time and profitability on basis of the estimated profit. Appropriate financing of the tourism industry would, in the medium term, provide an incentive for the national economy.

Technology Transfer, Foreign Direct Investment and International Trade

OpenAIRE

Leonard K. Cheng

2000-01-01

By developing a Ricardian trade model that features technology transfer via foreign direct investment (FDI), we show that technology transfer via multinational enterprises (MNEs) increases world output and trade in goods and services. When there are many goods a continuous reduction in the cost of technology transfer will cause increasingly more technologically advanced goods to go through the product cycle, i.e., goods initially produced in the advanced North are later produced in the backwa...

An optimization methodology for identifying robust process integration investments under uncertainty

Energy Technology Data Exchange (ETDEWEB)

Svensson, Elin; Berntsson, Thore [Department of Energy and Environment, Division of Heat and Power Technology, Chalmers University of Technology, SE-412 96 Goeteborg (Sweden); Stroemberg, Ann-Brith [Fraunhofer-Chalmers Research Centre for Industrial Mathematics, Chalmers Science Park, SE-412 88 Gothenburg (Sweden); Patriksson, Michael [Department of Mathematical Sciences, Chalmers University of Technology and Department of Mathematical Sciences, University of Gothenburg, SE-412 96 Goeteborg (Sweden)

2009-02-15

Uncertainties in future energy prices and policies strongly affect decisions on investments in process integration measures in industry. In this paper, we present a five-step methodology for the identification of robust investment alternatives incorporating explicitly such uncertainties in the optimization model. Methods for optimization under uncertainty (or, stochastic programming) are thus combined with a deep understanding of process integration and process technology in order to achieve a framework for decision-making concerning the investment planning of process integration measures under uncertainty. The proposed methodology enables the optimization of investments in energy efficiency with respect to their net present value or an environmental objective. In particular, as a result of the optimization approach, complex investment alternatives, allowing for combinations of energy efficiency measures, can be analyzed. Uncertainties as well as time-dependent parameters, such as energy prices and policies, are modelled using a scenario-based approach, enabling the identification of robust investment solutions. The methodology is primarily an aid for decision-makers in industry, but it will also provide insight for policy-makers into how uncertainties regarding future price levels and policy instruments affect the decisions on investments in energy efficiency measures. (author)

An optimization methodology for identifying robust process integration investments under uncertainty

International Nuclear Information System (INIS)

Svensson, Elin; Berntsson, Thore; Stroemberg, Ann-Brith; Patriksson, Michael

2009-01-01

Uncertainties in future energy prices and policies strongly affect decisions on investments in process integration measures in industry. In this paper, we present a five-step methodology for the identification of robust investment alternatives incorporating explicitly such uncertainties in the optimization model. Methods for optimization under uncertainty (or, stochastic programming) are thus combined with a deep understanding of process integration and process technology in order to achieve a framework for decision-making concerning the investment planning of process integration measures under uncertainty. The proposed methodology enables the optimization of investments in energy efficiency with respect to their net present value or an environmental objective. In particular, as a result of the optimization approach, complex investment alternatives, allowing for combinations of energy efficiency measures, can be analyzed. Uncertainties as well as time-dependent parameters, such as energy prices and policies, are modelled using a scenario-based approach, enabling the identification of robust investment solutions. The methodology is primarily an aid for decision-makers in industry, but it will also provide insight for policy-makers into how uncertainties regarding future price levels and policy instruments affect the decisions on investments in energy efficiency measures. (author)

Liquidity, Technological Opportunities, and the Stage Distribution of Venture Capital Investments.

Science.gov (United States)

Lahr, Henry; Mina, Andrea

2014-06-01

This paper explores the determinants of the stage distribution of European venture capital investments from 1990 to 2011. Consistent with liquidity risk theory, we find that the likelihood of investing in earlier stages increases relative to all private equity investments during liquidity crisis years. While liquidity is the main driver of acquisition investments and, to some extent, of expansion financings, technological opportunities are overall the main driver of early and late stage venture capital investments. In contrast to the dotcom crash, the recent financial crisis negatively affected the relative likelihood of expansion investments, but not of early and late stage investments.

Liquidity, Technological Opportunities, and the Stage Distribution of Venture Capital Investments

Science.gov (United States)

Lahr, Henry; Mina, Andrea

2014-01-01

This paper explores the determinants of the stage distribution of European venture capital investments from 1990 to 2011. Consistent with liquidity risk theory, we find that the likelihood of investing in earlier stages increases relative to all private equity investments during liquidity crisis years. While liquidity is the main driver of acquisition investments and, to some extent, of expansion financings, technological opportunities are overall the main driver of early and late stage venture capital investments. In contrast to the dotcom crash, the recent financial crisis negatively affected the relative likelihood of expansion investments, but not of early and late stage investments. PMID:26166906

Stochastic Simulation Using @ Risk for Dairy Business Investment Decisions

Science.gov (United States)

A dynamic, stochastic, mechanistic simulation model of a dairy business was developed to evaluate the cost and benefit streams coinciding with technology investments. The model was constructed to embody the biological and economical complexities of a dairy farm system within a partial budgeting fram...

Investment under Uncertain Climate Policy

DEFF Research Database (Denmark)

Barradale, Merrill Jones

2014-01-01

This paper introduces the concept of payment probability as an important component of carbon risk (the financial risk associated with CO2 emissions under uncertain climate policy). In modeling power plant investment decisions, most existing literature uses the expected carbon price (e.g., the price...... actually be faced in the case of a particular investment. This concept helps explain both the surge of activity in 2005–2006 and the subsequent decline in interest in coal-fired power plant development in the U.S. The data for this case study comes from an extensive online survey of 700 U.S. energy...... design better incentives for investing in low-carbon technologies...

Mode of foreign entry, technology transfer, and foreign direct investment policy

OpenAIRE

Mattoo, Aaditya; Olarreaga, Marcelo; Saggi, Kamal

2001-01-01

Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market...

Fisher's Rate and Aggregate Capital Needs in Investment Decisions

OpenAIRE

Mária Illés

2014-01-01

Fisher’s rate means the interest rate where the net present values of two mutually exclusive projects become equal. The paper examines the background and the circumstances of conformation of Fisher’s rate in connection with the aggregate capital needs. Aggregate capital needs is a new conception and gives a new viewpoint to investment project decisions. The paper defines the special content of aggregate capital needs, and compiles an index number for it. The analysis widens knowledge regardin...

Future carbon regulations and current investments in alternative coal-fired power plant technologies

International Nuclear Information System (INIS)

Sekar, Ram C.; Parsons, John E.; Herzog, Howard J.; Jacoby, Henry D.

2007-01-01

We analyze how uncertain future US carbon regulations shape the current choice of the type of power plant to build. Our focus is on two coal-fired technologies, pulverized coal (PC) and integrated coal gasification combined cycle technology (IGCC). The PC technology is cheapest-assuming there is no need to control carbon emissions. The IGCC technology may be cheaper if carbon must be captured. Since power plants last many years and future regulations are uncertain, a US electric utility faces a standard decision under uncertainty. A company will confront the range of possible outcomes, assigning its best estimate of the probability of each scenario, averaging the results and determining the power plant technology with the lowest possible cost inclusive of expected future carbon related costs, whether those costs be in the form of emissions charges paid or capital expenditures for retrofitting to capture carbon. If the company assigns high probability to no regulation or to less stringent regulation of carbon, then it makes sense for it to build the PC plant. But if it assigns sufficient probability to scenarios with more stringent regulation, then the IGCC technology is warranted. We provide some useful benchmarks for possible future regulation and show how these relate back to the relative costs of the two technologies and the optimal technology choice. Few of the policy proposals widely referenced in the public discussion warrant the choice of the IGCC technology. Instead, the PC technology remains the least costly. However, recent carbon prices in the European Emissions Trading System are higher than these benchmarks. If it is any guide to possible future penalties for emissions in the US, then current investment in the IGCC technology is warranted. Of course, other factors need to be factored into the decision as well

How Korean Venture Capitals Invest In New Technology Ventures

Directory of Open Access Journals (Sweden)

Youngkeun Choi

2013-01-01

Full Text Available In the entrepreneurship field, this study examines what kinds of external endorsements are helpful for venture capitals investment and the growth of new technology ventures in developing countries. This study uses the signalling theory and the methodologies of multiple regression and survival analysis with the panel data of the ventures in Korea. In the results, collaboration with business groups and certification of government are positively influential in attracting venture capitals’ investment, which accelerate the growth of new technology ventures. The practical implication for entrepreneurs is that they need to obtain the endorsement from business groups and governments strategically.

Stochastic simulation using @Risk for dairy business investment decisions

NARCIS (Netherlands)

Bewley, J.D.; Boehlje, M.D.; Gray, A.W.; Hogeveen, H.; Kenyon, S.J.; Eicher, S.D.; Schutz, M.M.

2010-01-01

Purpose – The purpose of this paper is to develop a dynamic, stochastic, mechanistic simulation model of a dairy business to evaluate the cost and benefit streams coinciding with technology investments. The model was constructed to embody the biological and economical complexities of a dairy farm

Research on the robust optimization of the enterprise's decision on the investment to the collaborative innovation: Under the risk constraints

International Nuclear Information System (INIS)

Zhou, Qing; Fang, Gang; Wang, Dong-peng; Yang, Wei

2016-01-01

Abstracts: The robust optimization model is applied to analyze the enterprise's decision of the investment portfolio for the collaborative innovation under the risk constraints. Through the mathematical model deduction and the simulation analysis, the research result shows that the enterprise's investment to the collaborative innovation has relatively obvious robust effect. As for the collaborative innovation, the return from the investment coexists with the risk of it. Under the risk constraints, the robust optimization method could solve the minimum risk as well as the proportion of each investment scheme in the portfolio on the condition of different target returns from the investment. On the basis of the result, the enterprise could balance between the investment return and risk and make optimal decision on the investment scheme.

Information technology investments must deliver value

International Nuclear Information System (INIS)

Schulz, Y.

1998-01-01

The value of information technology (IT) management for the petroleum industry was discussed. There are currently two points of view regarding the subject. Adherents of one view hold that the strategic uses of information technology are relevant to the oil and gas industry, while those opposed find no demonstrated connection between information technology investments and business results. This paper addresses the impact of the information paradox, but maintains that information technology is not only valuable but essential to the oil and gas industry. This paper maintains that whenever it is perceived as being of limited use and too expensive, it is usually because it is not well managed. Value management can and should lead to superior outcomes. Neither exploration, nor drilling nor production, nor marketing could exist without information technology as the value is imperative. To further make the case, the nature of information technology value management and the strategies required to achieve value from information technology are reviewed. figs

Carbon capture and storage as a corporate technology strategy challenge

International Nuclear Information System (INIS)

Bowen, Frances

2011-01-01

Latest estimates suggest that widespread deployment of carbon capture and storage (CCS) could account for up to one-fifth of the needed global reduction in CO 2 emissions by 2050. Governments are attempting to stimulate investments in CCS technology both directly through subsidizing demonstration projects, and indirectly through developing price incentives in carbon markets. Yet, corporate decision-makers are finding CCS investments challenging. Common explanations for delay in corporate CCS investments include operational concerns such as the high cost of capture technologies, technological uncertainties in integrated CCS systems and underdeveloped regulatory and liability regimes. In this paper, we place corporate CCS adoption decisions within a technology strategy perspective. We diagnose four underlying characteristics of the strategic CCS technology adoption decision that present unusual challenges for decision-makers: such investments are precautionary, sustaining, cumulative and situated. Understanding CCS as a corporate technology strategy challenge can help us move beyond the usual list of operational barriers to CCS and make public policy recommendations to help overcome them. - Research highlights: → Presents a corporate technology strategy perspective on carbon capture and storage (CCS). → CCS technology is precautionary, sustaining, cumulative and situated. → Decision-makers need to look beyond cost and risk as barriers to investment in CCS.

The Value of Human Capital Signals for Investment Decision Making under Uncertainty

DEFF Research Database (Denmark)

Hain, Daniel; Christensen, Jesper Lindgaard; Jurowetzki, Roman

environments as our empirical setting. A large body of research from behavioral economics illustrates that when faced with uncertain and complex decision problems, investors tend to rely on simple heuristics and rules-of thumb, derived by easily accessible and assessable signals. Yet, with increasing...... with a similar pair that did lead to an investment. Based on Crunchbase investment data, we gather via LinkedIn and further sources detailed information on the founders professional and education background. We find human capital signals from the entrepreneurs to be of higher importance for investors when...

Investment timing decisions in a stochastic duopoly model

Energy Technology Data Exchange (ETDEWEB)

Marseguerra, Giovanni [Istituto di Econometria e CRANEC, Universita Cattolica del Sacro Cuore di Milan (Italy)]. E-mail: giovanni.marseguerra@unicatt.it; Cortelezzi, Flavia [Dipartimento di Diritto ed Economia delle Persone e delle Imprese, Universita dell' Insubria (Italy)]. E-mail: flavia.cortelezzi@uninsubria.it; Dominioni, Armando [CORE-Catholique de Louvain la Neuve (Belgium)]. E-mail: dominioni@core.ucl.ac.be

2006-08-15

We investigate the role of strategic considerations on the optimal timing of investment when firms compete for a new market (e.g., the provision of an innovative product) under demand uncertainty. Within a continuous time model of stochastic oligopoly, we show that strategic considerations are likely to be of limited impact when the new product is radically innovative whilst the fear of a rival's entry may deeply affect firms' decisions whenever innovation is to some extent limited. The welfare analysis shows surprisingly that the desirability of the different market structures considered does not depend on the fixed entry cost.

Investment timing decisions in a stochastic duopoly model

International Nuclear Information System (INIS)

Marseguerra, Giovanni; Cortelezzi, Flavia; Dominioni, Armando

2006-01-01

We investigate the role of strategic considerations on the optimal timing of investment when firms compete for a new market (e.g., the provision of an innovative product) under demand uncertainty. Within a continuous time model of stochastic oligopoly, we show that strategic considerations are likely to be of limited impact when the new product is radically innovative whilst the fear of a rival's entry may deeply affect firms' decisions whenever innovation is to some extent limited. The welfare analysis shows surprisingly that the desirability of the different market structures considered does not depend on the fixed entry cost

Decision and coordination of low-carbon supply chain considering technological spillover and environmental awareness.

Science.gov (United States)

Xu, Lang; Wang, Chuanxu; Li, Hui

2017-06-08

We focus on the impacts of technological spillovers and environmental awareness in a two-echelon supply chain with one-single supplier and one-single manufacturer to reduce carbon emission. In this supply chain, carbon abatement investment becomes one of key factors of cutting costs and improving profits, which is reducing production costs in the components and products-the investment from players in supply chain. On the basis of optimality theory, the centralized and decentralized models are respectively established to investigate the optimal decisions and profits. Further, setting the players' profits of the decentralized scenario as the disagreement points, we propose a bargaining-coordination contract through revenue-cost sharing to enhance the performance. Finally, by theoretical comparison and numerical analysis, the results show that: (i) The optimal profits of players and supply chain improve as technological spillovers and environmental awareness increase, and the profits of them in the bargaining-coordination contract are higher than that in the decentralized scenario; (ii) Technological spillovers between the players amplify the impact of "free-ride" behavior, in which the supplier always incentives the manufacturer to improve carbon emission intensity, but the cooperation will achieves and the profits will improve only when technological spillovers and environmental awareness are great; (iii) The contract can effectively achieve coordinated supply chain, and improve carbon abatement investment.

Investment, regulation, and uncertainty: managing new plant breeding techniques.

Science.gov (United States)

Smyth, Stuart J; McDonald, Jillian; Falck-Zepeda, Jose

2014-01-01

As with any technological innovation, time refines the technology, improving upon the original version of the innovative product. The initial GM crops had single traits for either herbicide tolerance or insect resistance. Current varieties have both of these traits stacked together and in many cases other abiotic and biotic traits have also been stacked. This innovation requires investment. While this is relatively straight forward, certain conditions need to exist such that investments can be facilitated. The principle requirement for investment is that regulatory frameworks render consistent and timely decisions. If the certainty of regulatory outcomes weakens, the potential for changes in investment patterns increases.   This article provides a summary background to the leading plant breeding technologies that are either currently being used to develop new crop varieties or are in the pipeline to be applied to plant breeding within the next few years. Challenges for existing regulatory systems are highlighted. Utilizing an option value approach from investment literature, an assessment of uncertainty regarding the regulatory approval for these varying techniques is undertaken. This research highlights which technology development options have the greatest degree of uncertainty and hence, which ones might be expected to see an investment decline.

A decision support model for investment on P2P lending platform.

Science.gov (United States)

Zeng, Xiangxiang; Liu, Li; Leung, Stephen; Du, Jiangze; Wang, Xun; Li, Tao

2017-01-01

Peer-to-peer (P2P) lending, as a novel economic lending model, has triggered new challenges on making effective investment decisions. In a P2P lending platform, one lender can invest N loans and a loan may be accepted by M investors, thus forming a bipartite graph. Basing on the bipartite graph model, we built an iteration computation model to evaluate the unknown loans. To validate the proposed model, we perform extensive experiments on real-world data from the largest American P2P lending marketplace-Prosper. By comparing our experimental results with those obtained by Bayes and Logistic Regression, we show that our computation model can help borrowers select good loans and help lenders make good investment decisions. Experimental results also show that the Logistic classification model is a good complement to our iterative computation model, which motivates us to integrate the two classification models. The experimental results of the hybrid classification model demonstrate that the logistic classification model and our iteration computation model are complementary to each other. We conclude that the hybrid model (i.e., the integration of iterative computation model and Logistic classification model) is more efficient and stable than the individual model alone.

A decision support model for investment on P2P lending platform.

Directory of Open Access Journals (Sweden)

Xiangxiang Zeng

Full Text Available Peer-to-peer (P2P lending, as a novel economic lending model, has triggered new challenges on making effective investment decisions. In a P2P lending platform, one lender can invest N loans and a loan may be accepted by M investors, thus forming a bipartite graph. Basing on the bipartite graph model, we built an iteration computation model to evaluate the unknown loans. To validate the proposed model, we perform extensive experiments on real-world data from the largest American P2P lending marketplace-Prosper. By comparing our experimental results with those obtained by Bayes and Logistic Regression, we show that our computation model can help borrowers select good loans and help lenders make good investment decisions. Experimental results also show that the Logistic classification model is a good complement to our iterative computation model, which motivates us to integrate the two classification models. The experimental results of the hybrid classification model demonstrate that the logistic classification model and our iteration computation model are complementary to each other. We conclude that the hybrid model (i.e., the integration of iterative computation model and Logistic classification model is more efficient and stable than the individual model alone.

Water2Invest: Global facility for calculating investments needed to bridge the climate-induced water gap

Science.gov (United States)

Straatsma, Menno; Droogers, Peter; Brandsma, Jairus; Buytaert, Wouter; Karssenberg, Derek; Meijer, Karen; van Aalst, Maaike; van Beek, Rens; Wada, Yoshihide; Bierkens, Marc

2013-04-01

Decision makers responsible for climate change adaptation investments are confronted with large uncertainties regarding future water availability and water demand, as well as the investment cost required to reduce the water gap. Moreover, scientists have worked hard to increase fundamental knowledge on climate change and its impacts (climate services), while practical use of this knowledge is limited due to a lack of tools for decision support under uncertain long term future scenarios (decision services). The Water2Invest project aims are to (i) assess the joint impact of climate change and socioeconomic change on water scarcity, (ii) integrate impact and potential adaptation in one flow, (iii) prioritize adaptation options to counteract water scarcity on their financial, regional socio-economic and environmental implications, and (iv) deliver all this information in an integrated user-friendly web-based service. Global water availability is computed between 2006 and 2100 using the PCR-GLOBWB water resources model at a 6 minute spatial resolution. Climate change scenarios are based on the fifth Assessment Report (AR5) of the IPCC Coupled Model Intercomparison Project (CMIP5) that defines four CO2 emission scenarios as representative concentration pathways. Water demand is computed for agriculture, industry, domestic, and environmental requirements based on socio-economic scenarios of increase in population and gross domestic product. Using a linear programming algorithm, water is allocated on a monthly basis over the four sectors. Based on these assessments, the user can evaluate various technological and infrastructural adaptation measures to assess the investments needed to bridge the future water gap. Regional environmental and socioeconomic effects of these investments are evaluated, such as environmental flows or downstream effects. A scheme is developed to evaluate the strategies on robustness and flexibility under climate change and scenario uncertainty

A Laboratory Simulation of Parental Investment Decisions: The Role of Future Reproductive Opportunities and Quality of Offspring in Determining Levels of Parental Investment

Directory of Open Access Journals (Sweden)

Stefanie L. Turner

2006-01-01

Full Text Available Hagen's Defection Hypothesis (2002 predicts that a mother's age and the quality of her offspring are critical factors in determining her investment in her newborn. We tested this hypothesis using hamster races in which 113 college student participants received a hamster (“offspring” and 10 poker chips (“resources” to “invest” into the hamster based on information about the quality of the hamster and about the possibility of future races. Subjects invested the most in low quality offspring when they expected to run only one race and the least in low quality offspring when they expected more racing opportunities in the future. Offspring quality affected investment differently depending on the presence or absence of future investment opportunities and the sex of the subject. Overall, the results supported Hagen's model of parental investment and also suggest that parental investment may be explained by conscious as well as unconscious decision-making.

Probabilistic decision model of wind power investment and influence of green power market

International Nuclear Information System (INIS)

Gillenwater, Michael

2013-01-01

This paper presents results from a model of a representative wind power investor's decision making process using a Monte Carlo simulation of a project financial analysis. Data, in the form of probability distribution functions (PDFs) for key input variables were collected from interviews with investors and other professionals active in the U.S. wind power industry using a formal expert elicitation protocol. This study presents the first quantitative estimates of the effect of the U.S. voluntary Renewable Energy Certificate (REC) market on renewable energy generation. The results indicate that the investment decisions of wind power project developers in the United States are unlikely to have been altered by the voluntary REC market. The problem with the current voluntary REC market is that it does not offer developers a reliable risk-adjusted revenue stream. Consequently, the claims by U.S. green power retailers and promoters that voluntary market RECs result in additional wind power projects lack credibility. Even dramatic increases in voluntary market REC prices, in the absence of long-term contracts, were found to have only a small effect on investor behavior. - Highlights: • I use a formal expert elicitation to collect data from wind power investors. • I use a Monte Carlo model to look at the influence of Renewable Energy Certificates on investment. • Investment decisions are unlikely to have been altered by the voluntary REC market. • Claims that the U.S. green power market result in additional wind power lack credibility

Information Technology Process Improvement Decision-Making: An Exploratory Study from the Perspective of Process Owners and Process Managers

Science.gov (United States)

Lamp, Sandra A.

2012-01-01

There is information available in the literature that discusses information technology (IT) governance and investment decision making from an executive-level perception, yet there is little information available that offers the perspective of process owners and process managers pertaining to their role in IT process improvement and investment…

The effect of political cycles on power investment decisions: Expectations over the repeal and reinstatement of carbon policy mechanisms in Australia

International Nuclear Information System (INIS)

ShahNazari, Mahdi; McHugh, Adam; Maybee, Bryan; Whale, Jonathan

2014-01-01

Highlights: • Effect of political cycles quantified in power generation investments. • Expected repeal and reinstatement of carbon policy modelled dynamically. • A survey of experts informed the decision making model. • Expectations over reinstatement of policy dampens the effect of expected repeal. - Abstract: Political uncertainty over global greenhouse gas (GHG) mitigation policy is likely to defer investment in cleaner technologies. It may also incentivise short-lived, high-cost interim investments while businesses wait for the uncertainty to subside. The range of possible policy responses to the issue has created uncertainty over the future of national mitigation pathways. Given that the electricity sector, globally, is a major emitter of GHGs, this represents a systematic risk to investment in electricity generation assets. This paper uses a real options analysis framework informed by a survey of experts conducted in Australia – used as a proxy to model the degree of the uncertainty – to investigate the optimal timing for investment in the conversion of a coal plant to a combined cycle gas turbine plant using the American-style option valuation method. The effect of market and political uncertainty is studied for the Clean Energy Act 2011 in Australia. Political uncertainty is addressed bi-modally in terms of: (1) uncertainty over the repeal of the carbon pricing policy, and (2) if it is repealed, uncertainty over the reinstatement of the policy, to represent the effect of electoral cycles and the possibility of more stringent future global mitigation efforts. Results of the analysis show that although political uncertainty with respect to GHG mitigation policy may delay investment in the conversion of the coal plant, expectations over the reinstatement of the carbon pricing reduces the amount of option premium to defer the conversion decision

Heat savings and heat generation technologies: Modelling of residential investment behaviour with local health costs

DEFF Research Database (Denmark)

Zvingilaite, Erika; Klinge Jacobsen, Henrik

2015-01-01

The trade-off between investing in energy savings and investing in individual heating technologies with high investment and low variable costs in single family houses is modelled for a number of building and consumer categories in Denmark. For each group the private economic cost of providing hea...... for private consumers decrease by 66% when all have the option to shift to the technology with lowest variable costs. © 2014 Elsevier Ltd. All Rights reserved......The trade-off between investing in energy savings and investing in individual heating technologies with high investment and low variable costs in single family houses is modelled for a number of building and consumer categories in Denmark. For each group the private economic cost of providing...

Investigating the factors affecting the investment decision in residential development.

OpenAIRE

Narang, Somil

2007-01-01

The purpose of this project is to provide a rare insight into the motivation behind residential property investors when looking to purchase an apartment. The factors driving demand preferences for housing are constantly changing, difficult to measure, and often deemed to be a complex bundle of attributes. The project attempts to answer the following questions: What are the factors affecting the investment decision in a Residential Development? To identify the significance and weight of su...

The decision of investing in hydrocarbons exploration:The Colombian case

International Nuclear Information System (INIS)

Rodado Noriega, Carlos

1999-01-01

Daily millions of people dedicate apportion from their revenues to investments in games of chance with the hope of achieving the reward bigger, but without having to make a great effort. These investors bet to their luck, without having in most of the cases knowledge about the risk of losing their investment, because they are not aware of the scarce probabilities that have of winning. There are other investors of more size that play to the same thing, but in different scenarios, like they are the companies that invest in the oil business of the up stream. These companies, they bet to a geologic lottery that offers them investment opportunities, with big prizes that can compensate the risk to that they are exposed the capitals in this activity. These investors, for contrast with those that mix the hope with the amusement, if they have conscience of the risk that involves the search and exploitation of hydrocarbons and they have developed theories and technologies with which can diminish those uncertainties and to quantify them in such a way that they have the capacity to evaluate and to compare the different options that are offered inside a world every time but competitive. In this reference mark, the capital of risk and the technology constitute the fundamental elements with which it becomes possible search of oil reserves. Therefore they are these two elements, those that most of countries want to attract, to make possible the exploration of this natural class of resources

Recent Investments by NASA's National Force Measurement Technology Capability

Science.gov (United States)

Commo, Sean A.; Ponder, Jonathan D.

2016-01-01

The National Force Measurement Technology Capability (NFMTC) is a nationwide partnership established in 2008 and sponsored by NASA's Aeronautics Evaluation and Test Capabilities (AETC) project to maintain and further develop force measurement capabilities. The NFMTC focuses on force measurement in wind tunnels and provides operational support in addition to conducting balance research. Based on force measurement capability challenges, strategic investments into research tasks are designed to meet the experimental requirements of current and future aerospace research programs and projects. This paper highlights recent and force measurement investments into several areas including recapitalizing the strain-gage balance inventory, developing balance best practices, improving calibration and facility capabilities, and researching potential technologies to advance balance capabilities.

Carbon capture and storage-Investment strategies for the future?

International Nuclear Information System (INIS)

Rammerstorfer, Margarethe; Eisl, Roland

2011-01-01

The following article deals with real options modeling for investing into carbon capture and storage technologies. Herein, we derive two separate models. The first model incorporates a constant convenience yield and dividend for the investment project. In the second model, the convenience yield is allowed to follow a mean reverting process which seems to be more realistic, but also increases the model's complexity. Both frameworks are to be solved numerically. Therefore, we calibrate our model with respect to empirical data and provide insights into the models' sensitivity toward the chosen parameter values. We found that given the recently observable prices for carbon dioxide, an investment into C O2-storage facilities is not profitable. - Highlights: → Real options modeling for investing into carbon capture and storage technologies. → Given the recently observable prices for carbon dioxide, an investment into CO 2 -storage facilities is not profitable. → Investment decision is mainly affected by risk free rate and volatility.

Rejection or selection: influence of framing in investment decisions.

Science.gov (United States)

Cheng, Pi-Yueh; Chiou, Wen-Bin

2010-02-01

According to prospect theory, reflection effects result in preferences for risk-averse choices in gain situations and risk-seeking choices in loss situations. However, relevant literature in regard to decision making has suggested that positive information receives more weight in a selection task, whereas negative information receives more weight in a rejection task. The present study examined whether the nature of a decision task (selection vs rejection) would moderate the reflection effects. Undergraduates (47 men, 49 women; M age = 20.5 yr., SD = 1.1), selected according to specific screening criteria, participated in an experimental study. Typical reflection effects were observed in both selection and rejection task conditions. More importantly, negative information (i.e., the information about probable loss in risky choice of gain situations and the information about certain loss in cautious choice of loss situations) provided in the context of a rejection task received more weight and resulted in more frequent endorsements of the cautious choice in gain situations and of the risky choice in loss situations. Hence, the findings suggest that a decision context characterized by rejection may expand the reflection effects and thereby provide important information about situations in which investment decisions occur in a context characterized by rejection.

Risk based economic optimization of investment decisions of regulated power distribution system operators; Risikobasierte wirtschaftliche Optimierung von Investitionsentscheidungen regulierter Stromnetzbetreiber

Energy Technology Data Exchange (ETDEWEB)

John, Oliver

2012-07-01

The author of the contribution under consideration reports on risk-based economic optimization of investment decisions of regulated power distribution system operators. The focus is the economically rational decision behavior of operators under certain regulatory requirements. Investments in power distribution systems form the items subject to decisions. Starting from a description of theoretical and practical regulatory approaches, their financial implications are quantified at first. On this basis, optimization strategies are derived with respect to the investment behavior. For this purpose, an optimization algorithm is developed and applied to exemplary companies. Finally, effects of uncertainties in regulatory systems are investigated. In this context, Monte Carlo simulations are used in conjunction with real options analysis.

Evaluating community investments in the mining sector using multi-criteria decision analysis to integrate SIA with business planning

International Nuclear Information System (INIS)

Esteves, A.M.

2008-01-01

Gaining senior management's commitment to long-term social development projects, which are characterised by uncertainty and complexity, is made easier if projects are shown to benefit the site's strategic goals. However, even though the business case for community investment may have been accepted at a general level, as a strategy for competitive differentiation, risk mitigation and a desire to deliver - and to be seen to deliver - a 'net benefit' to affected communities, mining operations are still faced with implementation challenges. Case study research on mining companies, including interviews with social investment decision-makers, has assisted in developing the Social Investment Decision Analysis Tool (SIDAT), a decision model for evaluating social projects in order to create value for both the company and the community. Multi-criteria decision analysis techniques integrating business planning processes with social impact assessment have proved useful in assisting mining companies think beyond the traditional drivers (i.e. seeking access to required lands and peaceful relations with neighbours), to broader issues of how they can meet their business goals and contribute to sustainable development in the regions in which they operate

Initial investment to 3D printing technologies in a construction company

Directory of Open Access Journals (Sweden)

Cernohorsky, Zdenek

2017-06-01

Full Text Available This article deals with an initial investment to 3D printing technologies in a construction company. The investment refers to the use of building information models and their integration with 3D printing technology within a construction company. In the first part, there will be discussed an introduction of 3D printing scheme in a construction company from a lifecycle perspective in general. As a part of this scheme, the ideal variant of an initial investment will be considered a.k.a a pilot project. In the second part, there will be a more detailed discussion of the pilot project, more about each activities which should be its parts and which should analyze cost categories. These categories will be about particular lifecycle stages of the pilot project. In the third part, a summary is done. This article could be a handout for a construction company in a term of an initial investment to 3D printing.

Environmental investment and firm performance: A network approach

International Nuclear Information System (INIS)

Bostian, Moriah; Färe, Rolf; Grosskopf, Shawna; Lundgren, Tommy

2016-01-01

This study examines the role of investment in environmental production practices for both environmental performance and energy efficiency over time. We employ a network DEA approach that links successive production technologies through intertemporal investment decisions with a period by period estimation. This allows us to estimate energy efficiency and environmental performance separately, as well as productivity change and its associated decompositions into efficiency change and technology change. Incorporating a network model also allows us to account for both short-term environmental management practices and long-term environmental investments in each of our productivity measures. We apply this framework to a panel of detailed plant-level production data for Swedish manufacturing firms covering the years 2002–2008. - Highlights: • We use a network DEA model to account for intertemporal environmental investment decisionsin measures of firm productivity. • We apply our network technology model to a panel of firms in Sweden's pulp and paperindustry for the years 2002 - 2008. • We model environmental investments and expenditures separately from other productionoriented inputs. • We find evidence of positive relationships between energy efficiency, environmental performance, and firm productivity.

Econometric Analysis of Bulk Shipping: implications for investment strategies and financial decision-making

NARCIS (Netherlands)

S. Tsolakis

2005-01-01

textabstractThis thesis provides an econometric analysis of the bulk shipping markets and the implications for shipping investment and financial decision making. Chapter 1 sets the scene by providing a historic analysis of bulk shipping markets over the last 55 years. From this analysis, four

Processing Technology Selection for Municipal Sewage Treatment Based on a Multi-Objective Decision Model under Uncertainty.

Science.gov (United States)

Chen, Xudong; Xu, Zhongwen; Yao, Liming; Ma, Ning

2018-03-05

This study considers the two factors of environmental protection and economic benefits to address municipal sewage treatment. Based on considerations regarding the sewage treatment plant construction site, processing technology, capital investment, operation costs, water pollutant emissions, water quality and other indicators, we establish a general multi-objective decision model for optimizing municipal sewage treatment plant construction. Using the construction of a sewage treatment plant in a suburb of Chengdu as an example, this paper tests the general model of multi-objective decision-making for the sewage treatment plant construction by implementing a genetic algorithm. The results show the applicability and effectiveness of the multi-objective decision model for the sewage treatment plant. This paper provides decision and technical support for the optimization of municipal sewage treatment.

THE REGIONAL ASPECT OF USING GEOINFORMATION TECHNOLOGIES AT THE STAGE OF INCREASING THE INVESTMENT ATTRACTIVENESS OF ENGINEERING-PREPARED TERRITORIES

Directory of Open Access Journals (Sweden)

A. V. Volkov

2017-01-01

Full Text Available This paper highlights the advantages of geoinformation technologies using in the formation of perspective land plots for construction to increase the investment attractiveness of engineering prepared territories. It discusses the formation of land plots, which were prepared for placement of new enterprises, their legal registration and the necessary infrastructure. It analyzes the approaches to pricing prepared land plots in the market, as well as their demand among investors for major investment projects in the construction sector. The paper describes the characteristics of types of sites for construction, substantiating the creation of a data base for prospective engineering prepared territories.The emphasis is made on the question of working with a large amount of spatial information being analyzed that dictates the use of GIS technologies for increasing efficiency of interaction of interested parties. The article analyzes the structure of the Federal geographic information system, created to provide electronic interaction at the level of the Federal Executive power, local government bodies, legal persons and individuals.Geographic information system (GIS of this level can provide a comprehensive assessment of the quality of the prepared documents, execution of project agreements of territorial planning and information support for decision for all levels of government in planning of territory development. GIS allow us to operatively evaluate the investment attractiveness of prospective land plots for construction. The use of technologies of collecting and providing information about engineering prepared territories to potential investors improves the investment attractiveness of the Russian Federation on the whole. 

Tax Neutrality on International Capital Investments

Directory of Open Access Journals (Sweden)

Gizem KAPUCU

2017-07-01

Full Text Available The tax policies which states follow with regard to developing technology and capital investments with raising mobility due to globalism are need to be discussed in its legal basis. The principle of tax neutrality has the aim of being legal foundation for these policies. According to this, the neutrality principle in taxation of international capital investments is provided with two measures, namely; not effecting the investment decision and not discriminate between investments. In this paper, initially focused on the conceptual framework and the foundations of the tax neutrality principle and later capital export neutrality and capital import neutrality are considered and explained with regard to international capital movements. Moreover, conformity and diversion to the principle of the current situation and regulations in OECD, EU and Turkey are examined.

Evaluation of power investment decisions under uncertain carbon policy: A case study for converting coal fired steam turbine to combined cycle gas turbine plants in Australia

International Nuclear Information System (INIS)

Shahnazari, Mahdi; McHugh, Adam; Maybee, Bryan; Whale, Jonathan

2014-01-01

Highlights: • Policy uncertainty effects quantified in Australian power generation investments. • A decision criterion provided to recommend optimal investment timing. • The Clean Energy Act 2011 and high carbon price policy scenarios investigated. • Post- implementation policy uncertainty creates disincentive for policy objectives. • Setting a higher carbon price may dampen effects of political uncertainty. - Abstract: Greenhouse gas (GHG) intensive fuels are currently a major input into the Australian electricity sector. Accordingly, climate change mitigation policies represent a systematic risk to investment in electricity generation assets. Although the Australian government introduced carbon pricing in 2012 and announced a commitment to the continuation of the Kyoto protocol beyond 2012, the opposition at the time signalled that should they be provided the opportunity they would repeal these policies. This paper uses a real options analysis (ROA) framework to investigate the optimal timing of one potential business response to carbon pricing: investment in the conversion of coal plant to lower emission CCGT plant. An American-style option valuation method is used for this purpose. The viewpoint is from that of a private investor assessing three available options for an existing coal plant: (1) to invest in its conversion to CCGT; (2) to abandon it, or; (3) to take no immediate action. The method provides a decision criterion that informs the investor whether or not to delay the investment. The effect of market and political uncertainty is studied for both the Clean Energy Act 2011 (CEA) and high carbon price (HCP) policy scenarios. The results of the modelling suggest that political uncertainty after the implementation of carbon pricing impedes the decision to switch to cleaner technologies. However, this effect can be mitigated by implementing higher expected carbon prices

NASA Program Office Technology Investments to Enable Future Missions

Science.gov (United States)

Thronson, Harley; Pham, Thai; Ganel, Opher

2018-01-01

The Cosmic Origins (COR) and Physics of the Cosmos (PCOS) Program Offices (POs) reside at NASA GSFC and implement priorities for the NASA HQ Astrophysics Division (APD). One major aspect of the POs’ activities is managing our Strategic Astrophysics Technology (SAT) program to mature technologies for future strategic missions. The Programs follow APD guidance on which missions are strategic, currently informed by the NRC’s 2010 Decadal Survey report, as well as APD’s Implementation Plan and the Astrophysics Roadmap.In preparation for the upcoming 2020 Decadal Survey, the APD has established Science and Technology Definition Teams (STDTs) to study four large-mission concepts: the Origins Space Telescope (née, Far-IR Surveyor), Habitable Exoplanet Imaging Mission, Large UV/Optical/IR Surveyor, and Lynx (née, X-ray Surveyor). The STDTs will develop the science case and design reference mission, assess technology development needs, and estimate the cost of their concept. A fifth team, the L3 Study Team (L3ST), was charged to study potential US contributions to ESA’s planned Laser Interferometer Space Antenna (LISA) gravitational-wave observatory.The POs use a rigorous and transparent process to solicit technology gaps from the scientific and technical communities, and prioritize those entries based on strategic alignment, expected impact, cross-cutting applicability, and urgency. For the past two years, the technology-gap assessments of the four STDTs and the L3ST are included in our process. Until a study team submits its final report, community-proposed changes to gaps submitted or adopted by a study team are forwarded to that study team for consideration.We discuss our technology development process, with strategic prioritization informing calls for SAT proposals and informing investment decisions. We also present results of the 2017 technology gap prioritization and showcase our current portfolio of technology development projects. To date, 96 COR and 86

Information, trust and the limits of “intelligent accountability” in investment decision making: insights from the Madoff case

OpenAIRE

Stolowy, Hervé; Baker, Richard; Jeanjean, Thomas; Messner, Martin

2011-01-01

In this paper, we use the investment fraud of Bernard Madoff to inquire into the possibilities and limits of an “intelligent accountability” in the context of financial decision making. Drawing primarily upon data related to U.S. Individual investors (interviews and letters), we investigate the role of information and trust in investment decisions. We find that trust played an important role in the Madoff case. We also find that, in face-to-face encounters with the investors, Madoff successfu...

Notification: EPA Investments in Information Technology Products and Services

Science.gov (United States)

Project #OA-FY14-0307, June 10, 2014. The U.S. Environmental Protection Agency (EPA) Office oflnspector General (OIG) plans to begin preliminary research on the EPA's management of information technology (IT) investments.

Environmental Concerns, Environmental Policy and Green Investment.

Science.gov (United States)

Gao, Xuexian; Zheng, Haidong

2017-12-13

Environmental regulators often use environmental policy to induce green investment by firms. However, if an environmental policy fails to exert a long-run effect on regulating the economic agents' behavior, it may be more reasonable to think of the firm as the leader in the game, since the investment in green technology is usually a strategic decision. In this paper, we consider a three-stage Stackelberg game to address the interaction between a profit-maximizing firm (Stackelberg leader) facing emission-dependent demand, and the environmental regulator (Stackelberg follower). The firm decides on the green technology level in the first stage of the game based on its understanding of the regulator's profits function, especially an environmental concern that is introduced as an exogenous variable. In the current research, we show that high levels of the regulator's environmental concerns do not necessarily lead to the choice of green technology by the firm, and green investment level depends on the combined effects of the market and operational factors for a given level of the regulator's environmental concerns. The result also shows that increasing environmental awareness amongst the consumers is an effective way to drive the firm's green investment.

The decision concerning the nuclear investment: influence of the industrial structure

International Nuclear Information System (INIS)

Guillerminet, M.L.

2000-10-01

This report aims to analyze the investment behavior of an enterprise producing nuclear origin electric power in an european market opening to the competition. In this context, the industrial structure controlled by the governor decides the investment in a marginal equipment: either an integrated monopole structure which leads to a regulation at the cost price rate of return; or a pool structure in which the governor intervene to fix the cost price at the marginal cost level given by the main technology of the gas combined cycles. (A.L.B.)

2016 Decadal Update of the NASA ESTO Lidar Technologies Investment Strategy

Science.gov (United States)

Valinia, Azita; Tratt, David M.; Lotshaw, William T.; Gaab, Kevin M.; Komar, George J.; Rioux, Norman M.; Perez, Mario R.; Smith, Erin C.

2016-01-01

We describe the 2016 update of the NASA Earth Science Technology Office (ESTO) investment strategy in the area of lidar technologies as pertaining to NASAs Earth Science measurement goals in the next decade.

APPROACHES FOR EVALUATING AND FINANCING INVESTMENT PROJECTS

Directory of Open Access Journals (Sweden)

MARIA-LOREDANA POPESCU

2011-04-01

Full Text Available This article presents the financial investment approach and the investment evaluation methods, which are criteria for assessing both investment projects and their funding sources. An important role in the analysis carried out is played by the investment decision and financing decision quality. Making an investment decision implies computing the related investment efficiency indicators. They allow the comparison of several variants of the same investment project as well as their comparison with other projects in the same industry or in other industries. The financing decision concerns the selection between their own sources (share capital, depreciation fund, profits, reserve funds, additional capital, revenues from investments, attracted sources (domestic resource mobilization and borrowed sources (credits.

Integrating energy and environmental goals. Investment needs and technology options

International Nuclear Information System (INIS)

2004-04-01

Economic and population growth will continue to drive an expansion of the global energy market. The Earth's energy resources are undoubtedly adequate to meet rising demand for at least the next three decades. But the projected increases in energy consumption and market developments raise serious concerns about the security of energy supplies, investment in energy infrastructure, the threat of environmental damage caused by energy use and the uneven access of the world's population to modern energy. The first two sections of this background paper provide an outlook for energy demand and emissions over the next thirty years, based on findings in the IEA's World Energy Outlook 2002. Section four presents projections for global investment needs from the latest WEO publication, the World Energy Investment Outlook 2003. For both the energy and investment outlooks, an alternative scenario for OECD countries is examined. The scenarios describe a world in which environmental and energy supply security concerns will continue to plague policy makers. Clearly, changes in power generation, automotive engines and fuel technologies will be required to change trends in energy demand and emissions over the next thirty years and beyond. Improvements in energy efficiency will also play a fundamental role. A number of technologies offer the long term potential to diversify the energy sector away from its present heavy reliance on fossil fuels. Based on various IEA studies, section five evaluates those technologies that offer the potential to reduce emissions, including renewable energy, fossil-fuel use with CO2 capture and storage, nuclear, hydrogen, biofuels and efficient energy end use. No single technology can meet the challenge by itself. Different regions and countries will require different combinations of technologies to best serve their needs and best exploit their indigenous resources. Developing countries, in particular, will face far greater challenges in the years ahead

Real Options Analysis of Electricity Investments

Energy Technology Data Exchange (ETDEWEB)

Heggedal, Ane Marte

2012-07-01

This thesis utilizes real options analysis for evaluating investment opportunities in the electricity sector. It also formally tests how investors in hydropower plants have included uncertainty when considering their investment opportunities. The real options method applies financial options theory to quantify the value of management flexibility and is chosen due to three important characteristics of investments in the electricity sector. First; the investment is completely or partially irreversible, second; the investor can choose when to invest in the facility, and third; there is uncertainty in several factors affecting the cash flows of the investments. Factors of uncertainty include the development of electricity prices, policies, technological advances, and macroeconomics measures.Four papers are included in this thesis. Paper 1, Upgrading hydropower plants with storage: Timing and capacity choice, presents a valuation framework for deciding when to upgrade an existing hydropower plant and which capacity to choose. The second paper, Transmission capacity between Norway and Germany: A real options analysis, sheds light on when two electricity markets, in this case Norway and Germany, should be connected through a sub sea cable. The investor can choose when to invest and the capacity of the cable, and may also choose to invest sequentially. Paper 3, Optimal timing and capacity choice for pumped hydropower storage, investigates when investment in a pumped hydropower plant with storage should be undertaken and what the capacity of the facility should be. Whereas the three first papers investigate investment opportunities, Paper 4, Uncertain climate policy decisions and investment timing: Evidence from small hydropower plants, studies when investors in small hydropower plants chose to invest. The analyses disclose whether the net present value approach or the real options method best describe the investment decisions made by the investors. Viewing investment

Oligopolistic concurrence and investment: application to electricity markets

International Nuclear Information System (INIS)

Meunier, G.

2008-12-01

This research aims at analysing investment strategies of firms which are in an oligopolistic situation. After a brief description of the physical characteristics of an electric system, the author describes the reforms and defines the problematic of an investment in electricity production within markets in imperfect concurrence. In a first part, the author analyses the heterogeneity (either exogenous or endogenous) and technology choices of oligopolistic firms. In case of an exogenous heterogeneity, he studies the impact of the number of firms on investment decisions. In the second part, the author examines the regulations introduced in industries in imperfect concurrence: electricity production by a public firm and interaction between emission allowance market and investment

Applying Internet-based Technologies to Teaching Corporate Finance and Investments

Directory of Open Access Journals (Sweden)

Zhuoming “Joe” Peng, Ph.D.,

2006-07-01

Full Text Available Finance faculty are increasingly encouraged to use internet-based technologies in teaching. This paper examines students’ perceptions of finance faculty who use internet-based technologies and the impact on their learning experiences in undergraduate introductory corporate finance, investments, and MBA investments courses. The results suggest that offering all course materials online may enhance students’ learning experiences, however, the technologies may be best thought of as teaching tools. A better methodology for a finance course delivery may be that of in-classroom interactions between an instructor and the students while all the pertinent course materials are available online throughout the semester. There is a statistically significant difference between MBA (Master of Business Administration students and undergraduate business students in terms of their desire to use the internet for learning finance. Consistent with previous research, results indicate that it may not be common practice among faculty to use internet-based technologies, and that assistant professors tend to use technologies in teaching more often than their higher-ranked colleagues do.

Power plants investment decision-making in consideration of investment risk

International Nuclear Information System (INIS)

Oda, Junichiro; Matsuhashi, Ryuji; Yoshida, Yoshikuni; Takashima, Ryuta

2005-01-01

In this paper, we consider the investment risk of nuclear power plants using the real options approach. It is essential that the Japanese society evaluate the investment risk, because nuclear power plants are facing definite uncertainty and Japanese governments intend to promote and assist nuclear power plants through subsidies and policy actions. We assumed that the wholesale market prices of electricity constitute the definite uncertainty and that the wholesale market prices follow the geometric Brownian motion with drift. Using the Bellman equation and a lattice framework, we evaluated the value of investment opportunity, the value of equipment, and the critical prices that are optimal prices to invest in a nuclear power plant in the finite time horizon. This analysis shows that higher volatility of the wholesale market prices would give power companies lower incentive to construct electric power plants, particularly capital-intensive power plants. In order to deliberate and hold the Japanese governments accountable for the economics of nuclear power plants, multifaceted evaluation is needed. (author)

NASA technology investments: building America's future

Science.gov (United States)

Peck, Mason

2013-03-01

Investments in technology and innovation enable new space missions, stimulate the economy, contribute to the nation's global competitiveness, and inspire America's next generation of scientists, engineers and astronauts. Chief Technologist Mason Peck will provide an overview of NASA's ambitious program of space exploration that builds on new technologies, as well as proven capabilities, as it expands humanity's reach into the solar system while providing broadly-applicable benefits here on Earth. Peck also will discuss efforts of the Office of the Chief Technologist to coordinate the agency's overall technology portfolio, identifying development needs, ensuring synergy and reducing duplication, while furthering the national initiatives as outlined by President Obama's Office of Science and Technology Policy. By coordinating technology programs within NASA, Peck's office facilitates integration of available and new technology into operational systems that support specific human-exploration missions, science missions, and aeronautics. The office also engages other government agencies and the larger aerospace community to develop partnerships in areas of mutual interest that could lead to new breakthrough capabilities. NASA technology transfer translates our air and space missions into societal benefits for people everywhere. Peck will highlight NASA's use of technology transfer and commercialization to help American entrepreneurs and innovators develop technological solutions that stimulate the growth of the innovation economy by creating new products and services, new business and industries and high quality, sustainable jobs.

Processing Technology Selection for Municipal Sewage Treatment Based on a Multi-Objective Decision Model under Uncertainty

Directory of Open Access Journals (Sweden)

Xudong Chen

2018-03-01

Full Text Available This study considers the two factors of environmental protection and economic benefits to address municipal sewage treatment. Based on considerations regarding the sewage treatment plant construction site, processing technology, capital investment, operation costs, water pollutant emissions, water quality and other indicators, we establish a general multi-objective decision model for optimizing municipal sewage treatment plant construction. Using the construction of a sewage treatment plant in a suburb of Chengdu as an example, this paper tests the general model of multi-objective decision-making for the sewage treatment plant construction by implementing a genetic algorithm. The results show the applicability and effectiveness of the multi-objective decision model for the sewage treatment plant. This paper provides decision and technical support for the optimization of municipal sewage treatment.

A model for optimization of process integration investments under uncertainty

International Nuclear Information System (INIS)

Svensson, Elin; Stroemberg, Ann-Brith; Patriksson, Michael

2011-01-01

The long-term economic outcome of energy-related industrial investment projects is difficult to evaluate because of uncertain energy market conditions. In this article, a general, multistage, stochastic programming model for the optimization of investments in process integration and industrial energy technologies is proposed. The problem is formulated as a mixed-binary linear programming model where uncertainties are modelled using a scenario-based approach. The objective is to maximize the expected net present value of the investments which enables heat savings and decreased energy imports or increased energy exports at an industrial plant. The proposed modelling approach enables a long-term planning of industrial, energy-related investments through the simultaneous optimization of immediate and later decisions. The stochastic programming approach is also suitable for modelling what is possibly complex process integration constraints. The general model formulation presented here is a suitable basis for more specialized case studies dealing with optimization of investments in energy efficiency. -- Highlights: → Stochastic programming approach to long-term planning of process integration investments. → Extensive mathematical model formulation. → Multi-stage investment decisions and scenario-based modelling of uncertain energy prices. → Results illustrate how investments made now affect later investment and operation opportunities. → Approach for evaluation of robustness with respect to variations in probability distribution.

An integrated model for part-operation allocation and investments in CNC technology

NARCIS (Netherlands)

Bokhorst, J.A.C.; Slomp, J.; Suresh, N.

2002-01-01

This study addresses the issue of investment appraisal of new technology, specifically computer numerical control (CNC) machine tools in conjunction with optimal allocation of parts and operations on CNC machines as the investments take place. Part-operation allocation is the allocation of parts and

Positive Mood Risk Attitudes, and Investment Decisions

DEFF Research Database (Denmark)

Lepori, Gabriele

moodshifting mechanism commonly employed in lab studies. More specifically, I exploit the time-series variation in the domestic theatrical release of comedy movies as a natural experiment for testing the impact that happy mood (proxied by weekend comedy movie attendance) has on investment in risky assets...... (proxied by the performance of the U.S. stock market on the following Monday). My hypothesis rests upon the evidence that individual investors are more likely to ponder trading decisions during the weekend and trade on Mondays. To control for unobserved factors that may contemporaneously affect movie...... attendance and equity returns, I employ the percentage of theater screens dedicated to the comedy genre as an instrument. Using a sample of data from 1995 to 2010, I estimate that an increase in comedy attendance on a given weekend is followed by a decrease in equity returns on the subsequent Monday, which...

Transferable site remediation technologies developed by U.S. DOE Office of Science and Technology

International Nuclear Information System (INIS)

Anderson, T.D.

1996-01-01

To provide needed technologies for site remediation, the US Department of Energy's Office of Environmental Management, Office of Science and Technology (OST) is developing technologies to address environmental problems associated with hazardous and radioactive contaminants in soil and groundwater. The Technology Investment Decision model serves as a framework for technology management in OST. Seven technology maturation stages are used in the model. These stages run from basic research through implementation. The Innovative Technology Summary Reports (ITSRs) provide a technical synopsis of an individual technology that has been developed. An ITSR is prepared for each technology that is successfully demonstrated in the field. The information required to produce an ITSR is collected as the technology matures through the Technology Investment Decision Process. As of July 1996 there have been thirteen ITSRs completed. This paper describes those thirteen technologies

The impact of delaying an investment decision on R&D projects in real option game

International Nuclear Information System (INIS)

Chang, Shuhua; Li, Yue; Gao, Fanglu

2016-01-01

In a research and development (R&D) investment, the cost and the project value of such an investment are usually uncertain, which thus increases its complexity. Correspondingly, the NPV (Net Present Value) rule fails to evaluate the value of this project exactly, because this method does not take into account the market uncertainty, irreversibility of investment and ability of delay entry. In this paper, we employ the real option theory to evaluate the project value of a R&D investment. Since the cost of a R&D investment is very high and the flow of the information is crowded, an investor cannot make an immediate decision every time. So, the proposed real option model is an exchange option. At the same time, combining the real option and the game theory, we can find the Nash equilibrium which is the optimal strategy. Moreover, we also study how the delayed time influences the price of the project investment and how the different delayed times effect the choice of the optimal strategies.

The capacity investment decision for make-to-order production systems with demand rate control

NARCIS (Netherlands)

Bertrand, J.W.M.; Ooijen, van H.P.G.

2012-01-01

In this paper we study the capacity investment decision for make-to-order manufacturing firms that utilize a fixed capacity, operate in a stochastic, stationary market, and can influence their demand rate by increasing or decreasing their sales effort. We consider manufacturing situations that

Model of decision for the management of technology and risk in a port community

Directory of Open Access Journals (Sweden)

Claudia Durán

2018-10-01

Full Text Available Strategic management in a port system is complex since the Port Community has to coordinate actions and generate synergy among all the private actors that integrate the export and import logistics chains, trade associations and trade unions. Based on the opinion of the port experts and the analytical network process (ANP, the research identifies the relevant criteria for strategic, business and operational decision-making in the Port Community, in the technological and risk contexts. With the criteria found and considering the strategic alignment that is required, management indicators are constructed. Based on a generic model, a new strategic conceptual model (PORTGD of ANP for decision management is designed for the Port Community, a cause and effect analysis is carried out and a sensitization study is performed on the nodes. The discussion of the results and conclusions highlights the importance of technological investment, control of port security and good practices for the port system investigated.

Medical implants by using RP and investment casting technologies

Directory of Open Access Journals (Sweden)

Milan Horacek

2011-02-01

Full Text Available The paper deals with the production technology of knee joint replacement by using rapid prototyping technology. The aim of the work is to outline the manufacturing technology intended for prototype production with the use of rapid prototyping and investment casting technology for use in orthopaedics and the surgery of knee joint replacement. The research results should make an effective contribution in the attempts to minimize the invasive surgical procedure, shorten the production of knee joint replacement as well as reduce the cost. At present, the research is focused on the preparation of STL data from CT (Computed Tomography and verification of the production technology of prototypes made using available RP technology and its evaluation.

Environmental Concerns, Environmental Policy and Green Investment

Directory of Open Access Journals (Sweden)

Xuexian Gao

2017-12-01

Full Text Available Environmental regulators often use environmental policy to induce green investment by firms. However, if an environmental policy fails to exert a long-run effect on regulating the economic agents’ behavior, it may be more reasonable to think of the firm as the leader in the game, since the investment in green technology is usually a strategic decision. In this paper, we consider a three-stage Stackelberg game to address the interaction between a profit-maximizing firm (Stackelberg leader facing emission-dependent demand, and the environmental regulator (Stackelberg follower. The firm decides on the green technology level in the first stage of the game based on its understanding of the regulator’s profits function, especially an environmental concern that is introduced as an exogenous variable. In the current research, we show that high levels of the regulator’s environmental concerns do not necessarily lead to the choice of green technology by the firm, and green investment level depends on the combined effects of the market and operational factors for a given level of the regulator’s environmental concerns. The result also shows that increasing environmental awareness amongst the consumers is an effective way to drive the firm’s green investment.

Scenario-informed multiple criteria analysis for prioritizing investments in electricity capacity expansion

International Nuclear Information System (INIS)

Martinez, Lauro J.; Lambert, James H.; Karvetski, Christopher W.

2011-01-01

Planning the expansion and energy security of electricity capacity for a national electricity utility is a complex task in almost any economy. Planning is usually an iterative activity and can involve the use of large scale planning optimization systems accompanied by assessment of uncertain scenarios emerging from economic, technological, environmental, and regulatory developments. This paper applies a multiple criteria decision analysis to prioritize investment portfolios in capacity expansion and energy security while principally studying the robustness of the prioritization to multiple uncertain and emergent scenarios. The scenarios are identified through interaction with decision makers and stakeholders. The approach finds which scenarios most affect the prioritization of the portfolios and which portfolios have the greatest upside and downside potential across scenarios. The approach fosters innovation in the use of robust and efficient technologies, renewable energy sources, and cleaner energy fuels. A demonstration is provided for assessing the performance of technology portfolios constructed from investments in nine electricity generation technologies in Mexico.

Sustainable Investment in a Supply Chain in the Big Data Era: An Information Updating Approach

Directory of Open Access Journals (Sweden)

Yanping Cheng

2018-02-01

Full Text Available We are now living in the big data era, where firms can improve their decision makings by adopting big data technology to utilize mass information. To explore the effects of the big data technology, we build an analytical model to study the sustainable investment in a supply chain, consisting of one manufacturer and one retailer, by using Bayesian information updating approach. We derive the optimal sustainable investment level for the manufacturer and the optimal order quantity for the retailer. Comparing the results with and without the big data technology, we find that whether the manufacturer should make more sustainable investment when the retailer adopts the big data technology depends on the service level at the retailer side. Interestingly, it is not always optimal for the retailer to adopt the big data technology. We identify the conditions under which the manufacturer and retailer are better off with the big data technology. In addition, we investigate the impact of the number of observations regarding the market information and find that the optimal decisions and profits increase in the number of the observations, if and only if the service level is low.

Uncertainty modeling of CCS investment strategy in China's power sector

International Nuclear Information System (INIS)

Zhou, Wenji; Zhu, Bing; Fuss, Sabine; Szolgayova, Jana; Obersteiner, Michael; Fei, Weiyang

2010-01-01

The increasing pressure resulting from the need for CO 2 mitigation is in conflict with the predominance of coal in China's energy structure. A possible solution to this tension between climate change and fossil fuel consumption fact could be the introduction of the carbon capture and storage (CCS) technology. However, high cost and other problems give rise to great uncertainty in R and D and popularization of carbon capture technology. This paper presents a real options model incorporating policy uncertainty described by carbon price scenarios (including stochasticity), allowing for possible technological change. This model is further used to determine the best strategy for investing in CCS technology in an uncertain environment in China and the effect of climate policy on the decision-making process of investment into carbon-saving technologies.

THEORETICAL FLAWS IN THE USE OF THE CAPM FOR INVESTMENT DECISIONS

OpenAIRE

Magni, Carlo Alberto

2005-01-01

This paper uses counterexamples and simple formalization to show that the standard CAPM-based Net Present Value may not be used for investment valuations. The reason is that the standard CAPM-based capital budgeting criterion implies a notion of value which does not comply with the principle of additivity. Framing effects arise in decisions so that different descriptions of the same problem lead to different choices. As a result, the CAPM-based NPV as a tool for valuing projects and making in...

GENERIC APPROACH IN CHOICE OF ADEQUATE METHODOLOGY FOR THE ASSESSMENT OF IT INVESTMENTS

Directory of Open Access Journals (Sweden)

Melita Kozina

2012-07-01

Full Text Available Investments into information technology (IT, (hereinafter: IT investments havereached very high figures, which are still continually on the rise. IT potentials are being usedin an increasing number of ways. Various company managers have different approaches tothis issue. A large number of methods/models for the assessment of IT investments isavailable, so the question is posed of how to choose the adequate assessment category. Thesaid reasons have initiated a need for defining the generic approach in the choice ofadequate methodology for the assessment of IT investments, which was indeed the goal ofthis paper. General ideas to this approach stem from the fact that each IT investment has itspurpose and belongs to a certain type of IT investment (decision-making aspect whichdemands its relevant methodology for assessing IT investments. Two groups of demands(conditions have been defined in choosing relevant methodology. The first group pertains tomethodology analysis and determination of its compatibility with characteristics of thedefined decision-making aspect. The second group of conditions pertains to methodologyanalysis with respect to its possibilities (abilities of integrating quantity, quality and riskfactors of IT decision. Conducted field research shows that the assessment of IT investmentshas been done mainly using simpler methods/models and their combinations, and is focusedon quantity aspects of IT values.

Long-term dynamics of investment decisions in electricity markets with variable renewables development and adequacy objectives

International Nuclear Information System (INIS)

Petitet, Marie

2016-01-01

In liberalised electricity systems, power markets are expected to ensure the long-term coordination of investments in order to guarantee security of supply, sustainability and competitiveness. In the reference energy-only market, it relies on the ability of power markets - where the hourly price is aligned with the marginal cost of the system - to provide an adequate price-signal for investors. However, in practice, questions have been raised about its ability to trigger investments in Low-Carbon Technologies (LCT) including in particular Renewable Energy Sources of Electricity (RES-E), and its ability to ensure capacity adequacy. After a characterisation of these market failures, this dissertation tackles the two research topics within a methodological framework based on a System Dynamics model developed to simulate private investment decisions in power markets. First, the results show that substituting out-of-market support mechanisms for RES-E by market-based investments helped by the sole implementation of a carbon price appears as a feasible solution to trigger RES-E development providing that there is a political commitment on a high carbon price. Second, it also appears that the energy-only market with price cap is ineffective to ensure capacity adequacy in a context of mature markets with conventional thermal power plants under transition paths which involve a stable electricity demand thank to energy efficiency efforts and the exogenous development of RES-E thanks to support mechanisms in the absence of a high and fixed carbon price. Adding a capacity market or removing the price cap both bring benefits in terms of Loss Of Load Expectation (LOLE) and social welfare. Moreover, considering two various energy transition scenarios and different assumptions about the risk aversion of private investors, the capacity market is identified as the best option for regulators among the considered market designs. (author) [fr

Uncertain Dynamics, Correlation Effects, and Robust Investment Decisions

DEFF Research Database (Denmark)

Flor, Christian Riis; Hesel, Søren

2015-01-01

We analyze a firm's investment problem when the dynamics of project value and investment cost are uncertain. We provide an explicit solution using a robust method for an ambiguity averse firm taking this into account. Ambiguity aversion regarding a common risk factor impacts differently than...... ambiguity aversion regarding investment cost residual risk. Correlation between project value and investment cost matters; ambiguity aversion regarding common risk can decrease the investment probability only if correlation is positive. Ambiguity aversion regarding residual risk always increases...... the investment probability. When only project value is risky, volatility can monotonically decrease the investment threshold; this does not hold with the multiple prior method....

Heat savings and heat generation technologies: Modelling of residential investment behaviour with local health costs

International Nuclear Information System (INIS)

Zvingilaite, Erika; Klinge Jacobsen, Henrik

2015-01-01

The trade-off between investing in energy savings and investing in individual heating technologies with high investment and low variable costs in single family houses is modelled for a number of building and consumer categories in Denmark. For each group the private economic cost of providing heating comfort is minimised. The private solution may deviate from the socio-economical optimal solution and we suggest changes to policy to incentivise the individuals to make choices more in line with the socio-economic optimal mix of energy savings and technologies. The households can combine their primary heating source with secondary heating e.g. a woodstove. This choice results in increased indoor air pollution with fine particles causing health effects. We integrate health cost due to use of woodstoves into household optimisation of heating expenditures. The results show that due to a combination of low costs of primary fuel and low environmental performance of woodstoves today, included health costs lead to decreased use of secondary heating. Overall the interdependence of heat generation technology- and heat saving-choice is significant. The total optimal level of heat savings for private consumers decrease by 66% when all have the option to shift to the technology with lowest variable costs. - Highlights: • Heat saving investment and heat technology choice are interdependent. • Health damage costs should be included in private heating choice optimisation. • Flexibility in heating technology choice reduce the optimal level of saving investments. • Models of private and socioeconomic optimal heating produce different technology mix. • Rebound effects are moderate but varies greatly among consumer categories

Promoting Sustainability through Investment in Building Information Modeling (BIM Technologies: A Design Company Perspective

Directory of Open Access Journals (Sweden)

Marius Reizgevičius

2018-02-01

Full Text Available The aim of this article is to enhance the understanding of how design companies perceive the benefits of Building Information Modeling (BIM technologies application. BIM is recognized in the literature as a (potentially powerful driver leading the construction sector towards sustainability. However, for design companies, the choice to invest in BIM technologies is basically an economic one. Specifically, a design company assesses economic benefits and efficiency improvements thanks to the application of BIM technologies. The article discusses the return on investments (ROI in BIM technologies and reviews ROI calculation methodologies proposed by other authors. In order to evaluate BIM return on investment correctly practical ROI calculations are carried out. Appropriate methods, together with the relevant variables for ROI calculation, are developed. The study allows for adjusting the calculation method making it more accurate and understandable using the Autodesk Revit based ROI calculation of the first year.

Barriers to investments in energy saving technologies. Case study for the industry

NARCIS (Netherlands)

Masselink, Dirk Jan

2007-01-01

To realise future energy saving targets, the government needs to increase energy reduction rates. One option to increase energy savings is found in removing barriers to investments in cost-effective energy saving technologies. Many technologies save energ

Energy Return on Investment - Fuel Recycle

International Nuclear Information System (INIS)

Halsey, W.; Simon, A.J.; Fratoni, M.; Smith, C.; Schwab, P.; Murray, P.

2012-01-01

This report provides a methodology and requisite data to assess the potential Energy Return On Investment (EROI) for nuclear fuel cycle alternatives, and applies that methodology to a limited set of used fuel recycle scenarios. This paper is based on a study by Lawrence Livermore National Laboratory and a parallel evaluation by AREVA Federal Services LLC, both of which were sponsored by the DOE Fuel Cycle Technologies (FCT) Program. The focus of the LLNL effort was to develop a methodology that can be used by the FCT program for such analysis that is consistent with the broader energy modeling community, and the focus of the AREVA effort was to bring industrial experience and operational data into the analysis. This cooperative effort successfully combined expertise from the energy modeling community with expertise from the nuclear industry. Energy Return on Investment is one of many figures of merit on which investment in a new energy facility or process may be judged. EROI is the ratio of the energy delivered by a facility divided by the energy used to construct, operate and decommission that facility. While EROI is not the only criterion used to make an investment decision, it has been shown that, in technologically advanced societies, energy supplies must exceed a minimum EROI. Furthermore, technological history shows a trend towards higher EROI energy supplies. EROI calculations have been performed for many components of energy technology: oil wells, wind turbines, photovoltaic modules, biofuels, and nuclear reactors. This report represents the first standalone EROI analysis of nuclear fuel reprocessing (or recycling) facilities.

Evaluation of Representative Smart Grid Investment Project Technologies: Demand Response

Energy Technology Data Exchange (ETDEWEB)

Fuller, Jason C.; Prakash Kumar, Nirupama; Bonebrake, Christopher A.

2012-02-14

This document is one of a series of reports estimating the benefits of deploying technologies similar to those implemented on the Smart Grid Investment Grant (SGIG) projects. Four technical reports cover the various types of technologies deployed in the SGIG projects, distribution automation, demand response, energy storage, and renewables integration. A fifth report in the series examines the benefits of deploying these technologies on a national level. This technical report examines the impacts of a limited number of demand response technologies and implementations deployed in the SGIG projects.

Baseload coal investment decisions under uncertain carbon legislation.

Science.gov (United States)

Bergerson, Joule A; Lave, Lester B

2007-05-15

More than 50% of electricity in the U.S. is generated by coal. The U.S. has large coal resources, the cheapest fuel in most areas. Coal fired power plants are likely to continue to provide much of U.S. electricity. However, the type of power plant that should be built is unclear. Technology can reduce pollutant discharges and capture and sequester the CO2 from coal-fired generation. The U.S. Energy Policy Act of 2005 provides incentives for large scale commercial deployment of Integrated Coal Gasification Combined Cycle (IGCC) systems (e.g., loan guarantees and project tax credits). This analysis examines whether a new coal plant should be Pulverized Coal (PC) or IGCC. Do stricter emissions standards (PM, SO2, NOx, Hg) justify the higher costs of IGCC over PC? How does potential future carbon legislation affect the decision to add carbon capture and storage (CCS) technology? Finally, can the impact of uncertain carbon legislation be minimized? We find that SO2, NOx, PM, and Hg emission standards would have to be far more stringent than twice current standards to justify the increased costs of the IGCC system. A C02 tax less than $29/ton would lead companies to continuing to choose PC, paying the tax for emitted CO2. The earlier a decision-maker believes the carbon tax will be imposed and the higher the tax, the more likely companies will choose IGCC w/CCS. Having government announce the date and level of a carbon tax would promote more sensible decisions, but government would have to use a tax or subsidy to induce companies to choose the technology that is best for society.

Investment behaviour in the Nordic power market; Investeringsadferd i det nordiske kraftmarkedet

Energy Technology Data Exchange (ETDEWEB)

Ingeberg, K; Johannessen, A

1995-11-15

This report is the result of a preliminary project which defines the frames for an application for a main project within the research programme EFFEKT. The composition, extent and time for new investments in the Nordic power market will have decisive influence on the profits of Norwegian water power resources in the future. At the same time the process around investments is very complex and is affected by economic, technological and political conditions. The report examines important prime movers for new investments and how the investment behaviour in the Nordic power market can be analysed in a main project. 25 refs., 1 figure

Considerations in Duplex Investment.

Science.gov (United States)

Wright, Arthur; Goen, Tom

Problems of duplex investment are noted in the introduction to this booklet designed to provide a technique by which the investment decision can be approached, develop estimates of typical costs and returns under differing conditions, and encourage investors to analyze objectives and conditions before the decision to buy or build is made. A…

The investment decision and its financing in a changing institutional environment: the case of an electronuclear facility; La decision d'investissement et son financement dans un environnement institutionnel en mutation: le cas d'un equipement electronucleaire

Energy Technology Data Exchange (ETDEWEB)

Guillerminet, M.L

2002-09-01

This document analyzes the consequences of the questioning of the hypothesis of independence between the investment and financing decisions, on the investment choice of a nuclear power company in a European market progressively opening to competition. This company, which can get into debts on the financial market, is taxable and can go bankrupt. It is shown that its investment opportunity, totally irreversible in self-financing, can become partially reversible for inter-dependent investment and financing decisions. (J.S.)

Model of Risk Forewarn and Investment Decision in Stock Markets and Its Realization

Institute of Scientific and Technical Information of China (English)

ZOU Hui-wen; TANG Bing-yong; WANG Li-ping; XU Guang-wei

2004-01-01

Based on the discussion of characteristic and mechanism of the stock prices volatility in Chinese emerging stock markets, this research designs an index system for risk forewarn, and builds up an investment decision model based on the forewarn of the market risk signal. Then, on probing into the structure and function of the realization of the model, the paper presents the method of data interface.

Investment timing under uncertain renewable energy policy: An empirical study of small hydropower projects

International Nuclear Information System (INIS)

Linnerud, Kristin; Andersson, Ane Marte; Fleten, Stein-Erik

2014-01-01

Policy uncertainty can be a powerful deterrent to immediate investments. Based on panel data of 214 licenses to construct small run-of-the-river hydropower plants, we examine whether the prospect of a common Swedish–Norwegian market for green certificates (i.e., a renewable portfolio standard scheme) affected the timing of investments. Our results show that traditional utilities and other professional investors in the energy market acted in accordance with a real options investment rule, and the prospect of possible future subsidies delayed their investment decision. On the other hand, our results do not show that farmers and other non-professional investors incorporated timing considerations in their investment decisions. Rather, our results indicate that these investors behaved as if their investment opportunity is now-or-never, investing if the project is profitable according to a net present value investment rule, ignoring the opportunity to create additional value by waiting. The observed difference in behavior between professional and non-professional investors is interesting given the distributed nature of many renewable energy technologies, and can help planners and policymakers better understand the forces shaping the future market for electricity. - Highlights: • We examine whether the prospect of introducing subsidies delayed investments in hydropower. • We find that professional and non-professional investors behaved differently. • Professional investors explored the opportunity to create additional value by waiting. • Farmers behaved as if their investment opportunity was now-or-never. • These observations are interesting given the distributed nature of renewable energy technologies

32 CFR 37.110 - What type of instruments are technology investment agreements (TIAs)?

Science.gov (United States)

2010-07-01

... investment agreements (TIAs)? 37.110 Section 37.110 National Defense Department of Defense OFFICE OF THE... What type of instruments are technology investment agreements (TIAs)? TIAs are assistance instruments used to stimulate or support research. As discussed in appendix B to this part, a TIA may be either a...

Capital investment strategies in health care systems.

Science.gov (United States)

Reiter, K L; Smith, D G; Wheeler, J R; Rivenson, H L

2000-01-01

Capital investment decisions are among the most important decisions made by firms. They determine the firm's capacity for providing services and commit the firm's cash for an extended period of time. Interviews with chief financial officers of leading health care systems reveal capital investment strategies that generally follow the recommendations of modern finance theory. Still, there is substantial variation in capital budgeting techniques, methods of risk adjustment, and the importance of qualitative considerations in investment decision making. There is also variation in delegation of investment decision making to operating units and methods of performance evaluation. Health care systems face the same challenges as other organizations in developing and implementing capital investment strategies that use consistent methods for evaluation of projects that have inconsistent aims and outcomes.

Marginal costs and co-benefits of energy efficiency investments

International Nuclear Information System (INIS)

Jakob, Martin

2006-01-01

Key elements of present investment decision-making regarding energy efficiency of new buildings and the refurbishment of existing buildings are the marginal costs of energy efficiency measures and incomplete knowledge of investors and architects about pricing, co-benefits and new technologies. This paper reports on a recently completed empirical study for the Swiss residential sector. It empirically quantifies the marginal costs of energy efficiency investments (i.e. additional insulation, improved window systems, ventilation and heating systems and architectural concepts). For the private sector, first results on the economic valuation of co-benefits such as improved comfort of living, improved indoor air quality, better protection against external noise, etc. may amount to the same order of magnitude as the energy-related benefits are given. The cost-benefit analysis includes newly developed technologies that show large variations in prices due to pioneer market pricing, add-on of learning costs and risk components of the installers. Based on new empirical data on the present cost-situation and past techno-economic progress, the potential of future cost reduction was estimated applying the experience curve concept. The paper shows, for the first time, co-benefits and cost dynamics of energy efficiency investments, of which decision makers in the real estate sector, politics and administrations are scarcely aware

Giga-Investments: Modelling the Valuation of Very Large Industrial Real Investments

OpenAIRE

Collan, Mikael

2004-01-01

In this doctoral dissertation characteristics of very large industrial real investments (VLIRI) are investigated and a special group of VLIRI is defined as giga-investments. The investment decision-making regarding to giga-investments is discussed from the points of view of discounted cash-flow based methods and real option valuation. Based on the bacground of establishing giga-investments, state-of-the-art in capital budgeting (including real options) and by applying fuzzy numbers a novel me...

Expected net present value of sample information: from burden to investment.

Science.gov (United States)

Hall, Peter S; Edlin, Richard; Kharroubi, Samer; Gregory, Walter; McCabe, Christopher

2012-01-01

The Expected Value of Information Framework has been proposed as a method for identifying when health care technologies should be immediately reimbursed and when any reimbursement should be withheld while awaiting more evidence. This framework assesses the value of obtaining additional evidence to inform a current reimbursement decision. This represents the burden of not having the additional evidence at the time of the decision. However, when deciding whether to reimburse now or await more evidence, decision makers need to know the value of investing in more research to inform a future decision. Assessing this value requires consideration of research costs, research time, and what happens to patients while the research is undertaken and after completion. The investigators describe a development of the calculation of the expected value of sample information that assesses the value of investing in further research, including an only-in-research strategy and an only-with-research strategy.

Possibility of choosing development investment programs of a production company by applying discounted investment appraisal technique

Directory of Open Access Journals (Sweden)

Vesić-Vasović Jasmina

2014-01-01

Full Text Available The selection of development investment programs is one of the most important decisions in industrial production. The paper sets out the possibilities of applying dynamic criteria for investment decision making. It presents a practical numerical example for the value calculation of investment criteria Net Present Value and Internal Rate of Return for the reviewed investment project solutions. In this manner it is possible to make an orderly set of alternatives with clear preferences for the most suitable alternative in comparison with other ones. Such rating of project solutions will enable the decision maker to emphasize advantages with more arguments and select the most suitable project solution in accordance with the established criteria, conditions and limitations.

Incentives of carbon dioxide regulation for investment in low-carbon electricity technologies in Texas

International Nuclear Information System (INIS)

Castillo, Anya; Linn, Joshua

2011-01-01

This paper compares the incentives a carbon dioxide emissions price creates for investment in low carbon dioxide-emitting technologies in the electricity sector. We consider the extent to which operational differences across generation technologies - particularly, nuclear, wind and solar photovoltaic - create differences in the incentives for new investment, which is measured by the operating profits of a potential entrant. First, astylized model of an electricity system demonstrates that the composition of the existing generation system may cause electricity prices to increase by different amounts over time when a carbon dioxide price is imposed. Differences in operation across technologies therefore translate to differences in the operating profits of a potential entrant. Then, a detailed simulation model is used to consider a hypothetical carbon dioxide price of $10-$50 per metric ton for the Electric Reliability Council of Texas (ERCOT) market. The simulations show that, for the range of prices considered, the increase in electricity prices is positively correlated with output from a typical wind unit, but the correlation is much weaker for nuclear and photovoltaic. Consequently, a carbon dioxide price creates much stronger investment incentives for wind than for nuclear or photovoltaic technologies in the Texas market. - Highlights: → Compare incentives for new investment in low-emission electricity technologies created by carbon dioxide price. → Focus on ERCOT power system using stochastic unit commitment model. →Find a greater incentive for wind than solar or nuclear because of correlation between wind generation and increase in electricity prices.

Technology Investments in the NASA Entry Systems Modeling Project

Science.gov (United States)

Barnhardt, Michael; Wright, Michael; Hughes, Monica

2017-01-01

The Entry Systems Modeling (ESM) technology development project, initiated in 2012 under NASAs Game Changing Development (GCD) Program, is engaged in maturation of fundamental research developing aerosciences, materials, and integrated systems products for entry, descent, and landing(EDL)technologies [1]. To date, the ESM project has published over 200 papers in these areas, comprising the bulk of NASAs research program for EDL modeling. This presentation will provide an overview of the projects successes and challenges, and an assessment of future investments in EDL modeling and simulation relevant to NASAs mission

Options theory and strategic investment decisions

International Nuclear Information System (INIS)

Mann, D.; Goobie, G.; MacMillan, L.

1992-01-01

The possible use of options pricing theory for evaluating long-term capital investments is discussed. Using the Black and Scholes option pricing model, five variables were evaluated for a hypothetical oil sands project. These variables are: stock price as determined by the earning power of the company; exercise price which equals the investment cost of the project; price standard deviation which is assumed to be 50%; the length of time for which the company will maintain its option to invest in the project, and finally the risk free rate which is approximately equal to the yield in long term government securities. A sensitivity analysis on these variables can provide management with information on how best to influence the option value. A more in-depth analysis could provide valuable information about strategic choice for large projects. 5 refs., 3 figs

Parental investment decisions in response to ambient nest-predation risk versus actual predation on the prior nest

Science.gov (United States)

Chalfoun, A.D.; Martin, T.E.

2010-01-01

Theory predicts that parents should invest less in dependent offspring with lower reproductive value, such as those with a high risk of predation. Moreover, high predation risk can favor reduced parental activity when such activity attracts nest predators. Yet, the ability of parents to assess ambient nest-predation risk and respond adaptively remains unclear, especially where nest-predator assemblages are diverse and potentially difficult to assess. We tested whether variation in parental investment by a multi-brooded songbird (Brewer's Sparrow, Spizella breweri) in an environment (sagebrush steppe) with diverse predators was predicted by ambient nest-predation risk or direct experience with nest predation. Variation among eight sites in ambient nest-predation risk, assayed by daily probabilities of nest predation, was largely uncorrelated across four years. In this system risk may therefore be unpredictable, and aspects of parental investment (clutch size, egg mass, incubation rhythms, nestling-feeding rates) were not related to ambient risk. Moreover, investment at first nests that were successful did not differ from that at nests that were depredated, suggesting parents could not assess and respond to territorylevel nest-predation risk. However, parents whose nests were depredated reduced clutch sizes and activity at nests attempted later in the season by increasing the length of incubation shifts (on-bouts) and recesses (off-bouts) and decreasing trips to feed nestlings. In this unpredictable environment parent birds may therefore lack sufficient cues of ambient risk on which to base their investment decisions and instead rely on direct experience with nest predation to inform at least some of their decisions. ?? 2010 The Cooper Ornithological Society.

Limiting the financial risks of electricity generation capital investments under carbon constraints: Applications and opportunities for public policies and private investments

Science.gov (United States)

Newcomer, Adam

Increasing demand for electricity and an aging fleet of generators are the principal drivers behind an increasing need for a large amount of capital investments in the US electric power sector in the near term. The decisions (or lack thereof) by firms, regulators and policy makers in response to this challenge have long lasting consequences, incur large economic and environmental risks, and must be made despite large uncertainties about the future operating and business environment. Capital investment decisions are complex: rates of return are not guaranteed; significant uncertainties about future environmental legislation and regulations exist at both the state and national levels---particularly about carbon dioxide emissions; there is an increasing number of shareholder mandates requiring public utilities to reduce their exposure to potentially large losses from stricter environmental regulations; and there are significant concerns about electricity and fuel price levels, supplies, and security. Large scale, low carbon electricity generation facilities using coal, such as integrated gasification combined cycle (IGCC) facilities coupled with carbon capture and sequestration (CCS) technologies, have been technically proven but are unprofitable in the current regulatory and business environment where there is no explicit or implicit price on carbon dioxide emissions. The paper examines two separate scenarios that are actively discussed by policy and decision makers at corporate, state and national levels: a future US electricity system where coal plays a role; and one where the role of coal is limited or nonexistent. The thesis intends to provide guidance for firms and policy makers and outline applications and opportunities for public policies and for private investment decisions to limit financial risks of electricity generation capital investments under carbon constraints.

Rating in the Assessment of Investment Property

Directory of Open Access Journals (Sweden)

Śmietana Katarzyna

2014-07-01

Full Text Available The implementation of rating procedures is associated with searching for tools that provide an objective and standardized assessment of investment risk. For this reason, rating is an important and often essential element of investment decision-making processes which determines the development of the capital market, including the real estate investment market. In the investment property market, not only does rating provide transparency of property risk, but it can also be used for real estate portfolio analysis, investment controlling, and the analysis of factors determining investment decisions (ESV 2012.

Quantitative Model for Economic Analyses of Information Security Investment in an Enterprise Information System

Directory of Open Access Journals (Sweden)

Bojanc Rok

2012-11-01

Full Text Available The paper presents a mathematical model for the optimal security-technology investment evaluation and decision-making processes based on the quantitative analysis of security risks and digital asset assessments in an enterprise. The model makes use of the quantitative analysis of different security measures that counteract individual risks by identifying the information system processes in an enterprise and the potential threats. The model comprises the target security levels for all identified business processes and the probability of a security accident together with the possible loss the enterprise may suffer. The selection of security technology is based on the efficiency of selected security measures. Economic metrics are applied for the efficiency assessment and comparative analysis of different protection technologies. Unlike the existing models for evaluation of the security investment, the proposed model allows direct comparison and quantitative assessment of different security measures. The model allows deep analyses and computations providing quantitative assessments of different options for investments, which translate into recommendations facilitating the selection of the best solution and the decision-making thereof. The model was tested using empirical examples with data from real business environment.

Investment inefficiency and the adoption of eco-innovations: The case of household energy efficiency technologies

International Nuclear Information System (INIS)

Diaz-Rainey, Ivan; Ashton, John K.

2015-01-01

This paper examines the factors determining household adoption of energy efficiency eco-innovations. We do so by testing hypotheses grounded in diffusion and finance theory and the literature on the barriers to energy efficiency. Using two large surveys of UK households, we explore the adoption of nine technologies. Our results indicate ‘investment inefficiency’ amongst household adopters occurs for two reasons. First, contrary to notions of rational choice, we find a negative relationship between the investment return of technologies and their level of diffusion. Second, we show adopters of these technologies display characteristics broadly consistent with diffusion theory, contradicting the prediction of finance theory that investment return, not individual characteristics, should drive adoption. We also find that policy has played a role in inducing the diffusion of these technologies and that tenure and spill-over effects are important in adoption. Finally, adoption is motivated more by a desire to save money than by environmental concern. We conclude by giving examples of how our research can lead to better policy timing and targeting. -- Highlights: •We explore the factors driving household adoption of energy efficiency technologies. •We employ two high quality nationally representative cross sectional surveys. •There is a negative relationship between investment return and level of diffusion. •Adopters display characteristics broadly consistent with diffusion theory. •Policy interventions, tenure effects and spill-over effects also influence adoption

User Driven Data Mining, Visualization and Decision Making for NOAA Observing System and Data Investments

Science.gov (United States)

Austin, M.

2016-12-01

The National Oceanic and Atmospheric Administration (NOAA) observing system enterprise represents a $2.4B annual investment. Earth observations from these systems are foundational to NOAA's mission to describe, understand, and predict the Earth's environment. NOAA's decision makers are charged with managing this complex portfolio of observing systems to serve the national interest effectively and efficiently. The Technology Planning & Integration for Observation (TPIO) Office currently maintains an observing system portfolio for NOAA's validated user observation requirements, observing capabilities, and resulting data products and services. TPIO performs data analytics to provide NOAA leadership business case recommendations for making sound budgetary decisions. Over the last year, TPIO has moved from massive spreadsheets to intuitive dashboards that enable Federal agencies as well as the general public the ability to explore user observation requirements and environmental observing systems that monitor and predict changes in the environment. This change has led to an organizational data management shift to analytics and visualizations by allowing analysts more time to focus on understanding the data, discovering insights, and effectively communicating the information to decision makers. Moving forward, the next step is to facilitate a cultural change toward self-serve data sharing across NOAA, other Federal agencies, and the public using intuitive data visualizations that answer relevant business questions for users of NOAA's Observing System Enterprise. Users and producers of environmental data will become aware of the need for enhancing communication to simplify information exchange to achieve multipurpose goals across a variety of disciplines. NOAA cannot achieve its goal of producing environmental intelligence without data that can be shared by multiple user communities. This presentation will describe where we are on this journey and will provide examples of

Analysis of stage-investing strategy in equity financing market

Institute of Scientific and Technical Information of China (English)

XUN Minghui

2007-01-01

Stage-investing strategy is a primary measure to mitigate asymmetric information during equity investment. This paper attempts to investigate the problem faced by equity investors wishing to make optimal investment decision under stage-investing strategy.A serial investment-decision making model will be designed to help investors to take the best choice.

Selection of asset investment models by hospitals: examination of influencing factors, using Switzerland as an example.

Science.gov (United States)

Eicher, Bernhard

2016-10-01

Hospitals are responsible for a remarkable part of the annual increase in healthcare expenditure. This article examines one of the major cost drivers, the expenditure for investment in hospital assets. The study, conducted in Switzerland, identifies factors that influence hospitals' investment decisions. A suggestion on how to categorize asset investment models is presented based on the life cycle of an asset, and its influencing factors defined based on transaction cost economics. The influence of five factors (human asset specificity, physical asset specificity, uncertainty, bargaining power, and privacy of ownership) on the selection of an asset investment model is examined using a two-step fuzzy-set Qualitative Comparative Analysis. The research shows that outsourcing-oriented asset investment models are particularly favored in the presence of two combinations of influencing factors: First, if technological uncertainty is high and both human asset specificity and bargaining power of a hospital are low. Second, if assets are very specific, technological uncertainty is high and there is a private hospital with low bargaining power, outsourcing-oriented asset investment models are favored too. Using Qualitative Comparative Analysis, it can be demonstrated that investment decisions of hospitals do not depend on isolated influencing factors but on a combination of factors. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.

Investment appraisal of technology innovations on dairy farm electricity consumption

NARCIS (Netherlands)

Upton, J.; Murphy, M.; Boer, de I.J.M.; Groot Koerkamp, P.W.G.; Berentsen, P.B.M.; Shalloo, L.

2015-01-01

The aim of this study was to conduct an investment appraisal for milk-cooling, water-heating, and milk-harvesting technologies on a range of farm sizes in 2 different electricity-pricing environments. This was achieved by using a model for electricity consumption on dairy farms. The model simulated

Towards a European Energy Technology Policy - The European Strategic Energy Technology Plan (Set-Plan)

International Nuclear Information System (INIS)

Mercier, A.; Petric, H.; Peteves, E.

2008-01-01

The transition to a low carbon economy will take decades and affect the entire economy. There is a timely opportunity for investment in energy infrastructure. However, decisions to invest in technologies that are fully aligned with policy and society priorities do not necessarily come naturally, although it will profoundly affect the level of sustainability of the European energy system for decades to come. Technology development needs to be accelerated and prioritized at the highest level of the European policy agenda. This is the essence of the European Strategic Energy Technology Plan (SET-Plan). The SET-Plan makes concrete proposals for action to establish an energy technology policy for Europe, with a new mind-set for planning and working together and to foster science for transforming energy technologies to achieve EU energy and climate change goals for 2020, and to contribute to the worldwide transition to a low carbon economy by 2050. This paper gives an overview of the SET-Plan initiative and highlights its latest developments. It emphasises the importance of information in support of decision-making for investing in the development of low carbon technologies and shows the first results of the technology mapping undertaken by the newly established Information System of the SET-Plan (SETIS).(author)

Capital Investment Procedures for FEMYSO

OpenAIRE

Oluduro, Francis Oladele; Duru, Longinus; Al Jaafar, Mofid

2008-01-01

Date: 2008-06-05 Level: Bachelor Thesis in Business Administration EF0703, 15 ECTS Credits. Authors: Longinus Duru (Stockholm), Francis O.Oluduro (Västerås) and Mofid Al Jaafar (Västerås) Title: Capital Investment Procedures for FEMYSO Problem Area: Undertaking an investment by FEMYSO involves weighing up the risk against the returns but still capital investment decision are still one of the most undertaken decisions by organization managers because it involves commitment of huge amount of mo...

Optimal Responsible Investment

DEFF Research Database (Denmark)

Jessen, Pernille

The paper studies retail Socially Responsible Investment and portfolio allocation. It extends conventional portfolio theory by allowing for a personal value based investment decision. When preferences for responsibility enter the framework for mean-variance analysis, it yields an optimal...... responsible investment model. An example of index investing illustrates the theory. Results show that it is crucial for the responsible investor to consider portfolio risk, expected return, and responsibility simultaneously in order to obtain an optimal portfolio. The model enables responsible investors...

ENABLING SMART MANUFACTURING TECHNOLOGIES FOR DECISION-MAKING SUPPORT

Science.gov (United States)

Helu, Moneer; Libes, Don; Lubell, Joshua; Lyons, Kevin; Morris, KC

2017-01-01

Smart manufacturing combines advanced manufacturing capabilities and digital technologies throughout the product lifecycle. These technologies can provide decision-making support to manufacturers through improved monitoring, analysis, modeling, and simulation that generate more and better intelligence about manufacturing systems. However, challenges and barriers have impeded the adoption of smart manufacturing technologies. To begin to address this need, this paper defines requirements for data-driven decision making in manufacturing based on a generalized description of decision making. Using these requirements, we then focus on identifying key barriers that prevent the development and use of data-driven decision making in industry as well as examples of technologies and standards that have the potential to overcome these barriers. The goal of this research is to promote a common understanding among the manufacturing community that can enable standardization efforts and innovation needed to continue adoption and use of smart manufacturing technologies. PMID:28649678

Governance of the venture capital investment: Factors influencing selection of an IT firm

Directory of Open Access Journals (Sweden)

Shailendra Kumar

2016-05-01

Full Text Available The selection of a firm for venture capital investment is not an easy task for any investor and so it is important to decide certain factors based on which a firm will be selected for the investment. This paper is based on the 104 responses generated through fund managers, venture capitalists, managers of financial institutions, bank managers etc. and examined two important aspects, first the factors used by venture capitalists to evaluate an IT in order to make investment decisions and second the importance of factors across different investors. This study was conducted in 2014 to find out the important aspects affecting decision making process while selecting an Information Technology firm. We have analyzed the qualitative and quantitative aspects suggested by the previous studies and studied the relationship between choice of factors among different investors and assigning weightage for them with respect to screening of an IT firm for investment

Investment shocks and the relative price of investment

OpenAIRE

Justiniano, Alejandro; Primiceri, Giorgio E.; Tambalotti, Andrea

2009-01-01

We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the relative price of investment. The second shock affects the production of installed capital from investment goods or, more broadly, the transformation of savings into future capital input. We find that this shock is the most important driver of U.S. business...

Chemical plant innovative safety investments decision-support methodology.

Science.gov (United States)

Reniers, G L L; Audenaert, A

2009-01-01

This article examines the extent to which investing in safety during the creation of a new chemical installation proves profitable. The authors propose a management supporting cost-benefit model that identifies and evaluates investments in safety within a chemical company. This innovative model differentiates between serious accidents and less serious accidents, thus providing an authentic image of prevention-related costs and benefits. In classic cost-benefit analyses, which do not make such differentiations, only a rudimentary image of potential profitability resulting from investments in safety is obtained. The resulting management conclusions that can be drawn from such classical analyses are of a very limited nature. The proposed model, however, is applied to a real case study and the proposed investments in safety at an appointed chemical installation are weighed against the estimated hypothetical benefits resulting from the preventive measures to be installed at the installation. In the case-study carried out in question, it would appear that the proposed prevention investments are justified. Such an economic exercise may be very important to chemical corporations trying to (further) improve their safety investments.

Maintaining a system subject to uncertain technological evolution

International Nuclear Information System (INIS)

Nguyen, T.P.K.; Castanier, Bruno; Yeung, Thomas G.

2014-01-01

Maintenance decisions can be directly affected by the introduction of a new asset on the market, especially when the new asset technology could increase the expected profit. However new technology has a high degree of uncertainty that must be considered such as, e.g., its appearance time on the market, the expected revenue and the purchase cost. In this way, maintenance optimization can be seen as an investment problem where the repair decision is an option for postponing a replacement decision in order to wait for a potential new asset. Technology investment decisions are usually based primarily on strategic parameters such as current probability and expected future benefits while maintenance decisions are based on “functional” parameters such as deterioration levels of the current system and associated maintenance costs. In this paper, we formulate a new combined mathematical optimization framework for taking into account both maintenance and replacement decisions when the new asset is subject to technological improvement. The decision problem is modelled as a non-stationary Markov decision process. Structural properties of the optimal policy and forecast horizon length are then derived in order to guarantee decision optimality and robustness over the infinite horizon. Finally, the performance of our model is highlighted through numerical examples

An evidence-based approach for investment in rapid-charging infrastructure

International Nuclear Information System (INIS)

Serradilla, Javier; Wardle, Josey; Blythe, Phil; Gibbon, Jane

2017-01-01

To date, real cost data for Electric Vehicle (EV) rapid charging infrastructure is largely missing in the literature, preventing development of economic models to encourage private investment and limiting policy decisions. A business model has been constructed using actual capital expenditure, operating costs and usage data from the Rapid Charge Network project (RCN) which can be used to assist future investment and policy decisions. The model is run under a wide spectrum of EV uptake scenarios to provide plausible answers to a variety of research, policy and investment questions, including minimum growth rates to break even under current policy. Using real-world data we have confirmed that a financial business opportunity does exist for investment in rapid chargers on main highways and have identified the operating area in which a profit can be made. However, since UK EV adoption is still at the Innovators stage in a niche market where innovations in technology, user practices, supporting infrastructure and functionality are still required to achieve wide user acceptance, the case is also made for continued fiscal incentives to encourage investment in rapid-charging infrastructure. - Highlights: • Uses actual cost and use data to propose credible business model for EV rapid charging. • Identifies a profit area for successful operation. • Applying 3.3 electricity mark-up over 10 year investment period gives financial return. • EV uptake and Drivers’ willingness to pay remain key constraints. • Fiscal incentives would encourage private investment where demand is uncertain.

A methodological model to assist in the optimization and risk management of mining investment decisions

International Nuclear Information System (INIS)

Botin, Jose A; Guzman, Ronald R; Smith, Martin L

2011-01-01

Identifying, quantifying, and minimizing technical risks associated with investment decisions is a key challenge for mineral industry decision makers and investors. However, risk analysis in most bankable mine feasibility studies are based on the stochastic modeling of project N et Present Value (NPV)which, in most cases, fails to provide decision makers with a truly comprehensive analysis of risks associated with technical and management uncertainty and, as a result, are of little use for risk management and project optimization. This paper presents a value-chain risk management approach where project risk is evaluated for each step of the project life cycle, from exploration to mine closure, and risk management is performed as a part of a stepwise value-added optimization process.

Using Astronomy to shape a country's science and technology landscape

Science.gov (United States)

Mokhele, Khotso

2015-03-01

There is data abundant to show a positive correlation between a nation's investment in science, engineering and technology and the economic prosperity of that nation. Yet, there remain many countries in the world, particularly in developing countries, where little, if any, serious investment in science, engineering and technology is evident. Even in these countries, policy documents speak positively about the positive correlation between investment in science, engineering and technology and national development and prosperity. Unfortunately these positive policy statements rarely get converted into real investment. When the National Research Foundation was founded in Post-Apartheid South Africa it set out to ``. . .contribute to the improvement of the quality of life of all people. . .'' and its inspiring vision was to achieve ``A prosperous South Africa and African continent steeped in a knowledge culture, free of widespread diseases and poverty, and proud contributors to the well-being of humanity." This organisation, with its altruistic vision, succeeded in convincing the emerging government to invest in and support the construction of the Southern African Large Telescope as one of its flagship projects. This decision was subsequently followed by a high level national decision to leverage South Africa's geographical advantage to host major global astronomy facilities such as the Square Kilometer Array. This presentation highlighted the reasons for such decisions and how we went about motivating government organs that investing in astronomy would contribute to addressing societal challenges by stimulating the science and technology landscape.

Influence Diagram Use With Respect to Technology Planning and Investment

Science.gov (United States)

Levack, Daniel J. H.; DeHoff, Bryan; Rhodes, Russel E.

2009-01-01

Influence diagrams are relatively simple, but powerful, tools for assessing the impact of choices or resource allocations on goals or requirements. They are very general and can be used on a wide range of problems. They can be used for any problem that has defined goals, a set of factors that influence the goals or the other factors, and a set of inputs. Influence diagrams show the relationship among a set of results and the attributes that influence them and the inputs that influence the attributes. If the results are goals or requirements of a program, then the influence diagram can be used to examine how the requirements are affected by changes to technology investment. This paper uses an example to show how to construct and interpret influence diagrams, how to assign weights to the inputs and attributes, how to assign weights to the transfer functions (influences), and how to calculate the resulting influences of the inputs on the results. A study is also presented as an example of how using influence diagrams can help in technology planning and investment. The Space Propulsion Synergy Team (SPST) used this technique to examine the impact of R&D spending on the Life Cycle Cost (LCC) of a space transportation system. The question addressed was the effect on the recurring and the non-recurring portions of LCC of the proportion of R&D resources spent to impact technology objectives versus the proportion spent to impact operational dependability objectives. The goals, attributes, and the inputs were established. All of the linkages (influences) were determined. The weighting of each of the attributes and each of the linkages was determined. Finally the inputs were varied and the impacts on the LCC determined and are presented. The paper discusses how each of these was accomplished both for credibility and as an example for future studies using influence diagrams for technology planning and investment planning.

Evaluation of Representative Smart Grid Investment Grant Project Technologies: Thermal Energy Storage

Energy Technology Data Exchange (ETDEWEB)

Tuffner, Francis K.; Bonebrake, Christopher A.

2012-02-14

This document is one of a series of reports estimating the benefits of deploying technologies similar to those implemented on the Smart Grid Investment Grant (SGIG) projects. Four technical reports cover the various types of technologies deployed in the SGIG projects, distribution automation, demand response, energy storage, and renewables integration. A fifth report in the series examines the benefits of deploying these technologies on a national level. This technical report examines the impacts of energy storage technologies deployed in the SGIG projects.

Modeling the green building (GB) investment decisions of developers and end-users with transaction costs (TCs) considerations

NARCIS (Netherlands)

Qian, Q.K.; Chan, E.H.W.; Visscher, H.J.; Lehmann, S.

2015-01-01

The paper, through a “regenerative” lens, has focused upon a new conceptual game system involving transaction costs (TCs) for creating a more accessible green buildings (GB) market. Individual stakeholders steadfastly guard their own interests in any investment decision, which seldom considers any

Optimal Responsible Investment

DEFF Research Database (Denmark)

Jessen, Pernille

Numerous institutions are now engaged in Socially Responsible Investment or have signed the "UN Principles for Responsible Investment". Retail investors, however, are still lacking behind. This is peculiar since the sector constitutes key stakeholders in environmental, social and governmental...... standards. This paper considers optimal responsible investment for a small retail investor. It extends conventional portfolio theory by allowing for a personal-value based investment decision. Preferences for responsibility are defined in the framework of mean-variance analysis and an optimal responsible...... investment model identified. Implications of the altered investment problem are investigated when the dynamics between portfolio risk, expected return and responsibility is considered. Relying on the definition of a responsible investor, it is shown how superior investment opportunities can emerge when...

In search of the "lost capital". A theory for valuation, investment decisions, performance measurement

OpenAIRE

Magni, Carlo Alberto

2007-01-01

This paper presents a theoretical framework for valuation, investment decisions, and performance measurement based on a nonstandard theory of residual income. It is derived from the notion of "unrecovered" capital, which is here named "lost" capital because it represents the capital foregone by the investors. Its theoretical strength and meaningfulness is shown by deriving it from four main perspectives: financial, microeconomic, axiomatic, accounting. Implications for asset valuation, cap...

Promoting energy efficiency investments with risk management decision tools

International Nuclear Information System (INIS)

Jackson, Jerry

2010-01-01

This paper reviews current capital budgeting practices and their impact on energy efficiency investments. The prevalent use of short payback 'rule-of-thumb' requirements to screen efficiency projects for risk is shown to bias investment choices towards 'sure bet' investments bypassing many profitable efficiency investment options. A risk management investment strategy is presented as an alternative to risk avoidance practices applied with payback thresholds. The financial industry risk management tool Value-at-Risk is described and extended to provide an Energy-Budgets-at-Risk or EBaR risk management analysis to convey more accurate energy efficiency investment risk information. The paper concludes with recommendations to expand the use of Value-at-Risk-type energy efficiency analysis.

Emotions, Mood and Decision Making

OpenAIRE

Agnes Virlics

2014-01-01

Decisions are made according to a complex cognitive and emotional evaluation of the situation. The aim of the paper is to examine the effect of mood on risky investment decision making by using a mood induction procedure. The paper investigates how happy and sad mood affects risky investment decision making and whether there is a difference between the perception of fix investments and monetary investments. The analysis has been conducted focusing on individual investment decisions. Data for ...

Influence of elements of “technological revolution” on efficiency of the investment and construction sphere

Directory of Open Access Journals (Sweden)

Murashova Olga

2017-01-01

Full Text Available The article describes a new view on the investment and construction area taking into consideration the influence of information technologies and innovations. The author has pointed out the basic aspects, which could allow making a break-through in management effectiveness, if being implemented in companies’ business or in investment and construction projects. The article presents the definition of the investment and construction cycle as an integrator of innovation solutions. The paper contains the conclusion about the obvious sector development using active implementation of information modeling of the investment and construction project facilities.

TAX RESEARCH Financial Accounting versus Tax Accounting - Tax Rules’ Impact on Investment Decisions

OpenAIRE

Dr.Sc. Skender Ahmeti; Dr.Sc. Muhamet Aliu; MSc. Alban Elshani; Yllka Ahmeti

2014-01-01

This paper provides guidance for all those interested in research related to tax. In the study are included three main areas dealing with taxes and about taxes: (1) the role of information in corporation tax expenditures under the rules and laws of the country against financial statements according to international accounting standards, (2) case study PTK; how much effective tax and tax on extra profit has it paid (3) the impact of tax rules on investment decisions - the reasons and profits o...

Investments in information systems and technology in the healthcare: Project management mediation

Directory of Open Access Journals (Sweden)

Jorge Gomes

2017-03-01

Full Text Available Healthcare organisations must improve their business practices and internal procedures in order to answer the increasing demand of health professionals and the general public for more and better information. Hospitals invest massively in information systems and technology (IS/IT in the hope that these investments will improve healthcare and meet patients’ demands. The main objective of our research is to study how organisational maturity, enhanced by investments in IS/IT, project management and best practices, leads to successful projects in public healthcare organisations. The rational of our model is that organisational maturity has a positive effect on IS/IT project success, and that this success is also positively enhanced by the use of project management practices. We emphasise that this combination of approaches can increase the effectiveness of projects. Furthermore, it can also improve the confidence that the results of investments will meet stakeholders’ expectations.

Evaluation of Representative Smart Grid Investment Grant Project Technologies: Distributed Generation

Energy Technology Data Exchange (ETDEWEB)

Singh, Ruchi; Vyakaranam, Bharat GNVSR

2012-02-14

This document is one of a series of reports estimating the benefits of deploying technologies similar to those implemented on the Smart Grid Investment Grant (SGIG) projects. Four technical reports cover the various types of technologies deployed in the SGIG projects, distribution automation, demand response, energy storage, and renewables integration. A fifth report in the series examines the benefits of deploying these technologies on a national level. This technical report examines the impacts of addition of renewable resources- solar and wind in the distribution system as deployed in the SGIG projects.

A multi-criteria decision-making model for evaluating priorities for foreign direct investment

Directory of Open Access Journals (Sweden)

Korhan K. Gokmenoglu

2015-10-01

Full Text Available The objective of this study is to evaluate the relative priority of nine developed countries as a home country for foreign direct investment (FDI from the vantage point of the United States during three time periods: pre-crisis (2004-2006, crisis (2007-2009, and post-crisis (2010-2012. Our study suggests a methodology based on a combination of the analytic hierarchy process (AHP, the technique for order preference by similarity to ideal solution (TOPSIS, and the multi-period multi-attribute decision-making (MP-MADM technique. To investigate our research question, we selected fifteen robust FDI determinants from recent studies. The results for all three time periods show that productivity, market potential, market size, GDP growth and development have the highest priority in the decision-making process. On the other hand, we found that the 2007 global financial crisis significantly affected each variable in the decision-making process. During the crisis, two variables in particular - corruption and GDP growth - significantly increased in importance. These findings have far-reaching policy implications and can assist policymakers and investors in their strategic decision-making process.

Companies Credit Risk Assessment Methods for Investment Decision Making

Directory of Open Access Journals (Sweden)

Dovilė Peškauskaitė

2017-06-01

Full Text Available As the banks have tightened lending requirements, companies look for alternative sources of external funding. One of such is bonds issue. Unfortunately, corporate bonds issue as a source of funding is rare in Lithuania. This occurs because companies face with a lack of information, investors fear to take on credit risk. Credit risk is defined as a borrower’s failure to meet its obligation. Investors, in order to avoid credit risk, have to assess the state of the companies. The goal of the article is to determine the most informative methods of credit risk assessment. The article summarizes corporate lending sources, analyzes corporate default causes and credit risk assessment methods. The study based on the SWOT analysis shows that investors before making an investment decision should evaluate both the business risk,using qualitative method CAMPARI, and the financial risk, using financial ratio analysis.

The Use of Advanced Warfighting Experiments to Support Acquisition Decisions

National Research Council Canada - National Science Library

Strayer, Kenneth

1999-01-01

.... Specifically, the thesis evaluated the effectiveness of the Army Task Force XXI AWE in providing information to support investment decisions and refinement of requirements for information age technologies...

Decision Analysis System for Selection of Appropriate Decontamination Technologies

International Nuclear Information System (INIS)

Ebadian, M.A.; Boudreaux, J.F.; Chinta, S.; Zanakis, S.H.

1998-01-01

The principal objective for designing Decision Analysis System for Decontamination (DASD) is to support DOE-EM's endeavor to employ the most efficient and effective technologies for treating radiologically contaminated surfaces while minimizing personnel and environmental risks. DASD will provide a tool for environmental decision makers to improve the quality, consistency, and efficacy of their technology selection decisions. The system will facilitate methodical comparisons between innovative and baseline decontamination technologies and aid in identifying the most suitable technologies for performing surface decontamination at DOE environmental restoration sites

Stock prices and business investment

OpenAIRE

Yaron Leitner

2007-01-01

Is there a link between the stock market and business investment? Empirical evidence indicates that there is. A firm tends to invest more when its stock price increases, and it tends to invest less when the price falls. In “Stock Prices and Business Investment,” Yaron Leitner discusses existing research that explains this relationship. One question under consideration is whether the stock market actually improves investment decisions.

Energy management under policy and technology uncertainty

International Nuclear Information System (INIS)

Tylock, Steven M.; Seager, Thomas P.; Snell, Jeff; Bennett, Erin R.; Sweet, Don

2012-01-01

Energy managers in public agencies are subject to multiple and sometimes conflicting policy objectives regarding cost, environmental, and security concerns associated with alternative energy technologies. Making infrastructure investment decisions requires balancing different distributions of risks and benefits that are far from clear. For example, managers at permanent Army installations must incorporate Congressional legislative objectives, executive orders, Department of Defense directives, state laws and regulations, local restrictions, and multiple stakeholder concerns when undertaking new energy initiatives. Moreover, uncertainty with regard to alternative energy technologies is typically much greater than that associated with traditional technologies, both because the technologies themselves are continuously evolving and because the intermittent nature of many renewable technologies makes a certain level of uncertainty irreducible. This paper describes a novel stochastic multi-attribute analytic approach that allows users to explore different priorities or weighting schemes in combination with uncertainties related to technology performance. To illustrate the utility of this approach for understanding conflicting policy or stakeholder perspectives, prioritizing the need for more information, and making investment decisions, we apply this approach to an energy technology decision problem representative of a permanent military base. Highlights: ► Incorporate disparate criteria with uncertain performance. ► Analyze decisions with contrasting stakeholder positions. ► Interactively compare alternatives based on uncertain weighting. ► User friendly multi-criteria decision analysis (MCDA) tool.

INVESTMENT CLIMATE OF KAZAKHSTAN: CURRENT STATUS AND PROSPECTS

Directory of Open Access Journals (Sweden)

Madina Abugalievna TEMIRBULATOVA

2015-07-01

Full Text Available Agriculture still remains a little attractive to most of investors. Modern investment into agrarian sector of Kazakhstan and growth of its investment appeal restrains an acute shortage of financial resources, poorly developed material base, low solvent demand of the population therefore growth of investments is one of major factors of ensuring economic development of agriculture in general, improvement of quality of life of the population of the village, updating of regional technical and technological base, fixed assets in agriculture. In this regard special relevance researches on improvement of mechanisms of attraction of investments into agrarian sector of economy and methods of increase of investment appeal of agriculture for the purpose of ensuring its sustainable economic development. If to consider already created interstate unions, in this plan it is expedient to consider relationship between Romania and Kazakhstan. Kazakhstan and Romania will develop in common electronic decisions in education, medicine and agriculture. In Kazakhstan communications with inclusion of the earth in market the turn appears need for new financial instruments as mortgage valuable issue papers (bonds. The proposed Мodel of land - mortgage lending will be the main way to increase the investment attractiveness Republic of Kazakhstan.

On the Economic Consequences of Index-Linked Investing

OpenAIRE

Jeffrey Wurgler

2010-01-01

Trillions of dollars are invested through index funds, exchange-traded funds, and other index derivatives. The benefits of index-linked investing are well-known, but the possible broader economic consequences are unstudied. I review research which suggests that index-linked investing is distorting stock prices and risk-return tradeoffs, which in turn may be distorting corporate investment and financing decisions, investor portfolio allocation decisions, fund manager skill assessments, and oth...

Intersubjective decision-making for computer-aided forging technology design

Science.gov (United States)

Kanyukov, S. I.; Konovalov, A. V.; Muizemnek, O. Yu.

2017-12-01

We propose a concept of intersubjective decision-making for problems of open-die forging technology design. The intersubjective decisions are chosen from a set of feasible decisions using the fundamentals of the decision-making theory in fuzzy environment according to the Bellman-Zadeh scheme. We consider the formalization of subjective goals and the choice of membership functions for the decisions depending on subjective goals. We study the arrangement of these functions into an intersubjective membership function. The function is constructed for a resulting decision, which is chosen from a set of feasible decisions. The choice of the final intersubjective decision is discussed. All the issues are exemplified by a specific technological problem. The considered concept of solving technological problems under conditions of fuzzy goals allows one to choose the most efficient decisions from a set of feasible ones. These decisions correspond to the stated goals. The concept allows one to reduce human participation in automated design. This concept can be used to develop algorithms and design programs for forging numerous types of forged parts.

[Decision modeling for economic evaluation of health technologies].

Science.gov (United States)

de Soárez, Patrícia Coelho; Soares, Marta Oliveira; Novaes, Hillegonda Maria Dutilh

2014-10-01

Most economic evaluations that participate in decision-making processes for incorporation and financing of technologies of health systems use decision models to assess the costs and benefits of the compared strategies. Despite the large number of economic evaluations conducted in Brazil, there is a pressing need to conduct an in-depth methodological study of the types of decision models and their applicability in our setting. The objective of this literature review is to contribute to the knowledge and use of decision models in the national context of economic evaluations of health technologies. This article presents general definitions about models and concerns with their use; it describes the main models: decision trees, Markov chains, micro-simulation, simulation of discrete and dynamic events; it discusses the elements involved in the choice of model; and exemplifies the models addressed in national economic evaluation studies of diagnostic and therapeutic preventive technologies and health programs.

Real Time Investments with Adequate Portfolio Theory

Directory of Open Access Journals (Sweden)

Alina Kvietkauskienė

2015-02-01

Full Text Available The objective of this paper is to identify investment decision makingschemes using the adequate portfolio model. This approach can be employed to project investment in stocks, using the opportunities offered by the markets and investor intelligence. It was decided to use adequate portfolio theory for investment decision making, simulation of financial markets, and optimisation of utility function. The main conclusion of article suggests investigating return on individual portfolio level. Real investment is a way to make sure of the soundness of applicable strategies.

XD Metrics on Demand Value Analytics: Visualizing the Impact of Internal Information Technology Investments on External Funding, Publications, and Collaboration Networks

Directory of Open Access Journals (Sweden)

Olga Scrivner

2018-01-01

Full Text Available Many universities invest substantial resources in the design, deployment, and maintenance of campus-based cyberinfrastructure (CI. To justify the expense, it is important that university administrators and others understand and communicate the value of these internal investments in terms of scholarly impact. This paper introduces two visualizations and their usage in the Value Analytics (VA module for Open XD metrics on demand (XDMoD, which enable analysis of external grant funding income, scholarly publications, and collaboration networks. The VA module was developed by Indiana University’s (IU Research Technologies division, Pervasive Technology Institute, and the CI for Network Science Center (CNS, in conjunction with the University at Buffalo’s Center for Computational Research. It provides diverse visualizations of measures of information technology (IT usage, external funding, and publications in support of IT strategic decision-making. This paper details the data, analysis workflows, and visual mappings used in two VA visualizations that aim to communicate the value of different IT usage in terms of NSF and NIH funding, resulting publications, and associated research collaborations. To illustrate the feasibility of measuring IT values on research, we measured its financial and academic impact from the period between 2012 and 2017 for IU. The financial return on investment (ROI is measured in terms of IU funding, totaling $339,013,365 for 885 NIH and NSF projects associated with IT usage, and the academic ROI constitutes 968 publications associated with 83 of these NSF and NIH awards. In addition, the results show that Medical Specialties, Brain Research, and Infectious Diseases are the top three scientific disciplines ranked by the number of publications during the given time period.

Spatial policy, planning and infrastructure investment: lessons from urban simulations in three South African cities

CSIR Research Space (South Africa)

Coetzee, M

2014-05-01

Full Text Available from work conducted as part of a Department of Science and Technology (DST)-funded Integrated Planning and Development Modelling (IPDM) project, the article argues that decisions about infrastructure investment in South African metropolitan areas ought...

The effect of oil price volatility on strategic investment

International Nuclear Information System (INIS)

Henriques, Irene; Sadorsky, Perry

2011-01-01

In this paper, we investigate how oil price volatility affects the strategic investment decisions of a large panel of US firms. This paper uses key insights from the real options literature to develop a model of a company's strategic investment and shows how changes in oil price volatility can impact strategic investment decisions. The model is estimated using recently developed generalized method of moment estimation techniques for panel data sets. Empirical results are presented to show that there is a U shaped relationship between oil price volatility and firm investment. This is consistent with the predictions from the strategic growth options literature. The results should be useful to decision makers, investors, managers, policy makers and others who need to make strategic investment decisions in an uncertain world. (author)

Investment appraisal of automatic milking and conventional milking technologies in a pasture-based dairy system.

Science.gov (United States)

Shortall, J; Shalloo, L; Foley, C; Sleator, R D; O'Brien, B

2016-09-01

The successful integration of automatic milking (AM) systems and grazing has resulted in AM becoming a feasible alternative to conventional milking (CM) in pasture-based systems. The objective of this study was to identify the profitability of AM in a pasture-based system, relative to CM herringbone parlors with 2 different levels of automation, across 2 farm sizes, over a 10-yr period following initial investment. The scenarios which were evaluated were (1) a medium farm milking 70 cows twice daily, with 1 AM unit, a 12-unit CM medium-specification (MS) parlor and a 12-unit CM high-specification (HS) parlor, and (2) a large farm milking 140 cows twice daily with 2 AM units, a 20-unit CM MS parlor and a 20-unit CM HS parlor. A stochastic whole-farm budgetary simulation model combined capital investment costs and annual labor and maintenance costs for each investment scenario, with each scenario evaluated using multiple financial metrics, such as annual net profit, annual net cash flow, total discounted net profitability, total discounted net cash flow, and return on investment. The capital required for each investment was financed from borrowings at an interest rate of 5% and repaid over 10-yr, whereas milking equipment and building infrastructure were depreciated over 10 and 20 yr, respectively. A supporting labor audit (conducted on both AM and CM farms) showed a 36% reduction in labor demand associated with AM. However, despite this reduction in labor, MS CM technologies consistently achieved greater profitability, irrespective of farm size. The AM system achieved intermediate profitability at medium farm size; it was 0.5% less profitable than HS technology at the large farm size. The difference in profitability was greatest in the years after the initial investment. This study indicated that although milking with AM was less profitable than MS technologies, it was competitive when compared with a CM parlor of similar technology. Copyright © 2016 American Dairy

Environmental Decision Making and Information Technology: Issues Assessment

Energy Technology Data Exchange (ETDEWEB)

Barg, S.; Fletcher, T.; Mechling, J.; Tonn, B.; Turner, R.

1999-05-01

This report presents a summary of the Information Technology and Environmental Decision Making Workshop that was held at Harvard University, October 1-3, 1998. Over sixty participants from across the US took part in discussions that focused on the current practice of using information technology to support environmental decision making and on future considerations of information technology development, information policies, and data quality issues in this area. Current practice is focusing on geographic information systems and visualization tools, Internet applications, and data warehousing. In addition, numerous organizations are developing environmental enterprise systems to integrate environmental information resources. Plaguing these efforts are issues of data quality (and public trust), system design, and organizational change. In the future, much effort needs to focus on building community-based environmental decision-making systems and processes, which will be a challenge given that exactly what needs to be developed is largely unknown and that environmental decision making in this arena has been characterized by a high level of conflict. Experimentation and evaluation are needed to contribute to efficient and effective learning about how best to use information technology to improve environmental decision making.

Ethical analysis to improve decision-making on health technologies

DEFF Research Database (Denmark)

Saarni, Samuli I; Hofmann, Bjørn; Lampe, Kristian

2008-01-01

Health technology assessment (HTA) is the multidisciplinary study of the implications of the development, diffusion and use of health technologies. It supports health-policy decisions by providing a joint knowledge base for decision-makers. To increase its policy relevance, HTA tries to extend...... beyond effectiveness and costs to also considering the social, organizational and ethical implications of technologies. However, a commonly accepted method for analysing the ethical aspects of health technologies is lacking. This paper describes a model for ethical analysis of health technology...... to only analyse the ethical consequences of a technology, but also the ethical issues of the whole HTA process must be considered. Selection of assessment topics, methods and outcomes is essentially a value-laden decision. Health technologies may challenge moral or cultural values and beliefs...

Decision Support Tool for Prioritization of Surveillance and Maintenance Investment

International Nuclear Information System (INIS)

Velez, L.Y.; Conley, T.B.

2009-01-01

The Department of Energy (DOE) currently faces a difficult task in the disposition of the numerous excess or to-be excessed facilities owned by the Department. Many of these facilities are in various physical conditions and contain potentially hazardous nuclear, chemical, radiological or industrial materials left behind as a byproduct of nuclear weapons production, nuclear powered naval vessels and commercial nuclear energy production. During the last period of a facility's life cycle, it is important that surveillance and maintenance (S and M) be adequate to maintain the facility within an appropriate safety envelope. Inadequate investment in maintenance can cause facilities to deteriorate to the point they are unsafe for human entry. Too often this can mean tremendous increases to cost during deactivation and decommissioning (D and D). However, experiences often show that once buildings have been declared excess and enter the transition phase (as defined in DOE G 430.1-5 Transition Implementation Guide), maintenance budgets are drastically reduced. This is justified by the desire to not spend money 'on a building that is being torn down'. The objective of this study was to provide the U.S. Department of Energy (DOE) Environmental Management (EM) federal project directors and their contractors with a decision support tool to aid in prioritizing S and M investment across a site's excess facilities so that the limited budget available can be used most effectively. The analytical hierarchy process (AHP), a multi-criteria decision making method developed by Dr. Thomas Saaty in the 1970's, was used to derive the weight of importance of a defined list of risk-based criteria and typical S and M activities. A total of 10 facilities at the Oak Ridge National Laboratory (ORNL) varying in perceived hazards and conditions were chosen to test the tool by evaluating them with respect to each risk criterion and combining these results with the weight of importance of the S and M

Investment and Employment - Drivers of European Economic Development

Directory of Open Access Journals (Sweden)

Cristina BURGHELEA

2017-04-01

Full Text Available The economic literature and related specialty practice, the development of the European Economic Community along with the factors determining them (such investments and staff represents a topic that is of great notoriety. This paper shows the role and influence that direct investment in the economy and employment ratio can propagate in the growth of gross domestic product per capita to ensure increased economic sustainability of countries in the European Community. The most important economic effects of FDI on the host economy can be represented by labor productivity growth through knowledge transfer (know-how technology, management skills and marketing term in countries emerging favor progress technological and economic growth. To determine this goal, in the context of economic logic, this research shows the importance of gross domestic product, total and per capita, as a macroeconomic indicator synthetic, and encouraging and using the action of factors that can also provide political steps, organizational and financial, achieving levels attesting social progress and prosperity. The study highlights a Custom Analysis on gross domestic product per capita, direct investment and the proportion of people employed in total for 24 European Union countries in 2014 and also develop an econometric model multifactorial based on system statistics. Research shows utility in making decisions about investment growth in the European Community by attracting a workforce that is in full compliance with state investment policies and by providing a high living standard.

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

International Nuclear Information System (INIS)

Thiam, Djiby Racine

2011-01-01

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

Carbon Capture and Storage Investment and Management in an Environment of Technological and Price Uncertainties

Energy Technology Data Exchange (ETDEWEB)

Geske, Joachim; Herold, Johannes [Forschungszentrum Juelich and TU Dresden (Germany)

2009-07-01

In this paper we use a real options approach to analyze investment in a CCS postcombustion technology. Uncertainties in the development of efficiency and certificate prices are taken into account. We therefore propose a bounded monotone stochastic process to model energy efficiency development which is in line with thermodynamic limitations. The option not to employ the technology is allowed for. Parameter values are selected carefully. Numerical analysis shows plausible qualitative features. Furthermore there exist investment barriers for each uncertain parameter alone which reduce if interaction of the independent processes is permitted.

How are investment decisions in the steam coal market affected by demand uncertainty and buyer-side market power?

Energy Technology Data Exchange (ETDEWEB)

Paulus, Moritz

2012-02-15

During the last decade, China has evolved into the largest consumer by far and one of the largest importers of coal. The main driver for the increase in coal demand in China has been economic growth. Future Chinese growth rates, and therefore coal consumption and coal imports, are highly uncertain, which may affect profitability of new investments of international mining companies. Furthermore, China has actively employed an array of instruments to control coal trade flows in the last years. In this paper, we analyse the potential impact of increased Chinese coal import volatility and of potential exertion of Chinese market power on global mining investment decisions. For this purpose, we develop a multi-stage stochastic equilibrium model which is able to simulate investments under uncertainty and a monopolistic player in addition to a competitive fringe. We find that accounting for Chinese demand uncertainty yields significant costs for investors and also leads to a delay in investments. Additionally, the exertion of Chinese market power further reduces overall investment activity.

How are investment decisions in the steam coal market affected by demand uncertainty and buyer-side market power?

International Nuclear Information System (INIS)

Paulus, Moritz

2012-01-01

During the last decade, China has evolved into the largest consumer by far and one of the largest importers of coal. The main driver for the increase in coal demand in China has been economic growth. Future Chinese growth rates, and therefore coal consumption and coal imports, are highly uncertain, which may affect profitability of new investments of international mining companies. Furthermore, China has actively employed an array of instruments to control coal trade flows in the last years. In this paper, we analyse the potential impact of increased Chinese coal import volatility and of potential exertion of Chinese market power on global mining investment decisions. For this purpose, we develop a multi-stage stochastic equilibrium model which is able to simulate investments under uncertainty and a monopolistic player in addition to a competitive fringe. We find that accounting for Chinese demand uncertainty yields significant costs for investors and also leads to a delay in investments. Additionally, the exertion of Chinese market power further reduces overall investment activity.

Investment analysis of plum brandy production – methodology approach

OpenAIRE

Hadelan, Lari

2008-01-01

The major prerequisite of successful entrepreneurship venture is quality of decision-making process. Decision in investment is the most important financial decision. It is a part of both long-term business planning process and strategic business definition. Using available investment appraisal methods, entrepreneur should make positive or negative investment decision. Within the development of the economic theory and the practice many of methods made decision-making process rational and gave ...

Transmission expansion in an oligopoly considering generation investment equilibrium

DEFF Research Database (Denmark)

Taheri, S. Saeid; Kazempour, Jalal; Seyedshenava, Seyedjalal

2017-01-01

the future generation investment actions. However, in such an oligopolistic market, each producer makes its own strategic generation investment decisions. This motivates the transmission system planner to consider the generation investment decision-making problem of all producers within its TEP model......Transmission expansion planning (TEP) is a sophisticated decision-making problem, especially in an oligopolistic electricity market in which a number of strategic (price-maker) producers compete together. A transmission system planner, who is in charge of making TEP decisions, requires considering....... This paper proposes a tri-level TEP decision-making model to be solved by the transmission system planner, whose objective is to maximize the social welfare of the market minus the expansion costs, and whose constraints are the transmission expansion limits as well as the generation investment equilibrium...

The analysis of irreversibility, uncertainty and dynamic technical inefficiency on the investment decision in the Spanish olive sector

NARCIS (Netherlands)

Lambarraa, Fatima; Stefanou, Spiro; Gil, José M.

2016-01-01

This study addresses irreversible investment decision-making in the context of uncertainty when allowing for inefficiency to be transmitted over time. Both irreversibility and persistence in technical inefficiency can lead to sluggish adjustment of quasi-fixed factors of production. The context

Investment Portfolios in an Emerging Economy: What Drives Portfolio’s Diversification?

Directory of Open Access Journals (Sweden)

Pedro Luiz Albertin Bono Milan

2017-09-01

Full Text Available This study sheds light on the investment portfolio’s decisions through behavioral insights. The study intends to identify personal characteristics that drive the level of diversification and lead investors to allocate resources in risky assets in an emergent economy, deepening the discussion about investment decisions and bringing some behavioral insights to the debate. The study has a unique and heterogeneous database of individual financial allocations from Brazil, one of the largest emergent economies. The characteristics of Brazilian investors play an important role in investment decisions, high educated and married investors tend to display diversified portfolios. To invest in risky assets, male investors have a 43% greater likelihood of investing in risky assets than females, highlighting the discussion on gender and investment decisions. Moreover, married investors tend to exhibit conservative portfolios. We observed that traditional investors are under-diversified, allocating primarily in traditional and safety assets. The results suggest that the investment decisions can be subject to psychological biases defined in behavioral finance theory.

Value-creating investment strategies to manage risk from structural market uncertainties: Switching and compound options in (V)HTR technologies - HTR2008-58157

International Nuclear Information System (INIS)

Lauferts, U.; Halbe, C.; Van Heek, A.

2008-01-01

To measure the value of a technology investment under uncertainty with standard techniques like net present value (NPV) or return on investment (ROI) will often uncover the difficulty to present convincing business case. Projected cash flows are inefficient or the discount rate chosen to compensate for the risk is so high, that it is disagreeable to the investor s requirements. Decision making and feasibility studies have to look beyond traditional analysis to reveal the strategic value of a technology investment. Here, a Real Option Analysis (ROA) offers a powerful alternative to standard discounted cash-flow (DCF) methodology by risk-adjusting the cash flow along the decision path rather than risk adjusting the discount rate. Within the GEN IV initiative attention is brought not only towards better sustainability, but also to broader industrial application and improved financing. Especially the HTR design is full of strategic optionalities: The high temperature output facilitates penetration into other non-electricity energy markets like industrial process heat applications and the hydrogen market. The flexibility to switch output in markets with multi-source uncertainties reduces downside risk and creates an additional value of over 50% with regard to the Net Present Value without flexibility. The supplement value of deploying a modular (V)HTR design adds over 100% to the project value using real option evaluation tools. Focus of this paper was to quantify the strategic value that comes along a) with the modular design; a design that offers managerial flexibility adapting a step-by-step investment strategy to the actual market demand and b) with the option to switch between two modes of operation, namely electricity and hydrogen production. We will demonstrate that the effect of uncertain electricity prices can be dampened down with a modular HTR design. By using a real option approach, we view the project as a series of compound options - each option depending

Investment choice under uncertainty: A review essay

Directory of Open Access Journals (Sweden)

Trifunović Dejan

2005-01-01

Full Text Available An investment opportunity whose return is perfectly predictable, hardly exists at all. Instead, investor makes his decisions under conditions of uncertainty. Theory of expected utility is the main analytical tool for description of choice under uncertainty. Critics of the theory contend that individuals have bounded rationality and that the theory of expected utility is not correct. When agents are faced with risky decisions they behave differently, conditional on their attitude towards risk. They can be risk loving, risk averse or risk neutral. In order to make an investment decision it is necessary to compare probability distribution functions of returns. Investment decision making is much simpler if one uses expected values and variances instead of probability distribution functions.

MANAGING RISK BY COORDINATING INVESTMENT, MARKETING, AND PRODUCTION STRATEGIES

OpenAIRE

Johnson, Donald A.; Boehlje, Michael

1983-01-01

This study of the farm firm integrates long run investment and financial decisions, and short-run production and marketing decisions into a single decision framework that includes both time and risk. The results suggest that the use of various strategies for managing market risks allow the entrepreneur to accept mores risk in investing and producing; and that an integrated analysis of production, marketing and investment-financing alternatives is essential to make accurate recommendations abo...

The Role of Multinational Companies in the Deployment of Foreign Direct Investments

Directory of Open Access Journals (Sweden)

Ion Botescu

2006-10-01

Full Text Available In the last decades multinational firms have become the leading actors of the international markets, including markets in developing countries. A multinational firm’s decision to open a branch or a subsidiary in another country, thus to invest abroad, is based on efficiency criteria, the obtained profit having a primordial aspect. We mustn’t forget the various advantages the host country befits of, here mentioning the transfer of technology. The unprecedented foreign amalgamation of multinational firms was brought on by the continuous liberalization of international commerce and investment fluxes.

Real-time data collection technologies: Enhanced decision-making and cost savings January, 2005

International Nuclear Information System (INIS)

Rust, T.L.; Vu, H.Q.

2006-01-01

Hand-held computers, Geographic Information Systems (GIS), and wireless communication devices are rapidly replacing traditional methods for field monitoring and data collection. Although pencil and paper remain important means of data transcription, field technicians can now use Personal Digital Assistants (PDA) to record their field notes and monitoring data. As data are uploaded wirelessly from the field, decision-makers can view realtime reports and maps that identify sample locations and monitoring results. The combination of PDAs, wireless communications, and web-based GIS provides field personnel and decision-makers many benefits throughout the life cycle of a project, including improved data consistency, real-time transfer of data from field locations to centralized databases, input validation, elimination of transcription errors, and cost savings. Concerns have been expressed however, about investing in hardware, software, and training for a new technology. This paper, based on several years of experience using wireless technologies for dozens of projects, is focused specifically on two case studies. The first case study is a large lead removal site in the Midwest at which real-time data collection technologies were used throughout the project to collect thousands of data points. The second is the Hurricane Katrina/Rita emergency response requiring rapid data collection under extraordinary circumstances. At both sites, the use of real-time data collection technologies significantly improved the data management process which reduced overall costs and increased efficiency. These results could not have been achieved using traditional data collection procedures. The oral presentation will focus on the advantages and disadvantages of the real-time data collection technologies, lessons learned, and planning considerations. A live demonstration, following a typical data collection scenario in which data are collected and plotted on a GIS map in near real

INVESTMENT FOR ENVIRONMENTAL PROTECTION IN THE EUROPEAN UNION

Directory of Open Access Journals (Sweden)

POPEANGĂ VASILE

2014-08-01

Full Text Available Investment decision can be regarded as one of the most important decisions taken by the management company. By the correct foundation of investment decisions depend the market position of the company, increasing its market share and gain a competitive advantage over competitors. Investments for environmental protection brings together all available money-makers, private and mixed distribute to finance activities and actions aimed at the prevention, reduction and elimination of pollution and other forms of environmental degradation resulting from production processes or consumption of goods and services.

Producer firms, technology diffusion and spillovers to local suppliers : Examining the effects of Foreign Direct Investment and the technology gap

NARCIS (Netherlands)

Jordaan, J.A.

2017-01-01

In this paper, we conduct a detailed examination of the effects of Foreign Direct Investment (FDI) and the technology gap on local technology dissemination and spillovers. Using unique firm level data from surveys among FDI firms and domestic producer firms and a random sample of their suppliers in

BiodieselFAO: An Integrated Decision Support System for Investment Analysis in the Biodiesel Production Chain

Directory of Open Access Journals (Sweden)

Aziz Galvão da Silva Júnior

2015-06-01

Full Text Available In the short and medium terms, biofuels are the most viable alternative to reduce the environmental impact of fossil fuels. The recent controversy over the competition between biofuels and food production increases the complexity of investment decisions in the biodiesel production chain. In this context, decision support tools are highly relevant. The purpose of this article is to describe the BiodieselFAO using the Unified Modeling Language (UML. An integrated analysis considering both agricultural and industrial sectors was identified as a key requirement to the system. Therefore, farmers and industry are the main actors in the use case diagram. As the raw material represents around 70% of the industrial cost of biodiesel production, the price negotiation of raw material (oilseeds is the central use case. Configuration, agriculture, industry, results and scenarios are the modules, which encompass the functionalities derived from the UML diagrams. The Food and Agriculture Organization of the United Nations (FAO has made the BiodieselFAO available, free of charge, to around 180 professionals from 17 Latin American countries. Additionally, the developing team has supported the usage of the BiodieselFAO in several biodiesel investment analyses throughout Latin America. The system was also useful in the design and analysis of policy related to biodiesel industry in Brazil.

Impact of the Clean Development Mechanism on wind energy investments in Turkey

Energy Technology Data Exchange (ETDEWEB)

Tunc, Murat; Pak, Ruhan [Yeditepe Univ., Istanbul (Turkey). Systems Engineering Dept.

2012-12-01

As carbon trading continues to be implemented on both a national and an international scale, it is becoming an important factor in renewable energy investment decisions. Turkey, with continuous growth of carbon dioxide emission and energy consumption since 2001, ratified the Kyoto Protocol in 2009 and began registration of projects with greenhouse gas reductions in 2010. In light of these developments, wind energy resources with a potential of 48,000 MW are among the most efficient and effective solutions for clean and sustainable energy in Turkey. The aim of our study is to reveal the importance of the Clean Development Mechanism (CDM) of the Kyoto Protocol on wind energy investment decisions. A broad review of wind energy in Turkey is given, and then, a comprehensive feasibility study of a wind energy firm with a valuation model including Certified Emission Reduction (CER) prices is applied to a case study, the Mega Metallurgy Power. With a holistic and interdisciplinary system engineering approach, results are obtained using comprehensive analysis of technology, emission, and power generation of a wind energy firm linked to a valuation model. This comprehensive model sets the investment decision-making criteria, the enterprise value comparison with total financing. Finally, a sensitivity analysis is run to show that the enterprise value is positively correlated with CER prices. Based on these results, it is concluded that if the world's largest carbon offsetting program, the CDM, prevails after 2012, CER prices will have a positive impact on wind energy firm valuations and related investment decisions. (orig.)

Investment under uncertainty : Timing and capacity optimization

NARCIS (Netherlands)

Wen, Xingang

2017-01-01

This thesis consists of three chapters on analyzing the optimal investment timing and investment capacity for the firm(s) undertaking irreversible investment in an uncertain environment. Chapter 2 studies the investment decision of a monopoly firm when it can adjust output quantity in a market with

Investing in finite-life carbon emissions reduction program under risk and idiosyncratic uncertainty

International Nuclear Information System (INIS)

Fouilloux, Jessica; Moraux, Franck; Viviani, Jean-Laurent

2015-01-01

This paper aims at emphasizing the ability of new frameworks of real option model to highlight key characteristics of industrial Carbon Emissions Reduction Program investment decision. We develop both theoretical arguments and numerical simulations with structural parameters calibrated on real-life data. We find that both radical uncertainty and risk lead to speed-up green investments, compared to the predictions of real option models that are normally used in green investment literature. The conventional “wait and see” attitude, questioned in recent developments of the real option theory, is not validated. In conclusion, our results should foster companies to implement green investments and help governments to define appropriate incentives to encourage green investments. Of particular note, the paper highlights that finance theory is not necessarily an obstacle to green investment decisions. -- Highlights: •We use real option model to identify key features of CERP investment decision. •We determine the optimal carbon price threshold to undertake a CERP. •Investment decision is a non-monotonic function of idiosyncratic uncertainty. •Increasing uncertainty until a moderate level can accelerate investment decision. •Decreasing idiosyncratic risk can accelerate investment decision

Application of multi-criteria decision analysis in selecting of sustainable investments

Science.gov (United States)

Kozik, Renata

2017-07-01

Investors of construction projects, especially financed with public money, quite slowly adapt environmentally friendly solutions, e.g. passive buildings. Practice shows that the use of green public procurement among the public investors is negligible. Energy-saving technologies and equipment are expensive at the construction phase and investors less or not at all take into account the future operating costs. The aim of this article is to apply the method of multi-criteria analysis ELECTRE to select the best investment in terms of cost of implementation, operation, as well as the impact on the environment.

Decision support software technology demonstration plan

Energy Technology Data Exchange (ETDEWEB)

SULLIVAN,T.; ARMSTRONG,A.

1998-09-01

The performance evaluation of innovative and alternative environmental technologies is an integral part of the US Environmental Protection Agency's (EPA) mission. Early efforts focused on evaluating technologies that supported the implementation of the Clean Air and Clean Water Acts. In 1986 the Agency began to demonstrate and evaluate the cost and performance of remediation and monitoring technologies under the Superfund Innovative Technology Evaluation (SITE) program (in response to the mandate in the Superfund Amendments and Reauthorization Act of 1986 (SARA)). In 1990, the US Technology Policy was announced. This policy placed a renewed emphasis on making the best use of technology in achieving the national goals of improved quality of life for all Americans, continued economic growth, and national security. In the spirit of the technology policy, the Agency began to direct a portion of its resources toward the promotion, recognition, acceptance, and use of US-developed innovative environmental technologies both domestically and abroad. Decision Support Software (DSS) packages integrate environmental data and simulation models into a framework for making site characterization, monitoring, and cleanup decisions. To limit the scope which will be addressed in this demonstration, three endpoints have been selected for evaluation: Visualization; Sample Optimization; and Cost/Benefit Analysis. Five topics are covered in this report: the objectives of the demonstration; the elements of the demonstration plan; an overview of the Site Characterization and Monitoring Technology Pilot; an overview of the technology verification process; and the purpose of this demonstration plan.

Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

OpenAIRE

Jürgen Bitzer; Monika Kerekes

2005-01-01

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.

Healthcare's Future: Strategic Investment in Technology.

Science.gov (United States)

Franklin, Michael A

2018-01-01

Recent and rapid advances in the implementation of technology have greatly affected the quality and efficiency of healthcare delivery in the United States. Simultaneously, diverse generational pressures-including the consumerism of millennials and unsustainable growth in the costs of care for baby boomers-have accelerated a revolution in healthcare delivery that was marked in 2010 by the passage of the Affordable Care Act.Against this backdrop, Maryland and the Centers for Medicare & Medicaid Services entered into a partnership in 2014 to modernize the Maryland All-Payer Model. Under this architecture, each Maryland hospital negotiates a global budget revenue agreement with the state's rate-setting agency, limiting the hospital's annual revenue to the budgetary cap established by the state.At Atlantic General Hospital (AGH), leaders had established a disciplined strategic planning process in which the board of trustees, medical staff, and administration annually agree on goals and initiatives to achieve the objectives set forth in its five-year strategic plans. This article describes two initiatives to improve care using technology. In 2006, AGH introduced a service guarantee in the emergency room (ER); the ER 30-Minute Promise assures patients that they will be placed in a bed or receive care within 30 minutes of arrival in the ER. In 2007, several independent hospitals in the state formed Maryland eCare to jointly contract for intensive care unit (ICU) physician coverage via telemedicine. This technology allows clinical staff to continuously monitor ICU patients remotely. The positive results of the ER 30-Minute Promise and Maryland eCare program show that technological advances in an independent, small, rural hospital can make a significant impact on its ability to maintain independence. AGH's strategic investments prepared the organization well for the transition in 2014 to a value-based payment system.

Management of investment processes on Finnish farms

Directory of Open Access Journals (Sweden)

T. MATTILA

2008-12-01

Full Text Available Structural change in agriculture means a continuous need for investing in farm production. It is essential for the sustainable operations and the economy of the farm that such investments are successful. In this research, different stages of the investment process of farms were studied as well as the use of information and the success perceived during the investment process. The study was carried out with mail surveys and telephone interviews on the Finnish Farm Accountancy Data Network (FADN farms. The most challenging investments were in animal husbandry buildings and, as to these investments, the comparison of alternatives was the most challenging stage. For most investments, the planning phase was considered more challenging than the implementation. Before making the decision, farmers acquired information from many sources, of which the opinion of the main customer and the experiences of fellow farmers were the most valued. Some of the products considered were so new on the market that it was not easy to get adequate information and, furthermore, the information given by suppliers was not always accurate. Decision-making was supported by calculations, but qualitative factors had a dominating role. Large basic decisions were made relatively quickly, while details needed a longer time to process. In general, farm managers were satisfied with their investments. Improvements in work quality and quantity were especially mentioned and generally qualitative factors were the ones first in mind when evaluating the successfulness of the investment.;

Artificial intelligence and exponential technologies business models evolution and new investment opportunities

CERN Document Server

Corea, Francesco

2017-01-01

Artificial Intelligence is a huge breakthrough technology that is changing our world. It requires some degrees of technical skills to be developed and understood, so in this book we are going to first of all define AI and categorize it with a non-technical language. We will explain how we reached this phase and what historically happened to artificial intelligence in the last century. Recent advancements in machine learning, neuroscience, and artificial intelligence technology will be addressed, and new business models introduced for and by artificial intelligence research will be analyzed. Finally, we will describe the investment landscape, through the quite comprehensive study of almost 14,000 AI companies and we will discuss important features and characteristics of both AI investors as well as investments. This is the “Internet of Thinks” era. AI is revolutionizing the world we live in. It is augmenting the human experiences, and it targets to amplify human intelligence in a future not so distant from...

Returns on investments in energy-saving technologies under energy price uncertainty in Dutch greenhouse horticulture

NARCIS (Netherlands)

Diederen, P.J.M.; Tongeren, van F.W.; Veen, van der H.B.

2003-01-01

Conventional net present value calculations evaluating the profitability of investments in energy-saving technologies in Dutch horticultural outlays predict a much higher rate of adoption of these technologies than is actually observed. This paper tries to explain this gap by applying a real options

Communicating asset risk: how name recognition and the format of historic volatility information affect risk perception and investment decisions.

Science.gov (United States)

Weber, Elke U; Siebenmorgen, Niklas; Weber, Martin

2005-06-01

An experiment examined how the type and presentation format of information about investment options affected investors' expectations about asset risk, returns, and volatility and how these expectations related to asset choice. Respondents were provided with the names of 16 domestic and foreign investment options, with 10-year historical return information for these options, or with both. Historical returns were presented either as a bar graph of returns per year or as a continuous density distribution. Provision of asset names allowed for the investigation of the mechanisms underlying the home bias in investment choice and other asset familiarity effects. Respondents provided their expectations of future returns, volatility, and expected risk, and indicated the options they would choose to invest in. Expected returns closely resembled historical expected values. Risk and volatility perceptions both varied significantly as a function of the type and format of information, but in different ways. Expected returns and perceived risk, not predicted volatility, predicted portfolio decisions.

Incentives for innovation and adoption of new technology under emissions trading

OpenAIRE

Mandell, Svante

2009-01-01

A common claim in both the public and academic debate is that a tradable emission permits scheme does not provide sufficient incentives for R&D investments. The present paper addresses R&D investments and penetration rates of new technology focusing on the specific characteristics of a tradable permits market. It is showed that a complex dependency between the emissions cap, the market price for emission permits, the price for technology once it is developed and the R&D investment decision ad...

Warfighter decision making performance analysis as an investment priority driver

Science.gov (United States)

Thornley, David J.; Dean, David F.; Kirk, James C.

2010-04-01

Estimating the relative value of alternative tactics, techniques and procedures (TTP) and information systems requires measures of the costs and benefits of each, and methods for combining and comparing those measures. The NATO Code of Best Practice for Command and Control Assessment explains that decision making quality would ideally be best assessed on outcomes. Lessons learned in practice can be assessed statistically to support this, but experimentation with alternate measures in live conflict is undesirable. To this end, the development of practical experimentation to parameterize effective constructive simulation and analytic modelling for system utility prediction is desirable. The Land Battlespace Systems Department of Dstl has modeled human development of situational awareness to support constructive simulation by empirically discovering how evidence is weighed according to circumstance, personality, training and briefing. The human decision maker (DM) provides the backbone of the information processing activity associated with military engagements because of inherent uncertainty associated with combat operations. To develop methods for representing the process in order to assess equipment and non-technological interventions such as training and TTPs we are developing componentized or modularized timed analytic stochastic model components and instruments as part of a framework to support quantitative assessment of intelligence production and consumption methods in a human decision maker-centric mission space. In this paper, we formulate an abstraction of the human intelligence fusion process from the Defence Science and Technology Laboratory's (Dstl's) INCIDER model to include in our framework, and synthesize relevant cost and benefit characteristics.

Investment Decisions with Two-Factor Uncertainty

NARCIS (Netherlands)

Compernolle, T.; Huisman, Kuno; Kort, Peter; Lavrutich, Maria; Nunes, Claudia; Thijssen, J.J.J.

2018-01-01

This paper considers investment problems in real options with non-homogeneous two-factor uncertainty. It shows that, despite claims made in the literature, the method used to derive an analytical solution in one dimensional problems cannot be straightforwardly extended to problems with two

Stimulating Investments in Energy Efficiency Through Supply Chain Integration

Directory of Open Access Journals (Sweden)

Beatrice Marchi

2018-04-01

Full Text Available Attention to energy efficiency is recently experiencing substantial growth. To overcome the several barriers currently existing that represent an obstacle to the successful implementation of the wide set of energy efficiency measures available, the cooperation among members of a supply chain offers a huge potential. In supply chains, in addition to the traditional coordination of the operations, the members may also share financial resources or act jointly on the capital market. This study presents a two-stage supply chain model considering the opportunity to invest in new energy efficient technologies which are affected by learning effects: the member of the supply chain with better energy performance and/or better financial conditions may find it more profitable to invest in the development of the energy efficiency of its partner. The objective of the model is to determine the optimal investment for each supply chain member so as to maximize the Net Present Value of the supply chain. The impacts of the proposed joint decision-making are investigated through some numerical analysis and managerial insights are proposed: the joint decision-making process on the financial flows for the energy efficiency investments results are especially advantageous (up to a 20% increase of the supply chain Net Present Value when members have different access to capital, which could be the result of different economic conditions in companies’ countries, as well as different credit policies or different credit ratings.

Foreign direct investment and technology spillovers in Mexico: 20 years of NAFTA

OpenAIRE

Armas, Enrique; Rodríguez, José Carlos

2017-01-01

This article analyses the development of technology capabilities in the manufacturing sector of Mexico during the last two decades. It has been argued that the inclusion of Mexico in the North America Free Trade Agreement (NAFTA) in 1994 would be enough to catch up with Canada and the United States. In this regard, trade liberalisation and foreign direct investment (FDI) would have been two strategic tools to close the technology gap between Mexico and its commercial partners in North America...

Assessment of RFID Investment in the Military Logistics Systems Through The Life Cycle Cost (LCC) Model

OpenAIRE

Ozdemir, Ahmet; Bayrak, Mustafa

2015-01-01

Radio Frequency Identification (RFID) is an emerging technology that has been recently used in numerous business and public fields. Most military applications of RFID have focused on logistics systems. Since RFID investment requires high initial cost and its benefits are hard to see in the short term, it needs an appropriate investment decision model. The purpose of this research is to propose a Life Cycle Cost (LCC) model for RFID integration into the Military Logistics System (MLS). The stu...

Assessment of RFID investment in the military logistics systems through the Cost of Ownership Model (COO)

OpenAIRE

Ozdemir, Ahmet; Bayrak, Mustafa Ali

2010-01-01

MBA Professional Report Radio Frequency Identification (RFID) is an emerging technology that has been recently used in numerous business and public fields. Most military applications of RFID have focused on logistics systems. Since RFID investment requires high initial cost and its benefits are hard to see in the short term, it needs an appropriate investment decision model. The purpose of this research is to propose a Cost of Ownership (COO) model for RFID integration into the Military ...

Corporate investment decisions and economic analysis. Exercises and case studies

International Nuclear Information System (INIS)

Babusiaux, D.; Pierru, A.

2005-01-01

Economic analysis of industrial projects is based on methods which are often simple, sometimes complex, yet always to be applied with rigor. The aim of this book is to help readers assimilate the concepts and methods for investment decision and project evaluation. It offers a wide range of exercises, problems and case studies taken from business, which are the fruit of many years of teaching, consulting and research. Some are direct application of basics, others require a higher degree of reflection for more complex applications. Our approach borrows elements from micro economics, engineering economics and finance theory. While many examples relate to the energy sector, particularly oil and gas, the problems addressed are of broader scope and so are fully applicable to other industry sectors. This book is ideally suited to both professionals and students who seek to master capital budgeting techniques. A review of essential points is proposed at the beginning of each chapter and key methodological elements are recalled in the solutions. (authors)

The decision concerning the nuclear investment: influence of the industrial structure; La decision d'investissement nucleaire: l'influence de la structure industrielle

Energy Technology Data Exchange (ETDEWEB)

Guillerminet, M.L

2000-10-01

This report aims to analyze the investment behavior of an enterprise producing nuclear origin electric power in an european market opening to the competition. In this context, the industrial structure controlled by the governor decides the investment in a marginal equipment: either an integrated monopole structure which leads to a regulation at the cost price rate of return; or a pool structure in which the governor intervene to fix the cost price at the marginal cost level given by the main technology of the gas combined cycles. (A.L.B.)

THE DEFINITION OF INVESTMENT AND THE ICSID CONVENTION ...

African Journals Online (AJOL)

RAYAN_

Other States (the ICSID Convention) has a trickledown effect on the Nigerian. Investment ... Keywords: Nigerian Investment Promotion Act, Law and Development,. Investment ... ARB/84/3, Decision on Jurisdiction (N0.1) 27 November 1985). 3 ICSID ..... purchase of bonds qualify as an investment within ICSID jurisdiction.

Investing in an coal power plant and CO2 constraints. What do risk decision-making models tell us?

International Nuclear Information System (INIS)

Taverdet-Popiolek, N.

2010-01-01

Face with the challenge of climate change, Europe implemented a CO 2 quota market in 2005, in order to encourage industries to reduce their emissions. The first operating phase of that market was not a constraint for them, as quotas were generously allocated and prices relatively low. However it looks as though the second phase (2013-2020, will be more of an incitement as the quota allocation will not be free and market prices will probably be higher. So, faced with the CO 2 price risk, is there any point in European electricity companies investing in coal plants that emit huge amounts of CO 2 , per kWh produced? Or is it preferable for them to wait, even though it would meat making no profit for four years, for the second phase of the quota market, in order to become more familiar with the rules? To provide answers to those questions, we have modelled both scenarios: investing immediately (irreversible decision) or waiting for 2013 (decision that implies the possibility of choosing in full knowledge of the facts). The models we chose are very simple (two periods only, with stable prices within them) and place the risk mainly in the price of CO 2 , for which two scenarios are considered in the second period: price of CO 2 , low high. They show that the expected price of CO 2 has a strong influence on the decision to invest and that industries take a stance based on their anticipation of that price and the likeliness of the scenarios. The profitability of the coal industry is weakened by the CO 2 price risk, unless the price of electricity follows that of carbon (which was not considered in the model) although the electricity price scenario is a relatively favourable one. (author)

Competitive Capacity Investment under Uncertainty

NARCIS (Netherlands)

X. Li (Xishu); R.A. Zuidwijk (Rob); M.B.M. de Koster (René); R. Dekker (Rommert)

2016-01-01

textabstractWe consider a long-term capacity investment problem in a competitive market under demand uncertainty. Two firms move sequentially in the competition and a firm’s capacity decision interacts with the other firm’s current and future capacity. Throughout the investment race, a firm can

Technology investment fund : issues for consideration : issue paper for an expert workshop

International Nuclear Information System (INIS)

Drexhage, J.

2006-12-01

This document was prepared in advance of an expert workshop held to discuss technology investment funds (TIF) related to Canada's Clean Air Act. TIFs are being considered in the development of the Clean Air Act as a compliance option for air emissions regulations. Energy production is expected to dominate Canadian business in the future, and the domestic sector is undergoing a marked shift from conventional to unconventional sources such as oil sands, coalbed methane (CBM) and liquefied natural gas. Technological solutions are required to allow Canada to obtain the benefits of the country's natural resource wealth while reducing impacts to the environment. However, solutions will vary from region to region. The report examined issues related to financing research and demonstration programs. Research and development policies were discussed, as well as the role of the government in encouraging public and private partnerships. It was suggested that a portfolio of policy approaches will be required, as well as a compliance-based TIF designed to address a range of greenhouse gas (GHG) and air pollutants. Issues concerning rates of contributions and recognition for existing technology investments were also reviewed. Various taxes, levies, and funding approaches were outlined. It was concluded that a successful TIF will form part of an overall emissions trading framework.1 tab

Technology Familiarization to Preservice Teachers: Factors that Influence Teacher Educators' Technology Decisions

Science.gov (United States)

Kalonde, Gilbert; Mousa, Rabab

2016-01-01

The purpose of this study was to investigate factors that influence teacher educators' technology decisions in methods courses. Research has shown various reasons why teachers use different types of technologies and not able to integrate certain technologies. However, this study focused on the source of teachers' instructional technology…

Improving Energy Efficiency Through Technology. Trends, Investment Behaviour and Policy Design

Energy Technology Data Exchange (ETDEWEB)

Florax, R.J.G.M. [Purdue University, West Lafayette, IN (United States); De Groot, H.L.F. [VU University, Amsterdam (Netherlands); Mulder, P. [Tinbergen Institute, Amsterdam (Netherlands)] (eds.)

2011-10-15

This innovative book explores the adoption of energy-saving technologies and their impact on energy efficiency improvements. It contains a mix of theoretical and empirical contributions, and combines and compares economic and physical indicators to monitor and analyse trends in energy efficiency. The authors pay considerable attention to empirical research on the determinants of energy-saving investment including uncertainty, energy-price volatility and subsidies. They also discuss the role of energy modelling in policy design and the potential effect of energy policies on technology diffusion in energy-extensive sectors. Written from a multi-disciplinary perspective, this book will appeal to academics and graduates in the areas of energy-saving technologies, energy economics and natural resource economics, as well as policy makers - particularly those in energy policy.

A case for Sandia investment in complex adaptive systems science and technology.

Energy Technology Data Exchange (ETDEWEB)

Colbaugh, Richard; Tsao, Jeffrey Yeenien; Johnson, Curtis Martin; Backus, George A.; Brown, Theresa Jean; Jones, Katherine A.

2012-05-01

This white paper makes a case for Sandia National Laboratories investments in complex adaptive systems science and technology (S&T) -- investments that could enable higher-value-added and more-robustly-engineered solutions to challenges of importance to Sandia's national security mission and to the nation. Complex adaptive systems are ubiquitous in Sandia's national security mission areas. We often ignore the adaptive complexity of these systems by narrowing our 'aperture of concern' to systems or subsystems with a limited range of function exposed to a limited range of environments over limited periods of time. But by widening our aperture of concern we could increase our impact considerably. To do so, the science and technology of complex adaptive systems must mature considerably. Despite an explosion of interest outside of Sandia, however, that science and technology is still in its youth. What has been missing is contact with real (rather than model) systems and real domain-area detail. With its center-of-gravity as an engineering laboratory, Sandia's has made considerable progress applying existing science and technology to real complex adaptive systems. It has focused much less, however, on advancing the science and technology itself. But its close contact with real systems and real domain-area detail represents a powerful strength with which to help complex adaptive systems science and technology mature. Sandia is thus both a prime beneficiary of, as well as potentially a prime contributor to, complex adaptive systems science and technology. Building a productive program in complex adaptive systems science and technology at Sandia will not be trivial, but a credible path can be envisioned: in the short run, continue to apply existing science and technology to real domain-area complex adaptive systems; in the medium run, jump-start the creation of new science and technology capability through Sandia's Laboratory Directed Research

Invester Response to Consumer Elasticity, Nordic Energy Research

DEFF Research Database (Denmark)

Jensen, Stine Grenaa; Meibom, Peter; Ravn, Hans V.

2004-01-01

. The simulated investment decisions are taken in a stochastic, dynamic setting, where a key point is the timing of the investment decision in relation to the gathering of new information relative to the stochastic elements. Based on this, the consequences of the development in consumer price elasticity......, and it is generally assumed that the demand side has an important role in this, and increasingly so. However, since consumers have not earlier had the incentive to respond to electricity prices, no reliable estimate of demand elasticity is known. The purpose of the present study is to analyse the role of electricity...... demand elasticity for investments in new electricity production capacity. Electricity price scenarios generated with a partial equilibrium model (Balmorel) are combined with a model of investment decisions. In this, various scenarios concerning the development in the demand elasticity are used...

Knowledge Management Technology for Decision Support: an empirical examination

Directory of Open Access Journals (Sweden)

Meliha Handzic

2001-11-01

Full Text Available This paper reports the results of an empirical examination of the effectiveness of one type of knowledge management technology, namely 'contextual knowledge repository', for supporting individual decision makers in a predictive judgement task context. 31 volunteer subjects participated in the study. The results indicate that a given technology was fairly useful, but insufficient to maximally enhance individual decision making. On one hand, subjects were found to extract more knowledge and make significantly smaller decision errors than their notional naive counterparts. On the other hand, subjects tended to extract less knowledge and make significantly larger decision errors compared to notional optimal counterparts. These findings suggest that individuals could potentially benefit from those knowledge management technologies that would provide additional explicit analytical and procedural knowledge, or those that would facilitate sharing of tacit knowledge through interaction with others. Future research is necessary to address these issues.

Review of early assessment models of innovative medical technologies

DEFF Research Database (Denmark)

Fasterholdt, Iben; Krahn, Murray D; Kidholm, Kristian

2017-01-01

INTRODUCTION: Hospitals increasingly make decisions regarding the early development of and investment in technologies, but a formal evaluation model for assisting hospitals early on in assessing the potential of innovative medical technologies is lacking. This article provides an overview of models...

Kötekli, Akçaova Arakat Fiyatları ve Yatırım Kararı = Kötekli, Akçaova House Prices and the Investment Decision

Directory of Open Access Journals (Sweden)

Cem Mehmet BAYDUR

2013-07-01

Full Text Available Buying a house is an important decision whether it is for investment or for accommodation. Every decision of investment means taking risks. When buying a flat is taken into consideration, it could be clearly seen that there is considerable difference between financially capitalized price and market price of it. In this article, I will be shown that this difference arises from growth expectation in future cash flows. In this article the buying decisions of three different groups of investors are investigated depending on their attitude towards risk taking, based on the growth expectation. Samples of this research are taken from Kötekli and Akçaova, districts of Muğla. The article discusses the actual growth expectations of investors and their buying decisions.

Assessing the quality of decision support technologies using the International Patient Decision Aid Standards instrument (IPDASi.

Directory of Open Access Journals (Sweden)

Glyn Elwyn

Full Text Available To describe the development, validation and inter-rater reliability of an instrument to measure the quality of patient decision support technologies (decision aids.Scale development study, involving construct, item and scale development, validation and reliability testing.There has been increasing use of decision support technologies--adjuncts to the discussions clinicians have with patients about difficult decisions. A global interest in developing these interventions exists among both for-profit and not-for-profit organisations. It is therefore essential to have internationally accepted standards to assess the quality of their development, process, content, potential bias and method of field testing and evaluation.Scale development study, involving construct, item and scale development, validation and reliability testing.Twenty-five researcher-members of the International Patient Decision Aid Standards Collaboration worked together to develop the instrument (IPDASi. In the fourth Stage (reliability study, eight raters assessed thirty randomly selected decision support technologies.IPDASi measures quality in 10 dimensions, using 47 items, and provides an overall quality score (scaled from 0 to 100 for each intervention. Overall IPDASi scores ranged from 33 to 82 across the decision support technologies sampled (n = 30, enabling discrimination. The inter-rater intraclass correlation for the overall quality score was 0.80. Correlations of dimension scores with the overall score were all positive (0.31 to 0.68. Cronbach's alpha values for the 8 raters ranged from 0.72 to 0.93. Cronbach's alphas based on the dimension means ranged from 0.50 to 0.81, indicating that the dimensions, although well correlated, measure different aspects of decision support technology quality. A short version (19 items was also developed that had very similar mean scores to IPDASi and high correlation between short score and overall score 0.87 (CI 0.79 to 0.92.This work