Search results for "Present value"
showing 10 items of 44 documents
Economic feasibility of stationary electrochemical storages for electric bill management applications: The Italian scenario
2016
Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, …
Economic assessment based on scenario analysis for the production of a new functional pasta
2018
Abstract Nowadays functional foods are becoming more popular due to their capacity to prevent and/or reduce the risk of certain diseases. Functional foods improve health and give physiological benefits providing nutrients beyond the simple nutritional value. The market for functional foods is growing rapidly and the consumers are willing to pay a premium price for these products. In this context, the production of pasta comprising Opuntia may represent an opportunity to combine the widespread consumption of pasta in the traditional Mediterranean Diet and the beneficial characteristics of the Opuntia, including anti-inflammatory, antioxidant, hypoglycemic, antimicrobial and neuroprotective p…
Converting Retirement Benefit into a Life Care Annuity with Graded Benefits: How Costly Would it Actually Be?
2016
This paper deals with life care annuities, i.e. bundled products comprising a life annuity and long-term care insurance. It aims to assess the cost of converting retirement benefit into a life care annuity with graded benefits using a pre-existing public pay-as-you-go pension scheme. With this objective in mind, we present an actuarial method based on array calculus for valuing this type of life care annuity. The health dynamics of the annuitant rely on a reversible illness-death multistate framework. The paper contains a numerical example in which mortality and disability assumptions are based on data from the USA and Australia, although this should be viewed simply as an illustration. In …
The social benefits of restoring water quality in the context of the Water Framework Directive: A comparison of willingness to pay and willingness to…
2009
The Water Framework Directive (WFD) is by far the most important piece of water legislation in Europe for the coming decades. Its main aim is to achieve "good ecological status" for all water resources by 2015. The economic valuation of the non-market benefits derived from improving water quality is an important input in assisting the design and implementation of efficient and effective water management policies. In this study, the contingent valuation method has been applied with a double purpose. On the one hand, we have estimated the value of a hypothetical improvement in water quality of a river asking individuals about their willingness to pay, and on the other hand, the issue of exemp…
Economic comparison between offshore and inshore aquaculture production systems of European sea bass in Italy
2014
Abstract Offshore production system is predicted to increase in the near future driven by the lack of coastal space and lower environmental impacts. The aim of this paper has been to evaluate the economic performance of offshore production system respect to inshore one, by comparing net present value (NPV), discounted payback time (DPBT) and internal rate of return (IRR) of two Italian mariculture farms that produce European sea bass. Results showed a better economic profitability of offshore farm, even if sensitivity analysis revealed that financial indicators of both aquaculture production systems have been very sensitive to market condition changes. So, offshore production system could r…
Incorporating stand level risk management options into forest decision support systems
2018
Aim of study: To examine methods of incorporating risk and uncertainty to stand level forest decisions. Area of study: A case study examines a small forest holding from Jonkoping, Sweden. Material and methods: We incorporate empirically estimated uncertainty into the simulation through a Monte Carlo approach when simulating the forest stands for the next 100 years. For the iterations of the Monte Carlo approach, errors were incorporated into the input data which was simulated according to the Heureka decision support system. Both the Value at Risk and the Conditional Value at Risk of the net present value are evaluated for each simulated stand. Main results: Visual representation of the er…
The new course of FITs mechanism for PV systems in Italy: novelties, strong points and criticalities
2011
The paper deals with the new course of the Feed-in Tariffs mechanism for photovoltaic systems that will start from January 1, 2011 in Italy with the actuation of the Government Decree DM 06/08/2010. After a short introduction on Feed-in Tariffs and Net-metering in Italy, the paper focuses the attention on an economical comparison between the incentives established by the Government Decree DM 19/02/07, ended on December 31, 2010 and those introduced by the DM 06/08/2010. The economical comparison is based on three indexes: the Pay Back Period, the Net Present Value and the Internal Rate of Return, characterizing the investments done for the realization of the photovoltaic systems. In particu…
Stock prices, dividends, and structural changes in the long-term: The case of U.S.
2020
Abstract According to several empirical studies, the Present Value model fails to explain the behaviour of stock prices in the long-run. In this paper we consider the possibility that a linear cointegrated regression model with multiple structural changes would provide a better empirical description of the Present Value model of U.S. stock prices. Our methodology is based on instability tests recently proposed in Kejriwal and Perron (2008, 2010) as well as the cointegration tests developed in Arai and Kurozumi (2007) and Kejriwal (2008). The results obtained are consistent with the existence of linear cointegration between the log stock prices and the log dividends. However, our empirical r…
AN EXPERIMENTAL TEST ON RETIREMENT DECISIONS
2007
I. INTRODUCTION The reform of social security systems is now one of the main issues on the economic policy agenda of most industrialized countries. It is widely considered that, unless serious changes take place, the aging of the population implying a rise in the number of retirees relative to that of workers will threaten the viability, of pay-as-you-go public pension systems in the long run. This threat is being reinforced by the progressive reduction in the retirement age of the working population. The central reforms that are being proposed to neutralize these future financing problems are the raising of the contribution rate, the decreasing of pension benefits, or/and the delay of the …
Risk assessment and profit sharing in business networks
2011
Abstract Nowadays network is the preferred governance form to conduct economic transactions. Network solution allows to reach flexibility maintaining cost and quality level. Since network concept refers to a great variety of organizational hybrids it is possible to choose the one that fits better market requirements. The new trends in inter-organization relationships push towards network solutions: companies are interested in relationships with partners and customers to overcome resource dependence, to enter too risky market or simply differentiate their business portfolio. The proposed research focuses on the network concept aiming at highlighting threats and opportunities to investigate t…