Search results for "Present value"
showing 10 items of 44 documents
Money and the natural rate of interest: structural estimates for the United States and the Euro area
2008
We examine the role of money, allowing for three competing environments: the New Keynesian model with separable utility and static money demand; a non-separable utility variant with habit formation; and a version with adjustment costs for holding real balances. The last two variants imply forward-looking behavior of real money balances, as it is optimal for agents to allow their forecast of future interest rates to affect current portfolio decisions. We distinguish between these specifications by conducting a structural econometric analysis for the U.S. and the euro area. FIML estimates confirm the forward-looking character of money demand. Using these estimates we find that, in response to…
Economic evaluation on the use of reconfiguration systems for increase of energy production in PV plants
2016
This paper presents an economic analysis of the effectiveness of Dynamic Reconfiguration Systems (DRS) for PV plants in dependence of the incentive policies offered by several countries of the European Community. This evaluation has been achieved by means of the NPV (Net Present Value) and through the comparison between Bulgaria, Romania, Greece and Croatia. From the obtained results, it can be stated that the adoption of reconfiguration systems, in certain cases, can be a convenient solution.
Battery storage systems for peak load shaving applications: Part 2: Economic feasibility and sensitivity analysis
2016
This paper is the second of a two-part series, aiming to evaluate the economic feasibility of electrochemical storage systems in peak load shaving applications. The battery energy storage system (BESS) is considered to be added to a private facility, with the aim of reducing the customer electricity bill. The BESS is charged during the night, when the electricity prices are the lowest and discharged during the daily hours, when the prices are the highest, contemporary achieving a leveling of the daily usage pattern. The economical evaluations are carried out considering four different electrochemical technologies: lithium-ion (li-ion), advanced lead-acid, sodium-sulphur (NaS) and flow batte…
Concurrent optimization of size and switch-on priority of a multisource energy system for a commercial building application
2015
Abstract In recent years, the governments of most nations have pledged to (i) limit carbon dioxide emissions, (ii) reduce primary energy consumption by increasing production, distribution and end-use efficiency and (iii) increase the utilization of renewable energy sources. In general, these goals are pursued separately by law, by subsidizing renewable energy technologies, reducing the demand or using high efficiency technologies. In this context, multi-source systems for the fulfillment of energy demands are highly advantageous because they are based on different technologies which use renewable, partially renewable and fossil energy sources. However, the main issues of multi-source system…
Post Feed-in Scheme Photovoltaic System Feasibility Evaluation in Italy: Sicilian Case Studies
2014
: Thanks to national energy policies, over recent years the Italian photovoltaic (PV) sector has undergone an extraordinary growth, also affecting the primary sector. In this context, Mediterranean greenhouses are well-adapted to photovoltaic systems because they represent one of the most energy-intensive sectors in agriculture. The Italian feed-in scheme ended at the beginning of 2013, making it necessary to investigate the feasibility of photovoltaic systems devoid of any electricity production-related incentives. In this paper, production cost and profitability analyses of photovoltaic electricity have been conducted, considering Mediterranean solar greenhouses in which, thanks to net me…
Value based trading of real assets in shipping under stochastic freight rates
2009
The article uses a real options valuation model with stochastic freight rates to investigate market efficiency and the economics of switching between the dry bulk and the tanker markets in international shipping. A dry bulk carrier is replaced with a tanker when the expected net present value of such a switch is optimal from a real options based decision rule. Depending on the development of the markets a reversal may take place later. The cost and demand parameters upon which the decisions to switch are made, including the stochastic characteristics of freight rates, are estimated from an empirical analysis that is updated every week throughout a 12-year time period from 1993 to 2005. The …
Comparative economic analysis of support policies for solar PV in the most representative EU countries
2015
Abstract The purpose of this paper is to study the positions of some European Union (EU) countries on the development of PV systems. After a review of the main support policies for PV systems in Europe, the specific situations of five representative countries (France, Germany, Greece, Italy and the U.K.) are examined, with the purpose of describing the main differences in their implementation of support policies adopted for PV systems. In particular, comparisons based on economic indexes such as the net present value (NPV) and the internal rate of return (IRR) are carried out for different sized PV systems, showing that in some situations support policies can be inconvenient for the PV syst…
The Sustainability Factor: How Much Do Pension Expenditures Improve in Spain?
2020
The reform of 2013 represented a qualitative leap in the reform of the Spanish pension system. Unlike its predecessors, it introduced two automatic resetting mechanisms similar to those of other European countries. The first is the sustainability factor, scheduled to come into effect in 2019 but delayed until 2023, and its ultimate reversal cannot be ruled out. The objective of this study was to quantify the savings, or the lowest expenditure, that can be achieved in the Spanish public contributory pension system by applying it. These savings are measured in terms of cash&mdash
A real options game of alliance timing decisions in biopharmaceutical research and development
2017
Abstract In this article we examine the alliance timing trade-off facing both pharmaceutical and biotech firms in a stochastic and competitive environment. Specifically, we introduce a real options game (ROG), where a pharmaceutical company can choose between two competing biotech firms by sequentially offering a licensing deal early or late in the new drug development process. We find that, when the alliance raises the drug market value significantly, the agreement is signed late in the drug development process. This suggests that the postponement effect implied by the use of real options prevails over the biotech firms’ competition effect, which would instead play in favor of an early agr…
New development opportunities for the craft brewing segment: the case study of a micro-malthouse
2017
In Italy in the past few years, the number of small breweries penetrating the craft beer sector has grown exponentially. Craft producers intend to give a strong added value and a local character to their production in different ways. One of these is the use of malt derived from small batches of local cereals and pseudo cereals. The aim of this study is the assessment of investment profitability, through a cost-benefit analysis (CBA), for a compact and a modular micro-malting plant in Sicily (Southern Italy). The CBA for a micro-malthouse was carried out considering both installation and operating costs. Net present value (NPV), discounted benefit-cost ratio (DBCR) and internal rate of retur…