A note on the use of cost indices in the chemical industry

Petersen, Hans J.; Bundgaard-Nielsen, M.

doi:10.1016/0377-841x(76)90022-x

Cited by 2 publications

(1 citation statement)

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“…However, these correlations may then become too simplistic to withstand major changes in technology, productivity, market or other macroeconomic factors. In the same year as Cran's paper, Styhr Petersen and Bundgaard-Nielsen (1976) observed that his two-component index could not account for productivity gains in assembling plant components, leading to an overestimate for the capital cost of plants in Western Germany between 1973 and 1975. In spite of its flaws, Cran's approach was followed by the PEI index, which was published by the journal Process Economics International for 36 countries, and formerly called the Engineering and Process Economics (EPE) index.…”

Section: /24mentioning

confidence: 94%

Correlating the chemical engineering plant cost index with macro-economic indicators

Mignard

2014

Chemical Engineering Research and Design

197

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The Chemical Engineering Plant Cost Index (CEPCI) is widely used for updating the capital costs of process engineering projects. Typically, forecasting it requires twenty or so parameters. As an alternative, we suggest a correlation for predicting the index as a function of readily available and forecast macroeconomic indicators: with k o the first year of the period under consideration, i k the interest rate on US bank prime loans in year k, and P oil the US domestic oil price in year n. Best fit was obtained when choosing distinct sets of values of the constants A, B and C for each of the three periods

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Section: /24mentioning

confidence: 94%