Does the Net Present Value as a Financial Metric Fit Investment in Green Energy Security?

Dobrowolski, Zbysław; Drozdowski, Grzegorz

doi:10.3390/en15010353

Cited by 28 publications

(13 citation statements)

References 103 publications

(140 reference statements)

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“…This assumption makes sense in stable markets, such as the USA, Euro Zone, United Kingdom or Japan. However, the stability of interest rates in other countries is not so evident as in these countries [93,94].…”

Section: Discussionmentioning

confidence: 93%

Can the Economic Value Added Be Used as the Universal Financial Metric?

et al. 2022

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Previous research into Economic Value Added (EVA) has extensively described it as a business metric of firms. Still, no studies have confirmed or denied that EVA is a universal metric and that one may use EVA in unstable markets in the same way as in stable and developed economies. Meanwhile, the green energy revolution, ensuring carbon neutrality through green innovations, requires enormous investments, and the projects realised must be appropriately tailored. These projects are realised by different firms, including those from developing countries, and investors need solid financial metrics. The study determines whether EVA is a universal metric of owners’ value in the energy sector. The research proves that this metric does not correctly reflect the limitations of emerging markets, can lead to incorrect managerial decisions and limit shareholders’ value. Therefore, there is a need to reanalyse financial metrics used in financial planning, including EVA. The study eliminates this research gap and, based on data from seven countries and the Euro Zone, explains why one may not perceive the currently used EVA formula as a universal financial metric. Consequently, the study modifies the EVA formula and presents a universal solution tailored to unstable economies. In the conducted research, literature studies were used, taking into account the methodology of a systematic literature review, including bibliometric analysis. Based on this review, it is shown that little is known about whether EVA as a financial measure can be used in energy management. Two conclusions emerged: first, the research contributes to developing the business and management science; second, identifying risks associated with EVA metrics helps practitioners. In addition, the study defined further research directions.

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Section: Discussionmentioning

confidence: 93%

Can the Economic Value Added Be Used as the Universal Financial Metric?

et al. 2022

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“…Ecological sustainability cannot occur when people can deplete natural resources, leaving only polluted water and barren soil for future generations. Instead, ecological sustainability is the belief that all people must use resources wisely and efficiently, so that the resources are never exhausted or excessively polluted, which undoubtedly affects the quality of life at the current time [ 122 , 123 ].…”

Section: Discussionmentioning

confidence: 99%

Local Disproportions of Quality of Life and Their Influence on the Process of Green Economy Development in Polish Voivodships in 2010–2020

Drozdowski¹,

Dziekański²

2022

IJERPH

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Voivodships are centres of economic, social, and cultural life—they gather economic and social activities. This research aimed to evaluate the spatial differentiation of the quality of life in voivodships in Poland with the use of a synthetic measure. To achieve the research objective, the research methods used were literature analysis, statistical analysis, and synthetic measure. The Technique for Order Preference by Similarity to an Ideal Solution method was used to build synthetic measures. The choice of variables in 2010–2020 was largely conditioned by the availability of data collected in the regional system at the level of voivodships at the Local Data Bank of the Central Statistical Office. As a result of the analysis of voivodships in Poland, based on the quality of life measure, four groups were distinguished (according to the value of quartiles). In the group of the best voivodeships there were: Pomerania, Masovia, Lower Silesia, and West Pomeranian in 2010, and Masovia, Pomerania, Greater Poland, Lower Silesia, and Lesser Poland in 2020, and in the IV, the weakest group: Lodz Province, Podlasie Province, Lubusz Province, and Holy Cross in 2010, and Lodz Province, Podlasie Province, Holy Cross, and Lublin Province in 2020. The synthetic quality of life ranged from 0.37 to 0.56 in 2010 and from 0.39 to 0.64 in 2020. Regional authorities, taking care to improve economic potential, cause increasing the attractiveness of the area and attracting new entrepreneurs, create new jobs, and improve the quality of life of the inhabitants. Quality of life is shaped by economic activity and working conditions, health, education, free time and social relations, economic and physical security, and the quality of the natural environment. The results of the research conducted allow local governments to make comparisons. The conclusions drawn may allow them to identify potential directions for developing policy optimization.

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“…So, the energy transition poses many challenges for both public authorities and companies and consumers, which is why the concerns of European officials have been focused on achieving a fairer process for the parties involved. Liberalization of the energy market but also the political tensions generated by energy dependence will have negative effects on consumers who will face the intensification of the phenomenon of energy poverty (Dobrowolski, 2021), (Dobrowolski and Drozdowski, 2022), (Neacsa et al, 2020), (Druică et al, 2019), and(Apergis et al, 2022).…”

Section: Competitiveness Issues In the Context Of Regulationsmentioning

confidence: 99%

The current paradigm of the EU energy system and its impact on the sustainability of member states’ economies by 2050

Zhao

Manta

Militaru

et al. 2022

Front. Environ. Sci.

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In a context of multi-crises, as well as the challenges of both the medium and long term, associated with elements highlighted by the transformation of the EU energy system, we appreciate that not only is it a very difficult time to overcome efficiently and balanced EU Member States, but above all it is a time to activate research systems on identifying key solutions, as well as firm decisions at the level of decision-making institutions at the level of the European Institutions. Moreover, based on the latest European studies, systematic testing of ongoing initiatives can strategically prepare for an increase in the resilience of Member States’ economies to crisis shocks, as well as “the key to success Europe’s ecological transformation and climate neutrality of the EU economy in a broader sense.” The paper aims to highlight how to act at European level in the context of the latest energy decisions (regulations, strategies, pro-grams and directives) and how to stimulate “the EU economy with about 3.3% of EU GDP or EUR 464 billion in 2030 and up to EUR 5.6% or more than EUR 1 trillion in 2050.” At the same time, we appreciate that as a result of green energy, digitalization and technology, the environmental objective on the EU and UN net emissions in 2050 can be achieved, especially as a result of a fair and equitable transformation for the economic environment and for citizens, being an objective that directly contributes to achieving a sustainable, collaborative and prosperous society with an open and modern society, but more chosen efficiently in terms of resource optimization and a sustainable and competitive economy.

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Does the Net Present Value as a Financial Metric Fit Investment in Green Energy Security?

Cited by 28 publications

References 103 publications

Can the Economic Value Added Be Used as the Universal Financial Metric?

Can the Economic Value Added Be Used as the Universal Financial Metric?

Local Disproportions of Quality of Life and Their Influence on the Process of Green Economy Development in Polish Voivodships in 2010–2020

The current paradigm of the EU energy system and its impact on the sustainability of member states’ economies by 2050

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