Extending cost-benefit analysis for energy investment choices

Simpson, David; Walker, James J.

doi:10.1016/0301-4215(87)90083-8

Cited by 23 publications

(14 citation statements)

References 32 publications

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“…It is also recommended that they be suited to a particular region or sector, therefore the literature recommends a sectoral approach (Fujiwara, 2010;Millard-Ball, 2010). CBA has attracted some criticism due to its one-dimensional monetary valuation judgments, particularly the role of the discount rate or the appraisal period to be used (Simpson and Walker, 1987). The literature identifies a number of CBA studies applied to current and anticipated ITS systems (see Table 1).…”

Section: Cost Benefit Analysis: Methodology and Associated Literaturementioning

confidence: 99%

Extending cost–benefit analysis for the sustainability impact of inter-urban Intelligent Transport Systems

Kolosz

Grant-Muller

2015

Environmental Impact Assessment Review

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Section: Cost Benefit Analysis: Methodology and Associated Literaturementioning

confidence: 99%

Extending cost–benefit analysis for the sustainability impact of inter-urban Intelligent Transport Systems

Kolosz

Grant-Muller

2015

Environmental Impact Assessment Review

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“…Reference [5] warned about a significant limitation of CBA, AHP and other decision making methods. In the long term, they are limited to consider the interests of future generations since they transform qualitative aspects into a monetary value and execute the voting process or calculate the discount rates based on present insight.…”

Section: Discussionmentioning

confidence: 99%

“…In this way [6] used the sensitivity analysis for costs to minimize impacts of inaccurate estimations and concluded "a perfect methodology for evaluating large-scale energy-efficiency programs is not yet available" [6]. To overcome the limitations of CBA analysis, [5] suggest, in their article, the use of a multi-dimensional approach and a way to deal with this issue using the analytical hierarchy process. It uses the concept of a decision tree with paired alternative comparisons.…”

Section: Decision Making For Sustainable Energymentioning

confidence: 99%

“…The relation between the implement cost of a project and the benefit created by it is determined by the CBA. Although the CBA, in thesis, includes the net value of non-economic impacts as a monetary value, the "CBA can be used to produce almost any result desired by the analyst to suit his own prejudices or the interests of his sponsor, since the attempt to transform every potentially significant effect into a monetary value requires an arbitrary and subjective judgment on the part of the analyst" [5]. More recently [6] used the CBA to evaluate domestic energy-efficiency programs and was able to overcome the difficulties in order to reach monetary values for non-economic aspects, as mentioned by [5].…”

Section: Decision Making For Sustainable Energymentioning

confidence: 99%

“…Although the CBA, in thesis, includes the net value of non-economic impacts as a monetary value, the "CBA can be used to produce almost any result desired by the analyst to suit his own prejudices or the interests of his sponsor, since the attempt to transform every potentially significant effect into a monetary value requires an arbitrary and subjective judgment on the part of the analyst" [5]. More recently [6] used the CBA to evaluate domestic energy-efficiency programs and was able to overcome the difficulties in order to reach monetary values for non-economic aspects, as mentioned by [5]. In this way [6] used the sensitivity analysis for costs to minimize impacts of inaccurate estimations and concluded "a perfect methodology for evaluating large-scale energy-efficiency programs is not yet available" [6].…”

Section: Decision Making For Sustainable Energymentioning

confidence: 99%

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The objective of this work is a multi-criteria decision-making assessment that aims to facilitate the Energy-Efficiency Economics, introducing the Analytic Hierarchy Process (AHP) as part of power-system planning tool for an energyefficiency application. It addresses to include qualitative aspects in the decision-making agendas of energy-efficiency projects. The manuscript details the limitations of non-rigorous financial analysis and proposes an alternative for including energy-efficiency measures in discussions pertaining to the financial opportunities available to any investor, and it presents the methodology that supports the qualitative aspects and the software package used to execute this methodology. As case study a complete example including a sensitivity analysis is presented.

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Methods for Measuring and Evaluating Sustainability: State‐of‐the Art, Challenges, and Future Developments

Kleeberg

Schneider

Nippa

2015

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By now, the term sustainability suffers from being degenerated into a buzzword resulting in an exceptionally large amount and variety of literature. Likely due to this, the dispersal of descriptions, perspectives, and facets regarding sustainability‐assessing methods reveals deficits in terms of theoretical and methodological rigor, novelty, and practical usefulness. Against this background, this article contains an overview of eight selected methods and tools for sustainability assessment. The qualitative review of current research articles concerning energy technologies highlights objectives and purposes, origins, main procedures, fields of application, and examples as well as a critical acclaim for each method. Next to this, several considerations in general such as the role of principles, criteria, and indicators are being illustrated as well as important challenges for measuring sustainability. Thereby, we develop a six‐stage model that supports the choice of an appropriate method for sustainability assessment. In doing so, we derive two fundamental principles, namely “content‐related” features and “performance‐related” features. At the same time, this article underlines the coexistence of various different, highly complex methods, approaches, and perspectives, as well as practical examples to assess sustainability. We evidence an increasing defragmentation and specialization of research on sustainability assessment. Against this background, our findings are likely to foster further theoretical, conceptual, and analytical developments in this research field. This also promotes a customization and the practical value of sustainability assessment methods.

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Extending cost-benefit analysis for energy investment choices

Cited by 23 publications

References 32 publications

Extending cost–benefit analysis for the sustainability impact of inter-urban Intelligent Transport Systems

Extending cost–benefit analysis for the sustainability impact of inter-urban Intelligent Transport Systems

Energy-Efficiency Economics as a Resource for Energy Planning

Methods for Measuring and Evaluating Sustainability: State‐of‐the Art, Challenges, and Future Developments

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