Sensitivity analysis of normative economic models: theoretical framework and practical strategies

Pannell, David J.

doi:10.1016/s0169-5150(96)01217-0

Cited by 300 publications

(172 citation statements)

References 24 publications

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“…Furthermore, estimated parameter values and assumptions are generally subject to change and error (Pannell 1997). We therefore analyze the behavior of our decision model regarding sustainability decisions in detail by performing a sensitivity analysis.…”

Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

“…We therefore analyze the behavior of our decision model regarding sustainability decisions in detail by performing a sensitivity analysis. This is a common method from decision-making theory and aims on examining how sensitive a model's results are to changes in the input variables (Kim et al 2009;Pannell 1997;Saltelli et al 2008;Triantaphyllou and Sánchez 1997).…”

Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

“…In the basic form of a sensitivity analysis, the value of a certain input parameter is varied within a specific range around the best guess value (see above) while keeping all other input parameters constant (Pannell 1997;Saltelli et al 2008). In our analysis we change each input parameter by plus, respectively, -10 % compared to its original value estimated by the experts while keeping all other input parameters constant, and repeat this procedure with every input parameter of interest.…”

Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

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Business transformation towards sustainability

Müller

Pfleger

2014

Bus Res

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Sustainability is becoming increasingly important in today's corporate world and can contribute to the current and future success of organizations. Integrating ecological, social, and economic objectives into corporate decisions is a key success factor for transformation towards sustainability. As sustainability is not achieved by single actions, but rather is an on-going process, decision-makers must have means to analyze the current state of an organization. For this, we first illustrate how companies can structure the field of action for the transformation towards sustainability. Furthermore, we propose a decision model to determine how sustainability actions should be implemented in accordance with the paradigm of value-based management, i.e., considering their economic effects. We illustrate the application of the approach using the example of a German medium-sized company.Executive summary Recently, organizations have recognized sustainability as an emerging mega-trend and as an increasingly important strategic goal. Its integration into the business model can be a key success factor, but also a challenge that requires a systematic approach. In order to comprehensively steer corporate sustainability, with the aim of minimizing negative externalities while maximizing positive effects, companies first need to structure their processes to achieve transparency on where sustainability actions can be incorporated. By furthermore considering the three dimensions of sustainability, possible starting points for sustainability actions can be identified. These two perspectives are complemented by adapting the basic idea of stages of development and maturity to sustainability context, as a way to capture the progress of sustainability actions within each corporate activity. The resulting ''Sustainability Maturity Cube'' serves as a blueprint, i.e., a first generic approach, of how an organization can structure 123Business Research (2014) 7:313-350 DOI 10.1007 the field of action for the transformation towards sustainability. Considering the paradigm of value-based management in business context, economic effects of the transformation towards sustainability have to be regarded. We therefore, also propose a decision model, which allows aligning ecological, social and economic objectives in order to draw economically useful conclusions by determining the optimal increase of the sustainability maturity level. To evaluate whether our approach proves useful for subject matter experts who are involved in sustainability decisions, we provide a first example of how a specific company can transform towards sustainability.

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Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

Section: Analysis Of the Decision Model Behavior Conducting A Sensitimentioning

confidence: 99%

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Business transformation towards sustainability

Müller

Pfleger

2014

Bus Res

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“…Sensitivity analysis has a long history and it has been widely applied in different fields such as environmental modelling study [6], economic modelling for decisions making [7], chemical kinetics [8][9][10] and biological modelling analysis [11,12]. In this review, we particularly focus on the sensitivity analysis approaches applied to systems biology models.…”

Section: Introductionmentioning

confidence: 99%

Sensitivity analysis approaches applied to systems biology models

2011

IET Syst. Biol.

339

263

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With the rising application of systems biology, sensitivity analysis methods have been widely applied to study the biological systems, including metabolic networks, signalling pathways and genetic circuits. Sensitivity analysis can provide valuable insights about how robust the biological responses are with respect to the changes of biological parameters and which model inputs are the key factors that affect the model outputs. In addition, sensitivity analysis is valuable for guiding experimental analysis, model reduction and parameter estimation. Local and global sensitivity analysis approaches are the two types of sensitivity analysis that are commonly applied in systems biology. Local sensitivity analysis is a classic method that studies the impact of small perturbations on the model outputs. On the other hand, global sensitivity analysis approaches have been applied to understand how the model outputs are affected by large variations of the model input parameters. In this review, the author introduces the basic concepts of sensitivity analysis approaches applied to systems biology models. Moreover, the author discusses the advantages and disadvantages of different sensitivity analysis methods, how to choose a proper sensitivity analysis approach, the available sensitivity analysis tools for systems biology models and the caveats in the interpretation of sensitivity analysis results.

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“…A sensitivity analysis examines how the output of a mathematical model or system varies according to the uncertainty of its inputs [34]. Sensitivity analysis can be useful for a range of purposes [35], including:…”

Section: Sensitivity Analysismentioning

confidence: 99%

Integration of Wind Energy, Hydrogen and Natural Gas Pipeline Systems to Meet Community and Transportation Energy Needs: A Parametric Study

Garmsiri

Rosen

Smith³

2014

Sustainability

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Abstract:The potential benefits are examined of the "Power-to-Gas" (P2G) scheme to utilize excess wind power capacity by generating hydrogen (or potentially methane) for use in the natural gas distribution grid. A parametric analysis is used to determine the feasibility and size of systems producing hydrogen that would be injected into the natural gas grid. Specifically, wind farms located in southwestern Ontario, Canada are considered. Infrastructure requirements, wind farm size, pipeline capacity, geographical dispersion, hydrogen production rate, capital and operating costs are used as performance measures. The model takes into account the potential production rate of hydrogen and the rate that it can be injected into the local gas grid. "Straw man" systems are examined, centered on a wind farm size of 100 MW integrating a 16-MW capacity electrolysis system typically producing 4700 kg of hydrogen per day.

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Sensitivity analysis of normative economic models: theoretical framework and practical strategies

Cited by 300 publications

References 24 publications

Business transformation towards sustainability

Business transformation towards sustainability

Sensitivity analysis approaches applied to systems biology models

Integration of Wind Energy, Hydrogen and Natural Gas Pipeline Systems to Meet Community and Transportation Energy Needs: A Parametric Study

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