Techno-Economic and Life Cycle Cost Analysis through the Lens of Uncertainty: A Scoping Review

Abstract

Researchers have long been interested in developing new economic assessment methods to provide credible information and facilitate the sustainable development of new technologies and products. The techno-economic analysis (TEA) and the life cycle cost analysis (LCCA) are the most widely used approaches for modeling and calculating processes’ economic impacts. A simulation-based TEA is a cost-benefit analysis that simultaneously considers technical and economic factors. In addition, the method facilitates the development of the entire project and provides a systematic approach for examining the interrelationships between economic and technological aspects. When it comes to economic studies, it is intimately bonded with uncertainty. There are numerous uncertainty sources, classified in various ways. The uncertainty reflects “an inability to determine the precise value of one or more parameters affecting a system.” The variability refers to the different values a given parameter may take. This implies that a probability density function (PDF), for instance, can be employed to estimate and quantify the variability of a given parameter. The bias refers to “assumptions that skew an analysis in a certain direction while ignoring other legitimate alternatives, factors, or data.” The present study identifies the frequency with which TEA/LCCA studies address uncertainty and gaps within the selected papers through a scoping review. The results indicate that the uncertainty associated with economic factors and model uncertainties were the main sources of uncertainty in TEA and LCCA. Moreover, possibilistic approaches such as the Monte Carlo methodology were the most frequently used tool to cope with the uncertainties associated with LCCA and TEA.

Anaerobic Digestion Process Modeling Under Uncertainty: A Narrative Review

“…Narrative or traditional review, scoping review (i.e. [14,16,22,53]), systematic review, critical review, rapid review, and umbrella review are among com-monly used methods. To address specific research questions, a narrative literature review was conducted.…”

“…In contrast, variability may also be regarded as a necessary aspect of heterogeneity, which is the quality of data [12] or multiple values of the same quantity at different times, places, or instances [13]. Barahmand and Eikeland [14] provided a comprehensive overview of different types and sources of uncertainty. Uncertainty can be quantified in a variety of ways.…”

“…Different techniques can be used depending on the type of model (mathematical, control, etc.). Barahmand et al [14,15] described the most used uncertainty modeling techniques. The key difference between these approaches is how they explain ambiguity in input parameters.…”

Addressing preliminary challenges in upscaling the recovery of lithium from spent lithium ion batteries by the electrochemical method: a review

“…TEA is a metric to evaluate the economic viability of a process through profit and cost analyses, while the LCA assesses the environmental performance using suitable analyses that include parameters like GHG emissions and global warming potential (GWP). 138–141 Within the thriving industry of spent Li-ion battery (LIB) recycling, both components play crucial role in assisting industry stakeholders making informed decisions regarding the adoption of recycling techniques. The studies outlined in Table 8 focus exclusively on TEA and LCA studies performed for pyrometallurgical and hydrometallurgical technologies; these assessments serve as pivotal factors facilitating the global industrial-scale adoption of these techniques.…”

Recycling Cost formation and Profitability of foods and beverages firm: Evidence from Flour Milling Industries of Nigeria Plc (1991-2021)

“…The principal activities of these firms include the production, packaging and sales of foods and beverages with keen competition to expand and retain the market (Gao, Porter, Wang, Fang, Zhang, Wang & Huang, 2013). Life cycle cost analysis (LCCA) is a technique used to evaluate all relevant expenses of a project, product, or measure over time (Barahmand & Eikeland, 2022). LCC can be viewed from the perspective of the supplier or the client (the contracting authority) from the client"s point of view; the only costs considered are those that are incurred by him.…”