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The NASA Lewis Research Center: An Economic Impact Study

The NASA Lewis Research Center (LeRC), established in 1941, is one of ten NASA research centers in the country. It is situated on 350 acres of land in Cuyahoga County and occupies more than 140 buildings and over 500 specialized research and test facilities. Most of LeRC's facilities are located in the City of Cleveland; some are located within the boundaries of the cities of Fairview Park and Brookpark. LeRC is a lead center for NASA's research, technology, and development in the areas of aeropropulsion and selected space applications. It is a center of excellence for turbomachinery, microgravity fluid and combustion research, and commercial communication. The base research and technology disciplines which serve both aeronautics and space areas include materials and structures, instrumentation and controls, fluid physics, electronics, and computational fluid dynamics. This study investigates LeRC's economic impact on Northeast Ohio's economy. It was conducted by The Urban Center's Economic Development Program in Cleveland State University's Levin College of Urban Affairs. The study measures LeRC's direct impact on the local economy in terms of jobs, output, payroll, and taxes, as well as the indirect impact of these economic activities when they 'ripple' throughout the economy. To fully explain LeRC's overall impact on the region, its contributions in the areas of technology transfer and education are also examined. The study uses a highly credible and widely accepted research methodology. First, regional economic multipliers based on input-output models were used to estimate the effect of LERC spending on the Northeast Ohio economy. Second, the economic models were complemented by interviews with industrial, civic, and university leaders to qualitatively assess LeRC's impact in the areas of technology transfer and education.

Austrian, Ziona↗

Cost and Economics for Advanced Launch Vehicles

Market sensitivity and weight-based cost estimating relationships are key drivers in determining the financial viability of advanced space launch vehicle designs. Due to decreasing space transportation budgets and increasing foreign competition, it has become essential for financial assessments of prospective launch vehicles to be performed during the conceptual design phase. As part of this financial assessment, it is imperative to understand the relationship between market volatility, the uncertainty of weight estimates, and the economic viability of an advanced space launch vehicle program. This paper reports the results of a study that evaluated the economic risk inherent in market variability and the uncertainty of developing weight estimates for an advanced space launch vehicle program. The purpose of this study was to determine the sensitivity of a business case for advanced space flight design with respect to the changing nature of market conditions and the complexity of determining accurate weight estimations during the conceptual design phase. The expected uncertainty associated with these two factors drives the economic risk of the overall program. The study incorporates Monte Carlo simulation techniques to determine the probability of attaining specific levels of economic performance when the market and weight parameters are allowed to vary. This structured approach toward uncertainties allows for the assessment of risks associated with a launch vehicle program's economic performance. This results in the determination of the value of the additional risk placed on the project by these two factors.

Whitfield, Jeff↗

Economic Metrics for Commercial Reusable Space Transportation Systems

The success of any effort depends upon the effective initial definition of its purpose, in terms of the needs to be satisfied and the goals to be fulfilled. If the desired product is "A System" that is well-characterized, these high-level need and goal statements can be transformed into system requirements by traditional systems engineering techniques. The satisfaction of well-designed requirements can be tracked by fairly straightforward cost, schedule, and technical performance metrics. Unfortunately, some types of efforts, including those that NASA terms "Programs," tend to resist application of traditional systems engineering practices. In the NASA hierarchy of efforts, a "Program" is often an ongoing effort with broad, high-level goals and objectives. A NASA "project" is a finite effort, in terms of budget and schedule, that usually produces or involves one System. Programs usually contain more than one project and thus more than one System. Special care must be taken in the formulation of NASA Programs and their projects, to ensure that lower-level project requirements are traceable to top-level Program goals, feasible with the given cost and schedule constraints, and measurable against top-level goals. NASA Programs and projects are tasked to identify the advancement of technology as an explicit goal, which introduces more complicating factors. The justification for funding of technology development may be based on the technology's applicability to more than one System, Systems outside that Program or even external to NASA. Application of systems engineering to broad-based technology development, leading to effective measurement of the benefits, can be valid, but it requires that potential beneficiary Systems be organized into a hierarchical structure, creating a "system of Systems." In addition, these Systems evolve with the successful application of the technology, which creates the necessity for evolution of the benefit metrics to reflect the changing baseline. Still, economic metrics for technology development in these Programs and projects remain fairly straightforward, being based on reductions in acquisition and operating costs of the Systems. One of the most challenging requirements that NASA levies on its Programs is to plan for the commercialization of the developed technology. Some NASA Programs are created for the express purpose of developing technology for a particular industrial sector, such as aviation or space transportation, in financial partnership with that sector. With industrial investment, another set of goals, constraints and expectations are levied on the technology program. Economic benefit metrics then expand beyond cost and cost savings to include the marketability, profit, and investment return requirements of the private sector. Commercial investment criteria include low risk, potential for high return, and strategic alignment with existing product lines. These corporate criteria derive from top-level strategic plans and investment goals, which rank high among the most proprietary types of information in any business. As a result, top-level economic goals and objectives that industry partners bring to cooperative programs cannot usually be brought into technical processes, such as systems engineering, that are worked collaboratively between Industry and Government. In spite of these handicaps, the top-level economic goals and objectives of a joint technology program can be crafted in such a way that they accurately reflect the fiscal benefits from both Industry and Government perspectives. Valid economic metrics can then be designed that can track progress toward these goals and objectives, while maintaining the confidentiality necessary for the competitive process.

Shaw, Eric J.↗

The Missing Economic Risks in Assessments of Climate Change Impacts

Economic assessments of the potential future risks of climate change have been omitting or grossly underestimating many of the most serious consequences for lives and livelihoods because these risks are difficult to quantify precisely and lie outside of human experience. Political and business leaders need to understand the scale of these ‘missing risks’ because they could have drastic and potentially catastrophic impacts on citizens, communities and companies. Scientists are growing in confidence about the evidence for the largest potential impacts of climate change and the rising probability that major thresholds in the Earth’s climate system will be breached as global mean surface temperature rises, particularly if warming exceeds 2°C above the pre-industrial level. These impacts include: (1) Destabilisation of ice sheets and glaciers and consequent sea level rise. (2) Stronger tropical cyclones. (3) Extreme heat impacts. (4) More frequent and intense floods and droughts. (5) Disruptions to oceanic and atmospheric circulation. (6) Destruction of biodiversity and collapse of ecosystems. Many of these impacts will grow and occur concurrently across the world as global temperature climbs. Some of these impacts involve thresholds in the climate system beyond which major impacts accelerate, or become irreversible and unstoppable. When a threshold is breached, it might cause one or more other thresholds to be exceeded as well, leading to a cascade of impacts. Many of these impacts could exceed the capacity of human populations to adapt, and would significantly affect and disrupt the lives and livelihoods of hundreds of millions, if not billions, of people worldwide. These impacts would also undermine economic growth and development, exacerbate poverty and destabilise communities. Economic assessments fail to take account of the potential for large concurrent impacts across the world that would cause mass migration, displacement and conflict, with huge loss of life. Economic assessments that are expressed solely in terms of effects on output (e.g. gross domestic product), or that only extrapolate from past experience, or that use inappropriate discounting, do not provide a clear indication of the potential risks to lives and livelihoods. It is likely that there are additional risks that we are not yet anticipating simply because scientists have not yet detected their possibility, as we have entered a period of climate change that is unprecedented in human history. Some advances are being made in improving economic assessments of climate change impacts but much more progress is required if assessments are to offer reliable guidance for political and business leaders on the biggest risks. The lack of firm quantifications is not a reason to ignore these risks, and when the missing risks are taken into account, the case for strong and urgent action to reduce greenhouse gas emissions becomes even more compelling.

DeFries, Ruth↗

Economic incentives modify agricultural impacts of nuclear war

A nuclear war using less than 1% of the current global nuclear arsenal, which would inject 5 Tg of soot into the stratosphere, could produce climate change unprecedented in recorded human history and significant impacts on agricultural productivity and the economy. These effects would be most severe for the first five years after the nuclear war and may last for more than a decade. This paper calculates how food availability would change by employing the Environmental Impact and Sustainability Applied General Equilibrium model. Under a robust world trading system, global food availability would drop by a few percentage points. If the war would destabilize trade, it would magnify by several times the negative ramifications of land productivity shocks on food availability. If exporting countries redirect production to domestic consumption at the expense of importing countries, it would lead to the destabilization of international trade. The analysis suggests that economic models aiming to inform policymakers require both economic behavior analysis and biophysical drivers. Policy lessons derived from a crop model can be significantly nuanced when coupled with economic feedback derived from economic models. Through the impact on yield, farmers could shift production among crops and reallocate land use to maximize profits, showing the importance of general equilibrium effects such as product and input substitution and international trade. Although the global impact on corn and soybean production would be significant when just considering crop production, it could be considerably smaller under the economic model. However, this would be at the expense of other sectors, including livestock. In addition, the costs borne from disruptions to climate would vary significantly across regions, with significant adverse effects in high latitude regions. The severity of the shocks in the high-latitude areas would marginalize the farmers' product and input substitution ability.

Nuclear war↗

Climate Change Effects on Agriculture: Economic Responses to Biophysical Shocks

Agricultural production is sensitive to weather and thus directly affected by climate change. Plausible estimates of these climate change impacts require combined use of climate, crop, and economic models. Results from previous studies vary substantially due to differences in models, scenarios, and data. This paper is part of a collective effort to systematically integrate these three types of models. We focus on the economic component of the assessment, investigating how nine global economic models of agriculture represent endogenous responses to seven standardized climate change scenarios produced by two climate and five crop models. These responses include adjustments in yields, area, consumption, and international trade. We apply biophysical shocks derived from the Intergovernmental Panel on Climate Change's representative concentration pathway with end-of-century radiative forcing of 8.5 W/m(sup 2). The mean biophysical yield effect with no incremental CO2 fertilization is a 17% reduction globally by 2050 relative to a scenario with unchanging climate. Endogenous economic responses reduce yield loss to 11%, increase area of major crops by 11%, and reduce consumption by 3%. Agricultural production, cropland area, trade, and prices show the greatest degree of variability in response to climate change, and consumption the lowest. The sources of these differences include model structure and specification; in particular, model assumptions about ease of land use conversion, intensification, and trade. This study identifies where models disagree on the relative responses to climate shocks and highlights research activities needed to improve the representation of agricultural adaptation responses to climate change.

farm crops↗

Transonic transport study: Economics

An economic analysis was performed to evaluate the impact of advanced materials, increased aerodynamic and structural efficiencies, and cruise speed on advanced transport aircraft designed for cruise Mach numbers of .90, .98, and 1.15. A detailed weight statement was generated by an aircraft synthesis computer program called TRANSYN-TST; these weights were used to estimate the cost to develop and manufacture a fleet of aircraft of each configuration. The direct and indirect operating costs were estimated for each aircraft, and an average return on investment was calculated for various operating conditions. There was very little difference between the operating economics of the aircraft designed for Mach numbers .90 and .98. The Mach number 1.15 aircraft was economically marginal in comparison but showed significant improvements with the application of carbon/epoxy structural material. However, the Mach .90 and Mach .98 aircraft are the most economically attractive vehicles in the study.

Smith, C. L.↗

United States transportation fuel economics (1975 - 1995)

The United States transportation fuel economics in terms of fuel resources options, processing alternatives, and attendant economics for the period 1975 to 1995 are evaluated. The U.S. energy resource base is reviewed, portable fuel-processing alternatives are assessed, and selected future aircraft fuel options - JP fuel, liquid methane, and liquid hydrogen - are evaluated economically. Primary emphasis is placed on evaluating future aircraft fuel options and economics to provide guidance for future strategy of NASA in the development of aviation and air transportation research and technology.

Alexander, A. D., III↗

The economic impact of NASA R and D spending

The economic impact of R and D spending, particularly NASA R and D spending, on the U. S. economy was evaluated. The crux of the methodology and hence the results revolve around the fact that it was necessary to consider both the demand effects of increased spending and the supply effects of a higher rate of technological growth and a larger total productive capacity. The demand effects are primarily short-run in nature, while the supply effects do not begin to have a significant effect on aggregate economic activity until the fifth year after increased expenditures have taken place. The short-term economic impact of alternative levels of NASA expenditures for 1975 was first examined. The long-term economic impact of increased levels of NASA R and D spending over a sustained period was then evaluated.

Evans, M. K.↗

SEASAT - A candidate ocean industry economic verification experiments

The economic benefits of an operational SEASAT system are discussed in the areas of marine transportation, offshore oil and natural gas exploration and development, ocean fishing, and Arctic operations. A description of the candidate economic verification experiments which could be performed with SEASAT-A is given. With the exception of the area of Arctic operations, experiments have been identified in each of the areas of ocean based activity that are expected to show an economic impact from the use of operational SEASAT data. Experiments have been identified in the areas of the offshore oil and natural gas industry, as well as ice monitoring and coastal zone applications. Emphasis has been placed on the identification and the development of those experiments which meet criteria for: (1) end user participation; (2) SEASAT-A data utility; (3) measurability of operational parameters to demonstrate economic effect; and (4) non-proprietary nature of results.

Miller, B. P.↗

Solar energy system economic evaluation for Wormser Columbia, South Carolina

The Solar Energy System is not economically beneficial under the assumed economic conditions at the sites considered. Economic benefits from this system depend on decreasing the initial investment and the continued increase in the cost of conventional energy. Decreasing the cost depends on favorable tax treatment and continuing development of solar energy technology. Fuel cost would have to increase drastically while the cost of the system would have to remain constant or decrease for the system to become economically feasible.

Source record↗

Solar energy system economic evaluation for Colt Pueblo, Pueblo, Colorado

The Solar Energy System is not economically beneficial under the assumed economic conditions at Pueblo, Colorado; Yosemite, California; Albuquerque, New Mexico; Fort Worth, Texas; and Washington, D.C. Economic benefits from this system depend on decreasing the initial investment and the continued increase in the cost of conventional energy. Decreasing the cost depends on favorable tax treatment and continuing development of solar energy technology. Fuel cost would have to increase drastically while the cost of the system would have to remain constant or decrease for the system to become economically feasible.

Source record↗

Comparative economics of space resource utilization

Physical economic factors such as mass payback ratio, total payback ratio, and capital payback time are discussed and used to compare the economics of using resources from the Moon, Mars and its moons, and near Earth asteroids to serve certain near term markets such as propellant in low Earth orbit or launched mass reduction for lunar and Martian exploration. Methods for accounting for the time cost of money in simple figures of merit such as MPRs are explored and applied to comparisons such as those between lunar, Martian, and asteroidal resources. Methods for trading off capital and operating costs to compare schemes with substantially different capital to operating cost ratio are presented and discussed. Areas where further research or engineering would be extremely useful in reducing economic uncertainty are identified, as are areas where economic merit is highly sensitive to engineering performance - as well as areas where such sensitivity is surprisingly low.

Cutler, Andrew Hall↗

Techno-economic requirements for automotive composites

New technology generally serves two main goals of the automotive industry: one is to enable vehicles to comply with various governmental regulations and the other is to provide a competitive edge in the market. The latter goal can either be served through improved manufacturing and design capabilities, such as computer aided design and computer aided manufacturing, or through improved product performance, such as anti-lock braking (ABS). Although safety features are sometimes customer driven, such as the increasing use of airbags and ABS, most are determined by regulations as outlined by the Federal Motor Vehicle Safety Standards (FMVSS). Other standards, set by the Environmental Protection Agency, determine acceptable levels of emissions and fuel consumption. State governments, such as in California, are also setting precedent standards, such as requiring manufacturers to offer zero-emission vehicles as a certain fraction of their sales in the state. The drive to apply new materials in the automobile stems from the need to reduce weight and improve fuel efficiency. Topics discussed include: new lightweight materials; types of automotive materials; automotive composite applications; the role for composite materials in automotive applications; advantages and disadvantages of composite materials; material substitution economics; economic perspective; production economics; and composite materials production economics.

Arnold, Scot↗

The NASA Lewis Research Center's Expendable Launch Vehicle Program: An Economic Impact Study

This study investigates the economic impact of the Lewis Research Center's (LeRC) Expendable Launch Vehicle Program (ELVP) on Northeast Ohio's economy. It was conducted by The Urban Center's Economic Development Program in Cleveland State University's Levin College of Urban Affairs. The study measures ELVP's direct impact on the local economy in terms of jobs, output, payroll, and taxes, as well as the indirect impact of these economic activities when they 'ripple' throughout the economy. The study uses regional economic multipliers based on input-output models to estimate the effect of ELVP spending on the Northeast Ohio economy.

Austrian, Ziona↗

The NASA Lewis Research Center's Expendable Launch Vehicle Program: An Economic Impact Study

This study investigates the economic impact of the Lewis Research Center's (LeRC) Expendable Launch Vehicle Program (ELVP) on Northeast Ohio's economy. It was conducted by The Urban Center's Economic Development Program in Cleveland State University's Levin College of Urban Affairs. The study measures ELVP's direct impact on the local economy in terms of jobs, output, payroll, and taxes, as well as the indirect impact of these economic activities when they "ripple" throughout the economy. The study uses regional economic multipliers based on input-output models to estimate the effect of ELVP spending on the Northeast Ohio economy.

Austrian, Ziona↗

Building an Economical and Sustainable Lunar Infrastructure to Enable Human Missions

To enable return of human missions to the surface of the Moon sustainably, a new study was initiated to assess the feasibility of developing an evolvable, economical and sustainable lunar surface infrastructure using a public-private partnerships approach. This approach would establish partnerships between NASA and private industry to mutually develop lunar surface infrastructure capabilities to support robotic missions initially and later evolve to full-scale commercial infrastructure services in support of human missions. These infrastructure services may range from power systems, communication and navigation systems, thermal management systems, mobility systems, water and propellant production to life support systems for human habitats. The public-private partnerships approach for this study leverages best practices from NASA’s Commercial Orbital Transportation Services (COTS) program which introduced an innovative and economical approach for partnering with industry to develop commercial cargo transportation services to the International Space Station (ISS). In this approach, NASA and industry partners shared cost and risk throughout the development phase which led to dramatic reduction in development and operations costs of these transportation services. Following this approach, a Lunar COTS concept was conceived to develop cost-effective surface infrastructure capabilities in partnership with industry to provide economical, operational services for small-scale robotic missions. As a result, a self-contained lunar infrastructure system with power, thermal, communication and navigation elements was conceptually designed to increase capability, extend mission duration and reduce cost of small-scale robotic missions. To support human missions, this work has now been extended to analyze full-scale lunar infrastructure systems. This infrastructure system should have capabilities to support human missions from a few days to several months with minimal maintenance and replacement of parts. This infrastructure system should also maximize the use of existing lunar resources, such as, oxygen from regolith, water from ice deposits at the poles, and use of metals, such as iron and aluminum, from lunar regolith. The plan includes a buildup of these capabilities using a phased-development approach that will eventually lead to operational infrastructure services. By partnering with industry to develop and operate the infrastructure services using the COTS model, this plan should also result in significant cost savings and increased reliability. This paper will describe the Lunar COTS concept goals, objectives and approach for developing an evolvable, economical and sustainable human lunar infrastructure as well as the challenges and opportunities for development.

Zuniga, Allison↗

Building an Economical and Sustainable Lunar Infrastructure to Enable Human Lunar Missions

To enable return of human missions to the surface of the Moon sustainably, a new study was initiated to assess the feasibility of developing an evolvable, economical and sustainable lunar surface infrastructure using a public-private partnerships approach. This approach would establish partnerships between NASA and private industry to mutually develop lunar surface infrastructure capabilities to support robotic missions initially and later evolve to full-scale commercial infrastructure services in support of human missions. These infrastructure services may range from power systems, communication and navigation systems, thermal management systems, mobility systems, water and propellant production to life support systems for human habitats. The public-private partnerships approach for this study leverages best practices from NASA's Commercial Orbital Transportation Services (COTS) program which introduced a new innovative and economical approach for partnering with industry to develop commercial cargo transportation services to the International Space Station (ISS). In this approach, NASA and industry partners shared cost and risk throughout the development phase which led to dramatically reducing development and operations costs of these transportation services. Following this approach, a Lunar COTS concept was conceived to follow this model and gradually develop cost-effective surface infrastructure capabilities in partnership with industry to provide economical, operational services for small-scale robotic missions. To support human missions, this work has now been extended to analyze full-scale lunar infrastructure systems. This infrastructure system will have capabilities to support human missions from a few days to several months and will also maximize the use of existing lunar resources, such as, water from ice deposits at the lunar poles. The plan includes a gradual buildup of these capabilities using a phased-development approach that will eventually lead to operational infrastructure services. By partnering with industry to develop and operate the infrastructure services using the COTS model, this plan will also result in significant cost savings, reduced risk and increased reliability. This paper will describe the Lunar COTS concept goals, objectives and approach for developing an evolvable, economical and sustainable human lunar infrastructure as well as the challenges and opportunities for development.

Lunar Surface Systems↗