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At least 19 records

An Economic Model of U.S. Airline Operating Expenses

This report presents a new economic model of operating expenses for 67 airlines. The model is based on data that the airlines reported to the United States Department of Transportation in 1999. The model incorporates expense-estimating equations that capture direct and indirect expenses of both passenger and cargo airlines. The variables and business factors included in the equations are detailed enough to calculate expenses at the flight equipment reporting level. Total operating expenses for a given airline are then obtained by summation over all aircraft operated by the airline. The model's accuracy is demonstrated by correlation with the DOT Form 41 data from which it was derived. Passenger airlines are more accurately modeled than cargo airlines. An appendix presents a concise summary of the expense estimating equations with explanatory notes. The equations include many operational and aircraft variables, which accommodate any changes that airline and aircraft manufacturers might make to lower expenses in the future. In 1999, total operating expenses of the 67 airlines included in this study amounted to slightly over $100.5 billion. The economic model reported herein estimates $109.3 billion.

Harris, Franklin D.↗

An Integrated Economics Model for ISRU in Support of a Mars Colony - Initial Results Report

This database, the Mars Colony Architecture Model (MCAM), is then linked to a variety of “downsteam” analytic models. In particular, we integrated an Extraction Process (i.e., “Mining”) Model, an Infrastructure and Integrated Logistics Support (ILS) Model, and an Economics Integration Model. The Extraction Process Model focuses on the technologies associated with in situ resource extraction, processing, storage and handling, and delivery. For each mined resource, which may involve multiple cooperating In Situ Resource Utilization (ISRU) systems in a given architecture, the Extraction Process Model computes the production rate as a function of the systems’ technical parameters and the local Mars environment. As with our earlier work, this model focuses on the extraction and processing of Mars water/ice.

Shishko, Robert↗

Economic modeling and energy policy planning

A structural economic model is presented for estimating the demand functions for natural gas and crude oil in industry and in steam electric power generation. Extensions of the model to other commodities are indicated.

Thompson, R. G.↗

System capacity and economic modeling computer tool for satellite mobile communications systems

A unique computer modeling tool that combines an engineering tool with a financial analysis program is described. The resulting combination yields a flexible economic model that can predict the cost effectiveness of various mobile systems. Cost modeling is necessary in order to ascertain if a given system with a finite satellite resource is capable of supporting itself financially and to determine what services can be supported. Personal computer techniques using Lotus 123 are used for the model in order to provide as universal an application as possible such that the model can be used and modified to fit many situations and conditions. The output of the engineering portion of the model consists of a channel capacity analysis and link calculations for several qualities of service using up to 16 types of earth terminal configurations. The outputs of the financial model are a revenue analysis, an income statement, and a cost model validation section.

Wiedeman, Robert A.↗

An economic model of the manufacturers' aircraft production and airline earnings potential, volume 3

A behavioral explanation of the process of technological change in the U. S. aircraft manufacturing and airline industries is presented. The model indicates the principal factors which influence the aircraft (airframe) manufacturers in researching, developing, constructing and promoting new aircraft technology; and the financial requirements which determine the delivery of new aircraft to the domestic trunk airlines. Following specification and calibration of the model, the types and numbers of new aircraft were estimated historically for each airline's fleet. Examples of possible applications of the model to forecasting an individual airline's future fleet also are provided. The functional form of the model is a composite which was derived from several preceding econometric models developed on the foundations of the economics of innovation, acquisition, and technological change and represents an important contribution to the improved understanding of the economic and financial requirements for aircraft selection and production. The model's primary application will be to forecast the future types and numbers of new aircraft required for each domestic airline's fleet.

Kneafsey, J. T.↗

Economic modeling of fault tolerant flight control systems in commercial applications

This paper describes the current development of a comprehensive model which will supply the assessment and analysis capability to investigate the economic viability of Fault Tolerant Flight Control Systems (FTFCS) for commercial aircraft of the 1990's and beyond. An introduction to the unique attributes of fault tolerance and how they will influence aircraft operations and consequent airline costs and benefits is presented. Specific modeling issues and elements necessary for accurate assessment of all costs affected by ownership and operation of FTFCS are delineated. Trade-off factors are presented, aimed at exposing economically optimal realizations of system implementations, resource allocation, and operating policies. A trade-off example is furnished to graphically display some of the analysis capabilities of the comprehensive simulation model now being developed.

Finelli, G. B.↗

An economic model for evaluating high-speed aircraft designs

A Class 1 method for determining whether further development of a new aircraft design is desirable from all viewpoints is presented. For the manufacturer the model gives an estimate of the total cost of research and development from the preliminary design to the first production aircraft. Using Wright's law of production, one can derive the average cost per aircraft produced for a given break-even number. The model will also provide the airline with a good estimate of the direct and indirect operating costs. From the viewpoint of the passenger, the model proposes a tradeoff between ticket price and cruise speed. Finally all of these viewpoints are combined in a Comparative Aircraft Seat-kilometer Economic Index.

Vandervelden, Alexander J. M.↗

Habitat Size Optimization of the O'Neill - Glaser Economic Model for Space Solar Satellite Production

Creating large space habitats by launching all materials from Earth is prohibitively expensive. Using space resources and space based labor to build space solar power satellites can yield extraordinary profits after a few decades. The economic viability of this program depends on the use of space resources and space labor. To maximize the return on the investment, the early use of high density bolo habitats is required. Other shapes do not allow for the small initial scale required for a quick population increase in space. This study found that 5 Man Year, or 384 person bolo high density habitats will be the most economically feasible for a program started at year 2010 and will cause a profit by year 24 of the program, put over 45,000 people into space, and create a large system of space infrastructure for the further exploration and development of space.

Curreri, Peter A.↗

An Integrated Economics Model for ISRU in Support of a Mars Colony - Initial Status Report

The aim of this effort is to develop an integrated set of risk-based financial and technical models to evaluate multiple Off-Earth Mining (OEM) scenarios. This quantitative, scenario- and simulation-based tool will help identify combinations of market variables, technical parameters, and policy levers that will enable the expansion of the global economy into the solar system and return economic benefits. Human ventures in space are entering a new phase in which missions formerly driven by government agencies are now being replaced by those led by commercial enterprises - in launch, satellite deployment, resupply of the International Space Station, and space tourism. In the not-too-distant future, commercial opportunities will also include the mining of asteroids, the Moon, and Mars. This investigation will examine the role of OEM in a growing space economy. (In this investigation, the term 'mining' is taken to embrace minerals, ice/water, and other in situ resources.) OEM can be the engine that drives the space economy, so it would be useful to understand what OEM market conditions and technology requirements are needed for that economy to prosper. These specific elements will be studied in the wider context of creating an economy that could ultimately support a sustainable Mars Colony. Such a colony will need in situ resources not only for its own survival, but to prosper and grow, it must create viable business ventures, essentially by fulfilling the demand for in situ resources from and on Mars. This investigation will focus on understanding the role and economic prospect for OEM associated with the Human Colonization of Mars (HCM).

architecture framework↗

A life cycle cost economics model for projects with uniformly varying operating costs

A mathematical model is developed for calculating the life cycle costs for a project where the operating costs increase or decrease in a linear manner with time. The life cycle cost is shown to be a function of the investment costs, initial operating costs, operating cost gradient, project life time, interest rate for capital and salvage value. The results show that the life cycle cost for a project can be grossly underestimated (or overestimated) if the operating costs increase (or decrease) uniformly over time rather than being constant as is often assumed in project economic evaluations. The following range of variables is examined: (1) project life from 2 to 30 years; (2) interest rate from 0 to 15 percent per year; and (3) operating cost gradient from 5 to 90 percent of the initial operating costs. A numerical example plus tables and graphs is given to help calculate project life cycle costs over a wide range of variables.

Remer, D. S.↗

National economic models of industrial water use and waste treatment

The effects of air emission and solid waste restrictions on production costs and resource use by industry is investigated. A linear program is developed to analyze how resource use, production cost, and waste discharges in different types of production may be affected by resource limiting policies of the government. The method is applied to modeling ethylene and ammonia plants at the design stage. Results show that the effects of increasingly restrictive wastewater effluent standards on increased energy use were small in both plants. Plant models were developed for other industries and the program estimated effects of wastewater discharge policies on production costs of industry.

Thompson, R. G.↗

A life cycle cost economics model for automation projects with uniformly varying operating costs

The described mathematical model calculates life-cycle costs for projects with operating costs increasing or decreasing linearly with time. The cost factors involved in the life-cycle cost are considered, and the errors resulting from the assumption of constant rather than uniformly varying operating costs are examined. Parameters in the study range from 2 to 30 years, for project life; 0 to 15% per year, for interest rate; and 5 to 90% of the initial operating cost, for the operating cost gradient. A numerical example is presented.

Remer, D. S.↗

Recent developments in the economic modeling of photovoltaic module manufacturing

Recent developments in the solar array manufacturing industry costing standards (SAMICS) are described. Consideration is given to the added capability to handle arbitrary operating schedules and the revised procedure for calculation of one-time costs. The results of an extensive validation study are summarized.

Chamberlain, R. G.↗

Sensitivity of Lunar Resource Economic Model to Lunar Ice Concentration

Lunar Prospector mission data indicates sufficient concentration of hydrogen (presumed to be in the form of water ice) to form the basis for lunar in-situ mining activities to provide a source of propellant for near-Earth and solar system transport missions. A model being developed by JPL, Colorado School of Mines, and CSP, Inc. generates the necessary conditions under which a commercial enterprise could earn a sufficient rate of return to develop and operate a LEO propellant service for government and commercial customers. A combination of Lunar-derived propellants, L-1 staging, and orbital fuel depots could make commercial LEO/GEO development, inter-planetary missions and the human exploration and development of space more energy, cost, and mass efficient.

Blair, Brad↗

The Agricultural Model Intercomparison and Improvement Project (AgMIP): Protocols and Pilot Studies

The Agricultural Model Intercomparison and Improvement Project (AgMIP) is a major international effort linking the climate, crop, and economic modeling communities with cutting-edge information technology to produce improved crop and economic models and the next generation of climate impact projections for the agricultural sector. The goals of AgMIP are to improve substantially the characterization of world food security due to climate change and to enhance adaptation capacity in both developing and developed countries. Analyses of the agricultural impacts of climate variability and change require a transdisciplinary effort to consistently link state-of-the-art climate scenarios to crop and economic models. Crop model outputs are aggregated as inputs to regional and global economic models to determine regional vulnerabilities, changes in comparative advantage, price effects, and potential adaptation strategies in the agricultural sector. Climate, Crop Modeling, Economics, and Information Technology Team Protocols are presented to guide coordinated climate, crop modeling, economics, and information technology research activities around the world, along with AgMIP Cross-Cutting Themes that address uncertainty, aggregation and scaling, and the development of Representative Agricultural Pathways (RAPs) to enable testing of climate change adaptations in the context of other regional and global trends. The organization of research activities by geographic region and specific crops is described, along with project milestones. Pilot results demonstrate AgMIP's role in assessing climate impacts with explicit representation of uncertainties in climate scenarios and simulations using crop and economic models. An intercomparison of wheat model simulations near Obregón, Mexico reveals inter-model differences in yield sensitivity to [CO2] with model uncertainty holding approximately steady as concentrations rise, while uncertainty related to choice of crop model increases with rising temperatures. Wheat model simulations with midcentury climate scenarios project a slight decline in absolute yields that is more sensitive to selection of crop model than to global climate model, emissions scenario, or climate scenario downscaling method. A comparison of regional and national-scale economic simulations finds a large sensitivity of projected yield changes to the simulations' resolved scales. Finally, a global economic model intercomparison example demonstrates that improvements in the understanding of agriculture futures arise from integration of the range of uncertainty in crop, climate, and economic modeling results in multi-model assessments.

Rosenzweig, C.↗