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At least 19 records

Benefit-cost methodology study with example application of the use of wind generators

An example application for cost-benefit methodology is presented for the use of wind generators. The approach adopted for the example application consisted of the following activities: (1) surveying of the available wind data and wind power system information, (2) developing models which quantitatively described wind distributions, wind power systems, and cost-benefit differences between conventional systems and wind power systems, and (3) applying the cost-benefit methodology to compare a conventional electrical energy generation system with systems which included wind power generators. Wind speed distribution data were obtained from sites throughout the contiguous United States and were used to compute plant factor contours shown on an annual and seasonal basis. Plant factor values (ratio of average output power to rated power) are found to be as high as 0.6 (on an annual average basis) in portions of the central U. S. and in sections of the New England coastal area. Two types of wind power systems were selected for the application of the cost-benefit methodology. A cost-benefit model was designed and implemented on a computer to establish a practical tool for studying the relative costs and benefits of wind power systems under a variety of conditions and to efficiently and effectively perform associated sensitivity analyses.

Zimmer, R. P.↗

A cost-benefit evaluation of the LANDSAT flow-on operational system

Disciplines to benefit from the LANDSAT Follow-on System include agriculture, petroleum and mineral exploration, hydrologic land use, water resources management, forestry, land use planning and monitoring, and soil management. The annual quantified benefits are in the range of 420 to 970 million (FY 1976 dollars). The operational system sized to achieve the quantified benefits involves a single orbiting satellite with a backup satellite in launch readiness. The ground system includes a basic processing system which feeds information to three user systems - one for agriculture, one for hydrologic land use, and a third for all other users. The resulting present worth benefit cost ratio is at least equal to four with a reasonable likelihood of exceeding nine. This benefit cost ratio is evaluated for an infinite time horizon at the discount rate of 10 percent.

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Cost-Benefit Analysis of Grid-Supportive Loads for Fast Frequency Response

Flexibility in inverter-based loads could be used to support the converter-dominated power grid by offering a rapid, autonomous, and adjustable power reserve during system transients to help maintain system stability. Based on technical potential, ancillary service (AS) value, and implementation costs, this study illustrates the cost-benefit analysis of grid-supportive loads (GSLs) for the supply of fast frequency response (FFR). The net benefit for each GSL is demonstrated using a case study and relevant data sources. The findings suggest that implementation costs for enabling GSL features are low compared to the value that grid operators get from the acquisition of responsive reserve services. The authors believe that, given the rising popularity of renewable energy sources, GSLs can be a useful tool for grid stability in low-inertia systems.

cost-benefit analysis↗

Cost-Benefit Analysis For Indonesia Building Sector: Whole-Building Cooling Solutions

The Net Zero World (NZW) Initiative Collaborative Work Program with the Government of Indonesia (GoI) includes technical assistance and investment mobilization facilitation to accelerate deployment of energy efficiency technologies and solutions for the building sector. A February 2023 U.S.–Indonesia Joint Workshop on Decarbonizing the Building Sector yielded a NZW Indonesia Building Decarbonization Working Group (NZW IBDWG) with four sub-working groups (SWG): SWG-A National Center, SWG-B Capacity Building, SWG-C Investment and Financing, and SWG-D Pilot Projects. Technical analysis of whole-building cooling solutions for tropical climates of Indonesia was conducted by SWG-A to quantify energy savings, carbon dioxide reductions, and comfort improvements offered by 12 passive or low-energy cooling strategies: ceiling fans with and without thermostat setbacks; cool roofs; cool walls; exterior awnings; exterior shades; interior shades; insulated roofs; insulated walls; low-e windows; solar window films; and natural ventilation. Leveraging the results from SWG-A, cost-benefit analysis (CBA) was conducted by SWG-C to assess the consumer and national costs and impacts associated with these 12 cooling solutions. The evaluation involved estimating life-cycle costs (LCC), payback period (PBP), net present values (NPV), annual electricity burden change for low-income households, and reduced national annual power-sector generation demand by 2030, 2040, 2050, and 2060. This evaluation can help guide Indonesia’s Just Energy Transition Partnership (JETP) investments in policies and programs to advance research, development, deployment, and commercial adoption (RDDCA) of efficient residential building sector cooling technologies and solutions in Indonesia. Four key energy conservation measures (ECM) have been identified to reduce air-conditioning (AC) energy demand in single-family housing in Indonesia: ceiling fan with temperature setback (to 28.1 °Celcius from 25 °C); insulated walls; insulated roof; and cool roof. This study found that low-income households with AC installations in Indonesia currently face a high energy cost burden of approximately 10%. However, by implementing a ceiling fan with temperature setback, this burden could decrease to 2.5% today and further reduce to 1.3% by the year 2060. The PBP for a ceiling fan with temperature setback is one year, indicating one of the lowest LCC and best NPV. In the planned upcoming phase of CBA, a series of building cooling improvement scenarios can be further defined, incorporating more than one ECM in combination with socio-economic factors evaluated in the initial CBA phase. Additionally, the analysis of ECM effects in multifamily housing can be expanded. This broader national analysis aims to encompass a holistic and comprehensive system-level perspective, including factors such as avoided power sector infrastructure investments, domestic job creation, domestic manufacturing job creation, and gross domestic product (GDP) growth.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

General methodology: Costing, budgeting, and techniques for benefit-cost and cost-effectiveness analysis

The general concepts of costing, budgeting, and benefit-cost ratio and cost-effectiveness analysis are discussed. The three common methods of costing are presented. Budgeting distributions are discussed. The use of discounting procedures is outlined. The benefit-cost ratio and cost-effectiveness analysis is defined and their current application to NASA planning is pointed out. Specific practices and techniques are discussed, and actual costing and budgeting procedures are outlined. The recommended method of calculating benefit-cost ratios is described. A standardized method of cost-effectiveness analysis and long-range planning are also discussed.

Stretchberry, D. M.↗

Principles of cost-benefit analysis for ERTS experiments, volumes 1 and 2

The basic elements of a cost-benefit study are discussed along with special considerations for ERTS experiments. Elements required for a complete economic analysis of ERTS are considered to be: statement of objectives, specification of assumptions, enumeration of system alternatives, benefit analysis, cost analysis nonefficiency considerations, and final system selection. A hypothetical cost-benefit example is presented with the assumed objective of an increase in remote sensing surveys of grazing lands to better utilize available forage to lower meat prices.

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Cost benefits of advanced software: A review of methodology used at Kennedy Space Center

To assist rational investments in advanced software, a formal, explicit, and multi-perspective cost-benefit analysis methodology is proposed. The methodology can be implemented through a six-stage process which is described and explained. The current practice of cost-benefit analysis at KSC is reviewed in the light of this methodology. The review finds that there is a vicious circle operating. Unsound methods lead to unreliable cost-benefit estimates. Unreliable estimates convince management that cost-benefit studies should not be taken seriously. Then, given external demands for cost-benefit estimates, management encourages software enginees to somehow come up with the numbers for their projects. Lacking the expertise needed to do a proper study, courageous software engineers with vested interests use ad hoc and unsound methods to generate some estimates. In turn, these estimates are unreliable, and the cycle continues. The proposed methodology should help KSC to break out of this cycle.

Joglekar, Prafulla N.↗

A cost benefit evaluation of the LANDSAT follow-on program

Results are presented of a benefit and cost study for the LANDSAT Follow-on system with a thematic mapper. The analysis shows that the present worth of the benefits exceeds the present worth of the costs by a factor between 6.5 and 13 using a 10 percent discount rate and an infinite horizon for both. This study focuses only on major, demonstrated applications, conservatively evaluated. No benefits have been included except where a definite need for the information has been shown, a mechanism for disseminating the information has been defined, a technical capability has been demonstrated, and a defendable method of evaluating the economic worth has been developed. This approach has meant that certain applications with definite promise and substantial likely benefits could not be evaluated or assigned any benefits. Mention is made of these areas, however, either in the appropriate subject chapter or in the final chapter on non-quantified benefits.

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A study of space station needs, attributes and architectural options, volume 2, technical. Book 3: Economic benefits, costs and programmatics

The economic benefits, cost analysis, and industrial uses of the manned space station are investigated. Mission payload costs are examined in relation to alternative architectures and projected technological evolution. Various approaches to industrial involvement for financing, development, and marketing of space station resources are described.

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Outline of cost-benefit analysis and a case study

The methodology of cost-benefit analysis is reviewed and a case study involving solar cell technology is presented. Emphasis is placed on simplifying the technique in order to permit a technical person not trained in economics to undertake a cost-benefit study comparing alternative approaches to a given problem. The role of economic analysis in management decision making is discussed. In simplifying the methodology it was necessary to restrict the scope and applicability of this report. Additional considerations and constraints are outlined. Examples are worked out to demonstrate the principles. A computer program which performs the computational aspects appears in the appendix.

Kellizy, A.↗

Environmental and cost benefits of multi‐purpose buffers in an agricultural watershed for biomass production

Abstract The cost‐benefit of riparian buffers to landowners has not been fully understood despite its ecosystem benefits. This study investigates the environmental and economic value of multi‐purpose buffers for biomass production under alternative land‐management scenarios at the watershed scale. The work incorporates the Soil and Water Assessment Tool with a field‐scale tool, the Agriculture Conservation Practice Framework, and cost‐benefit analysis. Our work took place in the agriculturally dominant Raccoon River watershed (RRW) in Iowa. The cost analysis includes implementing and harvesting the switchgrass buffers, the value of nitrogen and phosphorus fertilizer, and the forgone income of cropland to determine the net return under 12 alternative feedstock scenarios. We estimated that 14 603 Mg of nitrogen and 2563 Mg of phosphorus runoffs can be intercepted by riparian buffers in the RRW, representing a nutrient loss reduction of 11% of nitrogen and 26% of phosphorus. These nutrients are valued at $1.31 million (M) for phosphorus and $1.24 M for nitrogen as fertilizers. The trapped nutrients account for 12% of the riparian buffers’ total cost. We found that net economic returns increase with biomass market price, increase with maintenance fertilizer application, and decrease with the cropland areas that are converted to buffers. Under current land management, a biomass market price at $60 per dry ton of biomass would be economically viable at the sub‐basin level when maintenance fertilizers are applied. At $80 per dry ton, all 108 sub‐basins in the RRW would be profitable up to $517 a year. The results highlight the trade‐offs between water quality and profitability. Published 2021. This article is a U.S. Government work and is inthe public domain in the USA. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons Ltd.

09 BIOMASS FUELS↗

Incorporating cost-benefit analyses into software assurance planning

The objective is to use cost-benefit analyses to identify, for a given project, optimal sets of software assurance activities. Towards this end we have incorporated cost-benefit calculations into a risk management framework.

investment software quality software process impro↗

Benefit-Cost Analysis for Utility-Facing Grid Modernization Investments: Trends, Challenges, and Considerations

In recent years, many electric utilities have submitted grid modernization plans for review by state public utility commissions. A central objective of these plans is to demonstrate that grid modernization investments will provide net benefits to customers, be reasonable and be in the public interest. The plans typically include some form of benefit-cost analysis, but the assumptions, methodologies and frameworks vary considerably between utilities. This report: -Describes utility-facing technologies and projects for modernizing distribution systems, including interdependencies of grid components -Highlights benefit-cost considerations related to grid modernization -Summarizes recent trends in benefit-cost analysis for grid modernization based on a review of 21 plans by U.S. electric utilities -Discusses challenges state public utility commissions face in reviewing utility plans and provides options for addressing challenges

24 POWER TRANSMISSION AND DISTRIBUTION↗

Cost-Benefit Analysis of Electricity Resilience Projects: State of the Art and Gap Analysis

Utilities and regulators must weigh the benefits of electricity resilience projects against their costs, which would be passed on to customers. Cost-benefit analysis (CBA) is an appropriate method for assessing this tradeoff. Here, in this paper we review the literature on CBA of electricity resilience projects and analyze gaps in the available methods and tools. The costs of resilience projects are typically straightforward to estimate but their benefits — particularly the avoided costs of power interruptions — are complex to quantify and monetize. A common perception among practitioners is that current CBA tools are not sufficiently mature to be adopted into real-world practice. We propose an electricity resilience CBA framework consisting of several elements: risks, physical impacts, power interruptions, economic impacts, and resilience projects. While methods for some elements are well-developed, there is a need for novel approaches to value avoided power interruptions, integrate multiple risks and benefit streams, and incorporate uncertainty.

Cost-benefit analysis↗

Cost-benefit analysis of space technology

A discussion of the implications and problems associated with the use of cost-benefit techniques is presented. Knowledge of these problems is useful in the structure of a decision making process. A methodology of cost-benefit analysis is presented for the evaluation of space technology. The use of the methodology is demonstrated with an evaluation of ion thrusters for north-south stationkeeping aboard geosynchronous communication satellites. A critique of the concept of consumers surplus for measuring benefits is also presented.

Hein, G. F.↗

On the feasibility of benefit-cost analysis applied to remote sensing projects

The following step-wise procedure for making a benefit-cost analysis of using remote sensing techniques could be used either in the limited context of California water resources, or a context as broad as the making of integrated resource surveys of the entire earth resource complex on a statewide, regional, national, or global basis. (1) Survey all data collection efforts which can be accomplished by remote sensing techniques. (2) Carefully inspect the State of California budget and the Budget of the United States Government to find annual cost of data collection efforts. (3) Decide the extent to which remote sensing can obviate each of the collection efforts. (4) Sum the annual costs of all data collection which can be equivalently accomplished through remote sensing. (5) Decide what additional data could and would be collected through remote sensing. (6) Estimate the value of this information. It is not harmful to do a benefit-cost analysis so long as its severe limitations are recalled and it is supplemented with socio-economic impact studies.

Merewitz, L.↗

Low energy stage study. Volume 4: Cost benefits analysis and recommendations

The costs and benefits of existing/planned systems, new propulsion concepts, and adaptations of existing/planned systems (as supported by Orbiter interface requirements and operations requirements) were quantified. Scenarios of these propulsion approaches were established which accommodate the low energy regime as defined by the new low energy payload mission model. These scenarios were screened on a cost and then a benefits basis. A propulsion approach comprising existing/planned systems and a new propulsion concept were selected as the most cost effective approach to accommodate the model payloads and the low energy regime they represent. Key cost drivers and sensitivity trends were identified. All costs were derived in 1977 dollars.

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