Abstract
This study aims to analyze the factors that influence electricity prices. For this purpose, a hybrid multi-criteria decision-making (MCDM) model based on interval-valued intuitionistic hesitant fuzzy (IVIHF) sets is proposed. Firstly, a large literature review is carried out and 10 different factors that can affect electricity prices are determined. After that, IVIHF decision making trial and evaluation laboratory (DEMATEL) methodology is considered to find which factors are more significant in electricity prices. The finding shows that inflation rate and technological improvement are the most important criteria that affect electricity prices. Thus, the countries should consider expected future inflation rates to take necessary precautions to minimize volatility in electricity prices. Moreover, countries should follow current technologies regularly and make effective research and development to provide electricity with lower prices. In the second stage of the analysis, emerging 7 (E7) economies are ranked with respect to the performance related to the management of electricity price volatility. In this context, IVIHF VIšeKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approach is considered. It is concluded that Russia and China are the most successful countries in keeping electricity prices away from volatility whereas India and Turkey get the latest order. Furthermore, a comparative evaluation is also implemented by considering IVIHF technique for order preference by similarity to ideal solution (TOPSIS) methodology to check the consistency of the analysis results. The results of both approaches are quite similar which gives information about the consistency of the ranking results. On the other hand, a sensitivity analysis is performed to ten different cases consecutively. It is determined that the ranking results are coherent by considering the changes in the criteria weights.
Highlights
Electricity is so crucial for countries’ developments by satisfying basic human needs and pursuing production
The dimensions and criteria are weighted with interval-valued intuitionistic hesitant fuzzy (IVIHF) decision making trial and evaluation laboratory (DEMATEL)
emerging 7 (E7) economies are ranked with respect to the effectiveness of the management of electricity prices by using IVIHF VIšeKriterijumska Optimizacija I Kompromisno Resenje (VIKOR)
Summary
Electricity is so crucial for countries’ developments by satisfying basic human needs and pursuing production. In energydependent countries, volatility in exchange rates can cause undesirable changes in prices because they import most of their energy demand from abroad [2]. Another important point is that inflation causes an increase in electricity prices [3]. The main reason is that there is increase in prices of many different products and services due to inflation. This situation increases the price of the raw material from which
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