Cost-benefit Model Research Articles

Cost-benefit evaluation of different low NOx combustors of natural gas boilers in Beijing

This study focuses on establishing a cost-benefit evaluation model of low NOx combustion technology and the environmental benefits and economic benefits evaluation of technology operation were carried out as well. Results showed that: (1) The operation cost per unit calorific supply of the low NOx combustor with larger capacity (14 MW) boilers was 1.5-2.1 yuan/GJ, which was 22.3% to 26.2% as much as that of boilers with smaller capacity (0.7 MW). Compared with scattered boilers with smaller capacity, it is more economical to use boilers with larger capacity for centralized heating. (2) The lower the NOx emission concentration was, the greater the NOx emission reduction was. Furthermore, the lower the NOx emission benefits of low NOx combustor per unit calorific supply was, the greater the economic benefit of NOx reduction per unit calorific supply was. Based on the environmental and economic benefits analysis, the lean premixed combustor is recommended for natural gas boilers with capacity of 7 MW and below, and flue gas recirculation combustor (FGR-30) could be selected for natural gas boilers with capacity above 7 MW to achieve the NOx retrofits requirements of 30 mg/m3 or 80 mg/m3.

An Agent-based Model for Flexible Customization in Product-Service Systems

Product-Service System (PSS) models offer an integrated service solution to create value for businesses. In the high-value manufacturing sector, value creation for maintaining market competitiveness and improving customer satisfaction is a challenging task. Designing an effective PSS solution depends on integrated service, and product requirements and constraints. Thereby, PSS contract decisions can be significantly influenced by customers’ requirements, and also product and service features. However, existing literature primarily focuses on the impact of service requirements on the PSS contract decisions. Moreover, the existing insights for PSS customization mainly consider hysteretic customer requirements rather than forecasting the requirements under product and service uncertainties. In this paper, an agent-based cost-benefit analysis simulation model is implemented for the PSS contract decisions context. Moreover, a sensitivity analysis is conducted on service costs. Additionally, the effect of product remaining life on service contract decisions is analyzed. The simulation model considers stochastic uncertainty to study PSS contracts customization. The presented model supports PSS customization process by providing a quantitative tool that measures contracts’ profitability as early as the requirement elicitation phase. Furthermore, the bottom-up nature of the model, and the integration of probabilistic uncertainties enhance the flexibility of PSS customization. A case study of PSS contract decision in the machine tool industry is considered for assessing the validity of the presented model. Studies on different forms of service uncertainty highlight that the product failure rate has the most influence on the profitability of a service contract. Moreover, the impact of product age on profitability in an availability-based contract is more significant compared to a spare-parts contract.

Benefit–Cost Analysis of Social Media Facilitated Bystander Programs

AbstractBystander programs contribute to crime prevention by motivating people to intervene in violent situations. Social media allow addressing very specific target groups, and provide valuable information for program evaluation. This paper provides a conceptual framework for conducting benefit–cost analysis of bystander programs and puts a particular focus on the use of social media for program dissemination and data collection. The benefit–cost model treats publicly funded programs as investment projects and calculates the benefit–cost ratio. Program benefit arises from the damages avoided by preventing violent crime. We provide systematic instructions for estimating this benefit. The explained estimation techniques draw on social media data, machine-learning technology, randomized controlled trials and discrete choice experiments. In addition, we introduce a complementary approach with benefits calculated from the public attention generated by the program. To estimate the value of public attention, the approach uses the bid landscaping method, which originates from display advertising. The presented approaches offer the tools to implement a benefit–costs analysis in practice. The growing importance of social media for the dissemination of policy programs requires new evaluation methods. By providing two such methods, this paper contributes to evidence-based decision-making in a growing policy area.

The value of ecosystem collaboration: fleet life cycle data-based cost-benefit model

The value of ecosystem collaboration: fleet life cycle data-based cost-benefit model

A cost benefit model for high capacity transport in a comprehensive line-haul network

The objective of the paper is to analyse the potential of introducing High Capacity Transport (HCT) within a comprehensive line-haul network. Barriers and enablers have been identified, and a cost benefit model has been developed. The model considers environmental performance, socio-economic costs and operational costs and has been applied to a Swedish context and case study. The findings reveal that HCT can contribute to the development of road transportation in the perspectives of energy consumption and emission releases. It can further strengthen the trade and competitiveness of Swedish hauliers, as the introduction can provide a more cost-efficient system for all actors, including the transporter. However, the potential is largest when longer vehicles are meticulously and scrupulously introduced on a designated network alone.

Cost-benefit analysis on remote maintenance for industrial robot

The maintenance of industrial robots can be divided into two types: onsite maintenance and remote maintenance, each of which has its advantages and disadvantages. Firstly, the two types of maintenance modes, cost and benefit are analyzed and compared. While cost of on-site maintenance mainly includes downtime loss, maintenance cost and expert cost, downtime loss includes production loss and manpower waste, maintenance cost includes testing cost and material cost, and expert cost includes travel expense and labor cost. Cost of remote maintenance also includes downtime loss and maintenance cost, but does not include expert cost. Downtime loss and maintenance cost of remote maintenance is same as that of onsite maintenance, but the value is different. Then, cost-benefit method is used to analyze and establish cost-benefit model of two maintenance modes. Finally, an automobile manufacturing enterprise is taken as an example, and the cost and benefit of on-site maintenance and remote maintenance is analyzed and calculated to apply and verify the proposed method. The method proposed in this paper can provide help for the maintenance mode selection of industrial robots.

Energy Storage Economic Analysis of Multi-Application Scenarios in an Electricity Market: A Case Study of China

Energy storage has attracted more and more attention for its advantages in ensuring system safety and improving renewable generation integration. In the context of China’s electricity market restructuring, the economic analysis, including the cost and benefit analysis, of the energy storage with multi-applications is urgent for the market policy design in China. This paper uses an income statement based on the energy storage cost–benefit model to analyze the economic benefits of energy storage under multi-application scenarios (capacity, energy, and frequency regulation markets) in China’s future electricity market. The results show that the economic benefits of energy storage can be improved by joining in the capacity market (if it exists in the future) and increasing participation in the frequency regulation market. Nevertheless, the benefits under multi-application scenarios can hardly guarantee the cost recovery of energy storage under the current market mechanism or at the current price levels. Moreover, the economic benefits under different subsidy policies are studied, and the results show that energy storage can recover the cost with appropriate subsidy policies (the subsidy of 0.071 USD/kWh for pumped storage power stations is sufficient while the subsidy of 0.142 USD/kWh is required for electrochemical power stations). Finally, the sensitivity analysis of an energy storage power station to different price levels is carried out considering the difference in electricity price between China and the United States.

Dispositional cognitive effort investment and behavioral demand avoidance: Are they related?

Individuals tend to avoid cognitive demand, yet, individual differences appear to exist. Recent evidence from two studies suggests that individuals high in the personality traits Self-Control and Need for Cognition that are related to the broader construct Cognitive Effort Investment are less prone to avoid cognitive demand and show less effort discounting. These findings suggest that cost-benefit models of decision-making that integrate the costs due to effort should consider individual differences in the willingness to exert mental effort. However, to date, there are almost no replication attempts of the above findings. For the present conceptual replication, we concentrated on the avoidance of cognitive demand and used a longitudinal design and latent state-trait modeling. This approach enabled us to separate the trait-specific variance in our measures of Cognitive Effort Investment and Demand Avoidance that is due to stable, individual differences from the variance that is due to the measurement occasion, the methods used, and measurement error. Doing so allowed us to test the assumption that self-reported Cognitive Effort Investment is related to behavioral Demand Avoidance more directly by relating their trait-like features to each other. In a sample of N = 217 participants, we observed both self-reported Cognitive Effort Investment and behavioral Demand Avoidance to exhibit considerable portions of trait variance. However, these trait variances were not significantly related to each other. Thus, our results call into question previous findings of a relationship between self-reported effort investment and demand avoidance. We suggest that novel paradigms are needed to emulate real-world effortful situations and enable better mapping between self-reported measures and behavioral markers of the willingness to exert cognitive effort.

S0413 The Cost-Effectiveness of Implementing an Exercise Program for Fall and Fracture Prevention in Adults Aged 65 and Older on Proton Pump Inhibitor Therapy

INTRODUCTION: National guidelines recommend implementing an exercise program in community-dwelling adults ≥ 65 years old to decrease risk of falling. Proton pump inhibitors (PPI) are not currently recognized as contributing risk factors for falls in these guidelines. However, observational studies have linked PPI use with increased falls and fractures. In 2013, 7,000,000 people over the age of 65 were using PPIs. We studied the economic effects of fall prevention programs in PPI users over 65 and hypothesize that these programs will produce significant healthcare savings. METHODS: Using previously published data, we developed a cost-benefit model to predict various outcomes associated with a fall and fracture in the elderly (Figure 1). We incorporated three exercise programs: Tai Chi, Stepping On, and the Otago. We conducted sensitivity analysis using different Odds Ratios (OR)s for falls in PPI users to determine the threshold of effectiveness of the interventions. We then compared the average cost of each program to the relative reduction in cost associated with a fall and fracture to determine the financial benefit to elderly patients taking PPI therapy. RESULTS: Based on prior studies, adults over 65 have a 30% chance of falling annually with a 33.4% likelihood of seeking medical care. Sensitivity analysis was performed for OR for PPI use and falling ranging from 1.2 to 3.77 (P-value = 0.05). The annual expected cost of falls and fractures in adults over 65 on PPI therapy ranged from $10,317.35 to $18,766.28. Cost of the exercise programs ranged from $112.70 to $336.82 annually, with an anticipated fall reduction ranging from 31-55% based on the literature. Using a range of ORs for PPI use and fall/fracture rate, the model suggests a net financial benefit when reduction of falls is greater than 5% (Figure 3). Individual benefits achieved from exercise programs ranged from $3,198.38 to $10,208.76 (Figure 2). The annual net financial benefit of these programs in the US population of PPI users over age 65 ranges from $18 to $85 billion in savings (Figure 3). CONCLUSION: With modest fall reduction returns above 5%, implementing a fall prevention exercise program in patients over 65 on PPI therapy offers an effective means of reducing the overall financial impact of falls and fractures both individually and on a national level. Formal exercise programs including Tai Chi, Stepping On, and the Otago are highly recommended for these patients.Figure 1.: This figure illustrates our financial model of the costs attributable to falling in a population of PPI users over age 65.Figure 2.: This figure represents the average annual financial benefit of implementing one of three exercise programs to reduce fall and fracture risk in elderly patients over the age of 65 in comparison between PPI and non-PPI users.Figure 3.: This figure represents sensitivity analysis conducted on different odds ratios (OR) between PPI and falling rate. For all OR’s, there was an expected annual benefit when the exercise program implemented conferred a fall reduction greater than 5%.

Techno-economic analysis of plantation biomass production and small-scale wood pellet processing for bioenergy market

ABSTRACT There has been an increased demand for wood pellets for energy production, hence pellet production is a valuable market opportunity to explore. The purpose of the study was to assess the economic feasibility of on-site wood pellet processing for bioenergy market. The benefit–cost model was used to estimate the nett return over the projected investment period. Monte Carlo simulation was performed for the possible range of nett returns and to identify the effect of stochastic variables on profitability. The simulation results showed positive nett return from both biomass production and processing of pellets. The sweetgum yield, market price of biomass and pellet, and projected volume of pellets had the greatest positive effect on profitability. The results will help to make pelletizing readily available to those who are looking to make the switch and go green by using alternative and renewable energy.

Changes in thermal quality of the environment along an elevational gradient affect investment in thermoregulation by Yarrow’s spiny lizards

AbstractBody temperature affects physiological processes and, consequently, is assumed to have a large impact on fitness. Lizards need to thermoregulate behaviourally to maintain their body temperature within a range that maximizes performance, but there are costs associated with thermoregulation. The thermal quality of an environment directly affects the amount of time and energy that must be invested by an individual to maintain an optimal body temperature for performance; time and energy are major costs of thermoregulation. According to Huey and Slatkin’s (Q. Rev. Biol. 1976, 363) cost–benefit model of thermoregulation, lizards should only thermoregulate when the benefits outweigh the costs. Thus, in habitats of poor thermal quality, lizards should invest less into thermoregulation. We tested the hypothesis that the thermal quality of an environment dictates investment in thermoregulation across an elevational gradient. Increases in elevation are accompanied by decreases in temperature and therefore thermal quality. We recorded body temperatures of Yarrow’s spiny lizards (Sceloporus jarrovii) at ten talus slopes along an elevational gradient of over 1000 m. We found a significant positive relationship between elevation and effectiveness of thermoregulation, opposite to the prediction of the cost–benefit model of thermoregulation. This suggests that the disadvantages of thermoconformity may be greater than the costs of thermoregulating as habitats become more thermally challenging.

Policy implementation barriers and economic analysis of shore power promotion in China

The mandatory use of shore power (SP), in place of auxiliary engine generated power, has been adopted worldwide as one of the effective measures to reduce ships' in-port emissions when they berth at ports. However, SP promotion is not smooth in many countries. This paper takes China as an example to explore the barriers to SP policy implementation by conducting in-depth interviews and builds cost-benefit models to estimate the costs and investment payback years of SP reconstruction of the port and ships based on subsidy policies. Specifically, real data collected from the Port of Shanghai are used as key parameters in the economic analysis. The results show that the government should launch appropriate subsidy policies to boost the promotion of SP technologies. The more efficient the subsidies that the government offers to ports and shipping companies for SP facility reconstruction are, the faster these companies can recover the cost.

Toward a More Strategic National Stockpile

The COVID-19 pandemic has uncovered major deficiencies in the United States’ approach to stockpiling for emergencies. States, cities and hospitals across the country had inadequate stores of critical medical items on hand when the pandemic reached US soil, and the federal government’s Strategic National Stockpile proved far too small to fill this inventory gap. As nationwide shortages worsened, many state governments began bidding against each other to procure scarce medical supplies — a distribution approach that inherently disadvantaged low-income and minority communities and left countless health care professionals and staff ill-equipped to protect themselves against a potentially deadly virus. These failings have generated an unprecedented push to reform the nation’s stockpiling policy structure. This Article uses a simple stockpiling cost-benefit model to highlight shortcomings in the existing US stockpiling policy regime and to identify specific new policy strategies capable of addressing them. Among other things, US stockpiling policies need to better account for important differences in the rotatability of supplies and should more aggressively incentivize private stockpiling of the most rotatable emergency items. Reshaping commandeering laws and price-gouging restrictions could also do much to strengthen private incentives to stockpile and could even help to clarify how states and the federal government share responsibilities in the nation’s stockpiling effort. Additional federal support is likewise needed to incentivize the build-out and maintenance of domestic supply chains for the least-rotatable emergency goods. These reforms and certain related policy changes could help to ensure that the nation is far better equipped to respond the next time disaster strikes.

Economic analysis of lithium-ion batteries recycled from electric vehicles for secondary use in power load peak shaving in China

The secondary use of recycled lithium-ion batteries (LIBs) from electric vehicles (EVs) can reduce costs and improve energy utilization rate. In this paper, the recycled LIBs are reused to construct a 3 MW∗3 h battery energy storage system (BESS) for power load peak shaving (PLPS). Taking the BESS as an example, a cost-benefit model is established after the systematical analysis of compositions. The cost model is divided into eight components in detail, which can be grouped into three categories: initial investment costs, operation and maintenance costs (O&M costs) and batteries replacement costs. The benefit model comprises seven parts, such as environmental benefit, battery dismantling and recovery benefit and residual value. In the case study, the life model is established by exponential function through the character analysis of the recycled LIBs. The economic analysis of the BESS is carried out in three techno-economic statuses of optimism, business, and research, which is based on two interest-subjects of grid company and non-grid company. Furthermore, both battery purchasing cost (BPC) and government subsidy are performed to sensitivity analysis. The results show that the BESS with recycled LIBs for PLPS, especially those invested by grid company, have a good application prospect in China.

Probabilistic Seismic Resilience-Based Cost–Benefit Analysis for Bridge Retrofit Assessment

This paper explores a probabilistic resilience-based cost–benefit model that can be used to identify the best retrofit measures for bridges. In the model, the increase in resilience is considered to be the benefit of seismic retrofit. A bridge functionality assessment model is also proposed to evaluate resilience. The functionality is estimated based on the appropriate seismic loss and exponential recovery function models. Then, the functionality assessment model is validated with the field data of the post-earthquake recovery process of bridges. The whole proposed methodology is applied to a non-seismically designed multi-span simply supported concrete girder bridge located in Charleston. Seven retrofit measures, including steel jackets, seat extenders and elastomeric isolation bearings, are applied to the as-built bridge in order to assess their cost-effectiveness. The results show that the cost-effectiveness of retrofit measures varies with the ground motion intensity, and the best retrofit is seat extenders followed by elastomeric isolation bearings when considering the seismic hazard of Charleston. Sensitivity analysis is also performed to identify major uncertain parameters to which the resilience-based cost–benefit ratios are most sensitive. Statistical analysis of resilience-based cost–benefit ratios obtained through random sampling of major uncertain parameters reveals that normal distribution can be used to describe their uncertain nature. The 90% confidence intervals of resilience-based cost–benefit ratios estimated from random sampling also indicate the high cost-effectiveness of seat extenders and elastomeric isolation bearings to enhance bridge performance.

Cost-Benefit Models on Integrating Information Technology Services in Automotive Production Management

The integration of the new-generation information technology and the automobile manufacturing industry has significantly improved the production efficiency of the automobile manufacturing industry, but it will also increase the technology application cost of the automobile manufacturing industry. The boundary value of the income change of the automobile manufacturing industry can be obtained by examining the influence of new-generation information technology on the price of parts, the price of automobiles, and the quantity of production in the upstream and downstream of the automobile manufacturing industry chain. The study found that the benefit of the automobile manufacturing industry that meets the conditions of technology application costs has increased. The value added to the downstream enterprises in the industrial chain is greater than the value added to the upstream companies. The lower the cost of technology application, the greater the impact on the number of automobile production. In the end, an example is used to verify the reliability of the research results.

Comparison of the costs and benefits of the Clean India Mission

Abstract Background The Swachh Bharat (Clean India) Mission (SBM) launched in October 2014 is the world’s largest sanitation campaign. Our aim was to estimate and compare major economic costs and benefits associated with sanitation improvement achieved during three years of SBM from households’ financial and economic perspectives and a broader societal perspective. Methods Cost-benefit model inputs were obtained from household surveys in the twelve Indian states that once contributed to over 90 percent of open defecation in India, published literature and secondary data. Monetized costs included household financial and time investments in building and maintaining toilets, and government’s investments on subsidies and campaign activities. Monetized benefits included reductions in medical costs and mortality associated with diarrheal diseases, productive time saved from fewer diarrhoea cases and accessing outside defecation options, and increase in the property value of having a toilet. Probabilistic uncertainty analysis assessed the combined effect of key modelling assumptions and sampling errors in the inputs to the cost-benefit model. Findings Investment costs average US$ 396 per latrine and average annual operational costs are US$ 37 (financial) and US$ 94 (time costs) 1 . Annual benefits of US$ 727 per household are mainly from savings associated with reduced diarrhoea incidence (55%) and from sanitation access time savings (45%). The estimated Benefit-Cost Ratios (BCRs) are 1.7 (household financial perspective), 4.5 (household economic perspective) and 4.0 (societal perspective) under Open Defecation Free (ODF, corresponding to 100% toilet coverage and usage) scenario. However, under partial-ODF scenario with 85 percent toilet use rate, the BCRs are 1.1, 3.3 and 3.0, respectively. Probabilistic uncertainty analysis shows that the financial BCRs under the partial-ODF scenario can reduce to 0.7, but societal BCR will remain above 2. Interpretation This study shows the sanitation improvements under the SBM are highly cost-beneficial, more when communities are free of open defecation with all households using private improved sanitation facilities. Future SBM investments must ensure not only sustaining the universal toilet coverage and usage, but also ensure safe faecal waste management so that households continue to enjoy full benefits of sanitation.

Network Formation by Reciprocity Versus Sparsity Tradeoffs

We introduce a cost-benefit model for network formation, where exchanges among nodes are based on reciprocity. Peers receive from the network an amount of resources commensurate with their contribution. When creating links is costly, peers tend to limit the number of their connections, and sparsity of the exchange network may be desirable. In a fully connected graph, finding the sparsest exchanges that achieve a desired level of reciprocity is in general NP-hard. To capture near optimal allocations, we consider variants of the Eisenberg–Gale program, and an equivalent formulation given by Shmyrev, with sparsity penalties. We propose two decentralized algorithms for reciprocation, whereby peers approximately compute the sparsest allocations, by submitting bids for each other's resources. The algorithms extend the proportional–response dynamics, and promote sparsity through nonlinear pricing either at the bidding or the allocation stage. Numerical results illustrate the network formation process by peers who achieve almost-perfect reciprocity, with a small number of active connections. The proposed self-organization model leverages the reciprocity vs sparsity tradeoff to generate cyclic motifs in exchange networks.

Research on Incremental Distribution Network Operation Model Based on Cost-Benefit Perspective

In order to select the optimal mode of incremental distribution network and increase the revenue of the incremental distribution network, incremental distribution network cost-benefit model in three scenarios were established: non-sales company investment + operation, electricity sales company investment + operation, non-sales company investment + electricity sales company operation. At the same time, the three operating models are evaluated using three indicators: net present value, dynamic investment payback period, and net present value rate. Finally, take an incremental distribution network as an example to verify the effectiveness of the model. The result of the calculation example is that the electricity sales company’s investment + operation model has higher economic benefits than other models, the investment payback period is shorter, and the unit investment income is higher.

Information value-based optimization of structural and environmental monitoring for offshore wind turbines support structures

The use of load and structural performance measurement information is vital for efficient structural integrity management and for the cost of energy production with Offshore Wind Turbines (OWTs). OWTs are dynamically sensitive structures subject to an interaction with a control unit exposed to repeated cyclic wind and wave loads causing deterioration and fatigue. This study focuses on the quantification of the value of structural and environmental information on the integrity management of OWT structures, with the focus on fatigue of welded joints. By utilizing decision analysis, structural reliability methods, measurement data, as well as the cost-benefit models, a Value of Information (VoI) analysis can be performed to quantify the most beneficial measurement strategy. The VoI assessment is demonstrated for the integrity management of a butt welded joint of a monopile support structure for a 3 MW OWT with a hub height of approximately 71m. The conditional value of three-year measured oceanographic information and one-year strain monitoring information is quantified posteriori in conjunction with an inspection and repair planning. This paper provides insights on how much benefits can be achieved through structural and environmental information, with practical relevance on reliability-based maintenance of OWT structures.