Capital Expenditure Research Articles

Public Revenues and Educational Sector Productivity in Nigeria

This study examined the influence of public revenue on the productivity of the educational sector, focusing on how various tax policies and expenditures impact education’s contribution to the Gross Domestic Product (GDP), focusing on the role of Company Income Tax (CIT), Education Tax (EDT), Research and Development Investment (R&DI), and Capital Expenditure (CAPEX). Using annual data spanning from 1994 to 2023, the study employs econometric techniques, including the Autoregressive Distributed Lag (ARDL) model, to analyze the relationship between these variables and the education sector’s economic performance. The findings reveal that CIT and EDT positively influence the education sector’s contribution to GDP, suggesting that these forms of taxation play a crucial role in funding educational activities and stimulating economic growth within the sector. Additionally, R&DI and CAPEX exhibit mixed effects on the education sector, with lagged investments showing a more significant impact on economic performance over time. It was recommended that there is a need by policy makers and stake holders for continued efforts to create a conducive fiscal environment for businesses operating in the education sector, including favorable tax policies and incentives to stimulate investment and innovation. Keywords: Nigerian tax system, educational sector, Company Income Tax, Education Tax, Capital Expenditure.

Horizon problem and capital expenditures: evidence from the public sector in Indonesia

PurposeThis study investigates whether horizon problems affect the allocation of capital budgets and their implementation in a government setting.Design/methodology/approachWe use data from 2005 to 2020 for local governments in Indonesia, which apply a limit of two five-year terms for mayors. We use regression analyses for panel data with total observations of 4,541 local government years from 448 unique local governments. We also use graphical analyses and t-tests to provide robustness to our results.FindingsMayors allocated lower capital expenditures in the second term than in the first. Capital budget allocation is lower for local governments whose mayors are older than 60. Our additional analysis shows that incumbents seeking re-election allocate more capital expenditure than those not seeking re-election.Research limitations/implicationsThis study contributes to the literature on the behavioral effect of term limits on local government's allocation and implementation of capital budgets. Limiting elected government officials to a certain number of terms will prevent the monopoly of power. However, it may negatively affect budget allocation on capital programs in their last term. Our findings should interest public policymakers in discerning the costs and benefits of term limits for elected offices.Originality/valueMost studies on horizon problems have focused on the corporate setting. This study provides evidence of the effects of horizon problems in the government setting, especially in Asia.

Determinants of District/City Income Disparity in Bali Province

In regional scale of Bali Province infected symptom disparity marked income​ with Still concentrated development of the South Bali region compared to other parts of Bali. The goal study This For identify disparity income districts / cities in Bali Province 2018-2023 and analyze influence growth economy, power work, level education, allocation funds, and capital expenditures on disparity income district / city Bali Province is good in a way simultaneous and also partial. Research This use method quantitative and using secondary data obtained​ from the Central Bureau of Statistics. Data analysis techniques using Williamson index and Klassen typology as analysis disparity and continued with multiple linear regression For analyze influence growth economy, power work, level education, allocation funds, and capital expenditures on disparity income. Research results show growth economy, power work, level education, allocation funds, and capital expenditures simultaneous influential and significant to disparity income. Furthermore, growth economy, level education, allocation funds, and capital expenditures partial influential negative and significant to disparity income. Meanwhile, energy Work in a way partial influential positive and significant to disparity income. Research suggestions among other things to do equalization development for poor and depressed areas decrease, increase transportation common connecting​ all areas, development infrastructure and creation field work, availability help education and also scholarship to college tall and also postgraduate, government center still provide allocation funds especially to poor and depressed areas , and maximize potential area so that investors can invest.

Total Debt Service and Economic Growth in Nigeria: The Empirical Nexus

This study examines the relationship between debt service and economic growth in Nigeria in the period 1990-2022, utilizing time series data from the World Development Indicator and CBN Statistical Bulletin. The issue of debt servicing has become difficult for developing countries like Nigeria, and has not only stifle economic growth, but also increased the rate of poverty and unemployment in these countries. The study explores the empirical nexus between total debt service and economic growth in Nigeria, employing GDP growth rate as the dependent variable, while the explanatory variables involved; are total debt serving, inflation rate and capital expenditure. The variables were estimated with autoregressive distributed lag (ARDL) method, among other, after the stationarity tests conducted on them Indicate that the variables were of mixed integration. Evidence suggesting a long-term equilibrium relationship among the variables was also established given the cointegration result. The ARDL results reveal that the inflation rate has an inverse and significant impact on GDP growth. Total Debt services variable also exhibited a similar impact on GDP growth. However, the results indicated that capital expenditure variable has a direct and significant impact on GDP growth. Based on the findings, this study recommends that the Nigerian government should implement robust monetary policies aimed at controlling inflation and revisit its debt management strategy to ensure sustainability. It is also recommended that the government should not only increase capital expenditure but also ensure that these investments are directed towards sectors with the highest economic growth potentials. Keywords: Debt service, economic growth, inflation, capital expenditure and GDP growth

Total Debt Service and Economic Growth in Nigeria: The Empirical Nexus

This study examines the relationship between debt service and economic growth in Nigeria in the period 1990-2022, utilizing time series data from the World Development Indicator and CBN Statistical Bulletin. The issue of debt servicing has become difficult for developing countries like Nigeria, and has not only stifle economic growth, but also increased the rate of poverty and unemployment in these countries. The study explores the empirical nexus between total debt service and economic growth in Nigeria, employing GDP growth rate as the dependent variable, while the explanatory variables involved; are total debt serving, inflation rate and capital expenditure. The variables were estimated with autoregressive distributed lag (ARDL) method, among other, after the stationarity tests conducted on them Indicate that the variables were of mixed integration. Evidence suggesting a long-term equilibrium relationship among the variables was also established given the cointegration result. The ARDL results reveal that the inflation rate has an inverse and significant impact on GDP growth. Total Debt services variable also exhibited a similar impact on GDP growth. However, the results indicated that capital expenditure variable has a direct and significant impact on GDP growth. Based on the findings, this study recommends that the Nigerian government should implement robust monetary policies aimed at controlling inflation and revisit its debt management strategy to ensure sustainability. It is also recommended that the government should not only increase capital expenditure but also ensure that these investments are directed towards sectors with the highest economic growth potentials. Keywords: Debt service, economic growth, inflation, capital expenditure and GDP growth

Hybrid solar photovoltaic-wind turbine system for on-site hydrogen production: A techno-economic feasibility analysis of hydrogen refueling Station in South Korea's climatic conditions

The South Korean government has an ambitious policy to roll out hydrogen-powered vehicles across the country with 2000 hydrogen refueling stations (HRSs) infrastructure by 2050. However, the country currently lacks sufficient HRS infrastructure. In this context, this study proposes and investigates the technoeconomic feasibility and performance assessment of an optimal hybrid renewable energy system integrated with a vanadium redox flow battery for on-site hydrogen production. The system is designed to refuel a fleet of 20 fuel cell electric vehicles at seven South Korean locations with distinct climates. Based on the typical daily hydrogen and electric load profile of the HRS, the capital expenditure, net present cost, operation expenditure, levelized cost of hydrogen and levelized cost of energy were estimated to be, $5.95 - $13.2 M, $8.93 - $19.4 M, 82,670–202,184 $/yr, 8.77–19.1 $/kg and 2.1–4.58 $kWh, respectively.

A comprehensive cost mapping of digital technologies in greenhouses

Conventional greenhouse producers face significant challenges in integrating advanced Industry 4.0 technologies into their production processes. One of the main obstacles is the lack of clarity regarding the components of technological costs. This article develops a cost mapping for the implementation of such technologies in the context of greenhouses. The mapping distinguishes between capital expenditures (CAPEX) and operational expenditures (OPEX), categorizing the key technological components and their financial implications. Based on the general findings from the literature review, several cost areas can be identified and classified as follows: hardware acquisition, installation and retrofitting, integration and customization, software and services, operational and maintenance costs. This cost structure will serve as a basis for future economic models and cost-benefit analysis (CBA), promoting strategic decision-making and a more informed and precise selection of digital technologies.

Global techno-economic analysis of MBR for hospital wastewater treatment

This study comprehensively examines and characterizes global membrane bioreactor (MBR) practices for hospital wastewater treatment, focusing on development trends, technical performance (pollutant removal and carbon emissions), and economic costs, including both capital expenditures (CAPEX) for civil engineering and equipment procurement, and operational expenditures (OPEX) for electricity, membrane replacement, labor, and chemical costs, as well as system footprint. The results show that MBR has been widely used for hospital wastewater treatment for over two decades, with global applications and scales significantly increasing, especially after the COVID-19 pandemic. A notable shift in membrane types has occurred, with hollow fiber membranes dominating before 2010 and flat inorganic membranes gaining prominence after 2020. MBR not only effectively removes conventional pollutants but also greatly reduces pathogens, ARBs and ARGs before disinfection, thus alleviating the subsequent disinfection burden. In addition, MBR is a crucial step in the process of completely removing emerging contaminants (ECs) that pose significant environmental and health risks. The CAPEX of MBR has decreased at the technical level in recent years. MBR requires only 62 % and 21 % of footprint for conventional activated sludge (CAS) and biofilm-based processes, respectively. MBR's land-saving advantage offsets the CAPEX gap with CAS in high land-cost areas. From before 2010 to after 2020, membrane costs saw the largest reduction in OPEX, dropping by 71 %, while electricity consumption saw a 10.71 % reduction, now comparable to biofilm-based processes. Currently, MBR's OPEX (0.158 USD/m3) is only slightly higher than that of biological contact oxidation (0.138 USD/m3). MBR also minimizes sludge production, reducing both treatment costs and associated disposal risks. MBR exhibit minimal concerns of excessive carbon emissions, with a carbon emission intensity (1.11 kg CO2eq·m−3), only slightly higher than biofilm-based processes (0.92 kg CO2eq·m−3). This study demonstrates that MBR is the valuable and practical solution for hospital wastewater treatment, as well as a preferred choice for upgrading existing facilities.

Kinerja Pendapatan dan Belanja Kota Malang Tahun 2018–2023

Evaluation of Regional Government financial performance is important and needs to be carried out. The aim of this research is to check the financial performance of the Malang City Government by analyzing financial reports from 2018 to 2023. This research is descriptive qualitative with secondary data obtained from the Malang City Central Statistics Agency. The results show that the degree of decentralization ratio has an average of Fair Performance, the financial independence ratio has an average of Low Performance, the efficiency ratio has an average of Inefficient Performance, the ratio of operational expenditure to total expenditure has an average of Good Performance, the ratio of capital expenditure to total expenditure with average Good Performance, and ratio of expenditure growth with average Good Performance.

Scope, Scale, and Concentration: The 21st‐Century Firm

ABSTRACTWe provide evidence using firm 10‐Ks that over the past 30 years, U.S. firms have expanded their scope of operations. Increases in scope were achieved largely without increasing traditional operating segments. Scope expansion significantly increases valuation and is realized primarily through acquisitions and investment in R&D, but not through capital expenditures. Traditional concentration ratios do not capture this expansion of scope. Our findings point to a new type of firm that increases scope through related expansion, which is highly valued by the market.

Does War Make States? Military Spending and the Italian State‐Building, 1861–1945

ABSTRACTWe present empirical evidence on the relationship between military spending and the expansion of other government budget items and tax revenues from the unification of Italy (1861) up to the end of World War II. Until 1922, investments in education and social transfers to families mainly moved in step with defence spending. This means that increases in defence spending imply an increase in both education spending and transfers. Moreover, transfers also play a compensatory role during recessions. Increases in defence spending do not crowd out investment in capital expenditure, while disinvestment in defence is associated with an increase in investment in capital. The pro‐cyclical behaviour of tax revenues is compatible with the debt‐financing dynamic of much government expenditure. Although our analytical narrative is not universally valid, it does support the persistent centrality of external wars in the discontinuous growth and expansion of central government in the Italian state, with some exceptions explained by historical events.

FAKTOR – FAKTOR YANG MEMPENGARUHI FISCAL STRESS PADA PEMERINTAH KABUPATEN/KOTA DI PROVINSI SUMATERA SELATAN

This research aims to determine the factors that can impact fiscal stress in Regency/City Governments in South Sumatra Province from 2018 to 2022. The resaerch uses a sample of Regency/City Governments in South Sumatra Province with moderate regional financial capacities. Secondary data sourced from publications released by the Supreme Audit Agency is utilized. The research employs multiple linear regression to test the hypotheses, specifically using the R² test, partial test, and simultaneous test, analyzed with SPSS (Statistical Package for the Social Sciences) Version 26.The result is that regional original income and capital expenditures have a positive and statistically significant impact on fiscal stress. balancing funds and decentralization fiscal have a negative and significant impact on fiscal stress.

Performance Enhancement in Air Gap Membrane Distillation Using Heat Recovery Configurations

Experimental investigations were conducted on an air gap membrane distillation (AGMD) unit to evaluate the impact of heat recovery on system performance. The study utilized a steady-state heat source in conjunction with a spiral air gap membrane module for water desalination. The process was implemented using two configurations aimed to minimize heat loss enhancing productivity, gain output ratio (GOR), and thermal efficiency. The experiments involved feedwater with salt concentrations ranging from 10,000 to 30,000 ppm. The measurements were recorded for inlet and outlet temperatures of the heat source, water productivity, and thermal efficiency at various coolant and water feed flow rates. These configurations effectively addressed critical technical challenges in thermal AGMD systems by optimizing heat recovery. The incorporation of heat recovery resulted in a significant increase in water productivity by 37.07% compared to systems without heat recovery while maintaining the same initial heat input. The heat recovery in series (HRSS) and parallel (HRPS) configurations resulted in power consumption reductions of approximately 29.7% and 23.1%, respectively compared to the conventional configuration (CC) at a flow rate of 12 L/min. The levelized cost of water (LCOW) for the AGMD system was comprehensively evaluated and found to be $ 7.71 per cubic meter. This figure reflected the total cost of water production over the system's operational lifespan including capital expenditures, operating and maintenance costs, and energy consumption. The calculated LCOW provides a clear indicator of the system's economic viability, demonstrating the cost required to produce each cubic meter of water through the AGMD.

DOMINANTS FOR THE NATIONAL ECONOMIES’ COMPETITIVENESS

This article is devoted to innovation as a prerequisite for the national economies' sustainable development and a domain for their global competitiveness. The paper aims to highlight the internal essence of mutual relations between innovation, competition, and economic growth. It was assumed that innovation positively affected the competitive behaviour of economic agents and eventually contributed to an increase in public welfare. Regarding the period from 2007 to 2022, we considered the sample of Central European countries and the Baltic states. Theoretical generalization has been applied to systematize the factors determining competition and innovation. We used statistical methods and comparative analysis to investigate the indicators' dynamics. The interdependencies between macroeconomic dynamics and a set of competition and innovation indicators have been assessed. It was proved that the proportion of medium and high-tech industry value added in the total value added of manufacturing was quite important, yet not the ultimate criterion for ensuring high growth rates and sustainable development. The dynamics of commercial spending on research and development had been ambiguous and unsustainable. To ensure strategic competitiveness, national governments should encourage innovation in their respective business communities. The sampled economies have been examined considering a set of innovation and competition indicators (e.g., gross capital formation, research and development expenditures, logistics performance, export technological structure, carbon dioxide emission, and renewable energy consumption). Considering the implications of globalization, tax burden as an integral characteristic of the national economy's competitiveness has been evaluated as well. It was pointed out that: a) a stable, understandable and transparent tax policy should be implemented to protect the investors' property rights; b) a system of total anti-corruption measures aimed at preventing the practices of receiving undue benefits should be set; and c) the business sector should improve own environmental and social responsibility complexly, introduce resource-saving, green and circular economy.

Literature review on sustainable development in bali province through the lens of financial aspects

This literature review discusses the relationship between regional financial performance, capital expenditure, and environmental expenditure and their role in sustainable development. Sustainable development is defined as development that is able to meet current needs without sacrificing the ability of future generations to meet their needs. Previous studies have shown that the allocation of regional spending, especially environmental spending, is still low despite having an important contribution to preserving ecosystems and reducing the impact of climate change. This review emphasizes that regional financial performance plays a significant role in determining capital expenditure and environmental allocation. Unbalanced spending policies can hinder the achievement of sustainable development. In addition, effective allocation of environmental spending is key to supporting various climate change mitigation programs and maintaining environmental quality in the future. The results of this study conclude that improving financial performance needs to be accompanied by appropriate budget policies, especially in capital expenditure and the environment. Efforts to ensure sustainable development require synergy between economic growth and environmental concern so that long-term development goals are achieved.

The Impact of Capital Expenditure on Ethiopian Economic Growth

This study investigates the effect of disaggregated capital expenditure on economic growth in Ethiopia over the period from 1981 to 2021. An autoregressive distributed lag (ARDL) model, combined with a Granger causality test, is used for the econometric analysis. The empirical results reveal that capital expenditure on economic development (CAEE), recurrent expenditure (RCE), and the inflation rate (CPI) have significant positive impacts on economic growth in both the long run and short run. However, capital expenditure on administrative and general development (CEAG) has a significant negative effect on economic growth in the long run. The Granger causality test further indicates unidirectional causality from economic growth (GNI) to capital expenditure on economic development (CAEE). Based on these findings, the study recommends that the Ministry of Finance should increase its budget allocations for capital expenditures aimed at economic development in order to further stimulate economic growth. Additionally, the government should implement stricter follow-up and monitoring mechanisms to ensure the proper management of budget allocations, particularly regarding capital expenditures on social development and administrative and general development. These measures are crucial for sustaining long-term economic growth in Ethiopia.

Financial Performance Analysis Of Uluway Village In Mengkendek Sub-District, Tana Toraja Regency For The 2018-2022 Period

The aim of this research is a descriptive quantitative type of research with the aim of analyzing the financial performance of Uluway Village, Kec. Mentengkan District. Tana Toraja. The sample used is financial report data for the Uluway village, subdistrict. Mengkedek District, Tana Toraja in 2018-2022. Data collection is carried out by observation and requesting financial reports. In this research, the data source used in data collection is secondary data. Research result The performance of the Uluway Village Government when viewed from the Regional Financial Independence Ratio during 2018-2022, can generally be said to be very low and includes an instructive relationship pattern. Based on the Regional Original Income Effectiveness Ratio during 2018-2022, in general, it can be said to be effective. Based on the Shopping Efficiency Ratio during 2018-2022, generally, it can be considered inefficient. If we look at the PADes Growth Ratio and Total Income Growth Ratio during 2018-2022, in general, it can be said that the PADes growth ratio and total income of Uluway Village is low. If we look at the Operating Expenditure Ratio, it is classified as quite good and the average value of the capital expenditure ratio is in the good category. This means that the Uluway Village Government in allocating its funds for capital expenditure is relatively good. This shows that the village government has paid attention to the use of its funds for village development

The Potential for the Use of Hydrogen Storage in Energy Cooperatives

According to the European Hydrogen Strategy, hydrogen will solve many of the problems with energy storage for balancing variable renewable energy sources (RES) supply and demand. At the same time, we can see increasing popularity of the so-called energy communities (e.g., cooperatives) which (i) enable groups of entities to invest in, manage, and benefit from shared RES energy infrastructure; (ii) are expected to increase the energy independence of local communities from large energy corporations and increase the share of RES. Analyses were conducted on 2000 randomly selected energy cooperatives and four energy cooperatives formed on the basis of actual data. The hypotheses assumed in the research and positively verified in this paper are as follows: (i) there is a relationship between hydrogen storage capacity and the power of RES, which allows an energy community to build energy independence; (ii) the type of RES generating source is meaningful when optimizing hydrogen storage capacity. The paper proves it is possible to build “island energy independence” at the local level using hydrogen storage and the efficiency of the power-to-power chain. The results presented are based on simulations carried out using a dedicated optimization model implemented by mixed integer programming. The authors’ next research projects will focus on optimizing capital expenditures and operating costs using the Levelized Cost of Electricity and Levelized Cost of Hydrogen methodologies.

An analytical approach for evaluation of conveyor exit strategies in open-pit mines

Transportation is the most expensive task in deep open-pit mining operations. An In-Pit Crushing and Conveying (IPCC) system, as an alternative to the conventional shovel-truck system, requires precise planning to avoid wasting high capital expenditures on trucks. The decision to fit a conveyor system into the pit design is challenging and needs to be addressed in the literature. Further optimisation of the IPCC system requires choosing an appropriate conveyor exit strategy. Conveyor exit schemes include a Dedicated Ramp Slot (DRS), an Existing Ramping System, an inclined tunnel and High-Angle Conveyors (HAC). This paper provides an analytical approach to compare the cost of different conveyor exit strategies in open-pit mines. The results indicate that for a depth up to 100 m, the Present Value of Cost (PVC) for the DRS is the least. For the cases deeper than 300 m, the HAC has the least PVC. Sensitivity analysis showed that for the depths between 100 and 300 m, a more accurate and detailed definition of parameters is needed. Besides, in most cases, the HAC provides the lowest payback period and the highest internal rate of return among the alternatives.

Techno-economic assessment of modified Fischer-Tropsch synthesis process for direct CO2 conversion into jet fuel

Direct use of CO2 through modified Fischer-Tropsch synthesis (FTS) process presents a viable approach for the production of carbon–neutral jet fuel. However, achieving high performance for the CO2-FTS process remains a significant challenge. Current technology can only achieve low CO2 conversion and low jet fuel yield using tailored catalysts, which hinders the commercial deployment of direct CO2-FTS process. This paper presents a techno-economic assessment (TEA) of jet fuel production via CO2-FTS process at commercial-scale. Two ex-situ water removal configurations: (a) multi-stage CO2-FTS process and (b) CO2-FTS with tail gas recycle process were conducted to assess their potential for performance improvement. Process performance was evaluated using a model developed in Aspen Plus® linking with Aspen Custom Modeller® (ACM), while economic evaluation was carried out in Aspen Process Economic Analyzer®. The CO2-FTS model was based on first principles and modified Anderson-Schulz-Flory (ASF) distribution. Results indicated that both ex-situ water removal configurations can significantly improve the process performance. CO2-FTS process with 90% tail gas recycle has the best performance for both technical and economic analysis. The process achieved 85.8% CO2 conversion and 35.6% jet fuel yield with the lowest energy demand of 4.57 MWh per tonne of produced jet fuel. Moreover, it boasts the lowest minimum selling price (MSP) of jet fuel at US$2.6/kg despite incurring the second-highest capital expenditure cost of M$ 451.3. A comparison of the two ex-situ water removal configurations at 61.9% and 76.5% CO2 conversion, suggests that both processes exhibit comparable technical performances, yet the recycling of tail gas holds the potential to reduce economic costs. Consequently, this study will inspire researchers on process improvement and cost reduction of the commercial-scale CO2-FTS jet fuel production.