Capital Cost Research Articles

Venture Capital and Financial Performance of E-Commerce-Driven Firms in Kenya

Purpose: Businesses that rely on e-commerce for growth frequently find that their ability to obtain sufficient capital is critical to their success. Funding from venture capital firms is essential in this context. Due to insufficient capital, e-commerce-driven businesses in Kenya have continuously underperformed financially. Numerous of these businesses, such as Rupu, OLX Kenya, and ePay, encountered financial difficulties and eventually lost the ability to continue operating. This study's main objectives were to evaluate the impact of capital management support, financing options, and cost of capital on the financial performance of Kenyan e-commerce businesses. Additionally, the study sought to fully evaluate the moderating impact of regulatory structure on venture capital funding and the financial performance of Kenyan e-commerce-driven firms. The trade-off, stakeholder, financial liberalization, and agency theories all lend credence to this research. The research philosophy of positivism, which emphasizes the use of empirical data to evaluate theories and hypotheses, was applied to perform this study.
 Methodology: The study examined a population of 45 e-commerce-driven businesses that obtained venture capital financing between 2017 and 2022 using a descriptive cross-sectional survey research approach. A stratified simple random sampling design technique was employed to choose 45 e-commerce-driven businesses as a sample. Surveys were distributed to collect primary data. Important stakeholders, including investors, executives, and founders, were among the participants in the study. Descriptive statistics were employed to summarize the data, such as measures of central tendency (particularly the mean), variability (expressed by the standard deviation), and frequency distributions. Regression analysis, an inferential statistic, was also employed in the study to investigate the relationship between venture capital funding and financial success. The gathered data were coded before entering into the Statistical Package for Social Science (SPSS) program to make the analysis process easier. The analysis's final results were provided as tables.
 Findings: The findings showed that the cost of capital, financing strategies, and capital management support significantly impact Kenyan e-commerce enterprises' financial performance. The aggregate score of 3.73 in cost of capital indicated consensus among participants on the impact of venture capital on e-commerce companies' financial performance. Participants perceived a significant correlation, with a standard deviation of 1.15 reflecting varying opinions. Most agree that lower venture capital costs lead to better financial success, influencing organizations' financial decisions significantly. The study concluded that venture capital funding has a considerable impact on the financial performance of e-commerce-driven enterprises in Kenya. The report advised management to thoroughly understand the total cost of capital related to venture capital funding.
 Unique Contribution to Theory, Practice and Policy: The study on venture capital and financial performance of e-commerce-driven firms in Kenya has made significant contributions to theory, practice, and policy. It has enhanced theoretical understanding by examining the relationship between venture capital investments and the financial performance of e-commerce firms, providing insights into the dynamics of these markets. In practice, the study has offered valuable guidance to e-commerce entrepreneurs and investors by identifying factors that influence financial performance and informing strategic decision-making. Additionally, the findings have implications for policy formulation, as they highlight the importance of fostering an enabling environment for venture capital investments in the e-commerce sector to spur economic growth and innovation in Kenya.

Design and Simulation of the Biodiesel Process Plant for Sustainable Fuel Production

The biodiesel production process is extensively studied in the literature, focusing on mechanisms, modeling, and economic aspects, yet plant design and fluid flow losses remain underexplored areas. The study addressed this gap by designing a biodiesel production plant, analyzing flow losses, and developing a pipe network and suitable pump models. In this study, an integration of biodiesel production plant design and simulation of continuous production of Calophyllum inophyllum biodiesel was investigated. Biodiesel production encompasses complex stages that involve systematic planning and system design. The goal of the plant design is to reduce the losses that occur during the conversion process, which can reduce the capital cost of the plant. A few assumptions were made when selecting biodiesel plant materials, such as pipes, pumps, fittings, and bends. These assumptions were based on considerations of the biodiesel fluid properties and pressure requirements. On the other hand, Aspen Plus was used to simulate the biodiesel production process. Calophyllum inophyllum was considered oil as the biodiesel feedstock and was inputted to the Aspen Plus as triglyceride composition. The simulation was carried out with rigorous kinetic reactions using the Non-Random Two-Liquid (NRTL) method to predict the liquid equilibrium in the reactor. Results revealed that the designed steel pipe meets safety requirements with a bursting pressure of 49.68MPa, capable of withstanding the maximum pressure of 4 bar and turbulent flow conditions. Additionally, the selected pump satisfies the required head and flow rate, ensuring efficient fluid movement. Moreover, simulation results closely matched experimental data, and 88% of biodiesel yield was recorded.

Why isn't composite equity issuance favored by the stock market? A risk-based explanation for the anomaly

Composite equity issuance anomaly is puzzling. This study presents a risk-based explanation that complements and transcends the behavior-based explanation by prior mainstream literature. Investors react to the signal embedded in the composite equity issuance and adjust a firm's risk level through implied cost of equity capital, which leads to lower subsequent stock returns. Empirical results show that firms with higher composite equity issuance are associated with more expensive equity financing. This positive effect remains solid after addressing potential endogeneity and is robust to individual and alternative measures of implied cost of equity capital. Moreover, further evidence demonstrates the role of agency problem for both internal and external factors. The positive effect is more pronounced for firms with less independent and diversified boards, lower financial reporting quality and leverage, higher R&D spending, in a non-competitive environment, and during a financial crisis respectively.

Application of Dynamic Structural Model to Identify Factors That Influence Capital Adjustments in The National Manufacturing Industry

This research aims to determine the costs of capital adjustments and company dynamics. Company panels comprise the database. The main advantage of analyzing the nature of adjustment costs at the plant level is that the data contain information for purchases and sales of capital goods. Panel data, including information from many plants and long periods, allows for a more comprehensive analysis of firms' investment behavior in the face of capital adjustment costs. The estimation results allow for the recovery of companies' frictions in adjusting their capital stock. The estimation results for capital adjustment costs are consistent with other studies using similar methodologies. Estimates show that there are significant, unchangeable fixed costs, as well as moderate quadratic costs. Researchers then use the estimated parameters in a counterfactual simulation to analyze the impact of a decline in average firm profitability on the labor market. The results show a significant labor market response to the shock, with the transition to the new stable state being slow and taking several years to complete the adjustment. The simulations highlight the importance of not only modeling capital mobility but also considering and estimating its frictions to evaluate the impact of policies or shocks on the economy. The mobility and capital adjustment costs influence the speed of the economy's adjustment to shocks and their effects on factor allocation and remuneration in the short and long term.

Assessment of the Cost of Capital of the Southern Regions of the Central Federal District

Relevance. The assessment of assets located in a specific territory is an important methodological and practical task.The purpose of the article is to adjust Thomas Piketty's methodology for assessing regional wealth, taking into account the peculiarities of Russian accounting and statistical accounting and applying the adjusted methodology to the assessment of the cost of capital in the southern regions of the Central Federal District. The obtained estimates of the cost of capital for the Russian Federation as a whole are compared with Piketty's estimates as a benchmarking. The purpose is to assess the physical in the Central Federal District and seven southern regions of the Central Federal District of the Russian Federation for 2021. Objectives: to develop methods for assessing physical capital, taking into account the criticism of T. Piketty's methodology and eliminating its shortcomings; to assess the cost of physical capital of enterprises, organizations, housing, land and savings in the Central Federal District and seven southern regions of the Central Federal District of the Russian Federation.Methodology. The article was prepared within the framework of Thomas Piketty's capital valuation paradigm, adjusted to take into account the author's vision of the problem.Results. Quantitative estimates of the cost of physical capital in the Central Federal District and seven southern regions of the Central Federal District of the Russian Federation have been obtained.Conclusions. Piketty's methodology provides an underestimate of the cost of physical capital at the level of the southern regions of the Central Federal District of the Russian Federation. Underestimation is taking place in the assessment of the value of land, capital of enterprises and organizations and the value of housing stock. The highest cost of physical capital in the southern regions of the Central Federal District of the Russian Federation is in Voronezh (5,238 trillion rubles) and Belgorod regions (4,255 trillion rubles), the lowest is in Bryansk (1,772 trillion rubles) and Oryol (1,340 trillion rubles) regions. The ratio of the cost of physical capital in the southern regions of the Central Federal District of the Russian Federation to the gross regional product varies in the range from 5.16 (Tambov region) to 3.14 (Belgorod region). The average ratio of capital to GRP in the seven southern regions of the Central Federal District is 3.96, which corresponds to the global average.

Renewable energy trading: Assessment by blockchain

Renewable energy trading could be considered the next step in power trading's development. It is probable that individuals currently involved in power trading will need to upgrade their data collection, processing, and reporting systems. This article provides a comprehensive evaluation of renewable energy trading utilizing Blockchain technology. Initially, the paper examines country-specific renewable energy trading with a focus on India, China, the US, France, and Germany's renewable energy policies. Moreover, the paper presents potential renewable energy trading markets such as peer-to-peer, over the grid, and partially or fully independent microgrid's. This paper shows the appraisal of bond, commodity, derivative, and algorithm-based renewable energy trading using different Blockchain methods, including Ethereum and R3 Corda. It is find out during the renewable energy trading, proposers of bid, also include capital cost of the renewable energy power plant, salvage value after useful life of different component of renewable energy power plant. It is also find out proper trading is to be done with offering subsidies of up to 70 % of the capital cost, and with a 30 % viability gap finance (VGF) at this cost.

Achieving Decentralized, Electrified, and Decarbonized Ammonia Production.

The rapid reduction in the cost of renewable energy has motivated the transition from carbon-intensive chemical manufacturing to renewable, electrified, and decarbonized technologies. Although electrified chemical manufacturing technologies differ greatly, the feasibility of each electrified approach is largely related to the energy efficiency and capital cost of the system. Here, we examine the feasibility of ammonia production systems driven by wind and photovoltaic energy. We identify the optimal regions where wind and photovoltaic electricity production may be able to meet the local demand for ammonia-based fertilizers and set technology targets for electrified ammonia production. To compete with the methane-fed Haber-Bosch process, electrified ammonia production must reach energy efficiencies of above 20% for high natural gas prices and 70% for low natural gas prices. To account for growing concerns regarding access to water, geospatial optimization considers water stress caused by new ammonia facilities, and recommendations ensure that the identified regions do not experience an increase in water stress. Reducing water stress by 99% increases costs by only 1.4%. Furthermore, a movement toward a more decentralized ammonia supply chain driven by wind and photovoltaic electricity can reduce the transportation distance for ammonia by up to 76% while increasing production costs by 18%.

Strategic Fertility, Education Choices, and Conflicts in Deeply Divided Societies

Abstract Fertility becomes a strategic choice for minorities when having a larger share of the population helps to increase power. If parents invest resources to educate their children, raising fertility for strategic reasons might be at the cost of future human capital. We dispel this view using census data from several developing countries. We show that religious and ethnic minorities in Indonesia, China and Malaysia tend to invest more in both education and fertility compared to larger groups. Solving for the Nash equilibrium of an appropriation game between two groups with education and fertility being prescribed as group-specific behavioral norms, we offer a rationale for the observed patterns provided that human capital is an important input to appropriation.

Processing of metal-free end-of-life tyres (EOLTs) to fuels and products: an experimental study with process simulation and economic analysis from an Australian perspective

AbstractThe aim of this experimental study, process simulation and economic analysis is to assess the applicability of pyrolysis technology for processing end-of-life tyres and to evaluate the economic viability of a 60 ton/day EOLT processing facility: a case-specific study within Australia. The experimental work and characterization of feedstock and products were carried out in-house. Capital costs for major equipment were collected from suppliers. The running cost of the processing facility is calculated on the basis of the current labour and utility costs. An economic model is developed based on the information generated from the experimental program and those obtained from suppliers. From the analysis, it is evident that the pyrolysis process for processing EOLT promises a significant upside in economic terms. A conservative conclusion of 20% light oil, ~ 65% furnace oil and 7% carbon black, generated as pyrolysis products, depicts a cash-flow positivity for a 60 tonne per day (TPD) plant that can be run using the generated fuel gas for under 4 years. This is in addition to the benefit of the zero landfill requirement. Apart from the base calculations, the sensitivity of six different scenarios is analysed by mainly changing the land cost and bank investment. Depending on the scenario, the calculated internal rate of return varies between 15 and 35%. While Australia generates significant quantities of EOLT, the techno-economic results confirm that pyrolysis technology for processing EOLT is a viable solution in Australia. However, a dedicated supply chain needs to exist to make pyrolysis plants an attractive investment at defined locations. Graphical abstract

Punishment or deterrence? Environmental justice construction and corporate equity financing––Evidence from environmental courts

In this study, we explore the impact of the establishment of environmental courts, an environmental justice system, on the cost of equity capital. Based on a quasi-natural experiment of establishing environmental courts in China, we find that they have a deterrent effect and reduce the cost of equity capital for heavily polluting firms in localities. We also find that a low proportion of managerial ownership, a low level of analyst attention, and high environmental uncertainty induce this deterrent effect. Furthermore, mechanism tests indicate that environmental courts enhance corporate environmental engagement and corporate ESG ratings, increase long-term institutional investor ownership, and reduce urban environmental violations to achieve a deterrent effect. The findings are more pronounced for the trial court sample, firms in cities with lower public participation in environmental protection, and firms with lower environmental information transparency. We also suggest the impacts and underlying mechanisms of the environmental justice system on the equity capital market, which is conducive to long-term planning by firm managers.

Analysis and Optimization of a Biomass Heated Two-Stage Desiccant Cooling System Used for Greenhouse Cultivation in Hot and Humid Climates

Abstract This paper presents a multi-objective optimization of a biomass heating-based two-stage desiccant-supported greenhouse cooling system used for Orchids cultivation in hot and humid weather conditions. The simulation model has been developed considering thermodynamics, economic, and environmental aspects. The thermal coefficient of performance (COPth) of the system and greenhouse temperature have been predicted for the five most impactful months (March, May, August, September, and December) corresponding to the respective seasons of spring, summer, monsoon, autumn, and winter of a calendar year. The system maintains the peak average greenhouse temperature at a maximum of 26 °C during the prominent sunshine period (12 h) in May while ensuring a minimum of 18 °C during nighttime. In terms of system components, the residue boiler stands out as the significant contributor to exergy destruction (45%), followed by regeneration heater 1 (22%), desiccant wheel 1 (7%), and the heat recovery water heater (6%) during the critical operational month of August. Multi-objective optimization has also been conducted using the optimization toolbox provided in matlab-R2017a to determine the optimal performance and operating conditions of the two-stage desiccant cooling system. The optimal conditions display the corresponding total cost rate, considering capital and maintenance costs, operating costs, CO2 penalty costs, and exergetic efficiency.

Techno-Economic Analysis of Using Reversible Turbomachinery for Pumped Thermal Energy Storage Systems

Abstract The objective of this paper is to assess the techno-economic performance of different cycle configurations for pumped thermal energy storage (PTES), including the effects of charging electricity costs. Reversible turbomachinery was employed to reduce the capital cost of the system. Brayton cycles with different working fluids and a subcritical Rankine cycle operating with ammonia were compared. Both liquid and packed bed thermal storages were investigated. A new cost correlation for turbomachines, initially established for the turbines of organic Rankine cycles, was developed for compressors and reversible machines. This correlation is based on the number of stages and physical size of the machine, which were estimated considering thermodynamic as well as mechanical limitations. The results indicate that for a plant size of 50 MW and a discharge duration of 8 h, the Brayton system with liquid storage and helium as a working fluid has the lowest levelized cost of storage at 0.138 $/kWh, mainly due to the high thermal conductivity of the fluid. Packed bed thermal energy storage systems were found to be more expensive than liquid storage systems due to the large cost of the pressure vessels, with cost parity reached at a discharge duration of 4 h. However, at this duration, lithium-ion batteries are likely to be cheaper. The results suggest that the levelized cost of storage for the Rankine cycle-based system is slightly higher at 0.151 $/kWh.

Seam tracking and gap bridging during robotic laser beam welding via grayscale imaging and wobbling

The use of laser beam welding with robotic manipulators is expanding towards wider industrial applications as the system availability increases with reduced capital costs. Conventionally, laser welding requires high positioning and coupling accuracy. Due to the variability in the part geometry and positioning, as well as the thermal deformation that may occur during the process, joint position and fit-up are not always acceptable nor predictable a-priori if simple fixtures are used. This makes the passage from virtual CAD/CAM environment to real production site not trivial, limiting applications where short part preparations are a need like small-batch productions. Solutions that render the laser welding operations feasible for production series with non-stringent tolerances are required to serve a wider range of industrial applications. Such solutions should be able to track the seam as well as tolerating variable gaps formed between the parts to be joined. In this work, an online correction for robot trajectory based on a greyscale coaxial vision system with external illumination and an adaptive wobbling strategy are proposed as means to increase the overall flexibility of a manufacturing plant. The underlying vision algorithm and control architectures are presented; the robustness of the system to poor illumination conditions and variable reflection conditions is also discussed. The developed solution employed two control loops: the first is able to change the robot pose to follow varying trajectories; the second, able to vary the amplitude of circular wobbling as a function of the gap formed in butt-joint welds. Demonstrator cases on butt-joint welds with AISI 301 stainless steel with increased complexity were used to test the efficacy of the solution. The system was successfully tested on 2 mm thick, planar stainless-steel sheets at a maximum welding speed of 25 mm/s and yielded a maximum positioning and yaw-orientation errors of respectively 0.325 mm and 4.5°. Continuous welds could be achieved with up to 1 mm gaps and variable seam position with the developed control method. The acceptable weld quality could be maintained up to 0.6 mm gap in the employed autogenous welding configuration.

Real Estate Development Feasibility and Hurdle Rate Selection

Real estate developers typically assess potential projects using feasibility analyses and industry-standard heuristics, which include capital costs, return on costs, and a subjective risk measure. This study explores real estate developers’ decision-making practices in selecting hurdle rates and common feasibility analysis techniques, surveying 225 Australian and New Zealand developers. The main findings are that most developers use specific ‘go/no-go’ hurdle rate mechanisms irrespective of primary real estate type, with the majority using margin on development cost (MDC) or internal rate of return (IRR); the boundaries between traditional speculative development and real estate investment through the use of securitization methods have become blurred; many developers use both quantitative metrics, with qualitative methods and specific structural checks to manage the risks involved; and the two most frequent methods of determining site value prior to acquisition are the residual land value and discounted cash flow methods. Most place a heavy reliance on industry-accepted heuristics and do not have a predetermined process and method for altering or adapting the chosen hurdle rates and benchmarks. This research provides a contribution to property development practice from the Antipodean perspective which until now has been more focused on the UK view, enabling more generalized application internationally.

Do corporate carbon emissions affect risk and capital costs?

This study explores the impact of corporate carbon emissions on idiosyncratic risk and capital costs. Leveraging a dataset comprising 1016 company-year observations from Australian-listed companies over the period 2007 to 2020, our panel regression analysis reveals significant associations. We find that companies with higher carbon emissions experience elevated idiosyncratic risk, contributing to increased capital costs in both debt and equity markets. Our results remain robust after using alternative model specifications, accounting for the diverse nature of corporate carbon performance among industries, shaped by unique industrial factors. These results highlight the significance of carbon emissions pricing within financial markets and emphasize the importance of standardized corporate carbon disclosure in enhancing market efficiency, facilitating more accurate valuation, and guiding resource allocation in the broader economy.

Reducing the cost of capital through international climate finance to accelerate the renewable energy transition in developing countries

Despite a vast potential, the accessibility of low cost finance remains a critical barrier to the deployment of Variable Renewable Energy (VRE) in many developing countries. High financing costs threaten the competitiveness of renewable energy technologies and impede progress in the energy transition. This study aims to assess the extent to which international climate finance could help reduce the cost of capital for VRE investments and accelerate the renewable energy transition in developing countries. We employ the IMACLIM-R multi-regional Integrated Assessment Model (IAM) to examine various climate finance scenarios, factoring in the interaction between public and private capital through a dedicated model for the average cost of capital (CoC). The results show that international climate finance can significantly enhance the adoption of renewable energy in regions that receive this support. For instance, Africa could achieve +43% electricity generation from VRE by 2030 in a scenario with deep risk sharing and mitigation for VRE investments, compared to a no-policy scenario. Our study demonstrates that reducing the financing costs of VRE investment through international climate finance encourages clean and affordable energy development. However it must be complemented by other policies to achieve more ambitious climate and sustainable development objectives.

Impact of heat recovery and thermal load control on combined heat and power (CHP) performance

This research assesses the energy efficiency and techno-economic viability of a Combined Heat and Power (CHP) system designed for a typical building that meets both its electrical (97 kWh/d) and thermal (92 kWh/d) loads. The CHP system comprises wind turbines (WT), photovoltaic panels (PV), batteries, micro gas turbines (MGT), and boilers, which are evaluated for their techno-economic performance. To enhance the system's efficiency and minimize energy wastage in CHP, two strategies, namely heat recovery (HR) from MGT and Thermal Load Control (TLC) for converting surplus renewable power generation into thermal energy, are implemented. Four case studies are conducted to analyze the impact of each strategy on the CHP system's performance. The optimization of hybrid renewable energy systems, considering the overall system's economic performance, is achieved through the integration of MATLAB and HOMER PRO. The study reveals that the incorporation of TLC and HR results in significant reductions in the Cost of Energy (COE), Net Present Cost (NPC), CO2 emissions, loss of Power Supply (LPS), and energy sizing while increasing the renewable fraction in the CHP system. Sensitivity analysis is performed on the capital cost of components, TLC, and HR variations, demonstrating their substantial influence on the economic performance of CHP. The cash flow results show that the integration of these two components reduces the system cost by 25 %. It is also shown that almost 70 % of the CC of the system is related to PV and batteries. The proposed strategies and findings provide valuable insights for enhancing the reliability and techno-economic evaluations of hybrid renewable.

HyDesign: a tool for sizing optimization of grid-connected hybrid power plants including wind, solar photovoltaic, and lithium-ion batteries

Abstract. Hybrid renewable power plants consisting of collocated wind, solar photovoltaic (PV), and lithium-ion battery storage connected behind a single grid connection can provide additional value to the owners and society in comparison to individual technology plants, such as those that are only wind or only PV. The hybrid power plants considered in this article are connected to the grid and share electrical infrastructure costs across different generation and storing technologies. In this article, we propose a methodology for sizing hybrid power plants as a nested-optimization problem: with an outer sizing optimization and an internal operation optimization. The outer sizing optimization maximizes the net present values over capital expenditures and compares it with standard designs that minimize the levelized cost of energy. The sizing problem formulation includes turbine selection (in terms of rated power, specific power, and hub height), a wind plant wake loss surrogate, simplified wind and PV degradation models, battery degradation, and operation optimization of an internal energy management system. The problem of outer sizing optimization is solved using a new parallel “efficient global optimization” algorithm. This new algorithm is a surrogate-based optimization method that ensures a minimal number of model evaluations but ensures a global scope in the optimization. The methodology presented in this article is available in an open-source tool called HyDesign. The hybrid sizing algorithm is applied for a peak power plant use case at different locations in India where renewable energy auctions impose a monetary penalty when energy is not supplied at peak hours. We compare the hybrid power plant sizing results when using two different objective functions: the levelized cost of energy (LCoE) or the relative net present value with respect to the total capital expenditure costs (NPV/CH). Battery storage is installed only on NPV/CH-based designs, while the hybrid design, including wind, solar, and battery, only occurs on the site with good wind resources. Wind turbine selection on this site prioritizes cheaper turbines with a lower hub height and lower rated power. The number of batteries replaced changes at the different sites, ranging between two or three units over the lifetime. A significant oversizing of the generation in comparison to the grid connection occurs on all NPV/CH-based designs. As expected LCoE-based designs are a single technology with no batteries.

Sustained Reductions of Bay Area CO2 Emissions 2018-2022.

Cities represent a significant and growing portion of global carbon dioxide (CO2) emissions. Quantifying urban emissions and trends over time is needed to evaluate the efficacy of policy targeting emission reductions as well as to understand more fundamental questions about the urban biosphere. A number of approaches have been proposed to measure, report, and verify (MRV) changes in urban CO2 emissions. Here we show that a modest capital cost, spatially dense network of sensors, the Berkeley Environmental Air Quality and CO2 Network (BEACO2N), in combination with Bayesian inversions, result in a synthesis of measured CO2 concentrations and meteorology to yield an improved estimate of CO2 emissions and provide a cost-effective and accurate assessment of CO2 emissions trends over time. We describe nearly 5 years of continuous CO2 observations (2018-2022) in a midsized urban region (the San Francisco Bay Area). These observed concentrations constrain a Bayesian inversion that indicates the interannual trend in urban CO2 emissions in the region has been a modest decrease at a rate of 1.8 ± 0.3%/year. We interpret this decrease as primarily due to passenger vehicle electrification, reducing on-road emissions at a rate of 2.6 ± 0.7%/year.

Review of the Technical and Economic Evaluation of the Use of Means of Simultaneous Independent Operation for Solving Technical Problems

In the context of developing multilayer deposits in Turkmenistan, the technical and economic evaluation of technique used in simultaneous and independent operation represents an important area of work. Most of the oil and gas fields both in our country and abroad are multi-layered. At the same time, several productive layers are located layer by layer one above the other. From the point of view of rational development, the development of such deposits by independent grids of wells drilled for each individual reservoir is the most preferable. However, the experience of oilfield development shows that more than half of all capital investments are spent on drilling wells. Therefore, the development of multilayer deposits by independent well grids for each formation requires huge capital expenditures and is not always economically and technologically justified. In this regard, when developing multi-layer deposits, several productive formations are often combined into one operational facility, which makes it possible to shorten the time of field development, reduce capital investments for drilling wells and field development, etc. At the same time, simultaneous development of several formations by one object is possible only with the same physico-chemical properties of oils in the combined formations, if the inflow of oil and gas is sufficient from each formation at an acceptable bottom-hole pressure in the well, with close values of reservoir pressure in the combined formations, excluding oil flows between the formations, and close values of reservoir waterlogging. If the above conditions are not met, then multidimensional deposits are developed using the method of simultaneous and independent operation (hereinafter referred to as SIO) with one well. Depending on the specific geological and technical conditions for the development of deposits, technical and operational characteristics of wells, one of the currently available SIO schemes is used. Mandatory requirements for all SIO schemes are the possibility of separate development and commissioning of each reservoir, measurement of oil flow rates of each reservoir separately, as well as separate measurement of each reservoir for waterlogging, gas content and examination of each reservoir for oil and gas inflow. When deciding on the use of the SIO method, the degree of depletion of reserves, the proximity of the oil content contour to wells, the presence of resins and paraffin in the extracted oils, the thickness of the productive layers and the impermeable interlayers separating them, the condition of the production column of wells, etc. Productive horizons have different capacities from one to several tens of meters; their operation is carried out from the bottom up according to the traditional scheme. Such a traditional scheme of operation of multilayer deposits provides for the development of a grid of vertical wells for each operational facility, which leads to an increase in capital costs for drilling wells and a decrease in the profitability of the products obtained. Accordingly, in the production of hydrocarbons, the main cost item is the construction of new production wells. It is necessary to solve the problem of reducing construction costs almost immediately with the introduction of wells into drilling. The simplest way is to combine several oil-saturated horizons into several development facilities. Simultaneous and independent operation (SIO) and dual water injection operation (DIO) can be applied to regulate the zone development by layers (uniform exploration of layers, intensification of one of the layers). In these cases, the application of SIO and DIO methods aims to increase the current oil production. Savings in this case are generated by increasing the fluid oil production, both from intensifying development and preventing premature well flooding. The goal and objective of this scientific review are the technical and economic evaluation of the application of simultaneous and independent operation means and incorporation of productive horizons to increase hydrocarbon production during the development of deposits in the initial and late stages of operation. The economic efficiency of such regulation of production is determined by comparing the technical and economic indicators of the zone's development without regulation, calculated considering the actual ratio of technological and economic indicators with the actual technical and economic indicators. Incorporating productive horizons can play a significant role in increasing current oil production, and in some cases, enhancing the oil recovery of the incorporated zone, through the most effective utilization of previously drilled wells on the field. One of the key current technological indicators of incorporation is the additional well production rate, i.e. the increase in current production achieved through the implemented measures. The practical significance of this work lies in the technical and economic evaluation of a more efficient and sustainable oil and gas production technology developed in Turkmenistan, leading to increased production and reduced capital investments at the early and late stages of field development.