Economic Efficiency Objectives Research Articles

Research on the operation optimization of Integrated Energy System based on dual model refined simulation of thermal network

Accurately assessing energy flow is of paramount importance for achieving the dual objectives of economic efficiency and energy efficiency in the operation of electric-thermal integrated energy systems. The generic thermal network model is commonly used to describe operating characteristics under baseline conditions. However, due to the high-dimensional nonlinear nature of solving its parameters, traditional methods have limitations. In this study, to address this issue, we conduct dual-mode detailed simulation analysis for the hydraulic and thermal processes of the thermal network. The finite difference method is employed to calculate dynamic parameters. Based on this, a network loss model is constructed using the mean square deviation method. To achieve the dual objectives of integrated energy system operation optimization, the NSGA-II algorithm and VIKOR decision rules are applied to obtain the optimal solution. Using these methods and taking a specific electric-thermal integrated energy system in the northern region as an example, we simulate and analyze the data of the system operation under three thermal network modes. The results indicate that the refined thermal network model can reduce the total operating cost to $16,871 and achieve an energy efficiency of 83.219 %, outperforming the results of other operational modes.

Universal and Tight Online Algorithms for Generalized-Mean Welfare

We study fair and efficient allocation of divisible goods, in an online manner, among n agents. The goods arrive online in a sequence of T time periods. The agents' values for a good are revealed only after its arrival, and the online algorithm needs to fractionally allocate the good, immediately and irrevocably, among the agents. Towards a unifying treatment of fairness and economic efficiency objectives, we develop an algorithmic framework for finding online allocations to maximize the generalized mean of the values received by the agents. In particular, working with the assumption that each agent's value for the grand bundle of goods is appropriately scaled, we address online maximization of p-mean welfare. Parameterized by an exponent term p in (-infty, 1], these means encapsulate a range of welfare functions, including social welfare (p=1), egalitarian welfare (p to -infty), and Nash social welfare (p to 0). We present a simple algorithmic template that takes a threshold as input and, with judicious choices for this threshold, leads to both universal and tailored competitive guarantees. First, we show that one can compute online a single allocation that O (sqrt(n) log n)-approximates the optimal p-mean welfare for all p

Integrated environmental policy instruments driven river water pollution management decision system

Market-based approaches and command and control regulations are the two main tools that policy/decision makers use to implement environmental protection goals; however, these alone have proven to be somewhat ineffective or counterproductive in some cases. Therefore, this study proposes a hybrid environmental policy tool to guide river basin environmental management decisions. The river basin authority and regional Environmental Protection Agency (EPA), as the two leading decision makers, and policy makers and implementers of river basin management, make decisions sequentially in a process similar to a Stackelberg game. This decision making can be mathematically represented using a bi-level optimization model. The proposed model addressed the conflicting equitable resource allocation and economic efficiency objectives to achieve coordinated development of the whole river basin. To verify the model effectiveness, the most considerable pollutant emissions limits and water quality standards were set, and incentive measures (pollution chargers and subsidies) were applied to assess these hybrid instruments' impact on the decision outcomes. The results from a Minjiang river basin case further illustrated that the trade-off between social equity and cost-efficient environmental goals could efficiently achieve, proving that a combination of instruments could be influential in pollution decision-making and delivery of environmental policy. Given the model's proven effectiveness, several proposals are given for solving complex pollution problems that also need to consider the related socioeconomic issues.

From utility demand side management to low-carbon transitions: Opportunities and challenges for energy efficiency governance in a new era

Demand side management (DSM) programs operating within utility systems have played an important role in energy efficiency program delivery. In recent years, utility DSM institutions have been challenged to consider the implications of low-carbon transitions and the wider benefits of energy efficiency. In this perspectives paper we trace the historical evolution from utility DSM frameworks primarily focused on economic efficiency objectives towards consideration of the larger transitions in energy demand required to create a low-carbon society. We highlight the opportunities a low-carbon transition agenda creates to deliver more comprehensive energy efficiency strategies, as well as strengths of the utility DSM framework that new low-carbon institutions might be challenged to emulate. We conclude by calling for a new research program on institutional design to promote sustainable energy demand in a low-carbon transitions era.

I Sistemi di Controllo nelle imprese. Macro e micro controllo di gestione

This study aims to present a simple theory - the Theory of Control Systems - which is able to describe, interpret and explain the logic of Management control . I have presented the logic of control systems without recourse to formal mathematics, preferring desctiptive which can be considered prototypes of elementary, though general, systems which operate in any organizational environment. The logical structure of a control system includes the control lever, X, the controlled variable, Y, the objective to achieve, Y*, and the “error” E = Y* - Y, with regard to the objective (time references were omitted). The technical structure is composed of four mechanisms, the effector the detector and the regulator mechanisms, together with the information transmission system , which develop the processes that produce the variations in the variables X, Y and S. I have also introduced two important generalizations: multilever Control Systems, and multi-objective systems which are fundamental to understand the concepts of control strategy and control policy . I have applied these concept to demonstrate that control is the essence of the activity by which firms achieve their objectives of economic efficiency and profit while respecting the constraints imposed by the organization and the market. The macro, or strategic, control views the firm as the Control System by which the stakeholders , which form of governance , seek to achieve their institutional goals. The maximum strategic level variable the firm must control in order to survive is profitability – which is indicated by return on equity , or roe , and return on assets, or roi – since, broadly speaking, the production of value for shareholders depends on these variables. The micro , or operational control of management instead concerns the various functions (supply, production, sales, logistics, personnel, finance, etc.) and the various areas (plants, divisions, departments, individual facilities and/or workers, etc.) and operates by activating first- or second-level operational levers.

Guiding cities to pursue a smart mobility paradigm: An example from vehicle routing guidance and its traffic and operational effects

The concept of 'smart cities' is rooted on the approach taken by cities to reconcile the three often conflicting objectives of economic efficiency, environmental quality and social equity. The expectation that smart cities may promote the adoption of scalable solutions that take advantage of information and communication technologies (ICT) to increase their effectiveness, reduce costs and to improve the quality of life is great among academia, business and governmental stakeholders. Traffic management systems in its multiple applications (including re-routing) are an example of ICT solutions that can expectably lead to the purpose pursued by 'smart cities'. This paper develops a performance evaluation of re-routing for passenger and commercial vehicles with a case study in the city of Lisbon, Portugal. The paper examines how the provision of guidance information to drivers affects traffic performance, operational costs and environmental conditions at different spatial references, namely route level and urban network level. The simulation results indicate that the re-routing can not only reduce travel times, but also enhance the efficiency of roads in the city network and as well the traffic performance at the route level of analysis. The improvement at local route levels (such as corridor/route) is more significant than at the city network level. For the urban network level, simulation results suggest that re-routing can bring variations in travel and delays that may reach 2% and 6%, respectively, when a 10% drivers’ compliance rate is considered. Individual drivers are more likely to comply to deviate than urban logistics drivers and bus drivers.

Enacting and contesting neoliberalism in fisheries: The tragedy of commodifying lobster access rights in Southwest Nova Scotia

Atlantic Canadian fisheries policy exhibits a tension between competing objectives of economic efficiency, and of well-being and equity within coastal communities and small-scale fisheries. The struggle between different actors over these objectives has generated distinct forms of neoliberalism in different regions and fishing fleets. In the lobster fishery, the right to fish has been concentrated since limited-entry licensing policy was introduced in the 1980s. This paper examines actors and events at two scales, including Lobster Fishing Area (LFA) 34 Advisory Committee meetings involving fishermen, representatives of Fisheries and Oceans Canada (DFO), and other stakeholders, and broader scale strategies of the Canadian Independent Fish Harvesters Federation (CIFHF). A Foucauldian perspective aids in understanding how fisheries governance is the product of struggles between the power and agency of individual fishermen, fishing organizations, processing companies, the DFO, the Minister of Fisheries and the courts. While many theorists view fisheries through the lens of the “tragedy of the commons”, alternative tragedies are developing in Atlantic Canadian fisheries. These include rising levels of debt, reduced earnings, vulnerability to financial volatility, loss of fishing rights within communities, and too much processor control.

Optimal vessel size and output in the Australian northern prawn fishery: a restricted profit function approach*

Individual transferable quotas (ITQs) are to be introduced into Australia’s Northern Prawn fishery in the near future. Total allowable catches (TACs) are to be set with the objective of maximising economic efficiency in the fishery. Under ITQs, vessel owners have the ability to adjust their fishing activities to maximise profits and changes in fleet structure resulting from management changes need to be considered when determining TACs. A restricted profit function for the fishery was estimated to determine the optimal vessel characteristics and output levels as a guide to how the fleet may adjust under an ITQ system. Vessels were found to be currently close to their optimal size given average historic prices and current stock conditions. However, higher tiger prawn stocks are expected to result in the average size of vessels increasing, with rising fuel prices also likely to result in capital being substituted for fishing days. Optimal average vessel‐level catches of the main species are lower than current average vessel catches for a wide range of input and output prices. These changes in vessel characteristics and behaviour need to be incorporated in the derivation of the optimal TACs if economic efficiency objectives are to be achieved.

POLITICALLY FEASIBLE, REVENUE SUFFICIENT, AND ECONOMICALLY EFFICIENT MUNICIPAL WATER RATES

Water rates are designed to meet multiple objectives, typically resulting in trade‐offs among the objectives of economic efficiency, revenue sufficiency, and related revenue stability. Standard theory of natural monopoly is extended here to explain why long‐run marginal cost (LMC) can be greater than both average cost and short‐run marginal cost (SMC) for municipal water utilities. The distinctions between “benign monopoly rates” and “marginal cost rate design” favor LMC over SMC as the basis for economically efficient rate design. Taking into account conservation investments by consumers, SMC rates are economically inefficient, except during temporary shortages. The City of Los Angeles adopted economically efficient, revenue sufficient, and revenue‐stable water rates at the end of a prolonged drought. After the drought ended, Los Angeles (LA) modified the rate design, making the design politically feasible during normal rainfall years. Unique features in the LA rate design determine the allocation of consumer surplus among ratepayers, making the rate design politically feasible by sharing efficiency gains among customer classes. Revenue sufficiency and stability features in the rate design minimize adverse job effects on water utility management, reducing the frequency of rate hearings with an increasing block design. (JEL L51, L95, Q25, Q51)

Mission Impossible !? On the Harmonization of National Allocation Plans under the EU Emissions Trading Directive

Starting in 2005, the EU will implement a CO2 emissions trading scheme. We show that the outspoken objectives of economic efficiency and free allocation of allowances are incompatible with harmonized allocation rules. The latter would be necessary to avoid unequal changes of the financial positions between identical firms across the EU, thereby distorting competition, i.e. the “level playing field”. We discuss and evaluate potential adjustments to the current prescriptions of the EU emissions trading system in order to achieve harmonization of allowance allocation across EU Member States. The proposed adjustments involve relaxation of either the efficiency objective or the objective of free allowance allocation.

Peer commentaries on Keynote articles Trade gains for small island economies

To what extent are the problems of small island economies unique, thus compromising the potential welfare gains from freer international trade? Is comparative advantage enough or even relevant in analysing the benefits from international trade for such economies? If the answer to the latter question is in the negative, then how can the WTO process be modified to maximise gains to the participants? Alan Winters and Pedro Martins (W&M) analyse the first of these two questions, arguing that comparative advantage is not enough, while Aaditya Matoo and Arvind Subramanian (M&S) come to the conclusion that desirable ways of addressing concerns of small countries within the WTO process are proving to be infeasible. Even though W&M and M&S raise legitimate concerns about small economies, I disagree with their policy conclusions. I argue below that comparative advantage is as applicable to small countries as to large countries and that liberal and uniform trading rules for all countries, with the option of temporary lump-sum transfers to the vulnerable ones, can achieve the dual objectives of economic efficiency with redistribution.

Partial privatization in transition economies

Privatization in transition countries has often been partial, with the state retaining a non-controlling ownership share in privatized assets. This paper reviews briefly the empirical evidence and then analyzes the justifications that have been put forward for adopting partial privatization. These are related to the objectives of economic efficiency and the generation of government revenue, as well as to political motivations. The issues covered are the stock-flow problem, risk-sharing and restructuring, informational considerations, the role of market structure, bargaining, foreign investment and the irreversibility of reform. The paper ends with some suggestions for further research.

Climate change, urban air problems and transport policy in the European Union

This paper surveys some recent studies on conventional air pollution and climate change in the transport sector in Europe. Fuel efficiency standards, car emission standards and transport pricing instruments are analysed from an economic perspective taking into account environmental and economic efficiency objectives.

Urban Policy Formulation Under Efficiency: The Case Of Auckland City Council'S Britomart Development

This paper examines a local government initiated urban development under current New Zealand legislation. It finds that planning vision for the common good of the community has been replaced by urban policy objectives of economic efficiency and minimisation of public expenditure. These new objectives also appears to negate a range of amenity and civic rights, some of which are statutory responsibilities of local government that are necessary to ensure the ongoing process of local democracy. The paper then questions the future of planning in this environment and suggests one important task for practitioners must be that of the protection, facilitation and empowerment of diverse communities through civic debate, either within, or outside of institutional structures.

Governmental Priorities in Irrigation Project Selection in Indonesia

Irrigation development in Indonesia is directed at both traditional economic efficiency objectives and socioeconomic objectives related to self-sufficiency in rice production, improved income to individual farmers, and the transmigration program. The criteria used to select projects in the light of these objectives are divided into two distinct categories: physical potential and sociological suitability of the project area. The sociological suitability is related particularly to the sociopolitical support for transmigration and regional development and the readiness or ability of farmers to exploit new technical irrigation schemes. The various features (such as utilization of existing irrigation schemes in the area, productivity of farmers, irrigation efficiency, use of new technologic inputs and operation and maintenance activities in those existing fields, and the level of existing agricultural support services) that contribute to assessment of physical potential and sociological suitability of irrigation projects are examined in detail in this paper. Changes in the type and location of the irrigation projects selected for implementation occurring as a result of varying the priorities on each of the objectives are described.

Needs and potential applications of small and medium-sized light water reactors in Japan

The investigations and examinations presented here are on SMLWRs that are feasible in the near future by an improvement of present technologies. The object of this investigation is to examine the needs and usage of SMLWRs in Japan, to grasp and clarify its problems, and to search for its characteristics and possibilities in such aspects as economical competitiveness, siting suitability, and safety. In this article, we shall give a review on the results of our investigations on the needs, usage, development goals, and development problems of SMLWRs in Japan. Background of SMLWR concept is discussed along with the past Japanese LWR development programs. Goals of Japanese SMLWRs are proposed in the frame of three objectives of economic efficiency, improvement of plant performance and simplification of construction.

Multi-objective siting planning for a regional hazardous waste treatment center

Considering the trade-offs among the multiple objectives of economic efficiency, environmental risk, equity and administrative ease, the siting of a central treatment facility is attempted—a difficult but essential task in the regional hazardous waste management. For the quantification of each objective, the mathematical equations are formulated. Furthermore, the framework of the multi-objective planning technique in which the WRAP (Waste Resources Allocation Program) and Fuzzy Set theory are utilized is developed, to determine the appropriate alternative for the siting of long life public sector facility. As a case study, the developed technique is applied to the selection of the best site in the southwestern part of Korea, where the third new regional hazardous waste treatment center will be located. The effectiveness of multi-objective planning has been demonstrated, and the social and political factors affecting the siting are successfully quantified in a monetary value.

Model for Optimal Investment for Irrigation Projects in Bengkulu Province, Indonesia

ABSTRACT An integer goal programming model is developed for the selection, scheduling and budgeting of irrigation projects in Indonesia. The model is a multi-objective approach which takes into consideration not only economic efficiency objectives but also objectives related to Indonesian agricultural development policies. The non-economic objectives include: maintaining self-sufficiency in rice production by both intensification of existing production through upgrading of existing rice fields and by extension through development of new rice field areas; stimulating regional development, and; supporting the transmigration program. The criteria by which each of these primary objectives are assessed incorporate socioeconomic measures, such as the readiness of farmers to utilize newly developed agricultural areas fully, the experience and ability of farmers to exploit new technology such as technical irrigation schemes, and the extent of existing rice fields in the new development zones. Since the budget available for these development projects has become increasingly limited in recent years the model also examines which of the projects currently under construction should be continued under a priority system which includes these factors together with the amount of funding already expended. The model is demonstrated by application to a planning problem in Bengkulu province in Indonesia.

Multi-Objective Siting Planning for a Regional Hazardous Waste Treatment Center

Considering the trade-offs among the multiple objectives of economic efficiency, environmental risk, equity and administrative ease, the siting of a central treatment facility is attempted—a difficult but essential task in the regional hazardous waste management. For the quantification of each objective, the mathematical equations are formulated. Furthermore, the framework of the multi-objective planning technique in which the WRAP (Waste Resources Allocation Program) and Fuzzy Set theory are utilized is developed, to determine the appropriate alternative for the siting of long life public sector facility. As a case study, the developed technique is applied to the selection of the best site in the southwestern part of Korea, where the third new regional hazardous waste treatment center will be located. The effectiveness of multi-objective planning has been demonstrated, and the social and political factors affecting the siting are successfully quantified in a monetary value.

Quota Management and “People Problems”: A Case History of Canadian Lake Erie Fisheries

A new management plan was drawn up for Ontarioˈs commercial fisheries in 1982 after 2 years of negotiations between the Ontario Ministry of Natural Resources and the Ontario Council of Commercial Fisheries, which represents the fishing industry. Implementation of the plan began in 1984 with individual harvest quotas for Lake Erie. Government-industry agreement on the principle of quotas was relatively easy to achieve, but the allocation of individual quotas was more problematic, partly because of errors made in rushing decisions rather than going through the due political process to arrive at a compromise. A workable plan, with some dissent remaining, was nevertheless achieved in 2–3 years, following the initial socioeconomic dislocations, through a process of negotiation, adaptation, joint decision making (comanagement), and cooperation in enforcing regulations. Political and social considerations (equity) were relatively more important to fishermen than were economic efficiency objectives. The case study suggests a number of elements of a pragmatic resource planning protocol: baseline biological and statistical data have to be accompanied by suitable socioeconomic and cultural information on fishermen; new regulations need to take into account any existing self-regulation; proposed reductions in fishing effort need to be reconciled with equity concerns of the fishermen and with broader sociopolitical goals such as employment; and specific objectives of any new management plan should be framed so that they can serve as criteria for program evaluation.