Net Present Value Of Benefits Research Articles

Cost-benefit Analysis of Adopting Blockchain Technology in the Radiology Unit of a District Hospital

Background Blockchain technology has better security and immutable features, which are beneficial for healthcare data management. Decentralisation data management allows better sharing of medical images between units and departments. Objectives The objectives of this study were to determine the cost of adopting the blockchain-based system for medical images and the cost-benefit analysis for five years of adoption of this technology at a district hospital in Malaysia. Methodology Data regarding the yearly costs and workload for 2016 until 2018 were collected from a district hospital in Malaysia. The cost of blockchain implementation was obtained from a company that developed this technology. The cost-benefit analysis was done using the capital budgeting method for five years of this technology adoption. Sensitivity analysis was done to assess uncertainty conditions during this adoption. Results The total yearly cost of Radiology Unit for 2018 was MYR490,168.96. The cost for adopting blockchain technology was MYR80,000 for the software, MYR115,000 for upgrading the assets and yearly maintenance cost was MYR16,000. The total present value of net benefits for five years of technology adoption was MYR865,295.01. Sensitivity analysis shows that consumables cost-saving is the most sensitive variable. Most pessimistic situation analyses showed positive net benefits. Conclusion The adoption of blockchain technology in managing medical images offers numerous benefits to public hospitals in Malaysia. Investment in this technology can provide a good return to the organisation.

A Cost–Benefit Analysis of Novel IPM-Based Approaches to Onion Thrips Management in US Dry Bulb Onions

Onion thrips, Thrips tabaci (Lindeman), is a major pest of dry bulb onion throughout the US and across the world. Yield and quality damage from thrips feeding and the expense of insecticides used for thrips management have jeopardized profitable and sustainable onion production. To improve approaches to thrips management, researchers in multiple US onion-producing regions developed novel, integrated pest management (IPM)-based strategies employing threshold-based insecticide treatments and reduced fertilization practices. The purpose of this study was to estimate the benefits from public investment in research to develop IPM-based onion thrips management techniques using a cost–benefit analysis. Benefits were extended over a 20-year timespan and were measured by reduced insecticide and fertilizer costs. The estimated net present value of benefits from improved pest management tactics will depend on the adoption and use of novel approaches to management. Using a scenario that assumes a maximum adoption rate of 58%, the estimated net present value of the research is $15.91 million, the benefit–cost ratio is 4.00, and the internal rate of return is 32%. Assuming a scenario with a maximum adoption rate of 29%, the estimated net present value of the research is $8.3 million, the benefit–cost ratio is 3.34, and the internal rate of return is 24%. Even when estimated assuming conservative adoption scenarios, results indicate a healthy return on investment in research to develop and refine new approaches to manage onion thrips and optimize dry bulb onion production.

Techno-economic analysis of fixed versus sun-tracking solar panels

The potential output of photovoltaic (PV) panels is influenced by several factors, including the direction of solar radiation from the sun toward the panel’s surface. The maximum output of the panels is obtained when the panels are vertical to the sun's rays. In this study, a techno-economic analysis is conducted to examine whether an automatic one-axis sun tracker system is an economically feasible option for installing a large-scale PV park in the Nicosia district in the central part of Cyprus. The performance of a one-axis sun tracker with an installed capacity of 781 kWp is compared to a PV system with a fixed flat structure having the same capacity and larger capacity at 1034 kWp. Output generated by the three PV system options is simulated by three alternative simulation software (SolarGIS, PVSyst, and PVGIS). Financial analysis is performed utilizing simulated PV power output, accounting for electricity feed-in tariff and overall cost of the project. The cash-flow model is run for several scenarios defined by different leverage ratios, including no leverage. Considering the technical parameters of a PV system and solar panel characteristics, such as the degradation effect on solar panel efficiency and solar radiation, we estimate the solar tracking system produces about 20%–30% more energy compared to a fixed structure. We find both technologies are economically viable options, however, a one-axis tracker system performs better financially. LCOE in all scenarios is below the highest acceptable level for solar PV projects in Cyprus which is 103 EUR per MWh. LCOE for a solar tracker PV is 39 EUR per MWh with a 30% leverage ratio and up to 79 EUR per MWh with 85% leverage. LCOE for a sun-tracker is ~20% lower than LCOE for a PV with a fixed axis of comparable size. Despite higher investment costs, the solar tracking PV system performs with a 12% higher equity internal rate of return, and a 9% shorter loan payback period compared to the same installed power of a fixed structure. The Financial analysis is complemented by quantified benefits due to avoided carbon emissions. Accounting for carbon benefits makes a sun-tracker PV system economically a better option over the fixed tracker PV system, resulting in 228,000 EUR more benefits. Overall, the present value of net benefits of a solar-tracker PV amounts to 1.39 mil. EUR and due to high irradiation in Cyprus, the carbon footprint of PV power output represents only 6% of the footprint of generating electricity in thermal power plants. When these benefits are accounted for the sum of NPV and social benefits will turn out to be higher for a one-axis tracker compared to the total social benefits of a fixed tracker of the same size.

STUDY OF SOCIAL INVESTMENT IMPACT FROM PT ADARO INDONESIA CSR PROGRAM “KAMPUNG ASRI DESA JARO” IN 2021

Social Return on Investment (SROI) study conducted to determine the added value in the community created from a program or intervention from the company to the community, considering social and environmental impacts in addition to economic impacts, measuring the value of benefits relative to the investment costs used to achieve program benefits, and the ratio of the net present value of benefits to investment.

The valuation of buildings energy retrofitting: A multiple-criteria approach to reconcile cost-benefit trade-offs and energy savings

Directive 2018/844/EU promotes long-term renovation strategies to achieve the 2050 EU-wide energy and climate targets. As the building sector accounts for 40% of final energy consumption and 36% of CO2, buildings energy retrofitting and the valuation of related investments play a fundamental role in the successful implementation of the energy transition. The economic evaluation of buildings’ energy retrofit projects is usually performed by implementing the Life Cycle Cost approach. Nonetheless, due to increased social awareness and environmental concerns, homeowners may be willing to invest in more energy-efficient solutions, rather than in the least-cost solution. This paper aims to provide a valuation framework to identify cost-effective and cost-optimal strategies of intervention, which match technological innovation in buildings energy renovations with environmental concerns and social awareness. In detail, we complement the Life Cycle Cost method with the Net Present Value rule and determine the best retrofit project by implementing a two-criteria (i.e., reduction in primary energy consumption and increase in the present value of net benefits compared to the status quo), additive-value decision model. We also propose a graphical approach, which provides a straightforward identification of the best compromise solution between Net-Present-Value maximizing and energy-saving maximizing buildings’ energy retrofit projects. We tested the proposed approach on a real-world case study and found that it is less sensitive than other methodologies to uncertainty over discount rates and future energy prices.

An incentive-based mitigation strategy to encourage coexistence of large mammals and humans along the foothills of Indian Western Himalayas

Escalation of human–wildlife conflict (HWC) is a barrier to the conservation of ecological corridors across the globe. The existing mechanisms to counter HWC are either economically and socially taxing, or ineffective for long-term management. We assessed HWC in the corridor linking the Rajaji and Corbett Tiger Reserves in Uttarakhand, India, and its drivers, along with the benefits derived by local communities from the forest. We designed an innovative incentive-based mitigation mechanism to encourage coexistence of people and wildlife around the corridor. Costs incurred due to conflict and benefits derived from the forest were assessed using semi-structured questionnaire-based personal interviews (n = 757) with representatives from forest dependent households (hh). Fuelwood (1678.7 ± 131 kg hh−1 year−1), fodder (4772 ± 186 kg hh−1 year−1) and green/dry grass (3359 ± 104 kg hh−1 year−1) contributed 3 ± 1%, 6 ± 0.5% and 9 ± 1%, respectively, to the annual income of dependent households. 69% of the households practising agriculture reported crop damage by wild animals, 19% of the households that owned livestock reported livestock loss, and 1.58% reported attack on humans resulting in injuries. The cost incurred due to crop raiding and livestock depredation was US $ 159.83 ± 1.0 hh−1 year−1 and US $ 229.32 ± 34.0 hh−1 year−1, respectively. Crop loss was positively associated with the number of crops grown per season and cultivation of sugarcane, wheat and pulses, and negatively with distance from forest and cultivation of fodder and finger millet. Livestock depredation was negatively associated with distance from forest and positively with number of livestock owned, primarily calves. The accounting profit from cultivating a hectare of land, in the absence of crop depredation by wild animals, was estimated at US $ 3571.84 ha−1 year−1 and US $ 361.44 ha−1 year−1 for the plains and hills, respectively. This value can be used to calculate the payments to be paid to local communities to encourage them to adopt HWC resistant agricultural and pastoralism practices. The net present value of benefits from participating in the payments to encourage coexistence programme for 5 years, discounted at 12%, was US $ 12,875.7 ha−1 for the plains and US $ 1302.9 ha−1 for the hills.

A Cost Benefit Analysis of IPM Decision Support Tools for Potato Psyllids in Idaho, Oregon, and Washington

2011 reports of Zebra Chip in major potato growing regions of Idaho, Oregon, and Washington resulted in calendar-based psyllid management programs. With the goal of improving the sustainability and profitability of potato production systems, researchers developed disease risk maps to support informed decision-making regarding timing and necessity of psyllid targeted spray applications. The benefits of investment in the decision support system are estimated using a cost benefit analysis. Benefits are estimated to span 16 years and are measured by reduced psyllid control costs. The estimated net present value of benefits from the decision support system will depend on adoption and use of the disease risk maps. Using a scenario that assumes a maximum adoption rate of 46%, the estimated net present value of the tool is $5.2 million, the benefit cost ratio is 1.63, and the internal rate of return is 8%. Assuming a scenario with a maximum adoption rate of 78%, the estimated net present value of the tool is $8.6 million, the benefit cost ratio is 2.69, and the internal rate of return is 14%.

Optimization of thermal systems considering time-varying availability: a case study of the CGAM problem

One of the most important steps of the thermal systems design process can be economic optimization. In the conventional methods of this optimization, most of the time system’s availability, amount of production, and maintenance costs are considered to be constant throughout the system’s lifetime. However, factors such as changing of the components’ failure rate due to degradation or repairing, and stops in operation because of overhauls could lead to a change in the availability and the amount of production. Also, in multi-product systems, upstream components’ failures would stop production in downstream parts. In this paper, a method is proposed regarding the consideration of these factors to economic optimization. Hence, the optimal system design and its economic analysis would be more accurate than conventional methods. In terms of a case study, the CGAM cogeneration system is studied. The first step of this optimization is calculating instantaneous availability employing the state-space method by considering the overhauls and time-varying failure rate for the components. Then, the average availabilities for power and heat generation in each year are estimated. As costs and incomes appear to be variables, the net present value of benefits is considered as an objective function and the optimum system properties are achieved through solving the optimization problem.

Cost-Benefit Analysis of Mood Uplifting Paintings in Hospitals

The Net Present Value of Benefits (NPVB) of installing mood uplifting paintings on hospital stay lengths were projected using a Cost- Benefits analysis. Net benefits were estimated from the effect size” of mood uplift from Abstract Romanticism paintings and the average cost of hospital stay at $2,000/day. We used a nominal Social Discount Rate of 4% and a period of ten years. The analysis was conducted for a sample of hospitals and states. The results showed that installation of Abstract Romanticism paintings would have net benefits and this enhancement to the patient environment would likely result in substantial healthcare savings.

Efficiency of institutional spending and investment rules

ABSTRACTEndowment funds and similar institutions aim to generate a benefit stream of unlimited duration on the basis of an initially donated capital. Towards this purpose, responsible trustees need to design a spending policy as well as an investment policy. A combined spending and investment policy is said to be efficient if the total net present value of benefits that are paid according to the policy is equal to the initial capital, and inefficient if the total net present value is less than that. For several strategies, analytical expressions are given for the total net present value of benefits under the Black-Scholes assumptions. One of the strategies considered is the combination of a fixed-mix investment policy with a benefit policy that pays inflation-indexed benefits as long as ruin does not occur. This strategy is shown to be inefficient in many cases; the effective loss of capital can range from 5% to 15% under realistic parameter values. The inefficiency can be removed by adapting the investment policy and raising the benefits, without increasing the probability of ruin.

Oversaving in Long-Term Funds

Endowment funds and similar institutions aim to generate a benefit stream of unlimited duration on the basis of an initially donated capital. Towards this purpose, responsible trustees need to design a spending policy as well as an investment policy. A combined spending and investment policy is said to be efficient if the total net present value of benefits that are paid according to the policy is equal to the initial capital, and inefficient if the total net present value is less than that. For several strategies, analytical expressions are given for the total net present value of benefits under the Black-Scholes assumptions. One of the strategies considered is the combination of a fixed-mix investment policy with a benefit policy that pays inflation-indexed benefits as long as ruin does not occur. This strategy is shown to be inefficient in many cases; the effective loss of capital can range from 5% to 15% under realistic parameter values. The inefficiency can be removed by adapting the investment policy and raising the benefits, without increasing the probability of ruin.

Cost-benefit management of intentional domino effects in chemical industrial areas

Chemical industrial areas comprising various hazardous installations may be attacked by adversaries, triggering possible intentional domino effects. Compared with accidental domino effects, intentional domino effects may be more difficult to prevent since intelligent and strategic adversaries can adapt their tactics according to protection measures. However, how and to what extent domino effects affect security management is ignored in previous studies. This study proposes a methodology to prevent and mitigate intentional domino effects taking into consideration economic issues in the decision-making process on safety and security resources. The methodology is divided into five parts: threat analysis, vulnerability analysis of installations with respect to intentional attacks, vulnerability analysis of installations subject to possible domino effects caused by the attacks, cost-benefit analysis, and optimization. Net present value of benefits (NPVB) is employed and quantified in the cost-benefit analysis to determine whether a protection strategy (a combination of safety and security measures) is profitable, or not. Besides, an optimization algorithm called “PROTOPT” based on “maximin” strategy is developed to achieve the most profitable protection strategy. An illustrated case study shows that domino effects can not be ignored in security management since they may have a profound impact on adversaries’ strategies.

Health cost of salinity contamination in drinking water: evidence from Bangladesh

This study estimates health cost of salinity contamination in drinking water in the severe salinity affected three south-western districts of Bangladesh. We collected information on self-reported health status, household characteristics, and laboratory-tested salinity concentration in drinking water from randomly selected 266 households. Our findings show that an increase in the concentration of 100 mg sodium chloride per litre in the drinking water raises annual health cost BDT 262 (USD 3.28) per household, all other things being equal. For average salinity concentration (868.26 mg L−1), we computed gross annual health cost per household BDT 2270 (USD 28.38). Limiting salt concentration at the safe level could save approximately BDT 1617 (USD 20) per household or BDT 170 (USD 2.12) million in aggregate annually, which accounts for almost 1% of their disposable income. A benefit–cost analysis shows that net present value of benefits from a 10-year project for supplying safe drinking water to the entire population is around USD 7.33 million, and thus, the study indicates financial viability of alternative supply system (pond sand filtering) to the concerned authorities.

An auction mechanism for the optimal provision of ecosystem services under climate change

The provision of many ecosystem services depends on the spatial pattern of land use across multiple landowners. Even holding land use constant, ecosystem service provision may change through time due to climate change. This paper develops an auction mechanism that implements an optimal solution for providing ecosystem services through time with multiple landowners who have private information about the net benefits of alternative uses of their land. Under the auction, each landowner has a dominant strategy to truthfully reveal their private information. With this information a regulator can then implement the optimal landscape pattern, which maximizes the present value of net benefits derived from the landscape, following the rules of the auction mechanism. The auction can be designed as a subsidy auction that pays landowners to conserve or a tax auction where landowners pay for the right to develop. Our mechanism optimizes social adaptation of ecosystem management to climate change.

Manure management coupled with bioenergy production: An environmental and economic assessment of large dairies in New Mexico

Consolidation in livestock production generates higher net farm incomes due to economies of scale. However, it also brings manure disposal problems. New Mexico ranks number one in the U.S. in dairy herd size. Dairy manure is a significant source of nitrates, and improper management of manure from large dairy farms can produce adverse environmental and health effects. We use a combination of life-cycle assessment, cost-benefit analysis, and sensitivity analysis to assess environmental and economic impacts of three alternative dairy manure management cases: direct land application (DLA), anaerobic digestion (AD), and anaerobic digestion coupled with microalgae cultivation (ADMC). By modeling a typical large dairy farm in New Mexico, four environmental impacts and the present value of net benefits of each case are evaluated under a baseline scenario and different policy scenarios. Our results show that, for a typical large dairy farm in New Mexico, the DLA case is the least sustainable regarding any of the environmental impacts. AD is most profitable in the baseline, tax credit, and carbon credit scenarios while ADMC is most profitable in the presence of a market for nutrient credits. Policy implications are discussed for dairy manure management coupled with bioenergy production on large dairy farms in arid regions.

Managing the water-energy-food nexus: Opportunities in Central Asia

This article examines impacts of infrastructure development and climate variability on economic outcomes for the Amu Darya Basin in Central Asia. It aims to identify the most economically productive mix of expanded reservoir storage for economic benefit sharing to occur, in which economic welfare of all riparians is improved. Policies examined include four combinations of storage infrastructure for each of two climate futures. An empirical optimization model is developed and applied to identify opportunities for improving the welfare of Tajikistan, Uzbekistan, Afghanistan, and Turkmenistan. The analysis 1) characterizes politically constrained and economically optimized water-use patterns for these combinations of expanded reservoir storage capacity, 2) describes Pareto-Improving packages of expanded storage capacity that could raise economic welfare for all four riparians, and accounts for impacts for each of two climate scenarios. Results indicate that a combination of targeted water storage infrastructure and efficient water allocation could produce outcomes for which the discounted net present value of benefits are favorable for each riparian. Results identify a framework to provide economic motivation for all riparians to cooperate through development of water storage infrastructure. Our findings illustrate the principle that development of water infrastructure can expand the negotiation space by which all communities can gain economic benefits in the face of limited water supply. Still, despite our optimistic findings, patient and deliberate negotiation will be required to transform potential improvements into actual gains.

Genetic and economic benefits of selection based on performance recording and genotyping in lower tiers of multi-tiered sheep breeding schemes

BackgroundPerformance recording and genotyping in the multiplier tier of multi-tiered sheep breeding schemes could potentially reduce the difference in the average genetic merit between nucleus and commercial flocks, and create additional economic benefits for the breeding structure.MethodsThe genetic change in a multiple-trait breeding objective was predicted for various selection strategies that included performance recording, parentage testing and genomic selection. A deterministic simulation model was used to predict selection differentials and the flow of genetic superiority through the different tiers. Cumulative discounted economic benefits were calculated based on trait gains achieved in each of the tiers and considering the extra revenue and associated costs of applying recording, genotyping and selection practices in the multiplier tier of the breeding scheme.ResultsPerformance recording combined with genomic or parentage information in the multiplier tier reduced the genetic lag between the nucleus and commercial flock by 2 to 3 years. The overall economic benefits of improved performance in the commercial tier offset the costs of recording the multiplier. However, it took more than 18 years before the cumulative net present value of benefits offset the costs at current test prices. Strategies in which recorded multiplier ewes were selected as replacements for the nucleus flock did modestly increase profitability when compared to a closed nucleus structure. Applying genomic selection is the most beneficial strategy if testing costs can be reduced or by genotyping only a proportion of the selection candidates. When the cost of genotyping was reduced, scenarios that combine performance recording with genomic selection were more profitable and reached breakeven point about 10 years earlier.ConclusionsEconomic benefits can be generated in multiplier flocks by implementing performance recording in conjunction with either DNA pedigree recording or genomic technology. These recording practices reduce the long genetic lag between the nucleus and commercial flocks in multi-tiered breeding programs. Under current genotyping costs, the time to breakeven was found to be generally very long, although this varied between strategies. Strategies using either genomic selection or DNA pedigree verification were found to be economically viable provided the price paid for the tests is lower than current prices, in the long-term.

Economic values for recreational planning at Horton Plains National Park, Sri Lanka

ABSTRACTAlthough recreational planning in national parks has long taken visitor characteristics and perceptions into consideration, economic valuation to date has not been part of such planning. Our study applies economic valuation for recreational planning in the Horton Plains National Park (HPNP) in Sri Lanka. The study, using a pretested questionnaire, interviewed 188 respondents in order to identify existing visitor satisfaction levels as well as visitor perceptions on available facilities. The existing visitor satisfaction at HPNP was 54%. Two alternative recreational scenarios were, therefore, developed based on visitor perceptions on how to enhance visitor satisfaction at the park. A hypothetical travel cost method and contingent valuation method (CVM) were used to estimate (1) the welfare benefits in terms of consumer surplus and (2) the demand in terms of willingness to pay (WTP) for the proposed recreational scenarios. The sample size for the economic study was 352 respondents. The per-visitor welfare benefits were financially valued at Sri Lanka Rupees (SLR) 3794 (USD 1 = SLR 130) and SLR 7045 for scenarios 1 and 2, respectively. These values show a 15 to 30 times increase from the existing value of the welfare benefits. The net present value of benefits also increased from SLR 516.8 million to SLR 5296.92 million and SLR 9835.73 million under scenarios 1 and 2, respectively. Under CVM, the estimated mean WTP values were SLR 132.00 and SLR 190.32 under scenarios 1 and 2, respectively. These values can be used as a tool for revising pricing policies at HPNP. Visitors' response to the proposed recreational scenarios suggests the need for planners to institute proper recreational schemes to enhance the welfare benefits of visitors. The study underscores the role economic valuation can play in policy decisions relating to recreational planning in national parks.

Economic impact of classical biological control of papaya mealybug in India

Farmers in Tamil Nadu, India began to report that a new pest was affecting papaya (Carica papaya L.) in 2006. Numerous applications of insecticide were made, but papaya losses were severe and the pest spread to several other crops. The pest was identified in 2008 as the papaya mealybug Paracoccus marginatus Williams and Granara de Willink (Hemiptera: Pseudococcidae), and a classical biological control program was initiated. Three parasitoids, Acerophagus papayae Noyes and Schauff, Pseudleptomastix mexicana Noyes and Schauff, and Anagyrus loecki Noyes and Menezes (Hymenoptera: Encyrtidae), were imported from Puerto Rico in July 2010, and A. papayae was multiplied and released. Excellent control of the papaya mealybug was obtained within five months, pesticide usage was reduced, and production and income were increased. The purpose of this article is to quantify the economic benefits of this classical biological control program. The annual economic benefits for the five most important crops affected by the biocontrol program range from $121 million to $309 million, and the net present value of benefits over five years total $524 million to $1.34 billion. Implications are drawn for biological control programs in other countries.

지구단위계획 수립의 후생가치 분석 -청주시 검둥골 취락지구를 중심으로-

The purpose of this study is to quantitatively analyze the social welfare value given to the designated rural settlement zone by the resident-participated site unit plan that the City of Cheongju is newly attempting to draft. Firstly, the costs and benefits from the site unit planning were estimated. Secondly, through literature review especially focussed on the benefit and cost estimation, on-site questionnaire was designed, and then sample residents of the qualifying sites were asked about their willingness to pay, which could make it possible to estimate the monetary value of its benefits by the contingent valuation method (CVM). Finally, the present value of net benefits (PVNB) was estimated through the derived costs and benefits. As a result of analysis, firstly, the present value of net benefits (PVNB) was found to be 7,641 billion won, which indicated that the implementation of district-unit plan would be able to cause sufficient social welfare value for the effected residents. Secondly, in examining the result of individual average amount for willingness to pay through the CVM, the area that benefited the most was found to be the road improvement. Thirdly, as a result of sensitivity analysis, the parameter with the most effects was the discount rate, which suggested that, in carrying out public projects, excessive market interest rates would not be appropriate.