The Infona portal uses cookies, i.e. strings of text saved by a browser on the user's device. The portal can access those files and use them to remember the user's data, such as their chosen settings (screen view, interface language, etc.), or their login data. By using the Infona portal the user accepts automatic saving and using this information for portal operation purposes. More information on the subject can be found in the Privacy Policy and Terms of Service. By closing this window the user confirms that they have read the information on cookie usage, and they accept the privacy policy and the way cookies are used by the portal. You can change the cookie settings in your browser.
The novel theory of investment portfolio optimization under uncertainty is presented based on fuzzy set theory and efficient forecasing methods. The direct problem of fuzzy portfolio optimization and dual problem are considered. In the direct problem structure of a portfolio is determined which provides the maximum profitableness at the given risk level. In dual problem the portfolio structure is...
Developing countries are experimenting important advances in the field of international electrical interconnections, which have demonstrated that the barriers imposed by the differences between national market regulations, can be overcome through suitable trade agreements. The implementation of a regional electricity market superposed to national markets seems to be a good option to facilitate a coordinated...
The provision of a financial product for renewable energy requires that the return of the financial product be determined based on the portion of risk it holds. Accurately modeling the risk becomes essential in order to achieve higher penetration of renewable energy in markets. This paper combines the effect of the various types of risks, and shows that the overall risk of renewable energy is not...
Decision making is a complex process that involves risk. All decision made by investors should be concerned about the level of risk they are willing to tolerate. The level of risk they are willing to absorb will lead to their investment strategy they should go for, aggressive, moderate or conservative. For that reason, the factors affecting investors' investment strategy should be taken into consideration...
In the development course of smart grid, risk evaluation can be applied for smart grid to lead the decision maker to achieve scientific plan, so that blind investment and significant risk loss may be avoided. Aiming at the reasons and benefits of risk management for smart grid in this paper, firstly, different risk of smart grid can be identified from five aspects, including financial risk, security...
This paper investigates how carbon taxes and feed-in tariffs as well as combinations of these regulations influence investment decisions in power generation under uncertainty. Moreover, we analyze the interactions between market power and regulation instruments. To this end, we numerically simulate a microeconomic investment model with a two-stage time structure, different kinds of uncertainty, market...
With the advent of power system restructuring, there is now competition on the generation activity and the generation mix changed in many countries with the incentives to induce investments in renewables, in many cases, using volatile primary resources. Given this increase of the installed capacity in wind parks and PV stations as well as in hydro stations (as a way to address the mentioned volatility),...
As increasing import dependency raises doubts about the future security of gas supply in Europe, indigenous production especially from unconventional resources emerges as a promising solution for this problem. However, the development of unconventional gas production in Europe is challenged by several uncertainties related to the technology, reserves, societal and political issues. For a better analysis...
In economic analysis of any engineering project discounting is a standard procedure used in cost-benefit analysis. With careful selection of the assumptions used in cost-benefit analysis it can be made to support, or oppose, almost anything. This is particularly so when the decision being studied involves some cost or benefit, for which there is no market price or which, because of an externality,...
We model a risk-sensitive investment strategy in renewable distributed generation. The risk arises from the uncertainty regarding what feed-in tariff (FIT) rates or payment structure may be adopted once an initial stable duration is over. We develop a scenario-based approach where investors can choose to follow a degree of risk aversion that best suits them. We show that FIT policies should ensure...
The investment decision-making problem, which makes it possible to distribute capital among real and portfolio investments, is presented. The investment decision-making method under uncertainty is proposed for solving the problem.
In this paper, we study the optimal storage investment problem faced by an owner of renewable generator the purpose of which is to support a portion of a local demand. The goal is to minimize the long-term average cost of electric bills in the presence of dynamic pricing as well as investment in storage, if any. Examples of this setting include homeowners, industries, hospitals or utilities that own...
Public agencies make significant investments in capital facilities to meet the requirements of their missions. Interest in sustainable building practices has increased over recent years, but obstacles remain to implementing such practices in public construction projects on a regular basis. A primary stumbling block is the difficulty in generating accurate estimates for total cost of ownership of a...
This paper deals with the portfolio selection problem when the expected return rates and risks are fuzzy. Firstly, assuming the transaction cost being taken as V-shaped function, a fuzzy linear portfolio model is established based on the hypothesis that the correlation coefficients of different stock return rates are the same. Then, the fuzzy linear programming problem is transformed into a multi-objective...
Pricing process is significant for the development of SaaS industry, which has not largely researched yet. Aiming at exploring a ripe pricing strategy system for SaaS, we mainly consider cost, the choice of pricing model, and customization as the key elements influencing the price, especially customization (on-demand service). To help decision makers set a sensible pricing strategy, we build our Optimal...
On the basis of full access to risk cost related literature, find that the concept of risk management gains doesn't get closely enough with engineering practice in reality. Stat from the hierarchical structure of project contract system on, put forward the management idea of risk management and goal management integration. Constructed the equilibrium analysis methods of risk management gains by engineering...
This paper studies the impact of macro economic uncertainty on the direct and indirect investments of non-financial companies during 2001 -- 2009 by using the random effect model of panel data. The results show that the macro economic uncertainty calculated by the GARCH model has different effects on the direct and indirect investments. That is, macro economic uncertainty restrains the direct investments...
In real option pricing, it is impractical to assume the net present value of expected cash flow payoff as an exact number because it is a forecasted vague one. The price can be defined as a fuzzy number to express its estimated uncertain values and the Binomial Tree is used to price a real option. A modified pricing approach to real options is thus proposed to transform the forecasted uncertain values...
Set the date range to filter the displayed results. You can set a starting date, ending date or both. You can enter the dates manually or choose them from the calendar.