Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating
The aim of the article is to study the effectiveness of making an investment decision applying the method of cost-benefit analysis (CBA) using the example of the project of replacing the central heating system with autonomous gas heating. During the research a financial, economic and sensitive analy...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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PH "INZHEK"
2017-03-01
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| Series: | Problemi Ekonomiki |
| Subjects: | |
| Online Access: | http://www.problecon.com/export_pdf/problems-of-economy-2017-1_0-pages-70_78.pdf |
| _version_ | 1797331728629497856 |
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| author | Zahvoyska Lyudmyla D. Fedoruk Mariia I. |
| author_facet | Zahvoyska Lyudmyla D. Fedoruk Mariia I. |
| author_sort | Zahvoyska Lyudmyla D. |
| collection | DOAJ |
| description | The aim of the article is to study the effectiveness of making an investment decision applying the method of cost-benefit analysis (CBA) using the example of the project of replacing the central heating system with autonomous gas heating. During the research a financial, economic and sensitive analysis of the project is carried out. Based on the results of the financial and economic analysis, it is found that with regard to the existing ratio of gas prices and tariffs for heat supply such a project is effective for residents of houses (investors) and society as a whole. The sensitive analysis showed that according to the results of the financial analysis, the NPV is most sensitive to the change in tariffs for heat supply, the critical level of change being a 35% reduction in the cost of heat supply with an increase in the price of gas by 25% or more. The application of energy efficient equipment for generating heat energy as well as reducing heat loss during transportation by using energy saving principles can cut costs and, as a result, reduce the price for central heating. Prospects for further research in this area are the identification of an objective and reliable method for assessing the investment project in accordance with the requirements of environmental protection, use of energy-saving technologies, and combating climate change. Further development of theoretical approaches to assessing the effectiveness of energy saving measures with consideration for their environmental and economic component may lead to the CBA becoming a real management tool for national and regional authorities. |
| first_indexed | 2024-03-08T07:38:33Z |
| format | Article |
| id | doaj.art-e02cedfa4cfc426591c526dec9e70f4d |
| institution | Directory Open Access Journal |
| issn | 2222-0712 2311-1186 |
| language | English |
| last_indexed | 2024-03-08T07:38:33Z |
| publishDate | 2017-03-01 |
| publisher | PH "INZHEK" |
| record_format | Article |
| series | Problemi Ekonomiki |
| spelling | doaj.art-e02cedfa4cfc426591c526dec9e70f4d2024-02-02T18:08:40ZengPH "INZHEK"Problemi Ekonomiki2222-07122311-11862017-03-0117078Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas HeatingZahvoyska Lyudmyla D.0Fedoruk Mariia I.1Candidate of Sciences (Economics), Associate Professor, Department of Environmental Economics, Institute of Environmental Economics and Management of the National Forestry University of UkrainePostgraduate Student, Department of Environmental Economics, Institute of Environmental Economics and Management of the National Forestry University of UkraineThe aim of the article is to study the effectiveness of making an investment decision applying the method of cost-benefit analysis (CBA) using the example of the project of replacing the central heating system with autonomous gas heating. During the research a financial, economic and sensitive analysis of the project is carried out. Based on the results of the financial and economic analysis, it is found that with regard to the existing ratio of gas prices and tariffs for heat supply such a project is effective for residents of houses (investors) and society as a whole. The sensitive analysis showed that according to the results of the financial analysis, the NPV is most sensitive to the change in tariffs for heat supply, the critical level of change being a 35% reduction in the cost of heat supply with an increase in the price of gas by 25% or more. The application of energy efficient equipment for generating heat energy as well as reducing heat loss during transportation by using energy saving principles can cut costs and, as a result, reduce the price for central heating. Prospects for further research in this area are the identification of an objective and reliable method for assessing the investment project in accordance with the requirements of environmental protection, use of energy-saving technologies, and combating climate change. Further development of theoretical approaches to assessing the effectiveness of energy saving measures with consideration for their environmental and economic component may lead to the CBA becoming a real management tool for national and regional authorities.http://www.problecon.com/export_pdf/problems-of-economy-2017-1_0-pages-70_78.pdfcost-benefit analysisinvestment projectcentral heatingautonomous heatingenergy efficiency |
| spellingShingle | Zahvoyska Lyudmyla D. Fedoruk Mariia I. Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating Problemi Ekonomiki cost-benefit analysis investment project central heating autonomous heating energy efficiency |
| title | Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating |
| title_full | Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating |
| title_fullStr | Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating |
| title_full_unstemmed | Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating |
| title_short | Ecological and Economic Assessment of the Effectiveness of an Investment Decision Using the Cost-Benefit Analysis: the Project of Replacing the Central Heating System with Individual Gas Heating |
| title_sort | ecological and economic assessment of the effectiveness of an investment decision using the cost benefit analysis the project of replacing the central heating system with individual gas heating |
| topic | cost-benefit analysis investment project central heating autonomous heating energy efficiency |
| url | http://www.problecon.com/export_pdf/problems-of-economy-2017-1_0-pages-70_78.pdf |
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