The theory of international business: the role of economic models

This paper reviews the scope for economic modelling in international business studies. It argues for multi-level theory based on classic internalisation theory. It present a systems approach that encompasses both firm-level and industry-level analysis

A Review of the Monitoring of Market Power The Possible Roles of TSOs in Monitoring for Market Power Issues in Congested Transmission Systems

The paper surveys the literature and publicly available information on market power monitoring in electricity wholesale markets. After briefly reviewing definitions, strategies and methods of mitigating market power we examine the various methods of detecting market power that have been employed by academics and market monitors/regulators. These techniques include structural and behavioural indices and analysis as well as various simulation approaches. The applications of these tools range from spot market mitigation and congestion management through to long-term market design assessment and merger decisions. Various market-power monitoring units already track market behaviour and produce indices. Our survey shows that these units collect a large amount of data from various market participants and we identify the crucial role of the transmission system operators with their access to dispatch and system information. Easily accessible and comprehensive data supports effective market power monitoring and facilitates market design evaluation. The discretion required for effective market monitoring is facilitated by institutional independence.Electricity, liberalisation, market power, regulation

Micro-Foundations of Urban Agglomeration Economies

This handbook chapter studies the theoretical micro-foundations of urban agglomeration economies. We distinguish three types of micro-foundations, based on sharing, matching, and learning mechanisms. For each of these three categories, we develop one or more core models in detail and discuss the literature in relation to those models. This allows us to give a precise characterisation of some of the main theoretical underpinnings of urban agglomeration economies, to discuss modelling issues that arise when working with these tools, and to compare different sources of agglomeration economies in terms of the aggregate urban outcomes they produce as well as in terms of their normative implications.

Identifying opportunities for developing CSP and PV-CSP hybrid projects under current tender conditions and market perspectives in MENA – benchmarking with PV-CCGT

Concentrating solar power (CSP) is one of the promising renewable energy technologies provided the fact that it is equipped with a cost-efficient storage system, thermal energy storage (TES). This solves the issue of intermittency of other renewable energy technologies and gives the advantage of achieving higher capacity factors and lower levelized costs of electricity (LCOE). This is the main reason why solar tower power plants (STPP) with molten salts and integrated TES are considered one of the most promising CSP technologies in the short term [1]. On the other hand, solar photovoltaic (PV) is a technology whose costs have been decreasing and are expected to continue doing so thus providing competitive LCOE values, but with relatively low capacity factors as electrical storage systems remain not cost-effective. Combining advantages and eliminating drawbacks of both technologies (CSP and PV), Hybridized PV-CSP power plants can be deemed as a competitive economic solution to offer firm output power when CSP is operated smartly so that its load is regulated in response to the PV output. Indeed previous works, have identified that it would allow achieving lower LCOEs than stand-alone CSP plants by means of allowing it to better utilize the solar field for storing energy during the daytime while PV is used [1]. On the fossil-based generation side, the gas turbine combined cycle (CCGT) occupies an outstanding position among power generation technologies. This is due to the fact that it is considered the most efficient fossil fuel-to-electricity converter, in addition to the maturity of such technology, high flexibility, and the generally low LCOE, which is largely dominated by fuel cost and varies depending on the natural gas price at a specific location. Obviously, the main drawback is the generated carbon emissions. In countries rich in natural gas resources and with vast potential for renewable energies implementation, such as the United Arab Emirates (UAE), abandoning a low LCOE technology with competitively low emissions – compared to coal or oil - and heading to costly pure renewable generation, seems like an aggressive plan. Therefore, hybridizing CCGT with renewable generation can be considered an attractive option for reducing emissions at reasonable costs. This is the case of the UAE with vast resources of both natural gas and solar energy. Previous work have shown the advantages of hybrid PV-CCGT and hybrid PV-CSP plants separately [1][2]. In this thesis, CSP and the two hybrid systems are compared on the basis of LCOE and CO2 emissions for a same firm-power capacity factor when considering a location in the UAE. The results are compared against each other to highlight the benefits of each technology from both environmental and economic standpoints and provide recommendations for future work in the field. The techno-economic analysis of CSP (STPP with TES), PV-CSP(STPP with TES) and PV-CCGT power plants have been performed by DYESOPT, an in-house tool developed in KTH, which runs techno-economic performance evaluation of power plants through multi-objective optimization for specific locations[1]. For this thesis, a convenient location in the UAE was chosen for simulating the performance of the plants. The UAE is endowed by the seventh-largest proven natural gas reserves and average to high global horizontal irradiation (GHI) and direct normal irradiation (DNI) values all year round, values considered to be lower than other countries in the MENA region due to its high aerosol concentrations and sand storms. The plants were designed to provide firm power in two cases, first as baseload, and second as intermediate load of 15 hours from 6:00 until 21:00. The hours of production were selected based on a typical average daily load profile. CSP and PV-CSP model previously developed by [3][1] were used. Ideally in the PV-CSP model, during daytime hours the PV generation is used for electricity production, covering the desired load, while CSP is used partly for electricity production and the rest for storing energy in the TES. Energy in the TES system is then used to supply firm power during both periods of low Irradiance and night hours or according to need. A PV-CCGT model has been developed which operates simultaneously, prioritizing the availability of PV while the CCGT fulfils the remaining requirement. There is a minimum loading for the CCGT plant which is determined by the minimum possible partial loading of the gas turbine restricted by the emission constraints. Accordingly, in some cases during operation PV is chosen to be curtailed due to this limitation. The main results of the techno-economic analysis are concluded in the comparative analysis of the 3 proposed power plant configurations, where the PV-CCGT plant is the most economic with minimum LCOE of 86 USD/MWh, yet, the least preferable option in terms of carbon emissions. CSP and PV-CSP provided higher LCOE, while the PV-CSP plant configuration met the same capacity factor with 11% reduction in LCOE, compared to CSP

Design of Closed Loop Supply Chains

Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.supply chain management;reverse logistics;facility location;network design;product design

The cost and cost-effectiveness of alternative strategies to expand treatment to HIV-positive South Africans: scale economies and outreach costs

This repository item contains a single issue of the Health and Development Discussion Papers, an informal working paper series that began publishing in 2002 by the Boston University Center for Global Health and Development. It is intended to help the Center and individual authors to disseminate work that is being prepared for journal publication or that is not appropriate for journal publication but might still have value to readers.The South African government is currently discussing various alternative approaches to the further expansion of antiretroviral treatment (ART) in public-sector facilities. We used the EMOD-HIV model, a HIV transmission model which projects South African HIV incidence and prevalence and ARV treatment by age-group for alternative combinations of treatment eligibility criteria and testing, to generate 12 epidemiological scenarios. Using data from our own bottom-up cost analyses in South Africa, we separate outpatient cost into nonscale- dependent costs (drugs and laboratory tests) and scale-dependent cost (staff, space, equipment and overheads) and model the cost of production according to the expected future number and size of clinics. On the demand side, we include the cost of creating and sustaining the projected incremental demand for testing and treatment. Previous research with EMOD-HIV has shown that more vigorous recruitment of patients with CD4 counts less than 350 is an advantageous policy over a five-year horizon. Over 20 years, however, the model assumption that a person on treatment is 92% less infectious improves the cost-effectiveness of higher eligibility thresholds, averting HIV infections for between $1,700 and$2,800, while more vigorous expansion under the current guidelines would cost more than $7,500 per incremental HIV infection averted. Based on analysis of the sensitivity of the results to 1,728 alternative parameter combinations at each of four discount rates, we conclude that better knowledge of the behavioral elasticities could reduce the uncertainty of cost estimates by a factor of 4 to 10

Mathematics in the Supply Chain

[no abstract available

An evaluation of urban consolidation centers through continuous analysis with non-equal market share companies

This paper analyzes the logistic cost savings caused by the implementation of Urban Consolidation Centers (UCC) in a dense area of a city. In these urban terminals, freight flows from interurban carriers are consolidated and transferred to a neutral last-mile carrier to perform final deliveries. This operation would reduce both last-mile fleet size and average distance cost. Our UCC modeling approach is focused on continuous analytic models for the general case of carriers with different market shares. Savings are highly sensitive to the design of the system: the increment of capacity in interurban vehicles and the proximity of the UCC terminal to the area in relation to current distribution centers. An exhaustive collection of possible market shares distributions are discussed. Results show that market shares distribution does not affect cost savings significantly. The analysis of the proposed model also highlights the trade-off between savings in the system and a minimum market share per company when the consolidation center is established.Postprint (published version

Regulatory practice in the European telecommunications sector: Normative justification and practical application

The telecommunications sector is characterized by economies of scale and scope, high sunk costs, and strong network effects. This combination may facilitate monopolization and abuse of market power. The present study evaluates the need for sector-specific regulation in this sector. It is shown that there is a conflict between static and dynamic efficiency goals. A comparison of two prominent regulatory approaches for the telecommunications sector shows that the disaggregated approach takes account of this conflict most adequately, as it is committed to minimal regulation. The European regulatory framework for electronic communications markets is based on economic theory, and could principally be used to limit regulation to network areas in which stable networkspecific market power is localized. However, especially the criteria for the assessment of significant market power (SMP) are applied too liberally, such that, in practice, overregulation has resulted. --