Greenhouse gas reduction: the capital investment evaluation

The Kyoto Protocol has set limits to greenhouse gas emissions for its signatory countries. The carbon emission limits and credits create new opportunities and challenges for companies evaluating pollution abatement investments. This paper brings together the disparate literature detailing the benefits, costs, risks and real options. It identifies areas of research within finance and business and other disciplines with which meaningful collaborative research opportunities exist

Evaluation of adaptation alternatives during the implentation of AMT in small-to medium-sized firms

Implementation is represented in the capital budgeting process as a solitary stage that begins after the decision to adopt and ends with the post-audit. For investments in advanced manufacturing technology, this belies the complexity of implementation and the financial risk. Many unexpected problems arise. The alternative solutions, with their costs and benefits, warrant rational evaluation. This study explores the process of implementation to identify what cost-benefit evaluation is done and the implications for project feasibility

Establishing an agenda for social studies research in marine renewable energy

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Establishing an Agenda for Social Studies Research in Marine Renewable Energy

To date, academic research relating to Marine Renewable Energy (MRE) has largely focused on resource assessment, technical viability and environmental impact. Experiences from onshore renewable energy tell us that social acceptability is equally critical to project success. However, the specific nature of the marine environment, patterns of resource distribution and governance means experiences from onshore may not be directly applicable to MRE and the marine environment. This paper sets out an agenda for social studies research linked to MRE, identifying key topics for future research: (i) economic impacts; (ii) wealth distribution & community benefits; (iii) communication & knowledge flow; (iv) consultation processes; (v) dealing with uncertainty; (vi) public attitudes; and (vii) planning processes. This agenda is based on the findings of the first workshop of ISSMER, an international research network of social scientists with interests in marine renewable energy. Importantly, this research agenda has been informed by the experiences of developers, regulators and community groups in Orkney. The Orkney archipelago, off the north coast of Scotland, is home to the most intense cluster of MRE research, development and deployment activity in the world today.Keywords: Tidal energy, Marine energy, Wave energy, Social science, Public perceptions, Marine Renewable EnergyKeywords: Tidal energy, Marine energy, Wave energy, Social science, Public perceptions, Marine Renewable Energ

Canagliflozin and renal outcomes in type 2 diabetes and nephropathy

BACKGROUND Type 2 diabetes mellitus is the leading cause of kidney failure worldwide, but few effective long-term treatments are available. In cardiovascular trials of inhibitors of sodium–glucose cotransporter 2 (SGLT2), exploratory results have suggested that such drugs may improve renal outcomes in patients with type 2 diabetes. METHODS In this double-blind, randomized trial, we assigned patients with type 2 diabetes and albuminuric chronic kidney disease to receive canagliflozin, an oral SGLT2 inhibitor, at a dose of 100 mg daily or placebo. All the patients had an estimated glomerular filtration rate (GFR) of 30 to <90 ml per minute per 1.73 m2 of body-surface area and albuminuria (ratio of albumin [mg] to creatinine [g], >300 to 5000) and were treated with renin–angiotensin system blockade. The primary outcome was a composite of end-stage kidney disease (dialysis, transplantation, or a sustained estimated GFR of <15 ml per minute per 1.73 m2), a doubling of the serum creatinine level, or death from renal or cardiovascular causes. Prespecified secondary outcomes were tested hierarchically. RESULTS The trial was stopped early after a planned interim analysis on the recommendation of the data and safety monitoring committee. At that time, 4401 patients had undergone randomization, with a median follow-up of 2.62 years. The relative risk of the primary outcome was 30% lower in the canagliflozin group than in the placebo group, with event rates of 43.2 and 61.2 per 1000 patient-years, respectively (hazard ratio, 0.70; 95% confidence interval [CI], 0.59 to 0.82; P=0.00001). The relative risk of the renal-specific composite of end-stage kidney disease, a doubling of the creatinine level, or death from renal causes was lower by 34% (hazard ratio, 0.66; 95% CI, 0.53 to 0.81; P<0.001), and the relative risk of end-stage kidney disease was lower by 32% (hazard ratio, 0.68; 95% CI, 0.54 to 0.86; P=0.002). The canagliflozin group also had a lower risk of cardiovascular death, myocardial infarction, or stroke (hazard ratio, 0.80; 95% CI, 0.67 to 0.95; P=0.01) and hospitalization for heart failure (hazard ratio, 0.61; 95% CI, 0.47 to 0.80; P<0.001). There were no significant differences in rates of amputation or fracture. CONCLUSIONS In patients with type 2 diabetes and kidney disease, the risk of kidney failure and cardiovascular events was lower in the canagliflozin group than in the placebo group at a median follow-up of 2.62 years

Consider your options: changes to strategic value during implementation of advanced manufacturing technology

Strategic investments such as flexible manufacturing technology yield benefits to a company beyond the immediate cash flows. These strategic benefits can be captured, to some degree, using real option valuation techniques. However, real option models presume these can be identified and evaluated at an early stage in the investment process. In this paper, the authors argue real option value is often only vaguely defined at the adoption stage and frequently manifest during implementation. By examining four advanced manufacturing technology investments during implementation within different organizations, this study qualitatively explores the changes to original real options as unanticipated problems surface and solutions are found and implemented. The study found that as the companies adapted to implementation setbacks, the form, scale, value and clarity of the real options changed. For three of the companies, the changes to options were negative while the fourth case indicated positive effects. Most prevalent were delays in the earliest possible exercise date. The results highlight the need to consider changes to strategic value as companies adapt to setbacks that arise during project implementation. Implications for the evaluation of such projects are discussed.Implementation Advanced manufacturing technology (AMT) Strategic investments Case study Capital budgeting Real options Investment lag