Empirical Analysis of the Optimal Capacity Investment Solutions in Distribution Grids

2021 ◽  
Author(s):  
Luis Lopez ◽  
Alvaro Gonzalez-Castellanos ◽  
David Pozo
Keyword(s):  
Empirical Analysis ◽  
Capacity Investment ◽  
Optimal Capacity ◽  
Distribution Grids

CAPACITY INVESTMENT, PRICING, AND PRODUCTION ALLOCATION ACROSS INTERNATIONAL MARKETS WITH EXCHANGE RATE UNCERTAINTY

2012 ◽  
Vol 29 (01) ◽  
pp. 1240008 ◽  
Author(s):  
ANAS AHMED ◽  
MURAT ERKOC ◽  
SOHYUNG CHO
Keyword(s):  
Exchange Rate ◽  
Foreign Market ◽  
International Markets ◽  
Production Costs ◽  
Capacity Investment ◽  
Production Decisions ◽  
Optimal Capacity ◽  
The Exchange Rate ◽  
The Impact ◽  
Local Sourcing

In this paper, we investigate joint optimal capacity investment, pricing and production decisions for a multinational manufacturer who faces exchange rate uncertainties. We consider a manufacturer who sells its product in both domestic and foreign markets over a multiperiod season. Because of long-lead times, the capacity investment must be committed before the selling season begins. The exchange rate between the two countries fluctuates across periods and the demand in both markets are price dependent. Our model considers three scenarios: (1) early commitment to price and quantity with central sourcing, (2) postponement of prices and quantities with central sourcing, and (3) local sourcing. We derive the optimal capacity and the optimal prices for each scenario, and investigate the impact of the exchange rate parameters and the length of the selling season. We observe that while the price and production decisions in the domestic market are independent of the exchange rate under early commitment and local sourcing scenarios, the exchange rate between two countries directly impacts these decisions under the postponement setting. We identify thresholds and gain insights on capacity and production costs, exchange rate movement, and selling season length for the choice of entering a foreign market under all scenarios.

Investments in Renewable and Conventional Energy: The Role of Operational Flexibility

2020 ◽  
Vol 22 (5) ◽  
pp. 925-941 ◽  
Author(s):  
A. Gürhan Kök ◽  
Kevin Shang ◽  
Şafak Yücel
Keyword(s):  
Natural Gas ◽  
Solar Energy ◽  
Wind Energy ◽  
Power Plants ◽  
Problem Definition ◽  
Policy Implications ◽  
Operational Flexibility ◽  
Capacity Investment ◽  
Optimal Capacity ◽  
Investment Level

Problem definition: There is an ongoing debate on how providing a subsidy for one energy source affects the investment level of other sources. Academic/practical relevance: To investigate this issue, we study a capacity investment problem for a utility firm that invests in renewable and conventional energy, with a consideration of two critical factors. First, conventional sources have different levels of operational flexibility—inflexible (e.g., nuclear and coal) and flexible (e.g., natural gas). Second, random renewable energy supply and electricity demand are correlated and nonstationary. Methodology: We model this problem as a two-stage stochastic program in which a utility firm first determines the capacity investment levels followed by the dispatch quantities of energy sources to minimize the sum of investment and generation-related costs. Results: We derive the optimal capacity portfolio to characterize the interactions between renewable and conventional sources. Policy implications: We find that renewable and inflexible sources are substitutes, suggesting that a subsidy for nuclear or coal-fired power plants leads to a lower investment level in wind or solar energy. However, wind energy and flexible sources are complements. Thus, a subsidy for flexible natural gas-fired power plants leads to a higher investment in wind energy. This result holds for solar energy if the subsidy for the flexible source is sufficiently high. We validate these insights by using real electricity generation and demand data from the state of Texas.

An Empirical Analysis of the Obtrusiveness of and Participants' Compliance with the Electronically Activated Recorder (EAR)

2007 ◽  
Vol 23 (4) ◽  
pp. 248-257 ◽  
Author(s):  
Matthias R. Mehl ◽  
Shannon E. Holleran
Keyword(s):  
Empirical Analysis ◽  
Sampling Method ◽  
Daily Life ◽  
Assessment Method ◽  
Data Confidentiality ◽  
Short Term ◽  
Naturally Occurring ◽  
Two Samples ◽  
Audio Recorder ◽  
Term Monitoring

Abstract. In this article, the authors provide an empirical analysis of the obtrusiveness of and participants' compliance with a relatively new psychological ambulatory assessment method, called the electronically activated recorder or EAR. The EAR is a modified portable audio-recorder that periodically records snippets of ambient sounds from participants' daily environments. In tracking moment-to-moment ambient sounds, the EAR yields an acoustic log of a person's day as it unfolds. As a naturalistic observation sampling method, it provides an observer's account of daily life and is optimized for the assessment of audible aspects of participants' naturally-occurring social behaviors and interactions. Measures of self-reported and behaviorally-assessed EAR obtrusiveness and compliance were analyzed in two samples. After an initial 2-h period of relative obtrusiveness, participants habituated to wearing the EAR and perceived it as fairly unobtrusive both in a short-term (2 days, N = 96) and a longer-term (10-11 days, N = 11) monitoring. Compliance with the method was high both during the short-term and longer-term monitoring. Somewhat reduced compliance was identified over the weekend; this effect appears to be specific to student populations. Important privacy and data confidentiality considerations around the EAR method are discussed.

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