Title
New Finance-Based Portfolio Analysis Framework For Sustainable Energy Planning
Abstract
Traditionally, energy resource planning sought to minimize the cost of energy supply portfolios. With increasing greenhouse gas emissions, emissions reduction has also received attention in energy planning. Nevertheless, the unintended consequences of energy production processes, especially the impacts on water resources and land use are still largely ignored. In addition, energy planning hardly considers the true value of ecosystem resources and services exhausted for energy production. This paper proposes a new framework based on a finance theory, modern portfolio yheory (MPT), for analyzing the overall resource use efficiency of different energy mixes for different risk of return levels. The suggested finance-based resource use efficiency evaluation method can help maximize energy portfolio expected efficiency (overall efficiency with respect to cost, carbon footprint, water footprint, and land footprint) for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected efficiency, by revising the energy mix. Evaluation of current and projected global energy portfolios based on this method suggests that the overall resource use efficiency of global portfolios can be increased by 100% with the same risk level by careful revision of the proportions of the energy supply from different sources in the overall global energy portfolios.
Publication Date
1-1-2014
Publication Title
World Environmental and Water Resources Congress 2014: Water Without Borders - Proceedings of the 2014 World Environmental and Water Resources Congress
Number of Pages
2043-2053
Document Type
Article; Proceedings Paper
Personal Identifier
scopus
DOI Link
https://doi.org/10.1061/9780784413548.205
Copyright Status
Unknown
Socpus ID
84935425083 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/84935425083
STARS Citation
Hadian, Saeed and Madani, Kaveh, "New Finance-Based Portfolio Analysis Framework For Sustainable Energy Planning" (2014). Scopus Export 2010-2014. 9094.
https://stars.library.ucf.edu/scopus2010/9094