IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/306.html
   My bibliography  Save this paper

An Integrated Appraisal of The Péligre Electricity Transmission Line Rehabilitation Investment

Author

Listed:
  • Sener Salci

    (Department of Economics, Queen’s University, Kingston, Ontario, Canada.)

Abstract

The analytical challenges in evaluating the impacts of transmission line investments have vexed practitioners and electricity market regulators. The purpose of this study is to provide a guideline for improving the accuracy and predictability of the impacts of electricity rehabilitation projects. The subject is too broad to address completely here. The proposed guideline is suitable for evaluations of such project implemented in a broken electricity network. In such case, the demand for electricity is deterred, the supply of the electricity is unreliable, and the system is far away from its least-cost optimum production/consumption level. The guideline does not rebut the catalog of existing evaluation models or approaches. The guideline utilizes them for a reasonable ex-ante assessment to identify “good” projects that satisfy the economic and public objectives of the economy. An integrated cost-benefit analysis (CBA) framework is recommended to appraise such projects along with allocating the impacts to stakeholders in a manner that is commensurate with the net benefits they receive. Such an integrated analysis is much more than a set of procedures for estimating the expected net present values or rates of return of the project.

Suggested Citation

  • Sener Salci, 2017. "An Integrated Appraisal of The Péligre Electricity Transmission Line Rehabilitation Investment," Development Discussion Papers 2017-09, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:306
    as

    Download full text from publisher

    File URL: https://cri-world.com/publications/qed_dp_306.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Savvides, Savvakis C., 1994. "Risk Analysis in Investment Appraisal," MPRA Paper 10035, University Library of Munich, Germany, revised 14 Aug 2008.
    2. Glenn Jenkins & HENRY LIM & GANGADHAR SHUKLA, 1999. "Evaluation Of An Expansion Of The Electricity Transmission System In Mexico," Development Discussion Papers 1999-05, JDI Executive Programs.
    3. Jenkins, G.P., 1998. "Evaluation of Stakeholder Impacts in Cost-Benefit Analysis," Papers 631, Harvard - Institute for International Development.
    4. Wu, F.F & Zheng, F.L. & Wen, F.S., 2006. "Transmission investment and expansion planning in a restructured electricity market," Energy, Elsevier, vol. 31(6), pages 954-966.
    5. Paul Joskow, 2006. "Patterns of Transmission Investments," Chapters, in: François Lévêque (ed.), Competitive Electricity Markets and Sustainability, chapter 5, Edward Elgar Publishing.
    6. Kirby, Brendan & Hirst, Eric, 1999. "Maintaining Transmission Adequacy in the Future," The Electricity Journal, Elsevier, vol. 12(9), pages 62-72, November.
    7. Salci, Sener & Jenkins, Glenn, 2016. "Incorporating Risk and Uncertainty in Cost-Benefit Analysis," MPRA Paper 74161, University Library of Munich, Germany.
    8. Chun-Yan Kuo & Sener Salci & Glenn P. Jenkins, 2015. "Measuring the Foreign Exchange Premium and the Premium for Non-Tradable Outlays for 20 Countries in Africa," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 269-285, June.
    9. Michael Greenstone & Elizabeth Kopits & Ann Wolverton, 2011. "Estimating the Social Cost of Carbon for Use in U.S. Federal Rulemakings: A Summary and Interpretation," NBER Working Papers 16913, National Bureau of Economic Research, Inc.
    10. Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-797, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas-Olivier Léautier & Véronique Thelen, 2009. "Optimal expansion of the power transmission grid: why not?," Journal of Regulatory Economics, Springer, vol. 36(2), pages 127-153, October.
    2. Mikhail Miklyaev & Shahryar Afra & Melani Schultz & Adeline Awantang & Mathilde Laval, 2017. "Cost Benefit Analysis of Mali’s Sorghum and Millet Value Chains," Development Discussion Papers 2017-03, JDI Executive Programs.
    3. Sener Salci & Glenn P. Jenkins, 2016. "Incorporating Risk and Uncertainty in Cost-Benefit Analysis," Development Discussion Papers 2016-09, JDI Executive Programs.
    4. Salci, Sener & Jenkins, Glenn, 2016. "An Economic and Stakeholder Analysis for the Design of IPP Contracts for Wind Farms," MPRA Paper 70578, University Library of Munich, Germany.
    5. MIGARA JAYAWARDENA & Glenn Jenkins & GANGADHAR SHUKLA, 1999. "Control Of Water And Coastal Pollution An Appraisal For Espirito,Brazil," Development Discussion Papers 1999-04, JDI Executive Programs.
    6. Savvakis C. Savvides, 2019. "Unproductive Debt and the Impairment of the Real Economy," Development Discussion Papers 2019-10, JDI Executive Programs.
    7. Helen Kavvadia & Savvakis C. Savvides, 2019. "Funding Economic Development and the Role of National Development Banks-The Case of Cyprus," Development Discussion Papers 2019-09, JDI Executive Programs.
    8. Goutom K. Pall & Adrian J. Bridge & Jason Gray & Martin Skitmore, 2019. "Causes of Delay in Power Transmission Projects: An Empirical Study," Energies, MDPI, vol. 13(1), pages 1-29, December.
    9. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 7 (Principles Underlying The Economic Analysis of Projects)," Development Discussion Papers 2011-07, JDI Executive Programs.
    10. Catherine De La Robertie & Semyon Danilov, 2015. "Methods of Investment Management in the Russian Electricity Transmission Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 21-37.
    11. Guler, Burak & Çelebi, Emre & Nathwani, Jatin, 2018. "A ‘Regional Energy Hub’ for achieving a low-carbon energy transition," Energy Policy, Elsevier, vol. 113(C), pages 376-385.
    12. Pringles, Rolando & Olsina, Fernando & Garcés, Francisco, 2015. "Real option valuation of power transmission investments by stochastic simulation," Energy Economics, Elsevier, vol. 47(C), pages 215-226.
    13. Migara S. Jayawardena & Glenn Jenkins & Mario Marchesini, "undated". "Fourth Fisheries Project In Bangladesh an Integrated Project Analysis," Development Discussion Papers 1998-08, JDI Executive Programs.
    14. Salci, Sener & Jenkins, Glenn P., 2018. "An economic analysis for the design of ipp contracts for grid-connected renewable energy projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2410-2420.
    15. Savvakis C. Savvides, 2016. "Overcoming Private Debt: Unblocking and rebuilding the loan burdened real economy in Cyprus," Development Discussion Papers 2016-08, JDI Executive Programs.
    16. Leslie G. Manison & Savvakis C. Savvides, 2016. "Towards Sustainable Growth: Rebuilding the Foundations of the Cyprus Economy," Development Discussion Papers 2016-07, JDI Executive Programs.
    17. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    18. Graham,Errol George & Tchale,Hardwick & Ndione,Mamadou, 2020. "An Optimal Rice Policy for Sierra Leone : Balancing Consumer and Producer Welfare," Policy Research Working Paper Series 9369, The World Bank.
    19. Evan F. Koenig, 1985. "Indirect Methods for Regulating Externalities Under Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(2), pages 479-493.
    20. Russell Pittman, 2007. "Consumer Surplus as the Appropriate Standard for Antitrust Enforcement," EAG Discussions Papers 200709, Department of Justice, Antitrust Division.

    More about this item

    Keywords

    Electricity; Transmission Line; Rehabilitation Investment; Reliability; Cost-Benefit Analysis; Haiti;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:306. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.