Real World Approach to Environmental Analysis

8/2/2019 Real World Approach to Environmental Analysis

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Real World Approach to

Environmental AnalysisMario W. Cardullo, P.E.Managing Director

The Belfield Group, Inc.

Consultants in Technology, Strategy and PrivateEquity


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Total Life Cycle Cost Analysis

Considers all system costs - bothinternal and external

Internal cost normally covered

Environmental Externalities - notnormally covered


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Environmental Externalities

Cost and benefits not borne by theproducers or consumers

Majority of environmental externalities

are negativeExternalities are troublesome in amarket economy.

Value of externalities in monetary terms- monetization


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Monetized Externalities

Makes clear and understandablecomparisons between direct economiccosts and environmental costs

Allows for consistent treatment andevaluation of environmental issues


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Models Developed

Alternative Vehicles

Power Stations


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Total Life Cycle Cost Model

Total Systems Approach

Vehicle related costs

Fleet related costs

Externality costs


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System Context Diagram

Environmental

Economy

InfrastructureSubsystem

Vehicle Subsystem

Alternative Fueled Vehicle System

Consumers

GovernmentalPolicy & Regulations

Competing Systems


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Auto TLCC Model


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Trade-Off BetweenEnvironmental and Vehicle

Costs


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Power Station TLCC Model

Levelizing

Factors

Carrying Charge

Cal. Current

TechnologyBases &

Assumptions

Total

Life Cycle

Cost

Economic

Assumptions

Input

Data

Reference

Operating

Data

Construction

Parameters Fuel

Library

OperationsCosts

Location

Data

Environmental

Externalities

TechnologyEnvironmental

Data

Reference

Operating

Cost Data

Carrying Charge

Cal. Constant

Capital

Requirement

Electrical

Rates


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Example of Power StationTLCC

($5,000)

($4,000)

($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$perkW

Subtotal General Plant & Contingencies

Subtotal Interest Cost

Subtotal Startup Cost,Land & Prepaid

Total Operating Costs

By-Product Credits

TOTAL ENVIRONMENTAL COSTS

REVENUE

Process Plant Cost

per kWper kW


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A NEW LIGHTARCHIMEDES LIGHT

Is capable of being built as a tubular, cylindrical,planar, screw type bulb or in fact in any shape.

Provide a uniform light without the need for filter Providing the same or better lightening efficiency

as SSL-LEDs Much less cost to produce and maintain Use of solid state balances Low energy costs Rugged Can provide lightening uniformly for LCD TVs

and hand held devices HAS BEEN DEMONSTRATED NOT A

CONCEPT

Real World Approach to Environmental Analysis

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