A Comparison of Wind Energy Investment Alternatives Using Interval-Valued Intuitionistic Fuzzy Benefit/Cost Analysis

Cengiz Kahraman, Sezi Cevik Onar and Basar Oztaysi
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Cengiz Kahraman: Department of Industrial Engineering, Istanbul Technical University, 34367 Macka Istanbul, Turkey
Sezi Cevik Onar: Department of Industrial Engineering, Istanbul Technical University, 34367 Macka Istanbul, Turkey
Basar Oztaysi: Department of Industrial Engineering, Istanbul Technical University, 34367 Macka Istanbul, Turkey

Sustainability, 2016, vol. 8, issue 2, 1-18

Abstract: One of the tools for maintaining environmental sustainability is transformation from fossil-based energy sources to renewable energy sources in energy consumption. Among renewable energy alternatives, wind energy is the most prominent and reliable energy source for fulfilling energy demand. Traditional investment evaluation techniques based on discounted cash flows are not capable of capturing the uncertainty and vagueness in the data related to the wind energy investment parameters. Fuzzy capital budgeting techniques can capture this vagueness and model the imprecise estimations of parameter values. In this paper, we develop interval-valued intuitionistic fuzzy benefit-cost analysis for the evaluation of wind energy technology investments. The fuzzy benefit-cost analyses are based on both present worth and annual worth analyses. The developed analyses can handle the assessments of multiple experts through aggregation operators. In the proposed economic model, the components of each wind energy investment parameter are incorporated into the equations in detail. A real case study is also presented in this paper.

Keywords: sustainability; renewable energy; wind energy; interval-valued intuitionistic fuzzy sets; benefit/cost (B/C) analysis; present worth analysis (PWA); annual worth analysis (AWA) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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