Economic Feasibility Analysis for Renewable Energy Project Using an Integrated TFN–AHP–DEA Approach on the Basis of Consumer Utility

Lu Gan, Dirong Xu, Lin Hu and Lei Wang
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Lu Gan: College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China
Dirong Xu: College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China
Lin Hu: College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China
Lei Wang: College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Dujiangyan 611830, China

Energies, 2017, vol. 10, issue 12, 1-21

Abstract: A renewable energy (RE) project has been brought into focus in recent years. Although there is quite a lot of research to assist investors in assessing the economic feasibility of the project, because of the lack of consideration of consumer utility, the existing approaches may still cause a biased result. In order to promote further development, this study focuses on the economic feasibility analysis of the RE project on the basis of consumer utility in the whole life cycle. Therefore, an integrated approach is proposed, which consists of triangular fuzzy numbers (TFNs), an analytic hierarchy process (AHP) and data envelopment analysis (DEA). The first step is to determine the comprehensive cost index weights of DEA by TFN–AHP. Secondly, to solve the problem, the first DEA model, which is proposed by A. Charnes, W. W. Cooper and E. Rhodes (C 2 R), is established to calculate the DEA effectiveness. Then, the third task involves designing a computer-based intelligent interface (CBII) to simplify realistic application and ensure performance efficiency. Finally, a solar water heater case study is demonstrated to validate the effectiveness of the entire method’s system. The study shows that this could make investors’ lives easier by using the CBII scientifically, reasonably and conveniently. Moreover, the research results could be easily extended to more complex real-world applications.

Keywords: renewable energy; economic evaluation; triangular fuzzy number (TFN); analytic hierarchy process (AHP); data envelopment analysis (DEA); computer-based intelligent interface (CBII) (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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