Applications of the levelized cost concept

Gunther Friedl (), Stefan Reichelstein (), Amadeus Bach (), Maximilian Blaschke () and Lukas Kemmer ()
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Gunther Friedl: Technical University of Munich (TUM)
Stefan Reichelstein: University of Mannheim
Amadeus Bach: University of Mannheim
Maximilian Blaschke: Technical University of Munich (TUM)
Lukas Kemmer: Technical University of Munich (TUM)

Journal of Business Economics, 2023, vol. 93, issue 6, No 6, 1125-1148

Abstract: Abstract Levelized cost is a life-cycle cost measure that aggregates investment expenditures and operating costs into a unit cost figure. So far, most applications of this concept have originated in relation to energy technologies. This paper describes the role of the levelized cost concept in cost accounting and synthesizes multiple research streams in connection with electricity, energy storage, hydrogen and carbon capture. Finally, we sketch multiple potential future applications of the levelized cost concept.

Keywords: Levelized cost; Full cost; Levelized cost of energy; Levelized cost of energy storage; Levelized cost of hydrogen; Levelized cost of carbon (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11573-023-01171-7

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