Cost – Benefit Analysis of Constructing Single –Purpose CNG Stations in Iran by Emphasizing on Different Scenarios

Samiyeh Mohammadzadeh (), Abdolhossein Ghazavi Garmeh () and Sepideh Mohammadzadeh ()
Additional contact information
Samiyeh Mohammadzadeh: Graduate, Energy Economic, Tarbait Moddaress University, Tehran, Iran
Abdolhossein Ghazavi Garmeh: MSc Executive Management, Department of Executive Management, Science and Research Branch, Islamic Azad University, Khorasan-e- Razavi (Neyshabur), Iran
Sepideh Mohammadzadeh: MSc. Management Information System, Payam Noor University, Tehran, Iran

International Journal of Resistive Economics, 2014, vol. 2, issue 2, 97-114

Abstract: Statistics indicate that manufacturing hybrid cars, Gas burner is remarkably growing and the quantity and quality of CNG refuelling stations should be also increased in parallel. In present study and by examining different scenarios, guidelines are provided to resolve the problem of lacking CNG refuelling stations in Tehran and the economic feasibility is examined. Economic assessment is done by COMFAR EXPERT III. For scenarios 1 to 4, internal rate of return (IRR) is 5.89, 15.76, 4.78 and 12.52 respectively. However, these figures are not justifiable economically due to 20% of domestic banking interest rate. Also the net present value of the scenarios is positive and Payback periods are 12, 7, 12, 8 years respectively .The return rate for private sector would be 23% if an individual’s annual income increases 12, 5, 16 and 8 respectively for all four scenarios. Comparing these indicators suggest that although scenario two, that is, constructing small stations by suggested price of 3700 Rials proposed by relevant experts is better than other scenarios, it is not yet economic justification . Therefore, it is better to increase prices for better justification.

Keywords: CNG refuelling station; internal rate of return; net present value; payback period. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://oajre.ir/wp-content/uploads/2016/09/20.pdf (application/pdf)
http://oajre.ir/cost-benefit-analysis-of-construct ... different-scenarios/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:trd:journl:v:2:y:2014:i:2:p:97-114

Access Statistics for this article

More articles in International Journal of Resistive Economics from Toroudshomal Research-Industrial Company
Bibliographic data for series maintained by Solmaz Sabbaghi ( this e-mail address is bad, please contact ).