Some arguments for an integrated tool in economic and energy valuation

Abstract

In the empirical research, the unit cost optimum and net energy are key concepts for understanding the design of nearly zero-energy buildings (nZEBs) process. Some uses of these concepts are unclear and different to main meaning. In this research, we shape unit cost curve to generate an analytical tool to notice the amplitude of saving potential of matter and energy. This potential is evaluated between the two economic optima: unit cost and maximum profit. The inferred inequality between the produced quantity and inverse elasticity of profit enables one to notice the relative position of the two optima. This new tool gives us the terms of total profit increase for a short or a large interval on the capacity axis and it deals with different sizes of prices and costs. Simultaneously, the requirement of maximizing the total profit of private companies is met. This new tool sustains the policy makers to harmonize the interests of both players, entrepreneurs, and human communities. When using this tool on some stylized facts, it is inferred that under the circumstances of large quantities and low prices—in energetic sector electricity production based on coal, for instance—, these main optima overlap or are adjacent. The closeness of these two optima, supported through different economic measures, provides both profit maximization and saving resources, in order to maintain the reliability of economic processes. In addition, we make some remarks about net energy and the necessity to separate the static optimum from dynamic optimum of nZEB processes.