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A Framework of Cost-Effectiveness Analysis for Alternative Energy Strategies

Abstract: Strategies for implementing alternative energy sources are drawing growing attention as global environmental and other challenges raise concerns over energy consumption. Cost-effectiveness is an important criterion for assessing strategy applicability. Currently, few economic studies have been performed on alternative energy in a systematic approach. Thus, this article establishes a framework for such analysis that summarizes a consensus of anticipated changes resulting from the use of representative alternative energy types and presents an adaptive scheme of cost estimation. Consequently, it is able to provide a basis for systematic cost-effectiveness analysis of alternative strategy research and practice. A case study developed as part of this research project demonstrates the functionality of the framework and shows how it assists engineering managers, policy makers, and investors in asset acquisition, strategy deployment, or operations and maintenance.