Economic evaluation factors

The choice of catalyst is based primarily on economic effects and product purity requirements. More recentiy, the handling of waste associated with the choice of catalyst has become an important factor in the economic evaluation. Catalysts that produce less waste and more easily handled waste by-products are strongly preferred by alkylphenol producers. Some commonly used catalysts are sulfuric acid, boron trifluoride, aluminum phenoxide, methanesulfonic acid, toluene—xylene sulfonic acid, cationic-exchange resin, acidic clays, and modified zeoHtes. 

In considering the economics of process alternatives, it is important to think about the total life cycle costs. There is an increasing interest in this concept in the environmental area, with a recognition of the need to incorporate waste treatment, waste disposal, regulatory compliance, potential liability for environmental damage, and other long term environmental costs into project economic evaluation. Similarly, we must consider life cycle safety costs. Some examples of factors which should be considered include ... 

Prepare rough cost economics, including preliminary sizing and important details of equipment, factor to an order of magnitude capital cost estimate [34] (see also [19]), prepare a production cost estimate, and work with economic evaluation representatives to establish a payout and the financial economics of the proposed process. 

To be useful to those concerned with choices in the allocation of health and social care resources, the data for economic evaluations need to be timely, relevant, credible and accurate (Davies, 1998). As a minimum, the costs associated with the interventions should be estimated from activity data, which quantify resources used, and price or unit cost data. Often evidence from well-controlled prospective trials with high internal validity is required to establish whether differences in economic end points are directly attributable to the interventions. However, the economic evaluations of acetylcholinesterase inhibitors estimated costs from retrospective analysis of available datasets Qonsson et al, 1999b), analysis of published literature (e.g. Stewart et al, 1998) and expert opinion (e.g. O Brien et al, 1999 Neumann et al, 1999). This means that it is not clear whether differences in costs were due to the anticholinesterase inhibitors or to other factors such as availability of services in different areas, the living situation of the patient, or disease severity. 

In recent years in some developed countries, the requisite of presenting economic evaluation (that is, pharmacoeconomic) studies of new dmgs has been introduced alongside the existing one of clinical trials. These studies have to provide proof of their efficiency (or cost-effectiveness) as a condition for the public financing of the new product. These studies improve information and market transparency and may help to make competition keener, but like the earlier requirements regarding effectiveness and safety, they constitute an additional cost factor and as such raise further barriers to entry. 

If a government tightens up its drug approval policy it will have fewer type II errors but more type I errors, and vice versa. Therefore, an ideal drag approval policy should take into account both the costs and the benefits of a stricter or less strict policy when approving a pharmaceutical. Insofar as the costs and benefits stated above are important factors in the decision to approve or reject a drug, the role of economic evaluation is clear. 

Esser, M. and Brunner, H. 2003. Economic evaluations of granulocyte colony stimulating factor in the prevention and treatment of chemotherapy-induced neutropenia. Pharmacoeconomics 21(18), 1295-1313. 

For economic evaluation purposes, another definition of working capital is used. It is the funds, in addition to the fixed capital, that a company must contribute to a project. It must be adequate to get the plant in operation and to meet subsequent obligations when they come due. Working capital is not a one-time investment that is known at the project inception, but varies with the sales level and other factors. The relationship of working capital to other project elements may be viewed in the cash flow model (see Fig. 9-9). Estimation of an adequate amount of working capital is found in the section Capital Investment. ... 

A profitability worksheet is a simple economic evaluation intended to calculate rough estimates of projected costs, savings, and payback periods associated with each waste reduction option. These worksheets do not take into account amortization, depreciation, or tax factors. 

In addition to the economic factors associated with manpower and instrument savings, there are additional benefits of electronic integration. In some cases it is possible to make an economic evaluation of these as well. The added benefits include ... 

A Techno Economic Evaluation revealed the main factors influencing the costs and thereby the cost-effectiveness of a membrane steam-reformer compared to conventional processes (chapter 2). The evaluation showed that membrane steam reforming can be cost-effective. 

In addition to Ro and MF, inert matters of coal such as ash and sulfur, which do not soften and melt, are important properties of coal to be evaluated. The relations between FOB prices of coals from various parts of the world and the above-mentioned factors were analyzed by multiple regression analysis.(3) This permits economic evaluation of coals as raw materials for coke-making. Petroleum residual oils and petroleum coke can similarly be evaluated as raw materials. The most difficult problem here is how to evaluate factors corresponding to Ro and MF in coals.(6) This report presents primarily an estimation of such factors for evaluation. 

Results obtained using this procedure have shown high correlation with fixed-capital investment estimates that have been obtained with more detailed techniques. Properly used, these factoring methods can yield quick fixed-capital investment requirements with accuracies sufficient for most economic-evaluation purposes. 

The capital investment for any FBC plant depends upon several factors, including the cost of capital, size of unit, geographic location, and coal type. EPRI has completed several economic evaluations and projects the following costs, in 1994 US dollars, for plants located in Kenosha, Wisconsin, burning Illinois No. 6 bituminous coal contain-ing 4 percent sulfur 200-MWe circulating AFBC, 1520/kW 350-MWe bubbling PFBC, 1220/kW 350-MWe circulating PFBC, 1040/kW 320-MWe advanced PFBC, 1110/kW. The advanced PFBC has the most potential for cost reduction, and capital investment could be reduced to below 1000/kW. 

An economical evaluation of phenol processes is complicated by the number and variety of competing processes. Table XXII compares some key features of various phenol processes, based on two excellent, recent reviews (4,15). Hay et al. (15) point out that synthetic phenol processes currently account for 98% of the phenol produced in the United States and Canada. The various phenol processes currently used are listed in Table XXIII. An economic comparison between a number of phenol processes is given in Table XXIV. Based on this table, the Raschig, Cumene, and Dow toluene processes are equivalent with regard to return price. Therefore, selection must be made on the basis of other factors, such as value of intermediates and by-products, ease of operation, and initial investment. 

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