Abstract
Using discounted cash flow techniques, a new parameter for the quick economic evaluation of energy conservation ideas is calculated. The meaning of the calculated value, an 'Investment Equivalent of Energy Saving', is:
'The maximum amount of capital which can be spent to save a unit of energy and still meet the criteria for profitability.'
'Investment Equivalents' can be calculated easily for any form of energy, at any location. The 'Investment Equivalent' can be used to screen energy saving proposals, justify energy conservation projects, and choose between energy sensitive alternatives. Investment Equivalents are calculated and are used to evaluate energy savings proposals in sample problems.
Larson, R. J. (1984). Energy Conservation Project Evaluation by Investment Equivalents. Energy Systems Laboratory (http://esl.tamu.edu); Texas A&M University (http://www.tamu.edu). Available electronically from
https : / /hdl .handle .net /1969 .1 /94748.