<<

3rd IASME/WSEAS Int. Conf. on & , University of Cambridge, UK, February 23-25, 2008

A Concise Review of Exergy-Based Economic Methods

MARC A. ROSEN Faculty of Engineering and Applied Science University of Ontario Institute of Technology 2000 Simcoe Street North, Oshawa, Ontario, L1H 7K4 CANADA

Abstract: In the analysis and design of energy systems, techniques are often used which combine scientific disciplines (mainly ) with economic disciplines (mainly cost accounting) to achieve optimum designs. For energy conversion devices, cost accounting conventionally considers unit costs based on energy. Costs are better distributed among outputs if cost accounting is based on the thermodynamic quantity exergy, partly because exergy, but not energy, is often a consistent measure of economic value. In this article, we critically review relations between exergy and economics, and exergy-based economic methods (exergoeconomics, thermoeconomics, exergy-based pricing, EXCEM analysis, analysis based on the ratio of thermodynamic loss to capital cost). Most such methods aim to determine appropriate allocations of economic resources for optimal design and operation, and/or economic feasibility and profitability.

Key-Words: energy, exergy, economics, thermoeconomics, exergoeconomics, costing, prices, environment.

1 Introduction The exergy of an energy or material quantity Although the merit of a system or process is usually measures its usefulness or quality. Although energy based on such varied factors as technical performance, cannot be destroyed, exergy can. Energy efficiencies efficiency, resource availability, environmental impact, do not always assess how nearly performance health, safety and societal acceptance, economics is a approaches ideality and do not properly describe central consideration. Analysis, design and factors that cause performance to deviate from ideality. optimization often utilize techniques that combine Exergy analysis (e.g., [2-6]) overcomes many of the technical disciplines like thermodynamics with shortcomings of energy analysis, yielding efficiencies economics. Cost accounting applied to energy systems which provide a true measure of approach to ideality, normally considers unit costs based on energy. and identifying properly the causes, locations and Many authors suggest the second law of magnitudes of inefficiencies. Exergy indicates thermodynamics, which embodies concepts, theoretical and practical limitations imposed on a has significant implications for economics. A system, which show that a real system can not thermodynamic theory of economics sought, for conserve exergy as only a portion of input exergy can instance, considering the first and second laws [1]. be recovered. Through its illuminating, rational and Relations between utility and the law of diminishing meaningful approach, exergy analysis can help marginal utility and a thermodynamic model of a improve and optimize designs. Applications of exergy money system and thermodynamic-based measures for have been reported for power generation, cogeneration, economic value were developed. geothermal plants, thermal, chemical, and Some researchers note that the thermodynamic metallurgical processes, transportation and countries quantity exergy, which stems from the second law, is (e.g., Canada, United States, United Kingdom, often a consistent measure of economic value, while Sweden, Italy, Turkey, Saudi Arabia, Japan) [2-6]. energy is not. Many recommend that cost accounting Several exergy-based economic analysis methods and pricing are better based on exergy than energy. For have been developed. Their goal is usually to instance, costs based on exergy are more rationally determine economic feasibility and profitability, or distributed among outputs, since exergy-based unit appropriate allocations for economic resources for costs are more meaningful than energy-based ones. achieving optimal or improved designs. Here, we critically review relations between exergy and

ISSN: 1790-5095 Page 136 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008 economics and many analysis methods which integrate commodity flow as a quasi-thermodynamic irreversible exergy and economics. This article is an abbreviated process [16]. In that , which supposes version of a much longer chapter [7]. thermodynamics can explain commodity diffusion, a coupling relation between commodity price and quality is derived. 2 Exergy and Economics A cost balance can be written for a system as Exergy is a useful concept in economics [8,9] and crucial to cost accounting and economic analyses [10]. cost input + cost generation − cost output Costs should reflect value, and since value is not = cost accumulation generally associated with energy but with exergy, assignments of cost to energy lead to Cost input and output represent respectively the cost misappropriations, which are common and often associated with all inputs and outputs. Cost significant [10]. It has been further pointed out that accumulation represents build-up of cost, while cost exergy possesses an intrinsic and direct correlation generation corresponds to the capital and other costs with economic values [11]. On the one hand, therefore, associated with the creation and maintenance of the exergy allows rational evaluation of efficiencies and system. The cost generation term emphasizes that cost inefficiencies (including internal exergy consumptions is a non-conserved quantity. due to irreversibilities and waste exergy emissions), as Although cost and thermodynamic balances appear well as the value of and resources. On the other similar, they exhibit several significant differences: hand, exergy facilitates the determination of the costs • Energy is conserved but economic cost is not. associated with thermodynamic losses and the values • Both cost and exergy are not conserved, with cost and costs of the outputs and accumulated quantities for generated due to the cost of devices and exergy processes and devices. Consequently, using exergy as a consumed due to irreversibilities associated with basis for cost accounting can help determine the real their operation. costs of producing commodities and in pricing such • In energy and exergy balances, the values products. Also, exergy can help evaluate economic associated with all quantities are defined by viability and profitability. thermodynamics. Only cost input and generation are Exergy can interface broadly with economics. In defined for the cost balance, however, as the microeconomics, exergy can be combined with cost- distribution of costs over outputs and accumulations benefit analyses to improve designs. In is subjective. If costs are not allocated macroeconomics, exergy provides a basis for appropriately, it is difficult to gauge the cost- increasing efficiency, reducing resource utilization and effectiveness of a device and to set prices for losses, and reducing environmental damage. These salable commodities, especially when there are objectives can be accomplished with, for example, multiple products. exergy-based incentives or exergy taxes. Exergy more Exergy is also useful in understanding and broadly can help in optimizing designs and making assessing environmental impact, non-renewable operating decisions. Exergy-based concepts and resource depletion, ecology and sustainable methods for analyzing and optimizing energy systems development [2-6]. The ties between exergy and including life cycle exergy analysis have been economics can be extended to environmental and described [10], as has the relation between exergy ecological aspects in several ways: destructions and investment costs in thermal systems • The potential of exergy to be an indicator of [12]. environmental impact can be incorporated in Thermodynamics, including exergy and entropy, exergy-based economic assessments. has been linked to economic systems [13]. Related • The costs associated with environmental impact and work involved modelling the economic order quantity protection can be included in the economic portion based on the second law [14], and using entropy cost to of an exergy-based economic assessment. evaluate the economic order quantity for repair and Extending exergy and economics to account for waste disposal [15]. Diffusion-like economic environmental effects permit one to minimize life commodity flows were considered from a cycle costs and thereby find the most appropriate thermodynamic perspective, by modelling a device or process. This can be accomplished while

ISSN: 1790-5095 Page 137 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

reducing environmental effects, for prevailing approach is proposed which was tested using US data economic conditions. over 25 years. The effect of energy and exergy values on pricing has been examined, including how 3 Exergy-based Economic Methods energy and exergy values and their differences affect Methods integrating exergy and economics have been energy commodity prices [10]. developed over the last several decades. Georgescu- The characteristics of different fuels and energy Roegen [17] is often cited as a pioneer in the field of forms vary. Energy and exergy prices are equal for the thermodynamics of economics. Details on exergy- and for work, and are approximately equal based economic methods are reported in books (e.g., for hydrocarbons. Energy and exergy costs for heat and [2,4]) and reviews and comparisons (e.g., [2,18,19]). for cold usually differ, with the exergy cost Most exergy-based economic methods have several significantly dependent on , which commonalities: they combine exergy and economics to determines the quality of . help achieve thermodynamic and economic objectives, The energy-conversion technology used can and they recognize that exergy, not energy, is the significantly affect price. For example, heat and commodity of value in a system and consequently electricity can be produced independently, or assign costs and/or prices to exergy-related variables. simultaneously via cogeneration. Determining the These methods assess economic feasibility and portion of the cost that should be allocated to each profitability, in part by determining actual costs of product is important to the commercial success of products and appropriate prices; and/or determine cogeneration, yet there is no widely accepted appropriate allocations of economic resources to allocation method. If costs are not allocated facilitate design and operation optimization. appropriately, one product may be overpriced (and Four main categories of exergy-based economic thus unlikely to be purchased) and one under-priced methodologies have been identified, depending on (and thus unable to recover costs even if in great which of the following forms the basis [18]: 1) exergy- demand). economic cost accounting, 2) exergy-economic calculus analysis, 3) exergy-economic similarity 3.2 EXCEM analysis number, and 4) product/cost efficiency diagrams. EXCEM (exergy, cost, energy and mass) analysis Available energy costing methods were developed focuses on the four key parameters represented by its [20], while thermoeconomics has been investigated name [24], and can help assess and improve systems often [21]. Optimization is a particularly important and processes. EXCEM analysis is intended as a application of exergy-based economic techniques [22]. unified aid for thermodynamic, economic and environmental decisions and design. 3.1 Exergy-based pricing and cost allocation EXCEM analysis presumes an understanding of The selection of energy sources for residential, system or process performance requires examination of commercial, transportation, industrial and other uses is all flows of exergy, cost, energy and mass through a primarily based on prices, so it is important to system. Balances can be written for each EXCEM determine prices appropriately. Incorrect pricing can quantity. Mass and energy are conserved. Exergy and lead to problems, e.g., businesses can be uncompetitive cost are not conserved, as exergy can not increase when prices are too high, and unable to cover costs while cost can not decrease. The exergy-related aspects they are too low. of EXCEM are often the most informative. Exergy-based prices can foster resource savings and EXCEM analyses of processes have demonstrated efficient technology. Prices for a commodity based on that the method provides valuable insights into exergy usually parallel its physical value, while prices efficiency, economics and environmental impact. based on energy do not. Prices of physical resources EXCEM analyses can yield results not obtainable can thus be more rationally set based on exergy. The conventionally, and can sometimes find results use of exergy in economic valuations and the obtainable with conventional analyses more directly. correlation of exergy with money have been considered [23]. Exergy-based production expenses are 3.3 Loss-cost ratio analysis shown to lead to natural price determination, and a Loss-cost ratio analysis focuses on the ratio of corresponding general macroeconomic dynamics thermodynamic loss rate to capital cost. The insights provided with this exergy-based economic method can

ISSN: 1790-5095 Page 138 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008 assist in analysis and design [25,26]. Loss-cost ratio good. Costs must be properly formed to understand analysis identifies correlations between capital costs and evaluate exergy costs and resource degradation, as and specific second-law-based thermodynamic losses well as cost and irreversibility relations. Numerous (i.e., total and internal exergy losses). applications are described of exergy cost accounting The approach has been applied to mature devices, and thermoeconomics, explaining thermoeconomic with the relations between energy losses and capital costs, thermoeconomic analyses of complex systems costs generally observed as not useful. Correlations are and operation diagnosis and optimization [34,35]. observed between capital costs and exergy-based Uncertainty has been included in thermoeconomics thermodynamic losses for systems and their [36]. Such fuzzy thermoeconomic analysis considers components, suggesting that designers incorporate fuzzy nonlinear programming where local criteria like exergy-based economic recommendations into designs, maximum efficiency and minimum total cost rate as overtly or unknowingly [9,19,25,26]. The ratio of loss well as constraints in an ill-structured situation can be rate to cost based on total and internal exergy loss rates represented by fuzzy sets. Structural theory in are normally the most useful. A correlation also is thermoeconomics has been examined [37], as has observed between the mean thermodynamic-loss-rate- malfunction and dysfunction analysis using structural to-capital-cost ratio for all system devices and the ratio theory within thermoeconomics [38]. for the overall system, when the ratio is based on total or internal exergy losses, but not when it is based on 3.5 Exergy and energy losses. Designing efficient and cost-effective systems, which meet environmental requirements, is can be 3.4 Thermoeconomics and exergoeconomics challenging. Mass and indicate Exergoeconomics and thermoeconomics are exergy- that raw material inputs to economic processes are not based economic methods that have evolved over consumed, but instead ultimately return to the several decades [11,27,28]. Exergy and environment as wastes. If the Earth is treated as a microeconomics forms the basis of thermoeconomics, closed system, the concepts of exergy and entropy also called exergoeconomics and exergonomics [27]. yield different economic implications, suggesting that Utility is a central concept in macroeconomics and is constraints are imposed on economic growth because closely related to exergy. An exergy tax is an example economic processes utilize high-exergy (or low- of how exergy can be introduced into entropy) raw materials such as fuels and high-grade macroeconomics. minerals, and discard low-exergy (or high-entropy) With thermoeconomics, exergy efficiencies are wastes. Since the Earth is an open system that receives determined, while non-energy expenditures such as large quantities of high-exergy (or low-entropy) solar financial and labour costs are related to the technical radiation, energy resources may be adequate to sustain parameters of the device under consideration. In economic activity over time, although non-renewable thermoeconomic optimization [29,30], the optimal natural resources like metal ores and fossil fuels may design point and operating conditions are determined eventually be exhausted. by minimising the total economic cost under financial, Several researchers have investigated exergy and technical, environmental and other constraints. A environmental economics [39]. Economics and the systematic and general method for evaluating costs in second law have been linked via eco-thermodynamics, thermal systems is described [31]. which assumes the economic significance of the Multi-objective energy and economic optimization second law is that exergy is not conserved and is a algorithms exist for thermal designs [32]. It is observed useful measure of resource quality and quantity [40]. that considering only economic minima may not Exergy is treated as a factor of production like labor provide sound decisions, and that more efficient and capital, with strong implications on economic solutions may yield preferred designs due to changes growth theory, especially in assessing the role of in energy market prices or energy policies, despite technical progress. small increases in total costs. Exergy accounting and thermoeconomics have been Exergy accounting utilizes exergy costs and is extended with environmental factors [11]. The useful for diagnosing energy systems and accounting approach allows direct quantitative comparisons of for natural exergy resources [33]. The method factors like labour, environmental impact and measures the amount of exergy resources to produce a externalities. The approach is seen to be a natural

ISSN: 1790-5095 Page 139 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008 development of the economic theory of commodity described [47]. The ecological function is represented production, which it extends by accounting for the by the ratio of power output to entropy generation rate, unavoidable exergy consumption in the production and the economic function by the ratio of power output chain. Extended Exergy Accounting exploits the to total cost. Some authors extend exergy-based correlation between exergy and economics to develop economic methods encompassing environmental a theory of value based on exergy or monetary metrics. factors to . For instance, thermodynamics The premise is that, while exergy and monetary costs and economics are integrated to obtain exergy-based both represent the resources to be consumed for a indicators of [48]. Exergy and given output, their structures differ and yield different entropy are applied to the steady-state economy to optimal designs. Extended Exergy Accounting has also develop a model for sustainable development at the been proposed as a cost analysis method using a macro-economic level [49]. The approach combines resource-based quantifier (extended exergy rather than resource depletion with pollution and focuses money) [41,42]. This quantifier links labour and environmental protection on reducing degradation. financial costs to an equivalent resource consumption, Industries are thus able to seek alternatives for expressing the total exergy consumption required to environmentally sound processes and products. The produce one person-hour of work or one monetary unit method permits companies to set environmental goals of currency circulation. Environmental remediation and programs. costs are accounted for by determining the equivalent cumulative exergy expenditure for zero impact. Extended Exergy Accounting thus evaluates the 4 Applications resource-based value of a commodity (not necessarily monetary cost), enabling more comprehensive and 4.1 Thermal processes meaningful energy planning. The method complements EXCEM analysis has been applied to many thermal such tools as life-cycle assessment, environmental systems and processes [24,34]. footprint analysis, cumulative exergy analysis and Several exergy-based economic assessments of analysis, incorporating some of their elements. heating systems have been reported, such as A comprehensive method is proposed based on optimizations of hot water piping systems using energy, exergy, economic and environmental factors thermoeconomics and considering simultaneous [43]. Environmental emissions are considered and optimization of pipe diameter and insulation thickness performance indicators developed, providing useful based on maximization of and cost information about performance and possible minimization [50]. Exergoeconomic analyses have improvements. Energy-system designs can be been reported of ground-source systems for optimized using separate objectives relating to energy, buildings [51] and geothermal district heating [52]. A economics and the environment [44]. This multi- greenhouse heating system using a solar-assisted criterion optimization is argued to be advantageous to ground-source heat pump was assessed using EXCEM single-objective thermoeconomic optimization and and loss-cost ratio analyses [53]. The latter two-objective energy and economic optimization. An demonstrated devices in successful air conditioning are environmental impact objective function is expressed configured to achieve an overall optimal design by in cost terms by weighting carbon dioxide and nitrogen appropriately balancing exergy and economic oxide emissions according to their unit damage costs. behaviour of the overall system and its devices. A thermoeconomic method to increase exergy- Exergy-based economic analyses have been resource utilization efficiency based on a carbon undertaken for cooling, refrigeration and air exergy tax is proposed to promote efficient exergy use conditioning. An exergoeconomic optimisation was [45]. The author feels that the method, which evaluates reported of aqua-ammonia absorption refrigeration for the cost of exergy destroyed and rejected in a system, air conditioning, by minimizing the overall operation and which is connected with the CO2 emissions, and amortization cost and utilizing exergetic costs improves system economic suitability by permitting [54]. A small capital cost increase (2%) yielded a better use of exergy. Exergoeconomics provides a significant product cost reduction (15%). An thermodynamic foundation for rational resource use exergoeconomic analysis of cold thermal storage using [46]. A method for performance evaluation under a glycol working fluid was performed [53]. maximum ecological and economic conditions is

ISSN: 1790-5095 Page 140 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

Exergoeconomic optimization was used to investigate economic and environmental factors [43], and a the effect of matrix thermal conductivity on an air- thermoeconomic analysis was reported of a residential conditioning rotary regenerator [56]. The optimum photovoltaic-hydrogen system [65]. rotary regenerator geometry was determined using the Several exergy-based economic investigations have unit exergy cost of the warm air delivered as the been carried out of processes for multiple products, objective. The operating cost was determined using including cogeneration, including an exergy cost different unit costs for the and thermal minimisation of gas turbine-based cogeneration [66] components of exergy. The geometry of a precooling and a thermoeconomic analysis of institutional air reheater for air conditioning was also cogeneration using a gas turbine and waste boiler [67]. thermoeconomically optimized, with the total cost The most advantageous systems were found based on given by the precooler capital cost and the operating pay-back period and maximum savings in ten years. cost attributable to precooler irreversibility [57]. An Several combined-cycle cogeneration configurations exergoeconomic optimisation of the geometry of were thermoeconomically compared using specific- continuous fins on an array of tubes of a refrigeration exergy costing [68]. Cost balances of the subsystems air-cooled condenser was performed [58]. The exergy and unit exergy costs were found. Combined-cycle destruction was investigated by varying condenser tube cogeneration with condensing extraction steam diameter. An optimum heat exchanger area was found turbines was found to be thermoeconomically by optimally balancing exergy destruction advantageous to those with back-pressure steam components, and the total cost was based on annual turbines. Methods extending exergy accounting and capital cost and compensation cost for irreversibilities. thermoeconomics with environmental factors were applied to cogeneration based on a gas turbine, 4.2 Power generation and cogeneration yielding an optimal design [11,41]. For gas turbine- Numerous exergy-based economic investigations based power generation and desalination, have been undertaken of power generation, including thermoeconomic analyses were carried out [69], and exergoeconomic analyses of nuclear, oil and exergy costs determined [70]. plants [19.59]. Thermoeconomics was applied to a power plant using structural theory with malfunction 4.3 Chemical processes and dysfunction analysis [60,61]. A Brayton cycle was Chemical processes vary widely [4]. Desalination was investigated considering ecological and economic examined with thermoeconomics [69,70] and a method conditions [47], defining the economic function as the based on exergetic, economic and environmental ratio of power output to total cost and the ecological parameters was applied to bioethanol production [43]. function as the ratio of power output to entropy High-purity product generation from air separators was generation rate. The cycle was maximized for thermoeconomically analyzed [71]. A thermoeconomic economic and ecological objectives while minimizing investigation was carried out of multi-effect entropy generation rate. An exergoeconomic evaporation and multi-stage flash [72], showing that optimisation of a Kalina power cycle, as a bottoming operating cost decreases with increasing module application for cogeneration, was carried out [63]. The number, and the combined system is more economic objective was the exergoeconomic unit cost of than stand-alone systems. electricity produced by both cogeneration and the absorption cycle. An exergoeconomic analysis of a PEM was undertaken for various operating 5 Conclusions conditions [64]. The effects of varying parameters on Useful relations exist between exergy and economics, the fuel-cell exergy cost were determined; a significant different from those between energy and economics, reduction in exergy cost was possible with lower fuel which provide the basis for exergy-based economic cell capital costs, annual operation and maintenance methods. Such methods are useful in analysis and costs and hydrogen costs. A power plant combining a improvement activities. The methods generally solid oxide fuel cell and gas turbine was assessed using combine thermodynamics with economics to achieve a thermoeconomic method based on a carbon exergy advantageous designs, acknowledging that costs are tax aimed at increasing the efficient use of exergy better distributed among outputs if costs are based on resources [45]. Hydroelectric and thermoelectric power exergy rather than energy, and that a consistent generation were analyzed based on exergetic,

ISSN: 1790-5095 Page 141 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008 measure of economic value is provided by exergy but Conversion and Management, 43, 2002, 1259- not energy. Exergy analysis has advantages over 1270. energy analysis from a combined thermodynamic and [13] Jaber, M. Y., Nuwayhid, R. Y., and Rosen, M. A. economic perspective. Exergy-based economic Price-driven economic order systems from a methods usually determine appropriate economic- thermodynamic point of view. Int. J. Production resource allocations for the design and operation of a Research, 42, 2004, 5167-5184. system, and economic feasibility and profitability. [14] Jaber, M. Y., Nuwayhid, R. Y., and Rosen, M. A. A thermodynamic approach to modelling the economic order quantity. Applied Mathematical Acknowledgements: Support for this work provided by Modelling, 30, 2006, 867-883. the Natural Sciences and Engineering Research [15] Jaber, M. Y., and Rosen, M. A. The economic Council of Canada is gratefully acknowledged. order quantity repair and waste disposal model with entropy cost. European Journal of Operational Research (in press). References: [16] Nuwayhid, R. Y., Jaber, M. Y., Rosen, M. A., and [1] Bryant, J. A Thermodynamic theory of Sassine, G. P. On the thermodynamic treatment of economics. Int. J. Exergy, 4, 2007, 302-337. diffusion-like economic commodity flows. [2] Kotas, T. J. The Exergy Method of Thermal Plant International Journal of Exergy, 3, 2006, 103- Analysis (reprint ed.). Malabar, Florida: Krieger, 117. 1995. [17] Georgescu-Roegen, N. The Entropy Law and [3] Szargut, J. Exergy Method: Technical and Economic Process. Cambridge: Harvard Ecological Applications. UK: WIT Press, 2005. University Press, 1971. [4] Szargut, J., Morris, D. R, and Steward F. R. Exergy [18] Tsatsaronis, G. A review of exergoeconomic Analysis of Thermal, Chemical, and Metallurgical methodologies. In Second Law Analysis of Processes. New York: Hemisphere, 1988. Thermal Systems (pp. 81-87). New York: [5] Sato, N. and Exergy: An American Soc. of Mechanical Engineers, 1987. Introduction to Chemical Thermodynamics for [19] Rosen, M. A., and Dincer, I. Thermoeconomic Engineers. Oxford, UK: Elsevier, 2005. analysis of power plants: An application to a coal- [6] Dincer, I., and Rosen, M. A. Exergy: Energy, fired electrical generating station. Energy Environment and Sustainable Development. Conversion and Management, 44, 2003, 2743- Oxford, UK: Elsevier, 2007. 2761. [7] Rosen, M.A. Integrating Exergy and Economics: [20] Reistad, G. M., and Gaggioli, R. A. Available An Enhanced Approach to Energy Economics. energy costing. In Thermodynamics: Second Law Chapter in New Research on Energy Economics, Analysis (ACS Symposium Series 122, pp. 143- Nova Science, Hauppauge, New York (in press). 159). Washington, DC: American Chemical [8] Tsatsaronis, G., and Valero, A. Thermodynamics Society, 1980. meets economics. Mechanical Engineering, [21] EI-Sayed, Y. M., and Tribus, M. Strategic use of August, 1989, 84-86. thermoeconomics for system improvement. In R. [9] Rosen, M.A. Exergy and economics: Is exergy A. Gaggioli (Ed.), Efficiency and Costing: Second profitable? Exergy, An Int. J., 2, 2002, 218-220. Law Analysis of Processes (ACS Symposium [10] Wall, G. Exergy tools. Proc. Inst. Mechanical Series 235, pp. 215-238). Washington, DC: Engineers, Part A: J. Power and Energy, 217, American Chemical Society, 1983. 2003, 125-136. [22] Hua, B., Yin, Q., and Wu, G. Energy optimization [11] Sciubba, E. Beyond thermoeconomics? The through exergy-economic evaluation. ASME J. concept of Extended Exergy Accounting and its Energy Resources Technology, 111, 1989, 148- application to the analysis and design of thermal 153. systems. Exergy, An Int. J., 1, 2001, 68-84. [23] Bandura, A. V., and Brodiansky, V. M. [12] Tsatsaronis, G., and Park, M. H. On avoidable Thermodynamics extends economics potentials. and unavoidable exergy destructions and Energy, 26, 2001, 811-814. investment costs in thermal systems. Energy [24] Rosen, M. A., and Dincer, I. Exergy-cost-energy- mass analysis of thermal systems and processes.

ISSN: 1790-5095 Page 142 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

Energy Conversion and Management, 44, 2003, [38] Torres, C., Valero, A., Serra, L., and Royo, J. 1633-1651. Structural theory and thermoeconomic diagnosis. [25] Rosen, M. A. The relation between Part I: On malfunction and dysfunction analysis. thermodynamic losses and capital costs for a Energy Conversion and Management, 43, 2002, modern coal-fired electrical generation station. In 1503-1518. Computer-Aided Energy Systems Analysis (AES- [39] Edgerton R. H. Available Energy and Vol. 21, pp. 69-78). New York: American Society Environmental Economics. Toronto: D. C. Heath, of Mechanical Engineers, 1990. 1982. [26] Rosen, M. A. An investigation of the relation [40] Ayres, R. U. Eco-thermodynamics: economics between capital costs and selected and the second law. , thermodynamic losses. In Second Law Analysis 26, 1998, 189-209. (AES-Vol. 25/HTD-Vol. 191, pp. 55-62). New [41] Sciubba, E. Cost analysis of energy conversion York: American Society of Mechanical systems via a novel resource-based quantifier. Engineers, 1991. Energy, 28, 2003, 457-477. [27] Yantovskii, E. I. Energy and Exergy Currents: An [42] Sciubba, E. From engineering economics to Introduction to Exergonomics. New York: Nova extended exergy accounting: a possible path from Science Publishers, 1994. monetary to resource-based costing. J. Industrial [28] El-Sayed, Y. The Thermoeconomics of Energy Ecology, 8, 2004, 19-40. Conversion. Elsevier: Amsterdam, 2004. [43] Tonon, S., Brown, M. T., Luchi, F., Mirandola, [29] Gogus, Y. A. 2005, Thermoeconomic A., Stoppato, A., and Ulgiati, S. An integrated optimization. International Journal of Energy assessment of energy conversion processes by Research, 29, 559-580. means of thermodynamic, economic and [30] Tsatsaronis, G. Exergoeconomics: Is it only a new environmental parameters. Energy, 31, 2006, 149- name? Chemical Engineering and Technology, 163. 19, 1996, 163-169. [44] Lazzaretto, A., and Toffolo, A. Energy, economy [31] Lazzaretto, A., and Tsatsaronis, G. SPECO: A and environment as objectives in multi-criterion systematic and general methodology for optimization of thermal systems design. Energy, calculating efficiencies and costs in thermal 29, 2004, 1139-1157. systems. Energy, 31, 2006, 1257-1289. [45] Santarelli, M. G. L. Carbon exergy tax: a thermo- [32] Toffolo, A., and Lazzaretto, A. Evolutionary economic method to increase the efficient use of algorithms for multi-objective energetic and exergy resources. , 32, 2004, 413- economic optimization in thermal system design. 427. Energy, 27, 2002, 549-567. [46] Sciubba, E. Exergo-economics: thermodynamic [33] Verda, V., Serra, L., and Valero, A. foundation for a more rational resource use. Int. J. Thermoeconomic diagnosis: zooming strategy Energy Res., 29, 2005, 613-636. applied to highly complex energy systems. ASME [47] Tyagi, S. K., Wang, S. W., Chen, G. M., Wang, J. Energy Resources Technology, 127, 2005, 42- Q., Chandra, H., and Wu, C. Performance 58. investigations under maximum ecological and [34] Valero, A., Serra, L., and Uche, J. Fundamentals maximum economic conditions of a complex of exergy cost accounting and thermoeconomics. Brayton cycle. International Journal of Exergy, 4, ASME J. Energy Resources Technology, 128, 2007, 98-116. 2006, 1-15. [48] Ferrari, S., Genoud, S., and Lesourd, J.-B. [35] Valero, A. Exergy accounting: Capabilities and Thermodynamics and economics: towards drawbacks. Energy, 31, 2006, 164-180. exergy-based indicators of sustainable [36] Mazur, V. A. Fuzzy thermoeconomic development. Schweizerische Zeitschrift für optimization. Int. J. Exergy, 2, 2005, 1-13. Volkswirtschaft und Statistik, 137, 2001, 319-336. [37] Erlach, B., Serra, L., and Valero, A. Structural [49] Honkasalo, A. Entropy, exergy and steady-state theory as standard for thermoeconomics. Energy economy. Sustainable Development, 6, 1998, Conversion and Management, 40, 1999, 1627- 130-142. 1649. [50] Ozturk, I. T., Karabay, H., and Bilgen, E. Thermo-economic optimization of hot water

ISSN: 1790-5095 Page 143 ISBN: 978-960-6766-43-5

3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

piping systems: A comparison study. Energy, 31, [62] Zhang, C., Chen, S., Zhen, C., and Lou, X. 2006, 2094-2107. Thermoeconomic diagnosis of a coal fired power [51] Ozgener, O., Hepbasli, A., Dincer, I., and Rosen, plant. Energy Conversion and Management, 48, M. A. Modelling and assessment of ground- 2007, 405-419. source heat pump systems using exergoeconomic [63] Borgert, J. A., and Velasquez, J. A. analysis for building applications. Proc. 9th Int. Exergoeconomic optimisation of a Kalina cycle Building Performance Simulation Assoc. Conf., for power generation. Int. J. Exergy, 1, 2004, 18- Montreal, 2005, pp. 915-920. 28. [52] Ozgener, L., Hepbasli, A., Dincer, I., and Rosen, [64] Kazim, A. Exergoeconomic analysis of a PEM M. A. Exergoeconomic analysis of geothermal fuel cell at various operating conditions. Energy district heating systems: A case study. Applied Conv. and Mngt., 46, 2005, 1073-1081. Thermal Engineering, 2, 2007, 1303-1310. [65] Santarelli, M., and Macagno, S. A. A [53] Ozgener, O., and Hepbasli, A. Exergoeconomic thermoeconomic analysis of a PV-hydrogen analysis of a solar assisted ground-source heat system feeding the energy requests of a pump greenhouse heating system. Applied residential building in an isolated valley of the Thermal Engineering, 25, 2005, 1459-1471. Alps. Energy Conv. and Mngt., 45, 2004, 427- [54] Sahoo, P. K., Misra, R. D., and Gupta, A. 451. Exergoeconomic optimisation of an aqua- [66] Sugimoto, K., Fujii, T., and Ohta, J. An appraisal ammonia absorption refrigeration system. method of exergy cost minimisation for International Journal of Exergy, 1, 2004, 82-93. cogeneration systems. Int. J. Exergy, 3, 2006, [55] Bakan, K., Dincer, I., and Rosen, M. A. 255-271. Exergoeconomic analysis of glycol cold thermal [67] Luz-Silveira, J., Beyene, A., Leal, E. M., Santana, systems. Int. J. Energy Research J. A., and Okada, D. Thermoeconomic analysis of (in press). a cogeneration system of a university campus. [56] Jassim, R. K., and Khir, T. Exergoeconomic Applied Thermal Engineering, 22, 2002, 1471- optimisation of an air-conditioning rotary 1483. regenerator: effect of matrix thermal conductivity [68] Colpan, C. O., and Yesin, T. Thermodynamic and on its performance. International Journal of thermoeconomic comparison of combined cycle Exergy, 1, 2004, 215-236. cogeneration systems. Int. J. Exergy, 3, 2006, [57] Jassim, R. K., Khir, T., and Ghaffour, N. 272-290. Thermoeconomic optimization of the geometry of [69] Rensonnet, T., Uche, J., and Serra, L. Simulation an air conditioning precooling air reheater and thermoeconomic analysis of different dehumidifier. Int. J. Energy Res., 30, 2005, 237- configurations of gas turbine (GT)-based dual- 258. purpose power and desalination plants (DPPDP) [58] Jassim, R. K., Khir, T., Habeebullah, B. A., and and hybrid plants (HP). Energy, 32, 2007, 1012- Zaki, G. M. Exergoeconomic optimisation of the 1023. geometry of continuous fins on an array of tubes [70] Uche, J., Serra, L., and Valero, A. Exergy costs of a refrigeration air cooled condenser. Int. and inefficiency diagnosis of a dual-purpose Journal of Exergy, 2, 2005, 146-171. power and desalination plant. ASME J. Energy [59] Rosen, M. A., and Dincer, I. Exergoeconomic Resources Tech., 128, 2006, 186-193. analysis of power plants operating on various [71] Boyarskii, M. Y., Garin, V. A., Smorodin, A. I., fuels. Applied Thermal Engineering, 23, 2003, and Matveev, S. A. Thermal and economic 643-658. analysis of costs in obtaining ultrapure products [60] Valero, A., Lerch, F., Serra, L., and Royo, J. from air separators. Chemical and Petroleum Structural theory and thermoeconomic diagnosis. Engineering, 28, 1992, 497-500. Part II. Application to an actual power plant. [72] Nafey, A. S., Fath, H. E. S., and Mabrouk, A. A. Energy Conv. and Mngt., 43, 2002, 1519-1535. Thermo-economic investigation of multi effect [61] Zhang, C., Wang, Y., Zhen, C., and Lou, X. evaporation (MEE) and hybrid multi effect Exergy cost analysis of a coal fired power plant evaporation-multi stage flash (MEE-MSF) based on structural theory of thermoeconomics. systems. Desalination, 201, 2006, 241-254. Energy Conv. and Mngt., 47, 2006, 817-843.

ISSN: 1790-5095 Page 144 ISBN: 978-960-6766-43-5