EPC. The economic profit of Japanese companies is 31 million USD, and the annual
environmental benefit is 280 million USD.
In cooperation method 3, a Chinese company cooperates with Japanese and
Indian companies. The Japanese company provides technology and materials, the
Indian company undertakes local manufacture, and China manages EPC. The
economic profit of the Japanese and Chinese companies is approximately 153 million
USD and 83 million USD, respectively. The economic profit of Indian companies is
237,000 USD. Under the CDM framework, Japanese and Chinese companies have
annual environmental profits of 182 million USD and 33 million USD, respectively.
Indian companies do not generate carbon dioxide credits.
Overall, the environmental benefits of cooperation method 3 are approximately
23% lower than those of method 2, but economic benefits are 7.6 times greater.
Focusing on the distribution of profit to Japanese and Chinese companies, the
environmental profits of Japanese companies in cooperation method 3 are approximately 35% lower than in method 2, but economic profits are approximately four
times higher. Therefore, from both economic and environmental perspectives, cooperation method 3 is appropriate.
Selecting the Optimum Cooperation Method
In view of the economic and environmental impacts on Indian power plants,
cooperation methods 2 and 3 are more appropriate than method 1. From the
viewpoint of economic and environmental benefits received by companies, cooperation method 3 is more suitable than methods 1 and 2. Therefore, cooperation
method 3 is the most appropriate.
Benefits to Japan, China, and India via Cooperation Method 3
In the case of cooperation method 3, the input and profit distribution of the Indian
power plant is shown in Fig. 20.11. If China and Japan cooperate in providing India
with one unit of a supercritical coal-fired power plant, China will invest 462 million
USD and obtain an economic profit of 83 million USD and an annual environmental
profit of 33 million USD. Japan will invest 845 million USD, which will bring an
economic benefit of 153 million USD and an environmental benefit of 182 million
USD per year. The Indian company will invest 424,300 USD to generate an
economic benefit of 237,000 USD. The refurbished Indian power plant will generate
an annual economic benefit of 67 million USD and an annual environmental benefit
of 13.39 million USD.
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Y. Ling et al.
environmental benefit is 280 million USD.
In cooperation method 3, a Chinese company cooperates with Japanese and
Indian companies. The Japanese company provides technology and materials, the
Indian company undertakes local manufacture, and China manages EPC. The
economic profit of the Japanese and Chinese companies is approximately 153 million
USD and 83 million USD, respectively. The economic profit of Indian companies is
237,000 USD. Under the CDM framework, Japanese and Chinese companies have
annual environmental profits of 182 million USD and 33 million USD, respectively.
Indian companies do not generate carbon dioxide credits.
Overall, the environmental benefits of cooperation method 3 are approximately
23% lower than those of method 2, but economic benefits are 7.6 times greater.
Focusing on the distribution of profit to Japanese and Chinese companies, the
environmental profits of Japanese companies in cooperation method 3 are approximately 35% lower than in method 2, but economic profits are approximately four
times higher. Therefore, from both economic and environmental perspectives, cooperation method 3 is appropriate.
Selecting the Optimum Cooperation Method
In view of the economic and environmental impacts on Indian power plants,
cooperation methods 2 and 3 are more appropriate than method 1. From the
viewpoint of economic and environmental benefits received by companies, cooperation method 3 is more suitable than methods 1 and 2. Therefore, cooperation
method 3 is the most appropriate.
Benefits to Japan, China, and India via Cooperation Method 3
In the case of cooperation method 3, the input and profit distribution of the Indian
power plant is shown in Fig. 20.11. If China and Japan cooperate in providing India
with one unit of a supercritical coal-fired power plant, China will invest 462 million
USD and obtain an economic profit of 83 million USD and an annual environmental
profit of 33 million USD. Japan will invest 845 million USD, which will bring an
economic benefit of 153 million USD and an environmental benefit of 182 million
USD per year. The Indian company will invest 424,300 USD to generate an
economic benefit of 237,000 USD. The refurbished Indian power plant will generate
an annual economic benefit of 67 million USD and an annual environmental benefit
of 13.39 million USD.
386
Y. Ling et al.