nep-cmp New Economics Papers
on Computational Economics
Issue of 2012‒01‒10
three papers chosen by
Stan Miles
Thompson Rivers University

  1. Defence firms facing liberalization: innovation and export in an agent-based model of the defence industry By Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
  2. A Cost Model for Hybrid Clouds By Mohammad Mahdi Kashef; Jorn Altmann
  3. German Nuclear Policy Reconsidered: Implications for the Electricity Market By Fürsch, Michaela; Lindenberger, Dietmar; Malischek, Raimund; Nagl, Stephan; Panke, Timo; Trüby, Johannes

  1. By: Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
    Abstract: The paper presents an agent-based simulation model of the defence industry. The model resembles some of the key characteristics of the European defence sector, and studies how firms in this market will respond to the challenges and opportunities provided by a higher degree of openness and liberalization in the future. The simulation analysis points out that European defence firms will progressively become more efficient, less dependent on public procurement and innovation policy support, and more prone to knowledge sharing and inter-firm collaborations. This firm-level dynamics will in the long-run lead to an increase in the industry’s export propensity and a less concentrated market.
    Keywords: Defence industry; liberalization; EU; export; innovation; agent-based simulation model
    JEL: C6 F5 M2 F1 O3 L1
    Date: 2012–01–03
  2. By: Mohammad Mahdi Kashef (TEMEP, College of Engineering, Seoul National University); Jorn Altmann (TEMEP, Department of Industrial Engineering, College of Engineering, Seoul National University)
    Abstract: Cloud computing aims at allowing customers to utilize computational resources and software hosted by service providers. Thus, it shifts the complex and tedious resource and software management tasks typically done by customers to the service providers. Besides promising to eliminate these obstacles of resource management for consumers, Cloud computing also promises to reduce the cost of IT infrastructure. In particular, it promises to reduce the cost of IT through lower capital and operational expenses, stemming from a Cloud’s economies of scale and from allowing organizations to purchase just as much computer and storage resources as needed whenever needed. A clear specification of savings however requires a detailed specification of the costs incurred. Although there are some efforts to define cost models for Clouds, the need for a comprehensive cost model, which covers all cost factors, is undeniable. In this paper, we cover this gap by suggesting a cost model for hybrid Clouds (i.e., the combinations of a private data center (private Cloud) and the public Cloud). This model is based on a comprehensive literature research on cost factors and the idea of combining cost of data centers and cost for using Clouds. Finally, we demonstrate the workings of the suggested cost model by applying it to a specific Cloud scenario.
    Keywords: Cloud computing, hybrid Clouds, Infrastructure-as-a-Service, Cloud service migration, cost modeling, IT cost factors, Cloud economics, cost model comparison.
    JEL: C02 D24 D40 L24 L86 M15 M21
    Date: 2011–12
  3. By: Fürsch, Michaela (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Lindenberger, Dietmar (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Malischek, Raimund (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Nagl, Stephan (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Panke, Timo (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Trüby, Johannes (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: In the aftermath of the nuclear catastrophe in Fukushima, German nuclear policy has been reconsidered. This paper demonstrates the economic effects of an accelerated nuclear phase-out on the German electricity generation sector. <p> A detailed optimization model for European electricity markets is used to analyze two scenarios with different lifetimes for nuclear plants (phase-out vs. prolongation). Based on political targets, both scenarios assume significant electricity demand reductions and a high share of generation from renewable energy sources in Germany. Our principal findings are: First, nuclear capacities are mainly replaced by longer lifetimes of existing coal-fired plants and the construction of new gas-fired plants. Second, fossil fuel-based generation and power imports increase, while power exports are reduced in response to the lower nuclear generation. Third, despite the increased fossil generation, challenging climate protection goals can still be achieved within the framework of the considered scenarios. Finally, system costs and electricity prices are clearly higher. <p> We conclude that the generation sector can generally cope with an accelerated nuclear phase-out under the given assumptions. Yet, we emphasize that such a policy requires a substantial and costly transformation of the supply and the demand side.
    Keywords: Nuclear policy; climate protection; renewable energy; electricity market modeling
    JEL: C61 L94 Q48 Q58
    Date: 2011–12–28

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