UBC Graduate Research

Integrated Valuation of Biodiversity Pelletier, Flavie; Melanidis, Marina; Yang, Keyon; Gibeau, Patrick 2020-04-09

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Notice for Google Chrome users:
If you are having trouble viewing or searching the PDF with Google Chrome, please download it here instead.

Item Metadata

Download

Media
66428-Pelletier_F_et_al_RES_510_Integrated_valuation_biodiversity_final_report.pdf [ 2.52MB ]
Metadata
JSON: 66428-1.0392605.json
JSON-LD: 66428-1.0392605-ld.json
RDF/XML (Pretty): 66428-1.0392605-rdf.xml
RDF/JSON: 66428-1.0392605-rdf.json
Turtle: 66428-1.0392605-turtle.txt
N-Triples: 66428-1.0392605-rdf-ntriples.txt
Original Record: 66428-1.0392605-source.json
Full Text
66428-1.0392605-fulltext.txt
Citation
66428-1.0392605.ris

Full Text

UBC Social Ecological Economic Development Studies (SEEDS) Sustainability Program Student Research Report         Integrated Valuation of Biodiversity Flavie Pelletier, Marina Melanidis, Keyon Yang, Patrick Gibeau University of British Columbia RES 510 Themes: Biodiversity, Land, Wellbeing  Date: April 9, 2020       Disclaimer: “UBC SEEDS Sustainability Program provides students with the opportunity to share the findings of their studies, as well as their opinions, conclusions and recommendations with the UBC community. The reader should bear in mind that this is a student research project/report and is not an official document of UBC. Furthermore, readers should bear in mind that these reports may not reflect the current status of activities at UBC. We urge you to contact the research persons mentioned in a report or the SEEDS Sustainability Program representative about the current status of the subject matter of a project/report”. CASE STUDY PAPER | APRIL 9, 2020Integrated Valuation  of BiodiversityFlavie Pelletier, Marina Melanidis, Keyon Yang and Patrick GibeauProject Client: UBC SEEDS Sustainability ProgramProject Liaisons: Emma Luker, David GillCourse: RES 510 Social Ecological SystemsInstructor: Dr. Leila HarrisInstitute for Resource, Environment and Sustainability | The University of British ColumbiaCover photo credit: UBC Media Relations,17(*5$7('9$/8$7,212)%,2',9(56,7<b7DEOHRI&RQWHQWVb([HFXWLYH6XPPDU\ b,QWURGXFWLRQ%DFNJURXQGDQG'HILQLWLRQV b:KDWLV%LRGLYHUVLW\" b:KDWLV(FRV\VWHP6HUYLFHV" b:K\9DOXDWLRQ" b3UREOHP&RQWH[W b9LVLRQ b6FRSHDQG6FDOH b3URMHFW$SSURDFK b/LWHUDWXUH5HYLHZV b/DQGVFDSHDQG(FRV\VWHP5HODWLRQV3UHIHUHQFHVDQG,PSOLFDWLRQV b&XOWXUDODQG6RFLDO'LPHQVLRQVRI%LRGLYHUVLW\ b8UEDQ6\VWHPèV5ROHLQ%LRGLYHUVLW\(FRV\VWHP6HUYLFHV b(FRQRPLF9DOXDWLRQRI%LRGLYHUVLW\ b%LRGLYHUVLW\(YDOXDWLRQLQWKH8%&FRQWH[W b8%&%UDQGLQJ b5HOHYDQW3ODQVDQG3ROLFLHV b5HFRPPHQGDWLRQ7RROER[ b&RQFOXVLRQ b5HIHUHQFHV bb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b([HFXWLYH6XPPDU\b7KLV SURMHFW ZDV PDQGDWHG E\ 6(('68%& DQGZDV WR EH FRPSOHWHG DV SDUW RI RXU ILQDO SURMHFW IRUb b b b b b b b b b b b b b b b b b b5(66RFLRHFRORJLFDOV\VWHPVb$V WKH 8QLYHUVLW\ RI %ULWLVK &ROXPELD LV JURZLQJ LW ZDQWV WR H[SDQG DQG UHYLYH LWV LQIUDVWUXFWXUHb b b b b b b b b b b b b b b b,Q WKH SDVW WKLV PLJKW KDYH EHHQ GRQH DW WKH H[SHQVH RI RWKHU QRQHFRQRPLF FDSLWDO WKDW VWLOO KROGVb b b b b b b b b b b b b b b b b bYDOXH IRU PDQ\ RI WKH VWDNHKROGHUV SUHVHQW RQ WKH FDPSXV &XUUHQWO\ 8%& 9DQFRXYHU GRHV QRWb b b b b b b b b b b b b b bKDYH D IUDPHZRUN WR VXSSRUW GHFLVLRQV WKDW FDQ LQWHJUDWH WKH HFRORJLFDO VRFLDO DQG FXOWXUDO YDOXHVb b b b b b b b b b b b b b bRI WKH ELRGLYHUVLW\ DQG UHVXOWLQJ HFRV\VWHP VHUYLFHV SUHVHQW RQ FDPSXV :LWK WKLV SURMHFW ZHb b b b b b b b b b b b b bDLPHG WR UHYLHZ GLIIHUHQW ELRGLYHUVLW\ YDOXDWLRQ IUDPHZRUNV WR UHIOHFW RQ KRZ WKH\ FDQ EH DSSOLHGb b b b b b b b b b b b b b bLQ WKH 8%& FRQWH[W DQG WR SURSRVH D WRROER[ DV D VWDUWLQJ SRLQW IRU GHFLVLRQPDNHUV 8OWLPDWHO\b b b b b b b b b b b b b b b bZHKRSHWKDWRXUZRUNFDQFRQWULEXWHWROD\WKHIRXQGDWLRQRIDIXWXUHELRGLYHUVLW\SROLF\DW8%&bb7KH ILUVW VHFWLRQV RI WKH UHSRUW IRFXV RQ ZRUNLQJ GHILQLWLRQV DQG WKH SUREOHP FRQWH[W IROORZHG E\b b b b b b b b b b b b b b b bDQ LQGHSWK OLWHUDWXUH UHYLHZ )RU WKH OLWHUDWXUH UHYLHZ ZH DSSURDFKHG WKH SUREOHP RI YDOXDWLRQb b b b b b b b b b b b b bRI ELRGLYHUVLW\ IURP IRXU GLIIHUHQW SHUVSHFWLYHV  ODQGVFDSH HFRV\VWHP UHODWLRQV SUHIHUHQFHVb b b b b b b b b b bDQG LPSOLFDWLRQV  FXOWXUDO DQG VRFLDO GLPHQVLRQV RI ELRGLYHUVLW\  XUEDQ V\VWHPèV UROH LQb b b b b b b b b b b b b bELRGLYHUVLW\ DQG HFRV\VWHP VHUYLFHV DQG  HFRQRPLF YDOXDWLRQ RI ELRGLYHUVLW\ )RU HDFK VHFWLRQb b b b b b b b b b b b bLQ WKH OLWHUDWXUH UHYLHZ ZH SUHVHQW FDVH VWXGLHV WKDW FDQ LOOXVWUDWH KRZ WKH IUDPHZRUNV FDQ EHb b b b b b b b b b b b b b b bXVHG WR DVVHVV WKH HFRORJLFDO VRFLDO DQG FXOWXUDO YDOXHV RI QDWXUDO DVVHWV 7KHQ ZH SUHVHQW KRZ WKHb b b b b b b b b b b b b b b b bYDOXDWLRQ RI ELRGLYHUVLW\ ILWV ZLWKLQ WKH 8%& EUDQGLQJ :H DOVR GLVFXVV DQG UHYLHZ WKH GLIIHUHQWb b b b b b b b b b b b b b bSODQV DQG SROLFLHV WKDW DOUHDG\ H[LVW DW 8%& DQG KRZ D IUDPHZRUN IRU ELRGLYHUVLW\ YDOXDWLRQ FRXOGb b b b b b b b b b b b b b b bILW ZLWKLQ WKRVH RU DGG YDOXH )LQDOO\ ZH PDNH UHFRPPHQGDWLRQV WR DSSO\ WKH GLIIHUHQWb b b b b b b b b b b b b bIUDPHZRUNVLQWKH8%&FRQWH[Wbb5HJDUGLQJ RXU UHFRPPHQGDWLRQV IRU WKH YDOXDWLRQ RI VRFLDO DQG FXOWXUDO ELRGLYHUVLW\ DW 8%& ZHb b b b b b b b b b b b b bVXJJHVW D PL[HGPHWKRG DSSURDFK E\ XVLQJ VXUYH\V RU TXHVWLRQQDLUHV WR JDWKHU LQIRUPDWLRQ IURPb b b b b b b b b b b b bD ODUJH QXPEHU RI FRPPXQLW\ PHPEHUV DQG IRFXV JURXSV WR FROOHFW PRUH QXDQFHG GDWDb b b b b b b b b b b b b b$GGLWLRQDOO\ ZH DOVR UHFRPPHQG WKDW WKH UROH RI ELRGLYHUVLW\ LQ WKH HFRV\VWHP VWUXFWXUH EHPDGHb b b b b b b b b b b b b b bFHQWUDO WR EULQJ PXOWLVWDNHKROGHUV WR FRPPRQ GHFLVLRQV 0RUHRYHU WR SXW D PRQHWDU\ YDOXH RQb b b b b b b b b b b b b bELRGLYHUVLW\ DQG WR XQGHUVWDQG RSSRUWXQLW\ FRVW ZH SURSRVH WKH FRPSOHWLRQ RI D ODUJH VFDOHb b b b b b b b b b b b b bGLVFUHWH FKRLFH H[SHULPHQW VXUYH\ WKDW ZRXOG UHYHDO WKH 8%& FRPPXQLW\èV ZLOOLQJQHVV WR SD\ IRUb b b b b b b b b b b b b bELRGLYHUVLW\bb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b,QWURGXFWLRQ%DFNJURXQGDQG'HILQLWLRQVb:KDWLV%LRGLYHUVLW\"b7KURXJKRXW WKLV UHSRUW ZH ZLOO EH UHO\LQJ RQ WKH GHILQLWLRQ RI ELRGLYHUVLW\ DV RXWOLQHG E\ WKH 81b b b b b b b b b b b b b b b b b&RQYHQWLRQ RI %LRORJLFDO 'LYHUVLW\ êç%LRORJLFDO GLYHUVLW\è PHDQV WKH YDULDELOLW\ DPRQJ OLYLQJb b b b b b b b b b bRUJDQLVPV IURP DOO VRXUFHV LQFOXGLQJ LQWHU DOLD WHUUHVWULDO PDULQH DQG RWKHU DTXDWLF HFRV\VWHPVb b b b b b b b b b b b bDQG WKH HFRORJLFDO FRPSOH[HV RI ZKLFK WKH\ DUH SDUW WKLV LQFOXGHV GLYHUVLW\ ZLWKLQ VSHFLHVb b b b b b b b b b b b b bEHWZHHQVSHFLHVDQGRIHFRV\VWHPVë&RQYHQWLRQRQ%LRORJLFDO'LYHUVLW\Sb:KDWLV(FRV\VWHP6HUYLFHV"b7KLV UHSRUW ZLOO DSSO\ WKH 0LOOHQQLXP (FRV\VWHP $VVHVVPHQWV GHILQLWLRQ RI (FRV\VWHP 6HUYLFHVb b b b b b b b b b b bê(FRV\VWHP VHUYLFHV DUH WKH EHQHILWV SHRSOH REWDLQ IURP HFRV\VWHPV 7KHVH LQFOXGH SURYLVLRQLQJb b b b b b b b b b b bUHJXODWLQJ DQG FXOWXUDO VHUYLFHV WKDW GLUHFWO\ DIIHFW SHRSOH DQG VXSSRUWLQJ VHUYLFHV QHHGHG WRb b b b b b b b b b b b bPDLQWDLQWKHRWKHUVHUYLFHVë$OFDPRHWDOSb%LRGLYHUVLW\ PD\ XQGHUSLQ RU UHJXODWH HFRV\VWHP VHUYLFHV RU EH DQ HFRV\VWHP VHUYLFH LWVHOI EXWb b b b b b b b b b b b b bWKHWZRDUHQRWLQWHUFKDQJHDEOH6HGGRQHWDOb:K\9DOXDWLRQ"bb:K\ LV LW LPSRUWDQW DQG QHFHVVDU\ WR LQWHJUDWH WKH YDOXH RI ELRGLYHUVLW\ LQWR GHFLVLRQPDNLQJ"b b b b b b b b b b b b b b$FFRUGLQJ WR 6HGGRQ HW DO  V\VWHPV ZLWK KLJKHU OHYHOV RI ELRGLYHUVLW\ DUH PRUH VWDEOH DQGb b b b b b b b b b b b b b b bUHVLOLHQW WR FKDQJHV HQDEOLQJ WKHP WR FRQWLQXH WR SURYLGH WKH YDULRXV YDOXHV DQG VHUYLFHV WKDWb b b b b b b b b b b b b b bVRFLHWLHV GHSHQG RQ (YLGHQFH FRQWLQXHV WR VXJJHVW WKDW ELRGLYHUVLW\ LV LPSRUWDQW IRU DFKLHYLQJb b b b b b b b b b b b bVXVWDLQDEOH GHYHORSPHQW DQG IRU SURYLGLQJ FULWLFDO VHUYLFHV DQG FRQGLWLRQV QHFHVVDU\ IRU KXPDQb b b b b b b b b b b bZHOOEHLQJ6HGGRQHWDOb'HFLVLRQPDNLQJ WHQGV WR OHDYH RXWb b b b bELRGLYHUVLW\ FRPSOHWHO\ SDUWO\b b bEHFDXVH LW LV VR FRPSOH[ WRPHDVXUHb b b b b b bDQG YDOXH 7KHUH LV QR XQLYHUVDO RUb b b b b b bVWDQGDUG DSSURDFK WR LQWHJUDWLQJb b b bELRGLYHUVLW\ LQWR GHFLVLRQPDNLQJb b bSURFHVVHV EXW UDWKHU D IUDPHZRUNb b b b bWKDW LQWHJUDWHV D GLYHUVLW\ RIb b b b bYDOXDWLRQ DSSURDFKHV PD\ EHb b b bEHWWHU VXLWHG WR HQFRPSDVV WKHb b b b bUDQJH RI VHUYLFHV WKDW ELRGLYHUVLW\b b b b bFDQEHYDOXHGIRUbb)LJXUH  7KH YDOXH RI ELRGLYHUVLW\ WR KXPDQb b b b b b b bZHOOEHLQJ LV VXEMHFW WR SROLF\ LQIOXHQFH VRXUFHb b b b b b b6HGGRQHWDOSb7KH IROORZLQJ UHSRUW ZLOO SUHVHQW DQ RYHUYLHZ RI WKH GLYHUVH PHWKRGV DQG DSSURDFKHV WKDW KDYHb b b b b b b b b b b b b b bEHHQ XVHG WR YDOXH ELRGLYHUVLW\ DQG UHFRPPHQG D IHZ DSSURDFKHV WKDW 8%& 9DQFRXYHU FDQb b b b b b b b b b b b b bLQWHJUDWHLQWRLWVIXWXUHGHFLVLRQPDNLQJb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b3UREOHP&RQWH[Wb&XUUHQWO\ YDOXHV VXUURXQGLQJ ELRGLYHUVLW\ DQG HFRV\VWHP VHUYLFHV DUH QRW ZHOO UHSUHVHQWHG LQb b b b b b b b b b b bGHFLVLRQPDNLQJ DW 8%&9DQFRXYHU LQ UHJDUG WR VXVWDLQDEOH XUEDQ GHVLJQ DQG GHYHORSPHQW 7KLV LVb b b b b b b b b b b b b bUHVXOWLQJLQQDWXUDODVVHWVWKDWDUHODUJHO\XQUHFRJQL]HGERWKIRUWRGD\DQGIRUWKHIXWXUHbb9LVLRQb$ IUDPHZRUN WKDW FDQ SURYLGH HQWU\ SRLQWV IRU GLYHUVH GLVFLSOLQHVSDUWLHV WR HQJDJH LQ H[LVWLQJb b b b b b b b b b b b b bWHFKQLTXHVSUDFWLFHV RI ELRGLYHUVLW\ YDOXDWLRQ DQG HQDEOH WKH LQWHJUDWLRQ RI ELRGLYHUVLW\ YDOXDWLRQb b b b b b b b b b bLQWRGHFLVLRQPDNLQJSURFHVVHVVXUURXQGLQJIXWXUHGHYHORSPHQWDW8%&bb6FRSHDQG6FDOHb:H DFNQRZOHGJH WKDW WKH 8QLYHUVLW\ RI %ULWLVK &ROXPELD 3RLQW *UH\ FDPSXV LV RQ WKH WUDGLWLRQDOb b b b b b b b b b b b b b bDQFHVWUDO DQG XQFHGHG ODQG RI WKH [ɹPŧȟNɹŧ\˕ŧP 0XVTXHDP 3HRSOH 9DOXDWLRQ RI ELRGLYHUVLW\b b b b b b b b b b b bWKURXJKWKHLQGLJHQRXVOHQVRIWKH0XVTXHDP3HRSOHLVRXWVLGHWKHVFRSHRIWKLVSURMHFWbb7KLV SURMHFW ZLOO VSHFLILFDOO\ FRQVLGHU YDOXDWLRQ IUDPHZRUNV WKDW DUH DSSOLFDEOH WR 8%&9DQFRXYHUb b b b b b b b b b b b b7KLVLQFOXGHVWKHXQLYHUVLW\FDPSXVEXWGRHVQRWLQFOXGHWKH8QLYHUVLW\(QGRZPHQW/DQGVb3URMHFW$SSURDFKb:H KDYH XQGHUWDNHQ D OLWHUDWXUH UHYLHZ RI GLIIHUHQW HFRQRPLF DQG QRQHFRQRPLF YDOXDWLRQb b b b b b b b b b b bPHWKRGV IRU ELRGLYHUVLW\ DQDO\]H WKH GLIIHUHQW VWUHQJWKV DQG OLPLWDWLRQV RI GLIIHUHQW YDOXDWLRQb b b b b b b b b b b bPHWKRGV D SURMHFW IRU 8%&èV ELRGLYHUVLW\ DQG PDNH UHFRPPHQGDWLRQV IRU DFWLRQ GDWD JDSVb b b b b b b b b b b b bSRWHQWLDO SDUWQHUVKLSV DQG IRU IXWXUH UHVHDUFK WR LQIRUP GHFLVLRQPDNLQJ DURXQG VXVWDLQDEOHb b b b b b b b b b bXUEDQGHVLJQDQGGHYHORSPHQWbbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b/LWHUDWXUH5HYLHZVb:H KDYH FRQGXFWHG D OLWHUDWXUH UHYLHZ FRPSULVLQJ WKH VWDWH RI NQRZOHGJH LQ WKH DFDGHPLF DQGb b b b b b b b b b b b b b bJUH\ OLWHUDWXUH 7KLV VHFWLRQ GHWDLOV RXU ILQGLQJV LQ IRXU UHLQIRUFLQJ DYHQXHV LQ WKH YDOXDWLRQ RIb b b b b b b b b b b b b b bELRGLYHUVLW\ SUHVHQWHG KHUH LQ WKH IROORZLQJ RUGHU /DQGVFDSH DQG (FRV\VWHP 6RFLDO DQG &XOWXUDOb b b b b b b b b b b b b'LPHQVLRQV8UEDQ6\VWHPVDQG(FRQRPLF9DOXDWLRQb/DQGVFDSHDQG(FRV\VWHP5HODWLRQV3UHIHUHQFHVDQG,PSOLFDWLRQVb([DPLQLQJ WKH VRFLRHFRQRPLF ELRORJLFDO DQG FXOWXUDO DVSHFWV RI ODQGVFDSHV LV LQKHUHQWO\ VXEMHFWb b b b b b b b b b b bWR WKH SHUVSHFWLYHV DQG OHQVHV RI WKH EHKROGHU ,Q DQ HIIRUW WR SURSHUO\ FRQWH[WXDOL]H WKH VWUDWHJLFb b b b b b b b b b b b b b b bODQGVFDSH VFKRODUV FRQVHUYDWLRQLVWV IRUHVW UHVRXUFH PDQDJHUV DQG XUEDQ SODQQHUV KDYHb b b b b b b b b bUHSHDWHGO\ GHPRQVWUDWHG WKH LPSRUWDQFH DQG EHQHILWV RI H[DPLQLQJ XVHU UHODWLRQV DQGb b b b b b b b b b bSUHIHUHQFHV WR ODQGVFDSHV &£FHUHV HW DO  &OHPHQW 	 &KHQJ  'HDULQJHU b b b b b b b b b b b b b*DUF¯D/ORUHQWHHWDO+HU]RJHWDO.DOWHQERUQ	%MHUNHb)RU WKH SXUSRVHV RI YDOXDWLRQ WKH VDPH RXWFRPH KDV EHHQ GHPRQVWUDWHG %\ FRQWH[WXDOL]LQJ WKHb b b b b b b b b b b b b bDFWRUXVHU VWUDWHJLF ODQGVFDSH GHFLVLRQPDNHUV KDYH EHHQ DEOH WR JDLQ FULWLFDO LQVLJKW LQWRb b b b b b b b b b b bDFWRUODQGVFDSH G\QDPLFV ZKDW GULYHV XVHU SUHIHUHQFHV DQG DUHDV RI UHODWLRQDOSUHIHUHQWLDOb b b b b b b b b bRYHUODS DQGRU FRQWHQWLRQ &OHPHQW 	 &KHQJ  .DOWHQERUQ 	 %MHUNH  7KH HPSKDVLVb b b b b b b b b b b b bEHLQJ H[DPLQLQJ DQG HOLFLWLQJ SHUVSHFWLYHV WKDW ZRXOG QRW RWKHUZLVH RFFXU ZLWKLQ FRQYHQWLRQDOb b b b b b b b b b b bGHFLVLRQPDNLQJJURXSV:LONLQVRQHWDOb%\ DQG ODUJH WKLV KDV EHHQ DFFRPSOLVKHG XVLQJ VXUYH\ WHFKQLTXHV DQG HQJDJLQJ GLYHUVH DFWRUb b b b b b b b b b b b b bJURXSV LQ GHFLVLRQ PDNLQJ 3DUWLFLSDWRU\ FROODERUDWLYH PHWKRGV VXFK DV SXEOLF PHHWLQJVb b b b b b b b b b bV\PSRVLXPV VROLFLWDWLRQ RI ZULWWHQ RU YHUEDO FRPPHQWV ZHUH XVHG WR DFTXLUH LQWLPDWH NQRZOHGJHb b b b b b b b b b b b bRQ VSHFLILF DUHDV DQG LVVXHV IURP SDUWLFLSDWLQJ LQ DFWRU JURXSV &OHPHQW 	 &KHQJ  'HDULQJHUb b b b b b b b b b b b b b b +RZHYHU &OHPHQW 	 &KHQJ  RXWOLQHG WKDW WKLV DSSURDFK GLG QRW DGGUHVV WKHb b b b b b b b b b b b b bSHUFHSWLRQV SUHIHUHQFHV DQG UHODWLRQV RI WKH VLOHQW PDMRULW\ DQG WKH UHVXOWLQJ LQIRUPDWLRQ LVb b b b b b b b b b b b bKLJKO\ VXEMHFWLYH WR WKH SDUWLFLSDWLQJ JURXSV DQG VWXG\ VWUXFWXUH +HUPDQV HW DO  0XOWLSOHb b b b b b b b b b b b b bVWXGLHV LQFOXGHG ODUJH UDQGRP VDPSOH VXUYH\V WR DVVHVV RYHUDOO SRSXODWLRQ SUHIHUHQFHV DQGb b b b b b b b b b b bUHODWLRQV LQ DGGLWLRQ WR SDUWLFLSDWRU\ PHWKRGV &OHPHQW 	 &KHQJ  .DOWHQERUQ 	 %MHUNHb b b b b b b b b b b b b 9DULRXV JURXSV FRQGXFWHG DGDSWLYH GHOLEHUDWLYH SURFHVVHV ZKHUH LQIRUPDWLRQ ZDVb b b b b b b b b bJDWKHUHG DQG WKHQ UHYLHZHGH[FKDQJHG DPRQJ JURXSV WR FULWLFDOO\ UHH[DPLQH SHUVSHFWLYHV DQGb b b b b b b b b b bXQGHUVWDQGLQJV :KLFK SURYLGHG VLWXDWHG DQG HYROYLQJ IHHGEDFN IURP HLWKHU VHOHFWHG JURXSV RUb b b b b b b b b b b bWKH JHQHUDO SRSXODWLRQ GHSHQGLQJ RQ PHWKRGRORJ\ *DUF¯D/ORUHQWH HW DO  +HUPDQV HW DOb b b b b b b b b b b b b +RZHYHU ZLWK HLWKHU GHVLJQ WKH GHOLEHUDWLYH SURFHVV ZDV VXEMHFW WR WKH VDPH GUDZEDFNVb b b b b b b b b b b b b bRI LWV URRW PHWKRGRORJ\ UDQGRPVHOHFWLYH WKDW DXWKRUV HLWKHU DFNQRZOHGJHG RU DLPHG WRb b b b b b b b b b b bPLQLPL]HWKURXJKDGGLWLRQDOFRPSOHPHQWDU\PHWKRGVbbbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<bbb)LJXUH  0HWKRGRORJ\ RI GHOLEHUDWLYH SURFHVV GHVLJQ IRU HYDOXDWLRQ RI SUHIHUHQFHV IRU ULYHU PDQDJHPHQW $GDSWHG IURP+HUPDQV HW DOb b b b b b b b b b b b b b b b b b bbb6WUXFWXUHG LQWHUYLHZV H[DPLQLQJ ERWK SUHIHUHQFHV DQG XVHU WUDLWV FRQFOXGHG WKDW ODQGVFDSHb b b b b b b b b b bSUHIHUHQFHV FDQ EH FRUUHODWHG WR XVHUV IDPLOLDULW\ WKHLU RFFXSDWLRQ DQG OLIHVW\OH 'HDULQJHUb b b b b b b b b b b b ZLWK VWURQJ SRVLWLYH HIIHFW EHWZHHQ UHVSRQGHQWV SODFH DWWDFKPHQW DQG OHYHO RI VXSSRUW IRUb b b b b b b b b b b b b bODQGVFDSH FRQVHUYDWLRQ *DUF¯D/ORUHQWH HW DO  *URXSV ZHUH ODUJHO\ LQ DJUHHDQFH RQ WKHb b b b b b b b b b b b bSRODU H[WUHPHV RI ZKDW ZDV GHHPHG YHU\ DWWUDFWLYH DQG YHU\ XJO\ EXW ZHUH XOWLPDWHO\ GLYLGHGb b b b b b b b b b b b b b bRQ WKH LQEHWZHHQ 'HDULQJHU  'HVSLWH WKLV WKHUH ZDV DQ RYHUDOO WUHQG RI ZKDW WKH IHDWXUHVb b b b b b b b b b b b b b b bRIODQGVFDSHVGHHPHGDWWUDFWLYHZHUHEHWZHHQDQGDPRQJJURXSV.DOWHQERUQ	%MHUNHb7KH VFRUH RI DWWUDFWLYHQHVV ZDV QRW HYDOXDWHG DV ZKDW ORRNV JRRG WR DQ LQGLYLGXDO RU JURXS VHHb b b b b b b b b b b b b b b b b)LJXUH  DERYH GDP UDQNHG UG $WWUDFWLYHQHVV ZDV KLJKO\ FRQWH[WXDO ZKHUH PXOWLIXQFWLRQDOb b b b b b b b b b b bODQGVFDSHV VFRUHG KLJKHU LQ WHUPV RI DWWUDFWLYHQHVV ZLWK FOHDU DVVRFLDWLRQV EHWZHHQ ODQGVFDSHVb b b b b b b b b b b bWKDW SURYLGHG PXOWLSOH HFRV\VWHP VHUYLFHV DQG SUHIHUUHG ODQGVFDSH YLHZV *DUF¯D/ORUHQWH HW DOb b b b b b b b b b b b +RZHYHU LW VKRXOG EH SRLQWHG RXW WKDW DOWKRXJK RYHUDOO VFRUHV ZHUH KLJKHU IRUb b b b b b b b b b b b b bPXOWLIXQFWLRQDO ODQGVFDSHV VSHFLILFDOO\ ZKLFK ODQGVFDSHV ZHUH KLJKHU GHSHQGHG RQ WKH ODQGVFDSHb b b b b b b b b b bUHODWLRQVKLSVRIWKHLQGLYLGXDORUJURXS*DUF¯D/ORUHQWHHWDO+HU]RJHWDObb,17(*5$7('9$/8$7,212)%,2',9(56,7<b6WXGLHV H[DPLQLQJ UHODWLRQVKLSV IRXQG WKDW JHRJUDSK\ DQG VRFLRGHPRJUDSK\ RI VRFLDO DFWRUVb b b b b b b b b b bZHUH LQGLFDWLYH RI UHODWLRQDO DQG SUHIHUHQWLDO GLVFUHSDQFLHV EHWZHHQ DFWRU JURXSV .DOWHQERUQ 	b b b b b b b b b b b b%MHUNH  7KLV ILQGLQJ SURPSWV NH\ FRQVLGHUDWLRQV RI HTXLW\ DQG PLVUHSUHVHQWDWLRQb b b b b b b b b b bVXUURXQGLQJ GHFLVLRQ PDNLQJ 7DNHGD 	 5ºSNH  (YDOXDWLRQ RI WKHVH GLVFUHSDQFLHVb b b b b b b b b b bVXJJHVWHG KRWVSRWV ZKHUH YDOXH RULHQWDWLRQV SUHIHUHQFHV DQG ODQG UHODWLRQV LQGLFDWH SRWHQWLDOb b b b b b b b b b bFRQIOLFWV DPRQJ DQG EHWZHHQ JURXSV &OHPHQW 	 &KHQJ  7KH SUHVHQFH RI ZKLFK VXJJHVWHGb b b b b b b b b b b b b bSRLQWV RI LQWHUYHQWLRQ ZKHUH SDUWLFLSDWRU\ DQG FROODERUDWLYH PHWKRGV DFURVV YHUWLFDO DQGb b b b b b b b b b bKRUL]RQWDO VWUDWD FRXOG DPHOLRUDWH XQUHDOL]HG FRQIOLFW DQG GLVSURSRUWLRQDWH HIIHFWV &OHPHQW 	b b b b b b b b b b b&KHQJbb7KH OLWHUDWXUH FRQFOXGHV WKDW WKH DERYH DSSURDFKHV WR WKH FRQWH[WXDOL]DWLRQ RI VRFLDOHFRORJLFDOb b b b b b b b b b b bV\VWHPV FUHDWH SDWKZD\V WR EDODQFH HFRORJLFDO VRFLRHFRQRPLF DQG FXOWXUDO DVSHFWV RI ODQGVFDSHVb b b b b b b b b b b bDQG WKHLU UHVSHFWLYH HFRV\VWHP VHUYLFHV *DUF¯D/ORUHQWH HW DO  $OWKRXJK QR WHFKQLTXH LV DOOb b b b b b b b b b b b b bLQIRUPDWLYH DQG PXOWLSOH WHFKQLTXHV DQG PHWKRGRORJLHV DUH UHTXLUHG WR SDLQW D EURDGHU SLFWXUH RIb b b b b b b b b b b b b bERWKWKHHFRORJLFDODQGVWUDWHJLFODQGVFDSHVbbb&DVH6WXG\ 7KHUROHRIPXOWLIXQFWLRQDOLW\LQVRFLDOSUHIHUHQFHVWRZDUGVHPLDULGUXUDObODQGVFDSHV$QHFRV\VWHPVHUYLFHDSSURDFK*DUF¯D/ORUHQWHHWDOb$XWKRUV DLPHG WR DQDO\]H WKH UHODWLRQVKLS EHWZHHQ ODQGVFDSH SUHIHUHQFHV DQG ODQGVFDSHb b b b b b b b b b bPXOWLIXQFWLRQDOLW\ 'DWD ZHUH FROOHFWHG LQ WKUHH SKDVHV ILUVW ZDV WKH LGHQWLILFDWLRQ DQGb b b b b b b b b b b bFDWHJRUL]DWLRQ RI ODQGVFDSH XQLWV IURP H[LVWLQJ UHVHDUFK ZKHUHLQ  SKRWRV ZHUH VHOHFWHG HDFKb b b b b b b b b b b b bWR UHSUHVHQW D XQLW 7KH VHFRQG ZDV WKH DVVHVVPHQW RI SUHIHUHQFHV WKURXJK UDQGRP SRSXODWLRQb b b b b b b b b b b b b bVDPSOLQJ WR FRYHU D ZLGH UDQJH RI EDFNJURXQGV DQG LQWHUHVWV XVLQJ ERWK XVH DQG QRQXVHb b b b b b b b b b b b b b bSUHIHUHQFHV XVLQJ WKH ZLOOLQJQHVV WR SD\ /DVWO\ GHOLEHUDWLYH DQG SDUWLFLSDWLYH SURFHVVHV ZHUHb b b b b b b b b b b bFUHDWHG WR HQJDJH DQ H[SHUW IRFXV JURXS IURP GLIIHUHQW GLVFLSOLQHV LQ LGHQWLI\LQJ HFRV\VWHPb b b b b b b b b b b b bVHUYLFHV WKDW DUH SURYLGHG IRU HDFK HFRV\VWHP (FRV\VWHP VHUYLFHV ZHUH GLVWLQJXLVKHG LQWRb b b b b b b b b b b bSURYLVLRQLQJ UHJXODWLQJ DQG FXOWXUDO VHUYLFHV DV ZHOO DV HDFK ODQGVFDSH DVVLJQHG D YDOXH RQ Db b b b b b b b b b b b b b bODQGXVH LQWHQVLW\ JUDGLHQW 5HVSRQGHQWVè SUHIHUHQFHV ZHUH WKHQ DQDO\]HG DQG FRPSDUHG ZLWKb b b b b b b b b b bH[SHUWèV FRQVHQVXV RQ ODQGVFDSH IXQFWLRQDOLW\ &OHDU DVVRFLDWLRQV ZHUH QRWHG EHWZHHQ IDYRXULWHb b b b b b b b b b bODQGVFDSHV DQG HFRV\VWHPV WKDW KDG GLYHUVLILHG HFRV\VWHP VHUYLFHV 5HVXOWV VKRZHG YHU\b b b b b b b b b b bVSHFLILF GHWDLOHG LQIRUPDWLRQ RQ WKH SUHIHUHQFHV RI D JHQHUDO SRSXODFH )LJXUH  ZKLOVWb b b b b b b b b b b b bSURYLGLQJ PDQDJHUV ZLWK XVHIXO LQIRUPDWLRQ RQ XVHQRQXVH SUHIHUHQFHV HFRV\VWHP VHUYLFHVb b b b b b b b b bDQGODQGXVHLQWHQVLW\bbb,17(*5$7('9$/8$7,212)%,2',9(56,7<bb)LJXUH  'HPRQVWUDWHV XVHU UHODWLRQV EDVHG RQ IRFXV JURXSV ZLWK YDULRXV ODQGVFDSHV DQG WKHLU UHVSHFWLYH HFRV\VWHP VHUYLFHb b b b b b b b b b b b b b b b bFDWHJRULHV /DQGVFDSH SUHIHUHQFHV DUH RUGHUHG IURP KLJKO\ SUHIHUUHG WRS WR OHDVW SUHIHUUHG ERWWRP $GDSWHG IURPb b b b b b b b b b b b b b b*DUF¯D/ORUHQWHHWDObbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b&XOWXUDODQG6RFLDO'LPHQVLRQVRI%LRGLYHUVLW\b$V VFKRODUV DQG SUDFWLWLRQHUV LQ WKH 6RFLDO(FRORJLFDO 6\VWHPV ILHOG KDYH HPSKDVL]HG QDWXUH DQGb b b b b b b b b b b b bSHRSOH DUH QRW GLFKRWRPRXV V\VWHPV UDWKHU VRFLDO DQG HFRORJLFDO V\VWHPV DUH LQWULQVLFDOO\ OLQNHGb b b b b b b b b b b b b)DELQ\L HW DO  )RONH HW DO  +ROOLQJ   -XVW DV SHRSOH KDYH WKH SRWHQWLDO WRb b b b b b b b b b b b b b b b b bLQIOXHQFH ELRGLYHUVLW\ ZLWKLQ DQ HFRV\VWHP WKH ORVVHV DQG JDLQV RI ELRGLYHUVLW\ FDQ DOVRb b b b b b b b b b b b bVLJQLILFDQWO\ LPSDFW SHRSOH ERWK SRVLWLYHO\ DQG QHJDWLYHO\ *ULIILWKV HW DO  ,W LV LQVXIILFLHQWb b b b b b b b b b b b b bWR DWWHPSW WR DVVHVV DQG PDQDJH HQYLURQPHQWDO UHVRXUFHV XVLQJ RQO\ ELRORJLFDO RU HFRQRPLFb b b b b b b b b b b b bLQIRUPDWLRQ DV LW ZRXOG LJQRUH DQ LPSRUWDQW HOHPHQW RI WKH V\VWHP 7KHUHIRUH WKH FXOWXUDO DQGb b b b b b b b b b b b b b bVRFLDO GLPHQVLRQV RI ELRGLYHUVLW\ DUH FULWLFDO FRPSRQHQWV WR LQFOXGH ZLWKLQ D ELRGLYHUVLW\ YDOXDWLRQb b b b b b b b b b b b bDSSURDFK /DXULOD3DQW HW DO  'HVSLWH WKLV VRFLRFXOWXUDO SHUVSHFWLYHV DUH RIWHQ RYHUORRNHGb b b b b b b b b b b bZLWKLQHQYLURQPHQWDOGHFLVLRQPDNLQJDQGPDQDJHPHQWSURFHVVHV+DXVPDQQHWDOb,Q RUGHU WR XQGHUVWDQG DQG PHDVXUH WKH FXOWXUDO DQG VRFLDO GLPHQVLRQV RI ELRGLYHUVLW\ DQb b b b b b b b b b b b b bHFRV\VWHP VHUYLFHV IUDPHZRUN LV FRPPRQO\ XVHG 6FKRODUV KDYH XVHG HFRV\VWHP VHUYLFHV DV Db b b b b b b b b b b b bEULGJH WR LQWHJUDWLQJ VRFLDO YDOXHV DQG GLPHQVLRQV LQWR HFRORJLFDO XQGHUVWDQGLQJV DVVHVVPHQWVb b b b b b b b b b bDQG PDQDJHPHQW &KDQ HW DO  'LD] HW DO  &£FHUHV HW DO :KLOH WKHUH DUH IODZVb b b b b b b b b b b b b b b b b bLQ XVLQJ DQ HFRV\VWHPV VHUYLFHV IUDPHZRUN QRWDEO\ LWV KLVWRULF LQDELOLW\ WR DFFRXQW IRUb b b b b b b b b b b b bVRFLRFXOWXUDO YDOXHV WKDW DUH LQWDQJLEOH DQGRU QRQPDWHULDO VXFK DV VSLULWXDO RU VHQVH RI SODFHb b b b b b b b b b b b b bYDOXHV )UDVHU HW DO  +DXVPDQQ HW DO  LW LV FKDOOHQJLQJ WR ILQG H[DPSOHV LQ WKHb b b b b b b b b b b b b b b b bOLWHUDWXUH WKDW DVVHVVHV WKH VRFLRFXOWXUDO YDOXHV RI ELRGLYHUVLW\ ZLWKRXW VRPH DSSOLFDWLRQ RI DQb b b b b b b b b b b b bHFRV\VWHPVVHUYLFHVIUDPHZRUNIRUH[FHSWLRQVVHH*ULIILWKVHWDOb&KDOOHQJLQJ WKRXJK LW PD\ EH VHYHUDO VWXGLHV KDYH DWWHPSWHG WR SURYLGH IUDPHZRUNV DQGb b b b b b b b b b b b bDSSURDFKHV WR JXLGH WKH DVVHVVPHQW RI FXOWXUDO DQG VRFLDO GLPHQVLRQV RI ELRGLYHUVLW\ 4XDQWLWDWLYHb b b b b b b b b b b b bDQG TXDOLWDWLYH WRROV KDYH EHHQ XVHG DOWKRXJK WKH FRQVHUYDWLRQ OLWHUDWXUH KDV QRWHG WKDW Db b b b b b b b b b b b b bPL[HGPHWKRG DSSURDFK WKDW DSSOLHV ERWK LQWHUSUHWLYLVW DV ZHOO DV SRVLWLYLVW WRROV LV PRUHb b b b b b b b b b b b bHIIHFWLYH LQ XQGHUVWDQGLQJ WKH VRFLRFXOWXUDO YDOXDWLRQ RI ELRGLYHUVLW\ )UDVHU HW DO  6RPH RIb b b b b b b b b b b b b bWKH PRVW FRPPRQPHWKRGV XVHGZLWKLQ WKH OLWHUDWXUH LQFOXGH LQ QR SDUWLFXODU RUGHU IRFXV JURXSVb b b b b b b b b b b b b b bVHPLVWUXFWXUHG LQWHUYLHZV VXUYH\VTXHVWLRQQDLUHV YDOXHEDVHG LQGH[HV SKRWRJUDSK\ DQG VRFLDOb b b b b b b bPHGLD DQG JHRVSDWLDO PDSSLQJ 6WXGLHV WKDW KDYH DSSOLHG WKHVHPHWKRGV DUH VXPPDUL]HG LQ 7DEOHb b b b b b b b b b b b b b DORQJ ZLWK VSHFLILF QRWHV IRU DSSO\LQJ HDFKPHWKRG LQ WKH 8%&9DQFRXYHU FRQWH[W 1RWH WKDW WKHb b b b b b b b b b b b b b b b bPDMRULW\RIVWXGLHVGLGQRWRQO\DSSO\RQHPHWKRGEXWLQVWHDGXVHGDFRPELQDWLRQRIWZRRUPRUHb7DEOH6XPPDU\RIPHWKRGVWRPHDVXUHWKHVRFLDODQGFXOWXUDOGLPHQVLRQVRIELRGLYHUVLW\b0HWKRGb 6DPSOHXVDJHb 1RWHVIRU8%&9DQFRXYHUb)RFXVJURXSVb &£FHUHVHWDOb Ɣ )RFXVJURXSVFRXOGEHVHSDUDWHGE\GLIIHUHQWVRFLDObDFWRUVLQFOXGLQJFRXOGEHVWXGHQWVIDFXOW\VWDIIHWFbƔ $YHU\FRPPRQZD\LQWKHOLWHUDWXUHWRLGHQWLI\bVRFLDOFXOWXUDOYDOXHVRIWHQYDOXHVDUHUHYHDOHGbWKURXJKVRFLDOLQWHUDFWLRQbƔ (QDEOHVWKHSDUWLFLSDWLRQRIPRUHVWDNHKROGHUVDQGbVRFLDODFWRUVWKDQLQWHUYLHZVDQGPRUHQXDQFHGGDWDbWKDQTXHVWLRQQDLUHVb)UDVHUHWDOb$VDK	%ODKQDb*ULIILWKVHWDObb,17(*5$7('9$/8$7,212)%,2',9(56,7<b0HWKRGFRQWèGb 6DPSOHXVDJHb 1RWHVIRU8%&9DQFRXYHUb,QWHUYLHZVb &£FHUHVHWDOb Ɣ 2IIHUVPRUHLQGHSWKDQGSHUVRQDOLQIRUPDWLRQWKDQbIRFXVJURXSVIRUTXHVWLRQQDLUHVbƔ +RZWRVHOHFWSDUWLFLSDQWVWRLQWHUYLHZZRXOGEHDbFKDOOHQJHWLPHFRQVXPLQJDQGQHHGWROLPLWWKHbQXPEHURISDUWLFLSDQWVb)UDVHUHWDOb6XUYH\VRUb4XHVWLRQQDLUHVb$VDK	%ODKQDb Ɣ $TXHVWLRQQDLUHWKDWLVFRGHVLJQHGZLWKVWDNHKROGHUVbLVRQHZD\WRHOLFLWDZLGHUUHVSRQVHWKDQRQO\XVLQJbIRFXVJURXSVRULQWHUYLHZVb*ULIILWKVHWDOb*NDUJNDYRX]L+DONRV	b0DWVLRULb9DOXHEDVHGb,QGH[HVb)UDVHUHWDOb Ɣ 8VHIXOIRUSXWWLQJPHWULFVDQGQXPEHUVRQbVRFLDOFXOWXUDOYDOXDWLRQb6XQHWDOb*NDUJNDYRX]L+DONRV	b0DWVLRULb6KHUURXVHHWDOb3KRWRJUDSK\DQGb6RFLDO0HGLDb2WHURV5R]DVHWDOb Ɣ $QLQWHUHVWLQJZD\WRLQYROYHSDUWLFLSDQWVLQWKHbUHVHDUFKSURFHVVJHWVWXGHQWVWRWDNHSKRWRVRIWKHbODQGVFDSHVRUSDUWVRI8%&WKH\YDOXHPRVWb6XQHWDOb*HRVSDWLDOb0DSSLQJWRROVb&£FHUHVHWDOb Ɣ 6RPXFKJHRVSDWLDOGDWDWKDWLVUHDGLO\DYDLODEOHDWb8%&RSSRUWXQLW\WROHYHUDJHWKDWGDWDbƔ 0HWKRGWRYLVXDOL]HVRFLDOFXOWXUDOYDOXDWLRQDQGDOLJQbZLWKH[LVWLQJGHYHORSPHQWVWUDWHJLHVWRROVb6XQHWDOb)UDVHUHWDOb6KHUURXVHHWDObb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b7KH IROORZLQJ WZR ER[HV RXWOLQH VSHFLILF FDVH VWXGLHV WKDW XVH XQLTXH WRROV WR PHDVXUH VRFLDO DQGb b b b b b b b b b b b b b b bFXOWXUDOYDOXHVRIELRGLYHUVLW\DQGHFRV\VWHPVHUYLFHVb&DVH6WXG\8VLQJ3KRWRJUDSK\WR8QGHUVWDQG5HVLGHQWVè6RFLDO9DOXHVLQDQ8UEDQ3DUNb,Q WKLV VWXG\ E\ 6XQ HW DO  WKH DXWKRUV XVHG SKRWRJUDSK\ DQG *,6 WR VWUHQJWKHQ WKHLUb b b b b b b b b b b b b b b b bXQGHUVWDQGLQJ RI WKH VRFLDO YDOXHV RI XUEDQ HFRV\VWHP VHUYLFHV WKDW DUH SURYLGHG E\ D ZHWODQGb b b b b b b b b b b b b b bSDUN LQ 6KDQJKDL 7KH SDUWLFLSDQWV ZHUH LQVWUXFWHG WR WDNH SKRWRV DW WKH SDUN RI DQ\WKLQJ WKDWb b b b b b b b b b b b b b b bSRVLWLYHO\ DIIHFWHG WKHLU H[SHULHQFH 3DUWLFLSDQWV DOVR ILOOHG RXW D SRVWH[SHULHQFH VXUYH\ WKDWb b b b b b b b b b b bLQFRUSRUDWHG VHYHUDO VRFLDO YDOXH W\SHV DHVWKHWLF HGXFDWLRQDO UHFUHDWLRQDO KLVWRULFb b b b b b b b bOLIHVXVWDLQLQJ DQG WKHUDSHXWLF 7KH DXWKRUV WKHQ DQDO\]HG WKH SKRWRV DQG XVHG WKH 6RFLDOb b b b b b b b b b b b b9DOXHV IRU (FRV\VWHP 6HUYLFHV 6RO9(6 PDSSLQJ WRRO WR FDOFXODWH D VSDWLDOO\RULHQWDWHG YDOXHb b b b b b b b b b b bLQGH[VHH&DVH6WXG\IRUPRUHLQIRUPDWLRQDERXW6RO9(6b7KH UHVXOWV VKRZHG WKDW WKH SDUN VXFFHVVIXOO\ SURYLGHV DHVWKHWLF ELRGLYHUVLW\ DQGb b b b b b b b b b bOLIHVXVWDLQLQJ YDOXHV EXW GRHV QRW SURYLGH VWURQJ HGXFDWLRQDO RU KLVWRULF YDOXHV E\ YLVLWRUV 7KHb b b b b b b b b b b b b bXVH RI SKRWRJUDSKV HQDEOHG WKH DXWKRUV WR HIIHFWLYHO\ GRFXPHQW WKH UHDOWLPH SHUFHSWLRQV DQGb b b b b b b b b b b b bRQVLWH H[SHULHQFHV RI WKH SDUWLFLSDQWV LQ FRPSDULVRQ WR DVNLQJ SDUWLFLSDQWV WR WKLQN EDFN WRb b b b b b b b b b b b b bWKHLU H[SHULHQFH E\ UHVSRQGLQJ WR TXHVWLRQQDLUHV RU HQJDJLQJ LQ LQWHUYLHZV RU IRFXV JURXSVb b b b b b b b b b b b bDIWHU WKH\ H[SHULHQFH WKH SDUN 7KLV LV DQ LQWHUHVWLQJ H[SORUDWLRQ RI D VRPHZKDW PRUHb b b b b b b b b b b b b bXQFRQYHQWLRQDOYDOXDWLRQPHWKRGbb&DVH6WXG\6RFLDO9DOXHVIRU(FRV\VWHP6HUYLFHV6RO9(6b6RFLDO 9DOXHV IRU (FRV\VWHP 6HUYLFHV 6RO9(6 KWWSVROYHVFUXVJVJRY ZDV GHYHORSHG E\ WKHb b b b b b b b b b b8QLWHG 6WDWHV *HRORJLFDO 6XUYH\ 86*6 LQ  6KHUURXVH HW DO  6RO9(6 KHOSV WR DVVHVVb b b b b b b b b b b b b b bPDS DQG TXDQWLI\ WKH SHUFHLYHG VRFLDO YDOXHV RI HFRV\VWHP VHUYLFHV LQFOXGLQJ FXOWXUDO YDOXHVb b b b b b b b b b b b bE\ FDOFXODWLQJ D TXDQWLWDWLYH SRLQW YDOXHPHWULF D ê9DOXH ,QGH[ë XVLQJ ERWK QRQVSDWLDO DQGb b b b b b b b b b b b b bVSDWLDOUHVSRQVHVWRSXEOLFYDOXHDQGSUHIHUHQFHVXUYH\Vb6RO9(6 ZRUNV ZLWK $UF*,6 DQG VRRQ 4*,6 LV IUHH WR GRZQORDG DQG XVH DQG FDQ EH FRPELQHGb b b b b b b b b b b b b b b b bDQG OD\HUHG ZLWK HQYLURQPHQWDO VSDWLDO GDWD ,QGH[ YDOXHV FDQ EH FRPSDUHGZLWKLQ DQG EHWZHHQb b b b b b b b b b b b b bVXUYH\ VXEJURXSV IDFLOLWDWLQJ WKH UHIOHFWLRQ RI GLIIHULQJ LQWHUHVWV DQG QHHGV DFURVV VRFLDO DFWRUb b b b b b b b b b b b bJURXSV ,W LV DQ LQWHUHVWLQJ DQG XVHIXO WRRO WR TXDQWLI\ WKH VRFLDO YDOXHV RI HFRV\VWHP VHUYLFHV LQ Db b b b b b b b b b b b b b b b b bQRQPRQHWDU\ IUDPH DQG WR YLVXDOL]H KRZ VRFLDO YDOXHV H[LVW DQG FKDQJH DFURVV D ODQGVFDSHb b b b b b b b b b b b b b6LQFH LWV GHYHORSPHQW LQ  LW KDV EHHQ XVHG WR PDS WKH VRFLDO YDOXHV RI HFRV\VWHP VHUYLFHVb b b b b b b b b b b b b b b b bRI QDWLRQDO SDUNV ZDWHUVKHGV DQG RWKHU ODQGVFDSHV LQ WKH 8QLWHG 6WDWHV $XVWUDOLD 3HUX &KLQDb b b b b b b b b b b b b b-DSDQDQG.RUHDbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b8UEDQ6\VWHPèV5ROHLQ%LRGLYHUVLW\(FRV\VWHP6HUYLFHVb7KLV VHFWLRQ H[SORUHV WKH OLQN EHWZHHQ WKH EXLOW HQYLURQPHQW DQG ELRGLYHUVLW\ 7KH EXLOWb b b b b b b b b b b b bHQYLURQPHQW LQFOXGHV DOO PDQPDGH VWUXFWXUHV DQG FXOWXUDO ODQGVFDSHV WKDW PDGH XS D VRFLHW\b b b b b b b b b b b b bFRQVLVWLQJ RI WKH SK\VLFDO QDWXUDO HFRQRPLF VRFLDO DQG FXOWXUDO FDSLWDO +ROOQDJHO  7KHb b b b b b b b b b b b bXUEDQL]DWLRQ SURFHVV KDV GHVWUR\HG DQG IUDJPHQWHG WKH QDWXUDO HFRV\VWHP FUHDWLQJ D IXQFWLRQDOO\b b b b b b b b b b b bGLVWLQFWLYH EXLOW HQYLURQPHQW HFRV\VWHP PDGH XS RI ERWK QDWLYH DQG QRQQDWLYH ELRGLYHUVLW\b b b b b b b b b b b bFRPSRQHQWV 0¾OOHU HW DO  &RQVHUYLQJ ELRGLYHUVLW\ LV QRW VLPSO\ VHWWLQJ DVLGH XQGHYHORSHGb b b b b b b b b b b b bODQG WKH LQWHUDFWLRQ EHWZHHQ WKH QDWXUDO DQG EXLOW HQYLURQPHQW LV G\QDPLF DQG UHTXLUHV ZKROHb b b b b b b b b b b b b bV\VWHPWKLQNLQJ+RVWHWOHUHWDOb,Q WKH GLVFXVVLRQ EHWZHHQ WKH çEXLOW HQYLURQPHQWèb b b b b b bDQG QDWXUDO HQYLURQPHQW WKH UHODWLRQDO GHILQLWLRQb b b b b bRI çEXLOW HQYLURQPHQWè ZLOO PRUH SUHFLVHO\ EHb b b b b b bXQGHUVWRRG DV D V\VWHP )RU FODULW\ WKH çEXLOWb b b b b b b bHQYLURQPHQWè LV GLVFXVVHG DV DQ XUEDQ V\VWHP $Qb b b b b b b bXUEDQ V\VWHP FDQ EH FRQFHSWXDOL]HG DV RI D FLW\b b b b b b b b b)LJXUH  ZKHUH HQHUJ\ DQG UHVRXUFH DUHb b b b b b bFRQYHUWHG WR SURGXFH ZDVWH DQG SROOXWLRQ LQb b b b b b bZKLFK LW DOVR FRQVLVWV RI PXOWLOHYHO VXEV\VWHPV LHb b b b b b b bD WUDIILF V\VWHP LQ WKH FLW\ FRQVLVWV RI FDUVb b b b b b b b bVXEV\VWHP WKDW FRQVXPHV IXHO DQG SURGXFHb b b b b bPRELOLW\ ZKHUHE\ D FDU DOVR FRQVLVWV RI D EDWWHU\b b b b b b b b bV\VWHP VXEV\VWHP FRPSRQHQW ZLWKLQ LWVHOIb b b b bZKLFK XVHV ZDWHU IRU HOHFWULFLW\ RXWSXWb b b b b b+DUDOGVVRQbb)LJXUH  $ FDU EDWWHU\ LV D VXEV\VWHP RI D YHKLFOH DQG YHKLFOHV DUH Db b b b b b b b b b b b b b bVXEV\VWHPRIWKHFLW\WUDIILFVRXUFH+DUDOGVVRQSb7R KDYH DQ HIILFLHQW V\VWHP DQDO\VLV LW LV LPSRUWDQW WR UHFRJQL]H WKDW PRVW RI WKH GHFLVLRQPDNLQJb b b b b b b b b b b b b b b bSURFHVV LV WDNLQJ SODFH ZLWKLQ WKH XUEDQ V\VWHP +ROOQDJHO  EHFDXVH LW LV KRZ WKH XUEDQb b b b b b b b b b b b b b b bV\VWHP ZRUNV WKDW ZLOO LQIOXHQFH WKH SHUIRUPDQFH RI WKH HFRV\VWHPV 8UEDQ V\VWHPV KDQGOH DQGb b b b b b b b b b b b b bSURFHVV UHVRXUFHV DQG SURGXFH SURGXFWV VHUYLFHV DQGZDVWHV 7KH ZD\ XUEDQ V\VWHPVZRUNPDGHb b b b b b b b b b b b b bFLWLHV WKH DJJORPHUDWLRQ RI FRPSOH[ LQWHUDFWLRQV EHWZHHQ LQWHUQDO DQG H[WHUQDO V\VWHPV DV ZHOO DVb b b b b b b b b b b b b bWKHLU FXPXODWLYH HIIHFWV 6DVVHQ  +XPDQV DV D SRSXODWLRQ LQ WKH XUEDQ V\VWHP DUH WKHb b b b b b b b b b b b b b bFRQVXPHUV RI WKH HFRV\VWHP VHUYLFHV LV DOVR WKH ELRGLYHUVLW\ WKDW VXSSRUWV WKH SURYLVLRQ RIb b b b b b b b b b b b b bHFRV\VWHP VHUYLFHV LH ODQGVFDSH GHVLJQ WKDW SURYLGHV FXOWXUDO VHUYLFHV ZKLFK FDQ EH FRQWULEXWHGb b b b b b b b b b b b bE\ WKH HWKQLF GLYHUVLW\ RI WKH SRSXODWLRQ 7KDW WR VD\ DOWHULQJ WKH ZD\ DQ XUEDQ V\VWHP ZRUNVb b b b b b b b b b b b b b b b bFRXOGRSWLPL]HWKHVXVWDLQDELOLW\RIELRGLYHUVLW\WKDWVXSSRUWVLW2SRNXbb:H KDYH HVWDEOLVKHG HDUOLHU WKDW WKH KHDOWK DQG DEXQGDQFH RI ELRGLYHUVLW\ VXEV\VWHP FRPSRQHQWb b b b b b b b b b b b bZLOO VXSSRUW WKH SURYLVLRQ RI HFRV\VWHP VHUYLFHV WR VXVWDLQ KXPDQZHOOEHLQJ 6HGGRQ HW DO b b b b b b b b b b b b b b b8QIRUWXQDWHO\ WKH HIIHFW RI WKH H[SDQVLRQ RI WKH XUEDQ V\VWHP RIWHQ FRQWULEXWHV WR WKH ORVV RIb b b b b b b b b b b b b b b bELRGLYHUVLW\ )RUHVWHU 	 0DFKOLVW  ZKLOH WKH UHODWLRQVKLS EHWZHHQ ODQGXVH FKDQJH DQGb b b b b b b b b b b bELRGLYHUVLW\ORVVHVLVKDUGO\XQGHUVWRRGHPSLULFDOO\GH&KD]DO	5RXQVHYHOObb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b$OWKRXJK WKH DSSUHFLDWLRQ RI ELRGLYHUVLW\ LV EURDGO\ DFFHSWHG LW LV XQGHUPLQHG IRU LQVWDQFH WKHb b b b b b b b b b b b b bLQGLUHFW KHDOWK YDOXH ORVW LQ HFRQRPLF YDOXDWLRQ LH WKH WKHUDSHXWLF HIIHFWV RI XUEDQ WUHHV RU WKHb b b b b b b b b b b b b b b bRXWEUHDN RI LQIHFWLRXV GLVHDVH GXH WR DOWHUDWLRQ LQ ELRGLYHUVLW\ HTXLOLEULD %URZQ 	 *UDQW b b b b b b b b b b b b b b*ULIR 	 5RVHQWKDO  5HFRJQL]LQJ WKH LPSRUWDQFH RI ELRGLYHUVLW\ GRHV QRW OHDG WR DQ XUEDQb b b b b b b b b b b b b b bV\VWHP GHFLVLRQ RQ FRQVHUYLQJ ELRGLYHUVLW\ PRUH DSSDUHQW LI LWV YDOXDWLRQ IDLOV WR FRQVROLGDWH LQWRb b b b b b b b b b b b b bPDLQVWUHDP DFFRXQWLQJ IUDPHZRUN ,Q WKH GHFLVLRQ FRQWH[W IRU HFRV\VWHP YDOXDWLRQV WKHb b b b b b b b b b bPRQHWDU\ YDOXHV IRU DZDUHQHVVUDLVLQJ HFRQRPLF DFFRXQWLQJ SULRULW\VHWWLQJ LQFHQWLYH GHVLJQb b b b b b b b bDQG OLWLJDWLRQ DUH RIWHQ IRUHJURXQGHG DJDLQVW WKH XQGHUO\LQJ YDOXHV %DUWRQ HW DO  SSb b b b b b b b b b b b b båbb7KH YDOXDWLRQ RI ELRGLYHUVLW\ LQ UHODWLRQ WR WKH XUEDQ V\VWHP LV OLPLWHG ZKLFKPDQ\ FXUUHQW VWXGLHVb b b b b b b b b b b b b b b bDUH EDVHG RQ WKH YDOXDWLRQ RI WKH HFRV\VWHP VHUYLFHV LQVWHDG0DQ\ HFRV\VWHP VHUYLFHV YDOXDWLRQb b b b b b b b b b b b b bXVHG IRU XUEDQ JRYHUQDQFH LQFUHDVLQJO\ GHPDQGV VSDWLRWHPSRUDOO\ ULFK DQG PXOWLVFDODU DQDO\VLVb b b b b b b b b b bZKLFK FDQ EH DOVR FRVWO\ WR SURGXFH *µPH]%DJJHWKXQ HW DO  6RPH RI WKH PDLQVWUHDPb b b b b b b b b b b b b b bPRQHWDU\ PHWKRGV XVHG IRU XUEDQ HFRV\VWHP VHUYLFHV YDOXDWLRQV LQFOXGH KHGRQLF SULFLQJ WUDYHOb b b b b b b b b b b bFRVW DYRLGHG FRVW SURGXFWLRQ RU GDPDJH IXQFWLRQV UHSODFHPHQW FRVW DQG VWDWHG SUHIHUHQFHb b b b b b b b b b b b*µPH]%DJJHWKXQ 	 %DUWRQ  0RUH HFRQRPLF YDOXDWLRQ VHH QH[W VHFWLRQ RI WKLV UHSRUWb b b b b b b b b b b b b5HYLHZV RI KXQGUHGV RI VWXGLHV RQ XUEDQ V\VWHPV PDUNHGO\ FRQFOXGHG ZLWK DQWLFLSDWHGb b b b b b b b b b b bLQFRPSUHKHQVLRQ HVSHFLDOO\ WKH NQRZOHGJH JDS LQ ELRORJLFDO DQG FXOWXUDO FRPSOH[LW\ %RW]DW HW DOb b b b b b b b b b b b b*µPH]%DJJHWKXQ	%DUWRQ+XEDFHN	.URQHQEHUJb&DVH6WXG\9DOXDWLRQRIXUEDQHFRV\VWHPVHUYLFHVGLIIHUVE\VWDNHKROGHUVSHUVSHFWLYHb,W LV ZRUWK QRWLQJ WKH YDOXDWLRQ RI WKH XUEDQ HFRV\VWHP VHUYLFHV GLIIHUV LQ PHWKRGV GHSHQGLQJ RQb b b b b b b b b b b b b b b bWKH VWDNHKROGHUèV SHUVSHFWLYH +XEDFHN DQG .URQHQEHUJ  V\QWKHVL]H  ZRUNV RIb b b b b b b b b b bOLWHUDWXUH RQ XUEDQ V\VWHPV LQWR ILYH EURDG FDWHJRULHV PRGHOOLQJ VWXGLHV JRYHUQDQFH WRROVb b b b b b b b b b b bHFRQRPLFV DQG VRFLDO :LWK GLIIHUHQW SHUVSHFWLYHV DQG IRFXVHV RQ DVVHVVLQJ XUEDQ HFRV\VWHPb b b b b b b b b b b bVHUYLFHV IRU GHFLVLRQ PDNLQJ \LHOGV D P\ULDG RI YDOXHV D GLUHFW FRUUHODWLRQ EHWZHHQ GLIIHUHQWb b b b b b b b b b b b b bYDOXDWLRQ LV DOPRVW LPSRVVLEOH LH SDWKZD\ RULHQWHG SROLF\ LQVWUXPHQW YHUVXV FRVWEHQHILWb b b b b b b b b b bDQDO\VLV 7KH IROORZLQJ FKDUW H[DPLQHV WKH /LYLQJ0HOERXUQH 8UEDQ )RUHVW 6WUDWHJ\ WKURXJK WKHb b b b b b b b b b b b bOHQV RI +XEDFHN DQG .URQHQEHUJ èV ILYH SHUVSHFWLYHV WR VKRZ WKH REYLRXV PLVPDWFK LQb b b b b b b b b b b b b bYDOXDWLRQPHWULFVb&DWHJRU\b 0RGHOOLQJVWXGLHVb *RYHUQDQFHb 7RROVb (FRQRPLFVb 6RFLDOb3HUVSHFWLYHb (QYLURQPHQWDOb6FLHQFHbb(FRV\VWHPb0DQDJHPHQWb8UEDQ3ODQQLQJb6XSSRUWb(FRQRPLFb 6RFLDO6FLHQFHb)RFXVb0HWKRGVb(FRV\VWHPbFRPSRQHQWVbW\SHVLQWHUDFWLRQVb,QVWLWXWLRQDObVWUXFWXUHSROLF\bLQVWUXPHQWVbDQDO\WLFDOWRROVb$SK\VLFDOWRRObPRGHOOLQJWRROVbVSDWLDODQGbDQDO\WLFDObIUDPHZRUNb9DOXDWLRQVWXGLHVbFRVWEHQHILWbDQDO\VHVHFRQRPLFbFRQVHTXHQFHVb6RFLDObEHKDYLRXUbSHUFHSWLRQDQGbQRUPVbb/LYLQJb0HOERXUQHb6WUDWHJ\bELRGLYHUVLW\bPHWULFVb&DQRS\PDSSLQJbDQGELUGVSHFLHVbKDELWDWOLNHOLKRRGbPRGHOOLQJb3HUFHQWDJHRIWUHHbFDQRS\FRYHUbWDUJHWVSHFLHVbGLYHUVLW\b(FRORJLFDObFRQQHFWLYLW\JXLOGbSODQQLQJb7KHPDUNHWYDOXHbRIKRQH\bSURGXFWLRQIURPbEHHVUHYHQXHIURPbSDUNWRXULVWVb$FFHVVWRbQDWXUHIRUbSK\VLFDODQGbPHQWDOKHDOWKb)LJXUH  $QDO\]LQJ /LYLQJ 0HOERXUQH 8UEDQ )RUHVW 6WUDWHJ\ YDOXDWLRQ PHWULFV 7KH 1DWXUH &RQVHUYDQF\ 	 5HVLOLHQW 0HOERXUQHb b b b b b b b b b b b b b b bXVLQJWKHW\SRORJ\DGDSWHGIURP+XEDFHNDQG.URQHQEHUJèVILYHSHUVSHFWLYHVRIXUEDQHFRV\VWHPVHUYLFHVbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b2QH RI WKH FULWLFDO PLVVLQJ FRQQHFWLRQV LQ YDOXLQJ HFRV\VWHP VHUYLFHV LV WKH êVFDQW NQRZOHGJH RQb b b b b b b b b b b b b b bKRZ WKH\ DUH SURGXFHG PDLQWDLQHG DQG DIIHFWHG E\ D V\VWHP RU DELRWLF FKDQJHV DQG KRZ WKH\ DUHb b b b b b b b b b b b b b b b bUHODWHG WR OHYHOV RI ELRGLYHUVLW\ë GH *URRW HW DO  S  ,W LV KLJKO\ FDXWLRQHG WKDW WDUJHWLQJ Db b b b b b b b b b b b b b b b b b bVSHFLILF HFRV\VWHP VHUYLFH YDOXH ZRXOG QHJOHFW LWV RWKHU DWWULEXWHV LQ WKH XQGHUSLQQLQJb b b b b b b b b b b bELRGLYHUVLW\ VWUXFWXUH DQG IXQFWLRQLQJ LQ WKH HFRV\VWHP WKXV LW LV EHWWHU WR HPEHG ELRGLYHUVLW\ LQb b b b b b b b b b b b b b bWKH FRUH RI DOO LQWHUDFWLQJ HFRV\VWHP FRPSRQHQWV WKDW FRQQHFW D FROOHFWLRQ RI YDOXHV &DYDQDJK HWb b b b b b b b b b b b b b bDObb&DVH6WXG\0DSSLQJHFRV\VWHPVHUYLFHVFDSDFLW\IORZDQGGHPDQGb2QH ZD\ WR LQWHJUDWH HFRORJLFDO DQG FXOWXUDO YDOXHV LQ ODQG XVH SODQQLQJ LV WKH XVH RI HFRV\VWHPb b b b b b b b b b b b b b b b bVHUYLFHV PDSSLQJ WKDW LQFRUSRUDWHG FDSDFLW\ IORZ DQG GHPDQG 7KLV HFRV\VWHP VHUYLFHV VSDWLDOb b b b b b b b b b b bVWXG\ DQDO\]HV WKH YDOXHV IRU RXWGRRU UHFUHDWLRQ DQG DLU SXULILFDWLRQ WR LQIRUP XUEDQ SODQQLQJb b b b b b b b b b b b b bSROLF\ LQ %DUFHORQD %DUµ HW DO  7KLV VSDWLDO PRGHOOLQJ WRRO SUHVHQWV D FRPSUHKHQVLYHb b b b b b b b b b b b b bSLFWXUH RI WKH HFRV\VWHP VHUYLFHV GHOLYHU\ WKDW HQFRPSDVVHV VRFLDO DQG HFRORJLFDO GLPHQVLRQVb b b b b b b b b b b bIRUPHDQLQJIXOSROLF\FRQVLGHUDWLRQbbb)LJXUH  &DSDFLW\ IORZ GHPDQG DQG XQVDWLVILHG GHPDQG PDSV XUEDQUXUDO JUDGLHQWV FKDUW IRU DLU SXULILFDWLRQ DQG RXWGRRUb b b b b b b b b b b b b b b b bUHFUHDWLRQUHODWLYHWRDQGIURPWKHXUEDQFRUHVRXUFH%DUµHWDOSSbb,QVWHDG RI D OLQHDU YDOXDWLRQ DOWHUQDWLYH DSSURDFKHV IRU HIIHFWLYH XUEDQ ELRGLYHUVLW\ FRQVHUYDWLRQb b b b b b b b b b b bDUHRIWHQDGYRFDWHGKHUHDUHWKUHHH[DPSOHVbb 1R VLQJOH UDQNLQJ RI HQYLURQPHQWDO JRDOV XVLQJ SXEOLF GHULYHG YDOXHV HFRQRPLF FXOWXUDOb b b b b b b b b b b bDQG DHVWKHWLF ZLOO EH DGHTXDWH WR SURWHFW ELRGLYHUVLW\ D KLHUDUFKLFDO DSSURDFK FDQ SUHYHQWb b b b b b b b b b b b bDSROLF\JULGORFN1RUWRQ	8ODQRZLF]5HIHUWRFDVHVWXG\b 5HFRJQL]LQJ WKH QHRFODVVLFDO HFRQRPLVWVè IDLOXUH WR PHDVXUH HFRORJLFDO VFDUFLW\ LQ QDWXUDOb b b b b b b b b b bVWRFNV 6DVVHQ  SURSRVHV WKH HFRORJLFDOHFRQRPLF PRGHO ZKHUHE\ KXPDQV PXVW OLYHb b b b b b b b b b bRQQDWXUDOLQFRPHSURGXFHGE\WKHUHPDLQLQJQDWXUDOFDSLWDObb )RU FREHQHILFLDO SXUVXLW YDOXDWLRQ RQ WKH SRWHQWLDO KHDOWK EHQHILWV IURP LQYHVWPHQW LQb b b b b b b b b b b bQDWXUDO FDSLWDO FRXOG DWWUDFW IXQGLQJ FRQWULEXWLRQV IURP RWKHUZLVH XQOLNHO\ VRXUFHV )RUb b b b b b b b b b bLQVWDQFH OLQNLQJ WKH EHQHILW RI WUHH SODQWLQJ WR KHDOWK EHQHILWV WR VHFXUH IXQGLQJ IURP KHDOWKb b b b b b b b b b b b b b bVHFWRUVIRUSURPRWLQJDKHDOWKLHUHQYLURQPHQW5HIHUWRFDVHVWXG\bbbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b&DVH6WXG\+LHUDUFK\RIOHJLVODWLRQDQGSDWKZD\WRGHFLVLRQPDNLQJDSSURDFKb7KH6WDWHRI9LFWRULDèV0DULQHDQG&RDVWDO3ROLF\XVHVDSDWKZD\DSSURDFKWRPDNHELRGLYHUVLW\bFRQVHUYDWLRQSURWHFWHGE\WKHOHJLVODWLRQIURPKDUPIXOGHYHORSPHQWSODQQLQJbbb)LJXUH3ODQQLQJDQGGHFLVLRQSDWKZD\GHYHORSHGWRSULRULWL]HHQYLURQPHQWSURWHFWLRQIURPKDUPIXOGHYHORSPHQWVRXUFH7KHbVWDWHRI9LFWRULDbb&DVH6WXG\/LQNLQJFREHQHILFLDOSXUVXLWIRULQQRYDWLYHIXQGLQJVWUHDPVb/LQNLQJ WKH EHQHILW RI LQFUHDVHG XUEDQ IRUHVWU\ WR WKH RYHUDOO KHDOWK RXWFRPH WR VHFXUH IXQGLQJb b b b b b b b b b b b b b bIURP KHDOWK VHFWRUV IRU SURPRWLQJ D KHDOWKLHU HQYLURQPHQW DQ H[DPSOH IURP WKH /LYLQJb b b b b b b b b b b b b0HOERXUQH 8UEDQ )RUHVW 6WUDWHJ\ 9DOXLQJ WKH SRWHQWLDO EHQHILW WUDQVIHU FRXOG VHFXUH IXQGLQJb b b b b b b b b b b bIURPRWKHUZLVHXQOLNHO\VWDNHKROGHUVbb)LJXUH  ,QQRYDWLYH IXQGLQJ VWUHDPV LQ WKH /LYLQJ 0HOERXUQH 8UEDQ )RUHVW 6WUDWHJ\ VRXUFH 7KH 1DWXUH &RQVHUYDQF\ 	 5HVLOLHQWb b b b b b b b b b b b b b b b b b0HOERXUQHSbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b(FRQRPLF9DOXDWLRQRI%LRGLYHUVLW\b,W LV XQDUJXDEOH WKDW QDWXUDO FDSLWDO DQG HFRV\VWHP VHUYLFHV KROG DQ HQRUPRXV HFRQRPLF YDOXH Db b b b b b b b b b b b b b bYDOXH WKDW FDQ HYHQ EH VDLG WR EH LQILQLWH &RVWDQ]D  ,Q WKHLU VHPLQDO SDSHU &RVWDQ]D HW DOb b b b b b b b b b b b b b b b b b HVWLPDWHG WKH DQQXDO YDOXH RI WKH ZRUOG HFRV\VWHP VHUYLFHV DW 86 WULOOLRQ LQ b b b b b b b b b b b b b b b86b:K\VKRXOGZHGRHFRQRPLFYDOXDWLRQ"b7KH YDOXDWLRQ RI HFRV\VWHP VHUYLFHV FDQ EH WKRXJKW RI DV XQGHVLUDEOH EHFDXVH LW IHHOV FUDVV WR SXWb b b b b b b b b b b b b b b b bD SULFH RQ VXFK êLQWDQJLEOHVë FRQFHSWV RU EHFDXVH FRQVHUYDWLRQ RI HFRV\VWHPV VKRXOG EH SXUHO\b b b b b b b b b b b b b bPRUDO &RVWDQ]D  7KDW EHLQJ VDLG &RVWDQ]D  DUJXHG WKDW PRUDO DQG HFRQRPLFb b b b b b b b b b b b bDUJXPHQWV DUH QRW PXWXDOO\ H[FOXVLYH DQG WKDW ZH FDQ UHIOHFW RQ ERWK LQ SDUDOOHO 7KHUHIRUHb b b b b b b b b b b b b b bGLVPLVVLQJ WKH HFRQRPLF YDOXDWLRQ RI ELRGLYHUVLW\ RQPRUDO KLJK JURXQG LV QRW UHFRPPHQGHG %RWKb b b b b b b b b b b b b bWKHIUDPHZRUNVGLVFXVVHGDERYHDQGHFRQRPLFIUDPHZRUNVFDQEHFRQVLGHUHGVLPXOWDQHRXVO\bb+HUH DUH D IHZ FRQFUHWH UHDVRQV DV WR ZK\ ZH VKRXOG XVH HFRQRPLF YDOXDWLRQ 3DVFXDO HW DOb b b b b b b b b b b b b b b b bbb &UHDWHPDUNHWVIRUQDWXUDODVVHWVDQGDGGUHVVPDUNHWIDLOXUHVbb 8QGHUVWDQGDQGDSSUHFLDWHWKHRSSRUWXQLW\FRVWbb 0D\EHXVHIXOIRUJRYHUQPHQWVWRGHVLJQELRGLYHUVLW\DQGFRQVHUYDWLRQSROLFLHVbb,Q EULHI WKH HFRQRPLF YDOXDWLRQ RI ELRGLYHUVLW\ LV GHVLUDEOH IRU DQ LQVWLWXWLRQ OLNH 8%& EHFDXVH LWb b b b b b b b b b b b b b b bFDQ DOORZ GHFLVLRQPDNHUV WR FRPSDUH WKH YDOXH RI FKDQJH LQ ELRGLYHUVLW\ ZLWK WKH YDOXH RIb b b b b b b b b b b b b b bDOWHUQDWLYHRSWLRQVHJLQYHVWPHQWSURMHFWV1XQHV	YDQGHQ%HUJKb9DOXDWLRQ7HFKQLTXHV7KH JRDO RI HFRQRPLF YDOXDWLRQ LV WR H[SOLFLWO\ VWDWH WUDGHRIIV %DUWNRZVNL  DQG WR FRQYH\b b b b b b b b b b b b b b bLQIRUPDWLRQ WR VRFLHW\ DERXW WKH VFDUFLW\ RI UHVRXUFHV 3DVFXDO HW DO  (FRV\VWHPV DUH VFDUFHb b b b b b b b b b b b b b bLQ HFRQRPLF WHUPV EHFDXVH WKHLU FRQVHUYDWLRQ FDUULHV DQ RSSRUWXQLW\ FRVW 3DVFXDO HW DO b b b b b b b b b b b b b b7KDW EHLQJ VDLG HFRQRPLF YDOXDWLRQ RI HFRV\VWHPV LV XQGHQLDEO\ DQ DQWKURSRFHQWULF DSSURDFKb b b b b b b b b b b bVLQFH HFRV\VWHPV DUH YLHZHG DV WRROV WR LPSURYH KXPDQ ZHOOEHLQJ %DUWNRZVNL  7KURXJKb b b b b b b b b b b b bHFRQRPLF YDOXDWLRQ ZH FDQ PHDVXUH WKH YDOXH RI PDUJLQDO FKDQJHV LQ WKH VXSSO\ RI HQYLURQPHQWDOb b b b b b b b b b b b b b bJRRGVDQGVHUYLFHV3DVFXDOHWDO%DUWNRZVNLb$OWKRXJK QRW WKH RQO\ YDOXDWLRQ SDUDGLJP PRVW HFRQRPLF YDOXDWLRQ RI HFRV\VWHPV DUH EDVHG RQb b b b b b b b b b b b b bWKH WRWDO HFRQRPLF YDOXDWLRQ IUDPHZRUN FRQFHSW 7(9 5DQGDOO  ZKLFK LV GHILQHG DV WKH VXPb b b b b b b b b b b b b b bRI WKH YDOXHV RI DOO VHUYLFH IORZV JHQHUDWHG E\ QDWXUDO FDSLWDO QRZ DQG LQ WKH IXWXUH 3DVFXDO HW DOb b b b b b b b b b b b b b b b b b b 7KH LGHD WKDW HFRV\VWHPV KDYH XVH YDOXH DQG QRQXVH YDOXH WKDW VWHPV IURP WKHLU H[LVWHQFHb b b b b b b b b b b b b b b bIRU IXWXUH JHQHUDWLRQV GDWHV EDFN WR .UXWLOODèV SDSHU FDOOHG &RQVHUYDWLRQ UHFRQVLGHUHG b b b b b b b b b b b b&RQFHSWXDOO\ WKH WRWDO HFRQRPLF YDOXH DWWULEXWHG WR DQ HFRV\VWHP FDQ EH VHHQ LQ )LJXUH b b b b b b b b b b b b b b b0HWDDQDO\VHV KDYH VKRZQ WKDW LQGLUHFW XVHYDOXH LV WKH PRVW HFRQRPLFDOO\ YDOXDEOH DVSHFW RIb b b b b b b b b b b b bELRGLYHUVLW\ &RVWDQ]D HW DO  GXH WR LWV LPSDFW RQ HFRV\VWHP VHUYLFHV )DUQVZRUWK HW DOb b b b b b b b b b b b b b b )RU PRUH GHWDLOV WKH ILIWK FKDSWHU RI 7KH (FRQRPLFV RI (FRV\VWHPV DQG %LRGLYHUVLW\ 7((%b b b b b b b b b b b b b b b.XPDUJLYHVH[DPSOHVIRUHDFKRIWKHVHXVHDQGQRQXVHYDOXHVbb,17(*5$7('9$/8$7,212)%,2',9(56,7<bbb)LJXUH7RWDO(FRQRPLF9DOXHIUDPHZRUNIRUHFRV\VWHPVDQGELRGLYHUVLW\$GDSWHGIURP3DVFXDOHWDODQG%DUWNRZVNLb:H ZLOO IRFXV RQ HFRQRPLF YDOXDWLRQ WKURXJK VWDWHG SUHIHUHQFH DSSURDFKHV WKDW KDYH WKHb b b b b b b b b b b b bSRWHQWLDO WR FDSWXUH ERWK XVH DQG QRQXVH YDOXHV 3DVFXDO HW DO  7KH JRDO RI WKHVHPHWKRGVb b b b b b b b b b b b b b b b bLV WR VLPXODWH D PDUNHW DQG GHPDQG IRU HFRV\VWHP VHUYLFHV WKURXJK VXUYH\V RQ WKHRUHWLFDOb b b b b b b b b b b b b bFKDQJHV LQ WKH SURYLVLRQ RI HFRV\VWHP VHUYLFHV 3DVFXDO HW DO  9DOXHV DUH DWWULEXWHG WRb b b b b b b b b b b b b b bQDWXUDO DVVHWV WKURXJK SHRSOHèV ZLOOLQJQHVV WR SD\ :73 IRU WKH VHUYLFHV WKDW HPHUJH IURP WKHb b b b b b b b b b b b b b bDVVHWV 3DVFXDO HW DO  (FRQRPLF YDOXHV DUH KRZHYHU QRW GHILQLWLYH %DUWNRZVNL  EXWb b b b b b b b b b b b b bUDWKHU KHWHURJHQHRXV LQ VSDFH DQG WLPH DQG GHSHQGHQW RQ VRFLRHFRQRPLF FRQWH[WV %DUELHU HW DOb b b b b b b b b b b b b bb7KH PRVW XVHG W\SHV RI VWDWHG SUHIHUHQFH VXUYH\V IRU WKH YDOXDWLRQ RI ELRGLYHUVLW\ DQG HFRV\VWHPb b b b b b b b b b b b b b bVHUYLFHVDUHbb &RQWLQJHQW 9DOXDWLRQ &9 5HVSRQGHQWV DUH DVNHG WKURXJK TXHVWLRQQDLUHV KRZ PXFK WKH\b b b b b b b b b b bZRXOGEHZLOOLQJWRSD\WRLQFUHDVHWKHSURYLVLRQRIHFRV\VWHPVHUYLFH3DVFXDOHWDObb 'LVFUHWH &KRLFH ([SHULPHQW &( 5HVSRQGHQWV DUH SUHVHQWHGZLWK D OLVW RI PXOWLSOH PXWXDOO\b b b b b b b b b b b b bH[FOXVLYH FKRLFHV DVVRFLDWHG ZLWK D YDOXH DQG WKH\ KDYH WR VWDWH WKHLU SUHIHUHQFH DPRQJ WKHb b b b b b b b b b b b b b bFKRLFHV+R\RV7KHUHLVDWUDGHRIIEHWZHHQHDFKFKRLFHLELGb%LRGLYHUVLW\ LV D PXOWLOHYHO FRQFHSW RUJDQLVPV WD[RQRPLF FRPPXQLW\ WKDW FDQ EH PHDVXUHG LQb b b b b b b b b b b b bYDULRXV ZD\V HJ VWUXFWXUDO GLYHUVLW\ IXQFWLRQDO GLYHUVLW\ )DUQVZRUWK HW DO  7KH UROH RIb b b b b b b b b b b b b bELRGLYHUVLW\ LQ WKH HFRV\VWHP VHUYLFH IUDPHZRUN LV VWLOO XQFOHDU $WNLQVRQ HW DO  DQG PRUHb b b b b b b b b b b b b b bJHQHUDOO\ PRVW SHRSOH GR QRW KDYH D JUDVS RQ WKHPHDQLQJ RI WKH ELRGLYHUVLW\ FRQFHSW 7KHUHIRUHb b b b b b b b b b b b b b b bVRPH VFKRODUV WKLQN WKDW WKH YDOXH RI ELRGLYHUVLW\ FDQ RQO\ EH FDSWXUHG WKURXJK SUR[LHVb b b b b b b b b b b b b b%DUWNRZVNL HW DO  %DUWNRZVNL HW DO  FODVVLILHG ELRGLYHUVLW\ SUR[LHV ZLWKLQ VL[b b b b b b b b b b b b bDWWULEXWH FDWHJRULHV QXPEHUV VSHFLHV JHQHWLFV IXQFWLRQV KDELWDWV DQG DEVWUDFW 7KH\ IRXQG WKDWb b b b b b b b b b b bWKH WZR PRVW VDWLVIDFWRU\ DSSURDFKHV ZHUH IXQFWLRQV HPSKDVL]LQJ WKH UROHV UDWKHU WKDQ WKHb b b b b b b b b b b b bFRPSRQHQWVDQGJHQHWLFVFDUULHURIWKHRSWLRQYDOXHIXWXUHXWLOLW\bbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b,Q WKHLU UHVSRQVH DUWLFOH WR %DUWNRZVNL HW DO  )DUQVZRUWK HW DO  GLVDJUHHG ZLWK WKHb b b b b b b b b b b b b b b bFRQFOXVLRQ RQ SUR[LHV DQG VWDWHG WKH LPSRUWDQFH RI YDOXLQJ ELRGLYHUVLW\ DQG QRW MXVW YDOXLQJ WKHb b b b b b b b b b b b b b bSUHVHUYDWLRQ RI SHUFHLYHG ELRGLYHUVLW\ DWWULEXWHV FDOOHG QDWXUDOQHVV 7KLV LV WR VD\ WKDW VFLHQWLVWVb b b b b b b b b b b b bIURP GLIIHUHQW EDFNJURXQGV GR QRW QHFHVVDULO\ DJUHH RQ KRZ WR DFFXUDWHO\ TXDQWLI\ WKH YDOXH RIb b b b b b b b b b b b b b bELRGLYHUVLW\ ,Q WKHLU FORVLQJ UHPDUNV )DUQVZRUWK HW DO  FRQFOXGHG WKDW PRUH UHVHDUFK RQb b b b b b b b b b b b b bWKH UHODWLRQVKLS EHWZHHQ HFRV\VWHP VHUYLFHV DQG ELRGLYHUVLW\ LV QHHGHG WR XOWLPDWHO\ LPSURYHb b b b b b b b b b b bYDOXDWLRQWHFKQLTXHVbb+HUH DUH VRPH FDVH VWXGLHV WKDW FRXOG EH YDOXDEOH LQ WKH 8%& FRQWH[W LQ WHUPV RI YDOXLQJb b b b b b b b b b b b b b b b bELRGLYHUVLW\DQGJUHHQVSDFHVPRUHJHQHUDOO\b&DVH6WXG\7KHYDOXHRIJUHHQZDOOVWRXUEDQELRGLYHUVLW\b&ROOLQV HW DO  FRQGXFWHG D VWXG\ LQ 6RXWKDPSWRQ &LW\ LQ WKH 8. DWWHPSWLQJ WR FDSWXUHb b b b b b b b b b b b b b b bWKH YDOXH RI JUHHQZDOOV IRU WKH SRSXODWLRQ 7KLV ZDV GRQH DV D FDVH VWXG\ LQ SDUWQHUVKLS ZLWK WKHb b b b b b b b b b b b b b b b b b bFLW\ FRXQFLO IROORZLQJ WKHLU LQWHUHVW LQ WKH LPSOHPHQWDWLRQ RI JUHHQ ZDOOV LQ WKLV GHQVHO\b b b b b b b b b b b b b bSRSXODWHGFLW\bbb7KH DXWKRUV XVHG D FKRLFH H[SHULPHQW VXUYH\ ZLWK IRXU GLIIHUHQW SROLFLHV GHVFULEHG LQ VLPSOHb b b b b b b b b b b b b bWHUPV 7KH SROLFLHV LQFOXGHG WZR JUHHQ ZDOOV FKRLFHV RQH OLYLQJ ZDOO FKRLFH DQG RQH VWDWXV TXRb b b b b b b b b b b b b b b bFKRLFH )RU HDFK FKRLFH WKH RQO\ DWWULEXWHV GHVFULEHGZHUH WKH LPSDFW RQ XUEDQ ELRGLYHUVLW\ DQGb b b b b b b b b b b b b b bWKH FRVW RI WKH SURMHFW SHU KRXVHKROG SHU \HDU :KHQ DQVZHULQJ WKH VXUYH\ UHVSRQGHQWV ZHUHb b b b b b b b b b b b b b bJLYHQ YLVXDO DLGV RI WKH SURSRVHG SURMHFWV DQG D VHFWLRQ H[SODLQHG WKH LPSDFWV RI JUHHQZDOOV RQb b b b b b b b b b b b b b b b bELRGLYHUVLW\DQGVXEVHTXHQWEHQHILWVbbb7KH UHVXOWV VKRZHG WKDW SHRSOH ZHUH ZLOOLQJ WR SD\ DURXQG e WR e IRU D JUHHQ ZDOO DQGb b b b b b b b b b b b b b b b b bDURXQG e IRU D OLYLQJ ZDOO SHU KRXVHKROG SHU \HDU :KHQ DJJUHJDWLQJ WKHVH VFHQDULRV IRU WKHb b b b b b b b b b b b b b b bHQWLUH UHJLRQ LW UHSUHVHQWHG DQ DJJUHJDWHG DQQXDO :73 RI e PLOOLRQ IRU D OLYLQJ ZDOO WKDWb b b b b b b b b b b b b b b bZRXOGLQFUHDVHELRGLYHUVLW\DQGePLOOLRQIRUDJUHHQZDOObbbb)LQDOO\ DQ LQWHUHVWLQJ ILQGLQJ IURP WKLV UHVHDUFK ZDV WKDW SHRSOH ZKR NQHZ ZKDW ELRGLYHUVLW\b b b b b b b b b b b b b bUHSUHVHQWHGSULRUWRWKHVXUYH\ZHUHVLJQLILFDQWO\PRUHOLNHO\WRFKRRVHWKHOLYLQJZDOORSWLRQbbb&DVH6WXG\$JHQHULFPDUJLQDOYDOXHIXQFWLRQIRUQDWXUDODUHDVb.RHWVH HW DO  XVHG D FKRLFH H[SHULPHQW VXUYH\ WR FUHDWH DPRGHO XVLQJPXOWLSOH YDULDEOHVb b b b b b b b b b b b b b b bWKDW ZRXOG DVVLJQ D JHQHULF YDOXH WR QDWXUDO DUHDV LQ WKH 1HWKHUODQGV 7KHLU LQFHQWLYH WRb b b b b b b b b b b b b b bJHQHUDWH WKLV PDUJLQDO YDOXH IXQFWLRQ ZDV WR JLYH SROLF\PDNHUV D WRRO WR DFNQRZOHGJH WKHb b b b b b b b b b b b b bWUDGHRIIVDJDLQVWWKHFRVWRIFRQVHUYDWLRQbbb7KH\ GHVLJQHG WKHLU VXUYH\ LQ D ZD\ WKDW GLG QRW UHIHU WR D VSHFLILF VLWH RU DUHD 7KH DWWULEXWHVb b b b b b b b b b b b b b b b b b bXVHG LQFOXGHG WKH VL]H DQG W\SH RI WKH DUHD WKH GLVWDQFH WR WKH QDWXUDO DUHD DV ZHOO DV WKHb b b b b b b b b b b b b b b b b b bDFFHVVLELOLW\ IRU UHFUHDWLRQDO XVH 7KH DQQXDO PXQLFLSDO WD[ LQFUHDVH DVVRFLDWHG ZLWK D SURMHFWb b b b b b b b b b b b bZDV DOVR DQ DWWULEXWH 7KH DWWULEXWHV ZHUH GHVFULEHG LQ GHWDLO WR WKH UHVSRQGHQWV DQG SLFWXUHVb b b b b b b b b b b b b b bZHUHXVHGWRUHSUHVHQWWKHQDWXUDODUHDVbbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b7KH UHVXOWV VKRZHG WKDW WKHUH ZHUH VWURQJ GHFUHDVLQJ UHWXUQV WR VL]H ZKLFKPHDQW WKDW D ELJJHUb b b b b b b b b b b b b b b bDUHD KDG D ORZHU SHU KHFWDUH YDOXH WKDQ VPDOOHU DUHDV $OVR WKH DXWKRUV IRXQG WKDW LQDFFHVVLEOHb b b b b b b b b b b b b b b bDUHDVKDGQRYDOXHIRUFRQVXPHUVDWDOOb(TXDWLRQ  LV WKH PRGHO WKDW FDQ EH XVHG WR FDOFXODWH WKH :73 IRU QDWXUDO DUHDV LQ WKHb b b b b b b b b b b b b b b b b b1HWKHUODQGV EDVHG RQ WKH VXUYH\ UHVXOWV 7KH , DUH HTXDO WR ZKHQ WKH QDWXUDO DUHDV KDYH WKHb b b b b b b b b b b b b b b b b bFKDUDFWHULVWLFVGHVFULEHGLQWKHEUDFNHWVbbb(TXDWLRQ:LOOLQJQHVVWR3D\LQ(XURSHUKRXVHKROGSHU\HDUIRUQDWXUDODUHDVbb2WKHU QRWDEOH ILQGLQJV LQFOXGHG D KLJKHU ZLOOLQJQHVV WR SD\ IRU SHRSOH ZLWK KLJKHU HGXFDWLRQb b b b b b b b b b b b b b)LQDOO\ SHRSOH WKDW GR QRW UHFUHDWH LQ QDWXUDO DUHDV ZHUH QRW VHQVLWLYH WR WKH GLIIHUHQFHV LQ W\SHb b b b b b b b b b b b b b b b bDQGVL]HRIWKHDUHDVEXWPRUHVHQVLWLYHWRWD[LQFUHDVHVbb&DVH6WXG\(FRQRPLFYDOXDWLRQRIJUHHQDQGEOXHQDWXUHLQFLWLHV$PHWDDQDO\VLVb%RFNDUMRYD HW DO  SHUIRUPHG D PHWDDQDO\VLV RI HFRQRPLF YDOXHV RI QDWXUH LQ FLWLHVb b b b b b b b b b b b b bIRFXVHG RQ :73 HVWLPDWHV IURP VWDWHG SUHIHUHQFH VWXGLHV WKDW FDSWXUHG ERWK XVH DQG QRQXVHb b b b b b b b b b b b b bYDOXHV 7KLV PHWDDQDO\VLV LQFOXGHG  VWXGLHV IURP DURXQG WKH ZRUOG 7KH\ EXLOW D PRGHO WRb b b b b b b b b b b b b b bHVWLPDWHWKHGROODUYDOXHLQ86GROODUVRIDKHFWDUHRIXUEDQQDWXUHSHU\HDUb7KH\ IRXQG WKDW WKH DYHUDJH YDOXH RI KD RI QDWXUH LQ WKH FLW\ ZDV DURXQG 86 SHU \HDU EXWb b b b b b b b b b b b b b b b b b b86 KD\HDU LI LW ZDV HOLFLWHG WKURXJK FKRLFH H[SHULPHQW 7KH\ DOVR IRXQG WKDW SDUNV KDYHb b b b b b b b b b b b b b bD PXFK KLJKHU YDOXH WKDQ RWKHU QDWXUDO DUHDV DW 86 SHU KD SHU \HDU /LNH LQ WKH SUHYLRXVb b b b b b b b b b b b b b b b b bFDVH VWXG\ WKH\ IRXQG GHFUHDVLQJ UHWXUQV WR WKH VL]H RI D QDWXUDO DUHD ,QFRPH ZDV DOVRb b b b b b b b b b b b b b b bVLJQLILFDQWO\ UHODWHG WR:73 $  LQFUHDVH LQ LQFRPH \LHOGHG DURXQG D  LQFUHDVH LQ:73 IRUb b b b b b b b b b b b b b b b bQDWXUH $GGLWLRQDOO\ LQ GHQVHO\ SRSXODWHG DUHDV WKH SHU KD QDWXUH YDOXH ZDV KLJKHU WKDQ LQb b b b b b b b b b b b b b bVSDUVHO\SRSXODWHGDUHDVb%RFNDUMRYD HW DO  DOVR FUHDWHG D (XURSH VSHFLILF PRGHO WKDW VKRZHG RYHUDOO KLJKHUb b b b b b b b b b b b b bDYHUDJH YDOXHV IRU QDWXUH GXH WR WKH KLJKHU LQFRPH 7KHVH KLJKHU YDOXHV ZRXOG OLNHO\ EH VLPLODUb b b b b b b b b b b b b b b bWRYDOXHVWKDWFRXOGEHFDOFXODWHGLQDFLW\OLNH9DQFRXYHUbbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b%LRGLYHUVLW\(YDOXDWLRQLQWKH8%&FRQWH[Wb8%&%UDQGLQJb)RU 8%& QRW RQO\ GRHV ELRGLYHUVLW\ DQG QDWXUDO DUHDV KROG YDOXH IRU WKH HFRV\VWHP VHUYLFHV WKH\b b b b b b b b b b b b b b b bSURYLGH WR WKH FDPSXV DQG VXUURXQGLQJ FRPPXQLWLHV EXW WKH\ DOVR KDYH D YDOXH DV D êJUHHQ EUDQGëb b b b b b b b b b b b b b b b bWR DWWUDFW DQG UHWDLQ VWXGHQWV IURP DURXQG WKH ZRUOG $V DQ H[DPSOH WKH &LW\ RI 9DQFRXYHU KDVb b b b b b b b b b b b b b b b bGHPRQVWUDWHG WKH VWUHQJWK RI KDYLQJ D êJUHHQ FLW\ EUDQGë ZKLFK ZDV YDOXHG DW  ELOOLRQ LQb b b b b b b b b b b b b b b b-DQXDU\  %DXP  +RZHYHU WKH NH\ WR KDYLQJ D VXFFHVVIXO EUDQG LV DXWKHQWLFLW\ 5\DQb b b b b b b b b b b b b b b 8%& FDQQRW EH VHHQ DV EHLQJ RSSRUWXQLVWLF LQ LWV HIIRUW WR SURPRWH ELRGLYHUVLW\ RQ FDPSXVb b b b b b b b b b b b b b b b,I WKH XQLYHUVLW\ WUXO\ FDUHV DERXW QDWXUDO FRQVHUYDWLRQ LVVXHV WKHQ WKH EUDQGLQJ ZLOO FRPH E\b b b b b b b b b b b b b b bLWVHOIbb%LRGLYHUVLW\ DQG QDWXUDO DUHDV DUH HPSKDVL]HG WKURXJKRXW ERWK 8%&èV SURVSHFWLYH XQGHUJUDGXDWHb b b b b b b b b b bZHEVLWH \RXXEFFD DQG 8%&èV SULPDU\ ZHEVLWH XEFFD )LJXUH  DQG  DUH WZR VFUHHQVKRWVb b b b b b b b b b b b b bWKDW GHPRQVWUDWH KRZ 8%& KDV LQWHJUDWHG LWV ODQGVFDSH DQG IRFXV RQ VXVWDLQDELOLW\ ZLWKLQ LWV RZQb b b b b b b b b b b b b b bSURPRWLRQDOPHVVDJLQJbb)LJXUH6FUHHQVKRWRI8%&èVSURVSHFWLYHXQGHUJUDGXDWHZHEVLWH\RXXEFFDKLJKOLJKWLQJLWVUHFRJQLWLRQDVWKHêPRVWEHDXWLIXObXQLYHUVLW\LQ&DQDGDëDVVHVVHG0DUFKKWWSV\RXXEFFDXEFOLIHYDQFRXYHUbb,17(*5$7('9$/8$7,212)%,2',9(56,7<bb)LJXUH6FUHHQVKRWRI8%&èVZHEVLWHXEFFDKLJKOLJKWLQJLWVUHFRJQLWLRQDVWKHêVWLQ&OLPDWH$FWLRQëDQGêVWLQ6XVWDLQDEOH&LWLHVbDQG&RPPXQLWLHVëXQGHUWKH7LPHV+LJKHU(GXFDWLRQ7+(8QLYHUVLW\,PSDFW5DQNLQJVDVVHVVHG0DUFKbKWWSVZZZXEFFDDERXWRXUSODFHKWPOb6HYHUDO RI WKH WRS IDFLOLWLHV WKDW 8%&9DQFRXYHU KLJKOLJKWV RQ WKHLU ZHEVLWH DUH WLHG WR ELRGLYHUVLW\b b b b b b b b b b b b b b b bDQGJUHHQVSDFHVLQFOXGLQJbƔ 7KH%HDW\%LRGLYHUVLW\0XVHXPbƔ 7KH8%&%RWDQLFDO*DUGHQDQG&HQWUHIRU3ODQW5HVHDUFKbƔ 7KH8%&)DUPæWKHRQO\ZRUNLQJIDUPLQWKHFLW\RI9DQFRXYHUbƔ 1LWREH0HPRULDO*DUGHQbb%LRGLYHUVLW\ SOD\V D UROH LQ WKH UHWHQWLRQ RI VWXGHQWV DV ZHOO $ UHFHQW 6(('6 SURMHFW IRXQG WKDW RIb b b b b b b b b b b b b b b b b bWKH YDULRXV IDFWRUV WKDW LQIOXHQFH UHFUXLWPHQW DQG UHWHQWLRQ RI XQLYHUVLW\ VWXGHQWV SODFH SOD\V Db b b b b b b b b b b b b bVLJQLILFDQW UROH DW 8%& 9DQFRXYHU ZLWK JUHHQ VSDFHV EHLQJ RI SDUWLFXODU LPSRUWDQFH IRU VWXGHQWb b b b b b b b b b b b b bUHWHQWLRQ - .HZ SHUVRQDO FRPPXQLFDWLRQ 0DUFK WK  ,Q UHVSRQVH WR WKHVH ILQGLQJV WKHb b b b b b b b b b b b b bSURMHFW DXWKRUV UHFRPPHQGHG WKDW 8%& 9DQFRXYHU GLUHFWV UHVRXUFHV WR FUHDWH D JUHDWHU YDULHW\b b b b b b b b b b b b bRI JUHHQ VSDFHV RQ FDPSXV SUHVHUYH DQG HQKDQFH SHUFHSWLRQV DQG FRQQHFWLRQV WR WKHVH JUHHQb b b b b b b b b b b b b bVSDFHV DQG RWKHU QDWXUDO DVVHWV DQG XVH WKHP WR HQKDQFH HGXFDWLRQDO DQG VRFLDO RSSRUWXQLWLHV -b b b b b b b b b b b b b b b.HZSHUVRQDOFRPPXQLFDWLRQ0DUFKWKbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b5HOHYDQW3ODQVDQG3ROLFLHVb$ ELRGLYHUVLW\ YDOXDWLRQ IUDPHZRUN ZRXOG QRW EH RXW RI SODFH LQ WKH 8%& GHFLVLRQPDNLQJ DQGb b b b b b b b b b b b b b bSODQQLQJ FRQWH[W ,Q DGGLWLRQ WR DQ XSFRPLQJ %LRGLYHUVLW\ 3ODQ WKHUH DUH PXOWLSOH SODQV DQGb b b b b b b b b b b b b bSROLFLHV WKDW KDYH EHHQ SXEOLVKHG DQG SXW LQ SODFH WKDW DUH UHOHYDQW WR WKH ELRGLYHUVLW\ DQG QDWXUDOb b b b b b b b b b b b b b b b bDUHDV DW 8%& 9DQFRXYHU DQG WKDW FRXOG SURYLGH VRPH IRXQGDWLRQDO MXVWLILFDWLRQ IRU WKHb b b b b b b b b b b b bLQWHJUDWLRQ RI D ELRGLYHUVLW\ YDOXDWLRQ IUDPHZRUN 7KHVH SODQV DQG SROLFLHV DUH LQFOXGHG DQGb b b b b b b b b b b b bVXPPDUL]HGLQ7DEOHb7DEOH8%&SODQVDQGSROLFLHVUHOHYDQWWRWKHLQWHJUDWLRQRIELRGLYHUVLW\YDOXDWLRQb3ODQ3ROLF\b 5HOHYDQF\WR%LRGLYHUVLW\b9DOXDWLRQb(YLGHQFHIURPWH[Wb*UHHQ%XLOGLQJb$FWLRQ3ODQb7KHJRDORIWKLVSODQLVWRbSRVLWLYHO\LPSDFW8%&èVKXPDQbDQGQDWXUDOV\VWHPV7KHSODQbVSHFLILFDOO\LQFOXGHVELRGLYHUVLW\bDVRQHRILWVHLJKWFRPSRQHQWbDUHDVbê%\8%&èVEXLOGLQJVZLOOPDNHQHWSRVLWLYHbFRQWULEXWLRQVWRKXPDQDQGQDWXUDOV\VWHPVëSb7KHWZRFRPSRQHQWJRDOVXQGHU%LRGLYHUVLW\DUHbê>@8%&ZLOOGHYHORSKLJKO\IXQFWLRQLQJODQGVFDSHVbDWWKHEXLOGLQJDQGVLWHVFDOHVWRFRQWULEXWHWRbELRGLYHUVLW\DQGQDWXUDOHFRV\VWHPSURFHVVHVb>@8%&ZLOOHQJDJHFDPSXVWHDFKLQJDQGUHVHDUFKbRSSRUWXQLWLHVWRHQKDQFHELRGLYHUVLW\PDQDJHPHQWbFDSDFLW\ëSb/DQG8VH3ODQb 7KHZD\8%&PDQDJHVLWVbQDWXUDODVVHWVDQGELRGLYHUVLW\LVbJURXQGHGLQLWVPDQDJHPHQWRIbWKHODQG7KHYLVLRQWKDWWKLVSODQbGHVFULEHVLQFOXGHVDFDPSXVWKDWbYDOXHVQDWXUDOVSDFHVDQGbLQWHJUDWHVWKHPLQWRRWKHUSDUWVbRIFDPSXVOLIH*RDOVFHQWUHGbDURXQGê(FRORJ\ëDUHLQFOXGHGbWKURXJKRXWWKHSODQb/DQG8VHLVVSOLWLQWRWKUHHPDLQbFDWHJRULHVRQHRIZKLFKEHLQJbê*UHHQ$FDGHPLFëZKLFKbLQFOXGHVRSHQDUHDVWKDWVXSSRUWbODQGEDVHGWHDFKLQJUHVHDUFKbHWF,WH[SOLFLWO\GHQRWHVZKLFKbJUHHQVSDFHVDUHWREHbPDLQWDLQHGDQGSURWHFWHGIURPbGHYHORSPHQWb7KHSODQVYLVLRQVWDWHPHQWLQFOXGHVGLUHFWSKUDVLQJbUHODWHGWRQDWXUDODUHDVDQGHFRORJ\LQFOXGLQJbê7KHFRPPXQLW\LVSODQQHGGHVLJQHGFRQVWUXFWHGbDQGLQKDELWHGZLWKUHVSHFWIRUWKHODQGDQGLWVbSDWWHUQVQDWXUDOFXOWXUDODQGKLVWRULFDO7KHbFRPPXQLW\KDUPRQL]HVZLWKLWVVHWWLQJDQGLWVbDFDGHPLFFRUH5HVLGHQWVVWDIIDQGVWXGHQWVMRLQLQbVWHZDUGVKLSIRUWKHHQYLURQPHQWLQFOXGLQJb3DFLILF6SLULW5HJLRQDO3DUNëSbbê7KLVYLVLRQLVDERXWDXQLYHUVLW\FRPPXQLW\DQGbDGMDFHQWSDUNWKDWVWULYHVWREDODQFHHFRORJLFDObKHDOWKHFRQRPLFYLDELOLW\DQGFRPPXQLW\èSb,QFOXGHGZLWKLQWKH1HLJKERXUOLQHVVREMHFWLYHVDUHbbê,QWHUUHODWHGODQGXVHDQGWUDQVSRUWDWLRQV\VWHPVbZLOOEHPDQDJHGWRPLWLJDWHWKHDGYHUVHLPSDFWRQbDGMDFHQWDUHDV/LQNDJHVEHWZHHQRSHQVSDFHVDQGbQDWXUDODUHDVRQDQGRIIVLWHZLOOEHLQFOXGHGëSbbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b7HFKQLFDOb*XLGHOLQHVRQbH[WHULRUb7KHVHJXLGHOLQHVRXWOLQHbWHFKQLFDOLQVWUXFWLRQVIRUKRZWRbFDUHIRUDQGPDQDJH8%&èVbYDULRXVH[WHULRUIHDWXUHVbLQFOXGLQJWKHSODQWVDQGJUHHQbVSDFHVWKDWPDNHXSWKHEXONRIb8%&ELRGLYHUVLW\b*XLGHOLQHVWKDWUHIHUWRWKHPDLQWHQDQFHRIFDPSXVbSODQWVLQFOXGHbbê0DLQWHQDQFHVKDOOLQFOXGHDOOPHDVXUHVQHFHVVDU\bWRPDLQWDLQSODQWVLQDYLJRURXVKHDOWK\QRUPDObJURZLQJFRQGLWLRQSURYLGLQJDQDSSHDUDQFHbFKDUDFWHULVWLFRIWKHLUVSHFLHVDQGDSSURSULDWHWRbWKHLUVXUURXQGLQJV6HFWLRQSbê1RWHWKDWXVHRIWR[LFFKHPLFDOSHVWLFLGHVIRUbFRVPHWLFSXUSRVHVLVVXVSHQGHGRQ8%&&DPSXVëb6HFWLRQSb&OLPDWH$FWLRQb3ODQb&OLPDWHDFWLRQLVLQWULQVLFDOO\bOLQNHGWRELRGLYHUVLW\6HYHUDORIbWKHJRDOVRXWOLQHGLQWKLVSODQbUHODWHWRWKHELRGLYHUVLW\DW8%&bHVSHFLDOO\WKRVHUHIHUULQJWRbPHDVXULQJFDUERQZLWKLQWUHHVb&OLPDWHDFWLRQLVDOVRFRQQHFWHGbWR8%&èVEUDQGDVDbVXVWDLQDELOLW\OHDGHU$VQRWHGbRQWKH&OLPDWH$FWLRQ3ODQbZHEVLWHê:HFRPPLWRXUHQWLUHbFRPPXQLW\LQFOXGLQJRXUODQGbDVVHWVDQGXWLOLWLHVWRbVXVWDLQDELOLW\UHVHDUFKWHDFKLQJbDQGOHDUQLQJëb,QFOXGHGXQGHUWKHFREHQHILWVRIFOLPDWHDFWLRQbê%ROVWHULQJ8%&èVLQWHUQDWLRQDOO\UHFRJQL]HGbUHSXWDWLRQDQGOHDGHUVKLSLQFOLPDWHDFWLRQDQGbVXVWDLQDELOLW\LQRSHUDWLRQVDQGWKHDFDGHP\ëSb&RPSOHPHQWDU\RSSRUWXQLWLHVIRUIXWXUHbFRQVLGHUDWLRQLQFOXGHê5HVHDUFK8%&èVWUHHbLQYHQWRU\DQGFDOFXODWHWKHDPRXQWRIFDUERQbVHTXHVWUDWLRQWKDWWKH\DFFRXQWIRUSHU\HDUb([SORUHRSSRUWXQLWLHVWRGHGXFWWKHDPRXQWRIbFDUERQWKDWLVEHLQJVHTXHVWHUHGE\WUHHVZLWKLQbQRQGHVLJQDWHGDUHDVLHSDUNVWREHXVHGDVDbFUHGLWWRZDUGVFDUERQRIIVHWVëSb9DQFRXYHUb&DPSXV3ODQb8%&èV9DQFRXYHU&DPSXV3ODQbDOLJQVZLWKDQGIDOOVXQGHU8%&èVb/DQG8VH3ODQ,WLQFOXGHVbVSHFLILFJRDOVDQGFRQVLGHUDWLRQVbWKDWUHODWHWRELRGLYHUVLW\b2QHRIWKHILYHVWUDWHJLHVbRXWOLQHGLQWKHSODQLVWRbê5HGLVFRYHU8%&èVVHQVHRIbSODFHDQGQDWXUDOZHVWFRDVWbEHDXW\ë&DPSXV3ODQ6\QRSVLVbS7KHLPSRUWDQFHRIQDWXUHbDQGHFRORJLFDOJRDOVDUHbHPSKDVL]HGWKURXJKRXWWKHSODQb7KHSODQVê5HGLVFRYHUHG6HQVHRI3ODFHëJRDOLVRQHbRIWKHPRVWGLUHFWO\UHODWHGWRELRGLYHUVLW\:LWKLQbWKH&DPSXV3ODQ6\QRSVLVWKLVJRDORXWOLQHVWKHbIROORZLQJREMHFWLYHVbê$FFHQWXDWLQJWKH1DWXUDO:HVW&RDVW6HWWLQJ7KHbZHVWFRDVWVHWWLQJRI8%&èV9DQFRXYHUFDPSXVZLOObEHIHDWXUHGE\HPSKDVL]LQJWKHIRUHVWVHWWLQJDORQJbZLWKWKHFDPSXVèZHVWHUQHGJHDQGGHVLJQLQJbVWURQJLQGRRURXWGRRUUHODWLRQVKLSVEHWZHHQQHZbEXLOGLQJVDQGWKHLUVXUURXQGLQJV&HOHEUDWHGYLHZVbZLOOEHFDSWXUHGWKURXJKDWJUDGHYLHZSRLQWVDQGbE\VWUDWHJLFDOO\ORFDWLQJVRPHVRFLDOVSDFHVRQWKHbXSSHUIORRUVRIEXLOGLQJVDQGWKHPL[HGXVHKXEVëb&DPSXV3ODQ6\QRSVLVSbê,PSURYLQJWKH3XEOLF5HDOP8%&èV9DQFRXYHUbFDPSXVLVZHOONQRZQIRULWVODQGVFDSH$VQHZbIDFLOLWLHVDUHGHYHORSHGDQGWKHJUHHQZD\VDUHbFRPSOHWHGPRUHVSDFHFDQEHDGGHGWRWKHbQHWZRUN,PSOHPHQWDWLRQRIWKH3XEOLF5HDOP3ODQbFDSLWDOLPSURYHPHQWVRYHUWKHQH[W\HDUVZLOObEULQJUHQHZHGEHDXW\YLVLELOLW\DQGFRKHVLYHQHVVbWRWKHFDPSXVë&DPSXV3ODQ6\QRSVLVSbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b,QWHJUDWHGb6WRUPZDWHUb0DQDJHPHQWb3ODQb7KLVSODQèVREMHFWLYHLVWRbPDQDJHVWRUPZDWHURQFDPSXVbLQDZD\WKDWSUHYHQWVIORRGLQJbZKLOHDOVRUHVSRQGLQJWRbHFRORJLFDOQHHGV6HYHUDORIWKHbVWUDWHJLHVWKLVSODQRXWOLQHVKDYHbEHHQGHVLJQHGLQDZD\WRDOVRbFRQVLGHUELRGLYHUVLW\DQGLWVbRYHUDOOJRDOLVWRPDQDJHbVWRUPZDWHUZKLOHDOVRLPSURYLQJbWKHHQYLURQPHQWE\bLQFRUSRUDWLQJDêQDWXUDOV\VWHPVbDSSURDFKëb:LWKLQWKHH[HFXWLYHVXPPDU\WKHIROORZLQJbSDVVDJHVDUHIHDWXUHGbê2SSRUWXQLWLHVH[LVWDQGDUHVWURQJO\VXSSRUWHGE\bWKH8QLYHUVLW\WRWDNHDQDWXUDOV\VWHPVDSSURDFKbIRUVWRUPZDWHUKDQGOLQJ0HDVXUHVVXFKDVJUHHQbURRIVFLVWHUQVGHWHQWLRQIDFLOLWLHVELRVZDOHVUDLQbJDUGHQVHWFDUHFRQVLGHUHGSDUWRIWKHVROXWLRQëbSbbê7KHSXUSRVHRIWKLV,QWHJUDWHG6WRUPZDWHUb0DQDJHPHQW3ODQ,603LVWRFRQVLGHUWKHbFRPSOHWHUDLQZDWHUF\FOHDQGRXWOLQHVWRUPZDWHUbPDQDJHPHQWWDFWLFVWKDWDLPWRLPSURYHWKHORFDObHQYLURQPHQWPLWLJDWHULVNDQGPDLQWDLQZLOGOLIHbDQGWKHLUKDELWDWVëSb:DWHU$FWLRQb3ODQbb7KHRYHUDUFKLQJJRDORIWKLVSODQbLVWRPDQDJHZDWHUXVHLQDZD\bWKDWDOLJQVZLWK8%&èVbVXVWDLQDELOLW\JRDOVWKLVbLQFOXGHVHQYLURQPHQWDOJRDOVbZKLFKLVUHOHYDQWWRELRGLYHUVLW\bb2IWKHILYHNH\DFWLRQDUHDVWKLVbSODQLGHQWLILHVRQHLVê/DQGVFDSHbDQGLUULJDWLRQë7KHJRDOVDQGbVWUDWHJLHVRXWOLQHGXQGHUWKLVbDFWLRQDUHDKDYHLPSOLFDWLRQVIRUbELRGLYHUVLW\PDQDJHPHQWDVbWKH\UHODWHWREXLOGLQJDPRUHbUHVLOLHQWODQGVFDSHDQGbYHJHWDWLRQV\VWHPVRQFDPSXVbWKURXJKLUULJDWLRQDQGbGURXJKWPDQDJHPHQWb8QGHUWKHê/DQGVFDSHDQGLUULJDWLRQëDFWLRQDUHDbWKHFRQWH[WSURYLGHGLVDVIROORZVbê:LWKDQWLFLSDWHGLPSDFWVRIFOLPDWHFKDQJHWKHVHbGURXJKWSHULRGVZLOOFRQWLQXHRULQFUHDVHUHVXOWLQJbLQPRUHVWUHVVRQSODQWVDQGSRWHQWLDOORVVRIVRIWbODQGVFDSHDVVHWV*RLQJIRUZDUGWKHDFWLRQVbLGHQWLILHGKHUHFDQSURYLGHJXLGDQFHIRUWKHbWUDQVLWLRQWRDODQGVFDSHWKDWLVEHWWHUDGDSWHGWRbWKHVHFKDQJLQJFRQGLWLRQVDQGOHVVGHSHQGHQWRQbSRWDEOHZDWHUIRULUULJDWLRQ7KLVWUDMHFWRU\ZLOObLQFUHDVHODQGVFDSHUHVLOLHQF\UHGXFHWKHORVVRIbSODQWVGXHWRGURXJKWVWUHVVDQGUHGXFHRYHUDOObLUULJDWLRQZDWHUGHPDQGV/DQGVFDSHVFDQEHbFODVVLILHGWRLGHQWLI\êSULRULW\ëDUHDVWKDWZLOOPHHWDbKLJKHUVWDQGDUGRILUULJDWLRQPDLQWHQDQFHDQGbDHVWKHWLFVDQGXQGHUXWLOL]HGLUULJDWHGJUDVVDUHDVbFRXOGEHUHWURILWWHGZLWKGURXJKWUHVLVWDQWbODQGVFDSLQJëSbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b5HFRPPHQGDWLRQ7RROER[b/DQGVFDSHDQG(FRV\VWHP'LPHQVLRQb7R FRQWH[WXDOL]H VWUDWHJLF GHFLVLRQ PDNLQJ ZLWK UHVSHFW WR KXPDQODQGVFDSH LQWHUDFWLRQV WKHUHb b b b b b b b b b bDUH YDVW FRPELQDWLRQV RI DSSURDFKHV DQG PHWKRGRORJLHV GHSHQGLQJ RQ VRFLDOHFRORJLFDO KLVWRU\b b b b b b b b b b bSODFHPHQW FXUUHQW SROLWLFDO FOLPDWH HWF +RZHYHU D IHZ NH\ LQVLJKWV WKDW KDYH EHHQ FRPPRQb b b b b b b b b b b b b bDFURVVWKHOLWHUDWXUHb(QVXULQJ WKH PHDQLQJIXO SDUWLFLSDWLRQ RI DFWRUV DQG JURXSV RXWVLGH RI FRQYHQWLRQDO GHFLVLRQb b b b b b b b b b b bPDNLQJ ZKLOVW EHLQJ FRJQL]DQW RI SRZHU G\QDPLFV FURVVFXOWXUDO GLDORJXH DQG GLIIHUHQWb b b b b b b b b b bHSLVWHPRORJLHVb8WLOL]LQJ ERWK LQWHQVLYH VPDOO IRFXVHG VXUYH\V DQG EURDG UDQGRP JHQHUDOL]HG VXUYH\V WR JHWb b b b b b b b b b b b bLQVLJKWIXO JURXSVSHFLILF LQIRUPDWLRQ ZKLOVW KHDULQJ IURP WKH VLOHQW PDMRULW\ DQG DVVHVVLQJb b b b b b b b b b bJHQHUDOSRSXODWLRQVHQWLPHQWVUHVSHFWLYHO\bb:KR LV LQFOXGHG DQG WKH VWUXFWXUH RI VXUYH\V ZLOO KDYH YHU\ VLJQLILFDQW UHVXOWV RQ VWXG\ RXWFRPHVb b b b b b b b b b b b b b b b8WLOL]LQJ D PL[HG EDFNJURXQG H[SHUW IRFXV JURXSV LQ GHOLEHUDWLYH SURFHVVHV FDQ SURYLGHb b b b b b b b b b b bEDFNJURXQG LQIRUPDWLRQ EHIRUH FRQGXFWLQJ SUHIHUHQFH DQG UHODWLRQDO VXUYH\V $JDLQ DVVHVVLQJb b b b b b b b b bFRQWH[W RXWVLGH RI WKH ERG\ RI NQRZOHGJH RI GHFLVLRQPDNHUV LV FULWLFDO IRU YLHZLQJ WKH VFRSH RIb b b b b b b b b b b b b b b bWKHSUREOHPWKURXJKDOWHUQDWLYHOHQVHVDQGSHUVSHFWLYHVb&UHDWH DQ LQFOXVLYH IUDPHZRUN IRU GLIIHUHQW GHILQLWLRQV DQG XQGHUVWDQGLQJV ZKHQ HQJDJLQJ LQb b b b b b b b b b b bFURVVFXOWXUDODFWRUGLDORJXHbb6RFLDODQG&XOWXUDO9DOXDWLRQb,Q RUGHU WR HQVXUH VRFLDO DQG FXOWXUDO YDOXHV RI ELRGLYHUVLW\ DUH LQWHJUDWHG LQWR 8%& 9DQFRXYHUèVb b b b b b b b b b b b b b bGHFLVLRQPDNLQJ FRQWH[W ZH UHFRPPHQG DSSO\LQJ D PL[HGPHWKRG DSSURDFK WKDW FRPELQHV ERWKb b b b b b b b b b bTXDQWLWDWLYHDQGTXDOLWDWLYHPHWKRGVb4XDQWLWDWLYH PHWKRGV WKDW ZH UHFRPPHQG LQFOXGH ERWK TXHVWLRQQDLUHVVXUYH\V DQG PDSSLQJb b b b b b b b b bHJ XVLQJ WKH 6RO9(6 WRRO 6XUYH\V ZRXOG HQDEOH D ZLGH UDQJH DQG D ODUJH QXPEHU RI 8%&b b b b b b b b b b b b b b b b bFRPPXQLW\ PHPEHUV WR SDUWLFLSDWH LQ WKH SURFHVV DQG DUH UHODWLYHO\ VLPSOH WR FLUFXODWH 6SDWLDOb b b b b b b b b b b b b bPDSSLQJ LV YLVXDO DQG HQJDJLQJ DOLJQV ZLWK H[LVWLQJ PHWKRGV RI SODQQLQJ DQG GHFLVLRQPDNLQJ DWb b b b b b b b b b b b b b8%& DQG ZRXOG EH DEOH WR OHYHUDJH WKH ODUJH DPRXQW RI JHRVSDWLDO GDWD WKDW DOUHDG\ H[LVWV IRU WKHb b b b b b b b b b b b b b b b b b8%&9DQFRXYHUFDPSXVb$V IRU TXDOLWDWLYH PHWKRGV ZH UHFRPPHQG WKH XVH RI IRFXV JURXSV DV WKH\ RIIHU D JRRGb b b b b b b b b b b b b b b bFRPELQDWLRQ RI ERWK QXDQFH LQ GDWD DQG ODUJHU VDPSOH VL]HV DQG DUH XVHIXO IRU XQGHUVWDQGLQJb b b b b b b b b b b b b b bYDOXHV IURP D GLYHUVLW\ RI VRFLDO DFWRUV HJ FDQ VHW XS IRFXV JURXSV IRU VWXGHQWV IDFXOW\ DQG VWDIIb b b b b b b b b b b b b b b b b bVHSDUDWHO\bb:H DOVR UHFRPPHQG WKDW 8%& 9DQFRXYHU SD\V SDUWLFXODU DWWHQWLRQ WR WKH VHQVH RI SODFH DV D NH\b b b b b b b b b b b b b b b b bVRFLRFXOWXUDO YDOXH WR LQWHJUDWH LQWR GHFLVLRQPDNLQJ 6HQVH RI SODFH UHSUHVHQWV WKH ZD\ SHRSOHb b b b b b b b b b b b bSHUFHLYH DQG LQWHUSUHW WKHLU HQYLURQPHQW DQG D VWURQJ DQG SRVLWLYH VHQVH RI SODFH ZLWKLQ Db b b b b b b b b b b b b b bFRPPXQLW\ KDV EHHQ VKRZQ WR GULYH WRXULVWV WR YLVLW FHUWDLQ ORFDWLRQV WR LQFUHDVH SURGXFWLYLW\ DQGb b b b b b b b b b b b b b bWR VWUHQJWKHQ VRFLDO FDSLWDO DPRQJ RWKHU EHQHILWV +DXVPDQQ HW DO  'XH WR 8%&b b b b b b b b b b b b b bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b9DQFRXYHUèV LGHQWLW\ DQG EUDQG DV D SODFH RI OHDUQLQJ DQG WKH JRDO WR DWWUDFW DQG UHWDLQ FRPPXQLW\b b b b b b b b b b b b b b b b bPHPEHUV WKH VHQVH RI SODFH LV FULWLFDO WR FRQVLGHU LQ DQ\ VXVWDLQDEOH GHYHORSPHQW GHFLVLRQ $V WKLVb b b b b b b b b b b b b b b bLV H[SOLFLWO\ UHFRJQL]HG ZLWKLQ 8%&èV 9DQFRXYHU &DPSXV SODQ ZLWK ê5HLQIRUFLQJ 6HQVH RI 3ODFHëb b b b b b b b b b b b bLQFOXGHG DV D NH\ JRDO VHH 7DEOH  IRU PRUH GHWDLOV WKH JURXQGZRUN UHTXLUHG WR VXSSRUW WKLVb b b b b b b b b b b b b b b b bIRFXVLVDOUHDG\LQSODFHbb8UEDQ6\VWHP9DOXDWLRQb2QH ZD\ WR VROYH D FRPSOH[ V\VWHP SUREOHP LV WR FRQVWUXFW D V\VWHP DQDO\VLV E\ PRGHOOLQJ Db b b b b b b b b b b b b b b b bFDXVDO ORRS GLDJUDP ,QWHUYHQWLRQ XVLQJ PHDVXUHV LQ PRGLI\LQJ EHKDYLRXU ZLOO OHYHU D FKDQJH LQb b b b b b b b b b b b b bWKHV\VWHPIHHGEDFNORRSWRDFKLHYHWKHGHVLUHGRXWFRPH+DUDOGVVRQbb0DSSLQJ DQG VSDWLDO DQDO\VLV FDQ EH HIIHFWLYH LQ EULQJLQJ WRJHWKHU D P\ULDG RI SHUVSHFWLYHVb b b b b b b b b b b b b bHFRORJ\ JRYHUQDQFH SODQQLQJ HFRQRPLF DQG VRFLDO IRU PHDQLQJIXO YDOXDWLRQ EH\RQG GRPLQDQWb b b b b b b b b b bYDOXHVbb(IIHFWLYH ELRGLYHUVLW\ FRQVHUYDWLRQ DW 8%& UHOLHV RQ ELRGLYHUVLW\ DV D FDXVDO YDULDEOH ZLWKLQ WKHb b b b b b b b b b b b b bHFRV\VWHP VHUYLFHV YDOXDWLRQ IRU VXVWDLQDEOH GHYHORSPHQW RXWFRPHV &HQWUDOL]LQJ WKH UROH RIb b b b b b b b b b bELRGLYHUVLW\ LQ WKH HFRV\VWHP VWUXFWXUH DQG IXQFWLRQLQJ YDOXDWLRQ LV SLYRWDO LQ EULQJLQJb b b b b b b b b b b bFRPPRQDOLW\ LQWR PXOWLVWDNHKROGHUV GHFLVLRQ PDNLQJ æ VHH &DYDQDJK HW DO  IRU WKHb b b b b b b b b b b b bFRQFHSWXDO GLDJUDP )RU LQVWDQFH WKH YDOXDWLRQ RI XUEDQ WUHHV QHHGV WR WDNH LQWR DFFRXQW WKHb b b b b b b b b b b b b b bELRGLYHUVLW\VRLOKHDOWKFRPSOHPHQWDU\VSHFLHVZDWHUDQGQXWULHQWORDGVWKDWVXVWDLQVWKHPbb/HYHUDJH RI SROLF\ WRROV VXFK DV D KLHUDUFKLFDO DSSURDFK FDQ VDIHJXDUG GLIILFXOW YDOXDWLRQ WUDGHRIIVb b b b b b b b b b b b b bLQ PRQHWDU\ YDOXDWLRQ ,QQRYDWLYH IXQGLQJ PHFKDQLVPV OLNH EHQHILW WUDQVIHU FRXOG IDYRXUb b b b b b b b b b bELRGLYHUVLW\YDOXDWLRQDWLQYHVWPHQWDYHQXHVbbb(FRQRPLF9DOXDWLRQb8OWLPDWHO\ ILQGLQJ RQH VSHFLILF SUR[\ WR YDOXH ELRGLYHUVLW\ DW 8%& LV QRW QHFHVVDULO\ D ZRUWKZKLOHb b b b b b b b b b b b b b bH[HUFLVH $V %DUWNRZVNL HW DO  HPSKDVL]H QR VLQJOH SUR[\ LV SHUIHFW IRU ELRGLYHUVLW\b b b b b b b b b b b b b bYDOXDWLRQ )URP RXU FRQYHUVDWLRQ ZLWK 8%& HPSOR\HHV WKH LPSRUWDQW DVSHFW RI WKLV YDOXDWLRQb b b b b b b b b b b b bSURFHVV LV EHLQJ DEOH WR SXW D PRQHWDU\ YDOXH RQ QDWXUDO DUHDV HYHQ VPDOO RQHV LQ RUGHU WR VKRZb b b b b b b b b b b b b b b b b b bWKHRSSRUWXQLW\FRVWRIUHPRYLQJQDWXUHWREXLOGLQIUDVWUXFWXUHVbb,I 8%& LV ORRNLQJ WR SXW DQ HFRQRPLF YDOXH RQ ELRGLYHUVLW\ ZH ZRXOG WKHUHIRUH UHFRPPHQGb b b b b b b b b b b b b b bKDYLQJ D EURDGHU DSSURDFK OHVV IRFXVHG RQ WKH FRQFHSW RI ELRGLYHUVLW\ LWVHOI DQG PRUH RQ QDWXUDOb b b b b b b b b b b b b b b bDUHDV LQ WKH ODUJHU VHQVH :H VXJJHVW WKDW 8%& FRQGXFW D ODUJH VFDOH GLVFUHWH FKRLFH H[SHULPHQWb b b b b b b b b b b b b b b bVXUYH\ ZLWK PXOWLSOH DWWULEXWHV VXFK DV W\SH RI QDWXUDO DUHD VL]H DFFHVVLELOLW\ DQG FRVW VLPLODU WRb b b b b b b b b b b b b b b bWKH ZRUN RI .RHWVH HW DO  (DFK DWWULEXWH ZRXOG KDYHPXOWLSOH OHYHOV:LWK WKLV GDWD LW ZRXOGb b b b b b b b b b b b b b b b b bEH SRVVLEOH WR EXLOG D 8%& VSHFLILF YDOXDWLRQ PRGHO WKDW FRXOG SXW VSHFLILF YDOXHV RQ D UDQJH RIb b b b b b b b b b b b b b b b b bQDWXUDO DUHDV DURXQG WKH 8%& 9DQFRXYHU &DPSXV :LWK WKLV PRGHO LQ KDQG WKH RSSRUWXQLW\ FRVWb b b b b b b b b b b b b b bRIQHZLQIUDVWUXFWXUHSURMHFWVFRXOGEHZHLJKWHGE\GHFLVLRQPDNHUVbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b&RQFOXVLRQb7KH VWDWH RI WKH OLWHUDWXUH GUDZV LQWR OLJKW PDQ\ FRPSOH[ DQG FKURQLF SUREOHPV DVVRFLDWHG ZLWKb b b b b b b b b b b b b b bLQWHJUDWLQJ ELRGLYHUVLW\ YDOXDWLRQ LQWR GHFLVLRQPDNLQJ DQG ZKLOH WKHUH LV D GLYHUVLW\ RI SRVVLEOHb b b b b b b b b b b b bPHWKRGV WR DSSURDFK WKLV WDVN WKHUH LV QR XQLYHUVDO RU VWDQGDUGPHWKRG 7KLV UHSRUW RIIHUV LQVLJKWb b b b b b b b b b b b b b b bRQ VHYHUDO PHWKRGV DFURVV PXOWLSOH GLVFLSOLQHV DQG SHUVSHFWLYHV WR YDOXDWLRQ LQFOXGLQJ ODQGVFDSHb b b b b b b b b b b bDQGHFRV\VWHPUHODWLRQVVRFLRFXOWXUDOGLPHQVLRQVXUEDQV\VWHPVDQGHFRQRPLFDSSURDFKHVbb%LRGLYHUVLW\ YDOXDWLRQ FDQ EH FRQGXFWHG WKURXJK HFRORJLFDO VRFLDO FXOWXUDO DQG HFRQRPLF IUDPHVb b b b b b b b b b b b,Q RUGHU WR IXOO\ DFFRXQW IRU WKH YDOXH RI ELRGLYHUVLW\ LQWR GHFLVLRQPDNLQJ D GLYHUVLW\ RIb b b b b b b b b b b b b b bDSSURDFKHV WKDW EULQJ LQ SHUVSHFWLYHV IURP DOO RI WKHVH IUDPHV LV UHTXLUHG 7UDGHRIIV DUH DQb b b b b b b b b b b b b b bLQKHUHQW SDUW RI GHFLVLRQ PDNLQJ DQG ODQG XVH SODQQLQJ KRZHYHU XVLQJ RQO\ D VLPSOLILHG QXPHULFDOb b b b b b b b b b b b b b bDSSURDFK PDVNV WKH FRPSOH[LW\ RI WKH SUREOHP DQG GLVWDQFHV WKH GHFLVLRQPDNHU ZLWK WKHb b b b b b b b b b b b bFRQVHTXHQFHV DQG RXWFRPHV 'LYHUVLILHG HFRORJLFDO SROLWLFDO FXOWXUDO DQG VRFLHWDO ODQGVFDSHV DWb b b b b b b b b b b8%&9DQFRXYHUGHPDQGHTXDOO\GLYHUVHDSSURDFKHVbbb,Q DGGLWLRQ WR WKHVH DSSURDFKHV ZH ZRXOG VXJJHVW FRQGXFWLQJ GHHSHU UHVHDUFK LQ FORVHb b b b b b b b b b b b bFROODERUDWLRQ ZLWK WKH 0XVTXHDP 3HRSOH WR LQFOXGH WKHLU WUDGLWLRQDO HFRORJLFDO NQRZOHGJH LQ WKHb b b b b b b b b b b b bYDOXDWLRQ ELRGLYHUVLW\ IUDPHZRUNV 7KHLU XQLTXH SHUVSHFWLYH RQ ELRGLYHUVLW\ FRXOG XQIRUWXQDWHO\b b b b b b b b b bQRWEHDGGUHVVHGZLWKLQWKLVSURMHFWbbb,QWHJUDWLQJ WKH YDOXH RI ELRGLYHUVLW\ LQWR GHFLVLRQPDNLQJ DW 8%&9DQFRXYHU ZLOO WKHUHIRUH QRW EHb b b b b b b b b b b b b bD VLPSOH WDVN EXW LW LV DQ LPSRUWDQW RQH %LRGLYHUVLW\ SOD\V D FULWLFDO UROH LQ V\VWHP UHVLOLHQF\b b b b b b b b b b b b b b b b bXQGHUSLQV WKH HFRV\VWHP VHUYLFHV WKDW KXPDQZHOOEHLQJ UHOLHV RQ DQG LV D QHFHVVDU\ FRQVLGHUDWLRQb b b b b b b b b b b b b bLQ WKH SXUVXLW RI VXVWDLQDEOH GHYHORSPHQW $GGLWLRQDOO\ ERWK VXVWDLQDELOLW\ DQG WKH EHDXWLIXOb b b b b b b b b b b bQDWXUDO FKDUDFWHULVWLFV RI &DQDGDèV ZHVW FRDVW DUH FRUH SLOODUV RI 8%& 9DQFRXYHUèV EUDQGLQJ DQGb b b b b b b b b b b b b bIHDWXUH SURPLQHQWO\ WKURXJKRXW 8%&èV H[LVWLQJ GHYHORSPHQW SODQV DQG SROLFLHV 7KH LQWHJUDWLRQ RIb b b b b b b b b b b bELRGLYHUVLW\ YDOXDWLRQ LQWR GHFLVLRQPDNLQJ GRHV QRW RQO\ DOLJQ ZHOO ZLWK WKH LQVWLWXWLRQèV JRDOV DQGb b b b b b b b b b b b b bYLVLRQIRUWKHIXWXUHEXWLWPD\EHQHFHVVDU\WRPDLQWDLQLWVLGHQWLW\bbb7KLV UHSRUW SURYLGHV D WRROER[ ZLWK D VHOHFWLRQ RI UHFRPPHQGHG PHWKRGV DQG DSSURDFKHV WRb b b b b b b b b b b b b bHQDEOH WKH LQWHJUDWLRQ RI ELRGLYHUVLW\ YDOXDWLRQ ZLWKLQ GHYHORSPHQW GHFLVLRQPDNLQJ DW 8%&b b b b b b b b b b b9DQFRXYHU ,W LV RXU KRSH WKDW IXWXUH IUDPHZRUNV LQLWLDWLYHV SODQV DQG VWXGLHV ZLOO ILQG XVH LQ WKLVb b b b b b b b b b b b b b b b bV\QWKHVLVWRPDNHHWKLFDOHTXLWDEOHGHFLVLRQVDV8%&FRQWLQXHVWRJURZGHYHORSDQGOHDGbbb bb,17(*5$7('9$/8$7,212)%,2',9(56,7<b5HIHUHQFHVb$OFDPR-%HQQHWW(0	0LOOHQQLXP(FRV\VWHP$VVHVVPHQW3URJUDP(FRV\VWHPVDQGbKXPDQZHOOEHLQJ$IUDPHZRUNIRUDVVHVVPHQW:DVKLQJWRQ'&,VODQG3UHVVb$WNLQVRQ*%DWHPDQ,	0RXUDWR65HFHQWDGYDQFHVLQWKHYDOXDWLRQRIHFRV\VWHPbVHUYLFHVDQGELRGLYHUVLW\2[IRUG5HYLHZRI(FRQRPLF3ROLF\åbKWWSVGRLRUJR[UHSJUVb$VDK67	%ODKQD'-,QYROYLQJ6WDNHKROGHUVè.QRZOHGJHLQ&RGHVLJQLQJ6RFLDOb9DOXDWLRQVRI%LRGLYHUVLW\DQG(FRV\VWHP6HUYLFHV,PSOLFDWLRQVIRU'HFLVLRQ0DNLQJb(FRV\VWHPVKWWSVGRLRUJVbb%DUELHU(%%DXPJ¦UWQHU6&KRSUD.&RVWHOOR&'XUDLDSSDK$+DVVDQ5ð3HUULQJV&b7KH9DOXDWLRQRI(FRV\VWHP6HUYLFHV,Q61DHHP'%XQNHU$+HFWRU0/RUHDXb	&3HUULQJV(GV%LRGLYHUVLW\(FRV\VWHP)XQFWLRQLQJDQG+XPDQ:HOOEHLQJ$Q(FRORJLFDObDQG(FRQRPLF3HUVSHFWLYHSSå2[IRUG2[IRUG8QLYHUVLW\3UHVVb%DUWNRZVNL%(FRQRPLFYDOXDWLRQRIELRGLYHUVLW\DQLQWHUGLVFLSOLQDU\FRQFHSWXDOSHUVSHFWLYHb/RQGRQ5RXWOHGJHKWWSVGRLRUJb%DUWNRZVNL%/LHQKRRS1	+DQVM¾UJHQV%&DSWXULQJWKHFRPSOH[LW\RIELRGLYHUVLW\$bFULWLFDOUHYLHZRIHFRQRPLFYDOXDWLRQVWXGLHVRIELRORJLFDOGLYHUVLW\(FRORJLFDO(FRQRPLFVbåKWWSVGRLRUJMHFROHFRQb%DUµ)3DORPR,=XOLDQ*9L]FDLQR3+DDVH'	*µPH]%DJJHWKXQ(0DSSLQJbHFRV\VWHPVHUYLFHFDSDFLW\IORZDQGGHPDQGIRUODQGVFDSHDQGXUEDQSODQQLQJ$FDVHbVWXG\LQWKH%DUFHORQDPHWURSROLWDQUHJLRQ/DQG8VH3ROLF\åbKWWSVGRLRUJMODQGXVHSROb%DXP(:ULWWHQHYLGHQFHRI(GJDU%DXP%UDQG)LQDQFH&DQDGD,QF5HWULHYHGIURPbKWWSVYDQFRXYHUFDILOHVFRY(YLGHQFH(GJDU%DXP9DQFRXYHUEUDQGYDOXDWLRQSGIb%RFNDUMRYD0%RW]HQ:-:	.RHWVH0-(FRQRPLFYDOXDWLRQRIJUHHQDQGEOXHbQDWXUHLQFLWLHV$PHWDDQDO\VLV(FRORJLFDO(FRQRPLFV$XJXVWbKWWSVGRLRUJMHFROHFRQb%RW]DW$)LVFKHU/.	.RZDULN,8QH[SORLWHGRSSRUWXQLWLHVLQXQGHUVWDQGLQJOLYHDEOHbDQGELRGLYHUVHFLWLHV$UHYLHZRQXUEDQELRGLYHUVLW\SHUFHSWLRQDQGYDOXDWLRQ*OREDOb(QYLURQPHQWDO&KDQJHåKWWSVGRLRUJMJORHQYFKDb%URZQ&	*UDQW0%LRGLYHUVLW\DQG+XPDQ+HDOWK:KDW5ROHIRU1DWXUHLQ+HDOWK\b8UEDQ3ODQQLQJ"%XLOW(QYLURQPHQWåbKWWSVGRLRUJEHQYb&£FHUHV'07DSHOOD(4X«WLHU)	'¯D]67KHVRFLDOYDOXHRIELRGLYHUVLW\DQGbHFRV\VWHPVHUYLFHVIURPWKHSHUVSHFWLYHVRIGLIIHUHQWVRFLDODFWRUV(FRORJ\DQG6RFLHW\bKWWSVGRLRUJ(6bbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b&DYDQDJK5'%URV]HLW63LOOLQJ*0*UDQW600XUSK\(-	$XVWHQ0&b9DOXLQJELRGLYHUVLW\DQGHFRV\VWHPVHUYLFHV$XVHIXOZD\WRPDQDJHDQGFRQVHUYHPDULQHbUHVRXUFHV"3URFHHGLQJVRIWKH5R\DO6RFLHW\%%LRORJLFDO6FLHQFHVbKWWSVGRLRUJUVSEb&KDQ.0$*XHUU\$'%DOYDQHUD3.ODLQ66DWWHUILHOG7%DVXUWR;ð:RRGVLGH8b:KHUHDUH&XOWXUDODQG6RFLDOLQ(FRV\VWHP6HUYLFHV"$)UDPHZRUNIRUb&RQVWUXFWLYH(QJDJHPHQW%LR6FLHQFHåbKWWSVGRLRUJELRbb&OHPHQW-0	&KHQJ$68VLQJDQDO\VHVRISXEOLFYDOXHRULHQWDWLRQVDWWLWXGHVDQGbSUHIHUHQFHVWRLQIRUPQDWLRQDOIRUHVWSODQQLQJLQ&RORUDGRDQG:\RPLQJ$SSOLHG*HRJUDSK\båKWWSVGRLRUJMDSJHRJb&ROOLQV56FKDDIVPD0	+XGVRQ0'7KHYDOXHRIJUHHQZDOOVWRXUEDQELRGLYHUVLW\b/DQG8VH3ROLF\åKWWSVGRLRUJMODQGXVHSROb&RQYHQWLRQRQ%LRORJLFDO'LYHUVLW\7KH8QLWHG1DWLRQV&RQYHQWLRQRQ%LRORJLFDO'LYHUVLW\b(QWHUHGLQWRIRUFH'HFHPEHU5HWULHYHGIURPbKWWSVZZZFEGLQWGRFOHJDOFEGHQSGIb&RVWDQ]D5'è$UJH5'H*URRW5)DUEHU6*UDVVR0+DQQRQ%ð9DQ'HQ%HOW0b7KHYDOXHRIWKHZRUOGèVHFRV\VWHPVHUYLFHVDQGQDWXUDOFDSLWDO1DWXUHbåKWWSVGRLRUJDb'HDULQJHU-$0HDVXULQJ3UHIHUHQFHVIRU1DWXUDO/DQGVFDSHV$6&(-8UEDQ3ODQQ'HYb'LYåKWWSVFHGEDVFHRUJ&('%VHDUFKUHFRUGMVS"GRFNH\ bGH&KD]DO-	5RXQVHYHOO0'$/DQGXVHDQGFOLPDWHFKDQJHZLWKLQDVVHVVPHQWVRIbELRGLYHUVLW\FKDQJH$UHYLHZ*OREDO(QYLURQPHQWDO&KDQJHåbKWWSVGRLRUJMJORHQYFKDbGH*URRW56)LVKHU%&KULVWLH0$URQVRQ-%UDDW/+DLQHV<RXQJ5*RZG\-0DOWE\(b1HXYLOOH$3RODVN\63RUWHOD5	5LQJ,,QWHJUDWLQJWKHHFRORJLFDODQGHFRQRPLFbGLPHQVLRQVLQELRGLYHUVLW\DQGHFRV\VWHPVHUYLFHYDOXDWLRQ,Q7KH(FRQRPLFVRI(FRV\VWHPVbDQG%LRGLYHUVLW\7((%(FRORJLFDODQG(FRQRPLF)RXQGDWLRQVSSå(DUWKVFDQ5RXWOHGJHbKWWSVOLEUDU\ZXUQO:HE4XHU\ZXUSXEVb'¯D]64X«WLHU)&£FHUHV'07UDLQRU6)3«UH]+DUJXLQGHJX\1%UHW+DUWH06ðb3RRUWHU//LQNLQJIXQFWLRQDOGLYHUVLW\DQGVRFLDODFWRUVWUDWHJLHVLQDIUDPHZRUNIRUbLQWHUGLVFLSOLQDU\DQDO\VLVRIQDWXUHèVEHQHILWVWRVRFLHW\3URFHHGLQJVRIWKH1DWLRQDOb$FDGHP\RI6FLHQFHVRIWKH8QLWHG6WDWHVRI$PHULFDåbKWWSVGRLRUJSQDVbb)DELQ\L0(YDQV/	)RDOH6-6\QWKHVLVSDUWRID6SHFLDO)HDWXUHRQ([SORULQJb6RFLDO(FRORJLFDO5HVLOLHQFHWKURXJKWKH/HQVRIWKH6RFLDO6FLHQFHV&RQWULEXWLRQV&ULWLFDOb5HIOHFWLRQVDQG&RQVWUXFWLYH'HEDWH6RFLDOHFRORJLFDOV\VWHPVVRFLDOGLYHUVLW\DQGSRZHUbLQVLJKWVIURPDQWK(FRORJ\DQG6RFLHW\bKWWSVGRLRUJ(6bbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b)DUQVZRUWK.'$GHQXJD$+	GH*URRW567KHFRPSOH[LW\RIELRGLYHUVLW\$bELRORJLFDOSHUVSHFWLYHRQHFRQRPLFYDOXDWLRQ(FRORJLFDO(FRQRPLFVåbKWWSVGRLRUJMHFROHFRQb)RONH&+DKQ72OVVRQ3	1RUEHUJ-$GDSWLYH*RYHUQDQFHRI6RFLDO(FRORJLFDOb6\VWHPV$QQXDO5HYLHZRI(QYLURQPHQWDQG5HVRXUFHVåbKWWSVGRLRUJDQQXUHYHQHUJ\bb)RUHVWHU'-	0DFKOLVW*(0RGHOLQJ+XPDQ)DFWRUV7KDW$IIHFWWKH/RVVRIb%LRGLYHUVLW\&RQVHUYDWLRQ%LRORJ\åbKWWSVGRLRUJM[b)UDVHU-$'LDEDW«01DUPDK:%HDYRJXL3*XLODYRJXL.GH)RUHVWD+	-XQTXHLUD$%b&XOWXUDOYDOXDWLRQDQGELRGLYHUVLW\FRQVHUYDWLRQLQWKH8SSHU*XLQHDIRUHVW:HVWb$IULFD(FRORJ\DQG6RFLHW\KWWSVGRLRUJ(6bb*DUF¯D/ORUHQWH00DUW¯Q/µSH]%,QLHVWD$UDQGLD,/µSH]6DQWLDJR&$$JXLOHUD3$	b0RQWHV&7KHUROHRIPXOWLIXQFWLRQDOLW\LQVRFLDOSUHIHUHQFHVWRZDUGVHPLDULGbUXUDOODQGVFDSHV$QHFRV\VWHPVHUYLFHDSSURDFK(QYLURQPHQWDO6FLHQFHDQG3ROLF\åbåKWWSVGRLRUJMHQYVFLb*NDUJNDYRX]L$+DONRV*	0DWVLRUL6$VVHVVLQJYDOXHVDWWLWXGHVDQGWKUHDWVWRZDUGVbPDULQHELRGLYHUVLW\LQD*UHHNFRDVWDOSRUWFLW\DQGWKHLULQWHUUHODWLRQVKLSV2FHDQDQGb&RDVWDO0DQDJHPHQW6HSWHPEHUåbKWWSVGRLRUJMRFHFRDPDQbb*µPH]%DJJHWKXQ(	%DUWRQ'1&ODVVLI\LQJDQGYDOXLQJHFRV\VWHPVHUYLFHVIRUXUEDQbSODQQLQJ(FRORJLFDO(FRQRPLFVåbKWWSVGRLRUJMHFROHFRQb*µPH]%DJJHWKXQ(*UHQ‡%DUWRQ'1/DQJHPH\HU-0F3KHDUVRQ72è)DUUHOO3b$QGHUVVRQ(+DPVWHDG=	.UHPHU38UEDQ(FRV\VWHP6HUYLFHV,Q7(OPTYLVWb0)UDJNLDV-*RRGQHVV%*¾QHUDOS3-0DUFRWXOOLR5,0F'RQDOG63DUQHOO0b6FKHZHQLXV06HQGVWDG.&6HWR	&:LONLQVRQ(GV8UEDQL]DWLRQ%LRGLYHUVLW\DQGb(FRV\VWHP6HUYLFHV&KDOOHQJHVDQG2SSRUWXQLWLHVSSå6SULQJHU1HWKHUODQGVbKWWSVGRLRUJBb*ULIILWKV9)%XOO-:%DNHU-,QILHOG05RH'1DOZDQJD'ð0LOQHU*XOODQG(-b,QFRUSRUDWLQJORFDOQDWXUHEDVHGFXOWXUDOYDOXHVLQWRELRGLYHUVLW\1R1HW/RVVVWUDWHJLHVb:RUOG'HYHORSPHQWKWWSVGRLRUJMZRUOGGHYb*ULIR)	5RVHQWKDO-(GV*OREDO(QYLURQPHQWDO'HJUDGDWLRQDQG%LRGLYHUVLW\/RVVb,PSOLFDWLRQVIRU+XPDQ+HDOWK,Q%LRGLYHUVLW\DQGKXPDQKHDOWKSS,VODQG3UHVVb+DUDOGVVRQ+,QWURGXFWLRQWRV\VWHPWKLQNLQJDQGFDXVDOORRSGLDJUDPV/XQG8QLYHUVLW\bKWWSVZZZUHVHDUFKJDWHQHWSURILOH+RHUGXUB+DUDOGVVRQSXEOLFDWLRQB,QWURGXFWLRQBWRBV\VWHPBWKLQNLQJBDQGBFDXVDOBORRSBGLDJUDPVOLQNVEFFHHGIGGH,QWURGXFWLRQWRV\VWHPWKLQNLQJDQGFDXVDOORRSGLDJUDPVSGIbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b+DXVPDQQ$6ORWRZ5%XUQV-.	'L0LQLQ(7KHHFRV\VWHPVHUYLFHRIVHQVHRIbSODFH%HQHILWVIRUKXPDQZHOOEHLQJDQGELRGLYHUVLW\FRQVHUYDWLRQ(QYLURQPHQWDOb&RQVHUYDWLRQåKWWSVGRLRUJ6bb+HUPDQV&+RZDUWK5%1RRUGHZLHU7	(ULFNVRQ-'&RQVWUXFWLQJSUHIHUHQFHVLQbVWUXFWXUHGJURXSGHOLEHUDWLYHSURFHVVHV'HOLEHUDWLYH(FRORJLFDO(FRQRPLFV2[IRUG8QLYHUVLW\b3UHVV2[IRUG8.åKWWSZZZXYPHGXaMGHULFNVSXEV'HOLEHUDWLYH((&KSGIb+HUQ£QGH]0RUFLOOR03OLHQLQJHU7	%LHOLQJ&$QHPSLULFDOUHYLHZRIFXOWXUDObHFRV\VWHPVHUYLFHLQGLFDWRUV(FRORJLFDO,QGLFDWRUVåbKWWSVGRLRUJMHFROLQGbb+HU]RJ75+HUEHUW(-.DSODQ5	&URRNV&/&XOWXUDODQGGHYHORSPHQWDObFRPSDULVRQVRIODQGVFDSHSHUFHSWLRQVDQGSUHIHUHQFHV(QYLURQPHQWDQG%HKDYLRUbåKWWSVGRLRUJb+ROOQDJHO(5HVLOLHQFHHQJLQHHULQJDQGWKHEXLOWHQYLURQPHQW%XLOGLQJ5HVHDUFK	b,QIRUPDWLRQåKWWSVGRLRUJb+ROOLQJ&66LPSOLI\LQJWKHFRPSOH[7KHSDUDGLJPVRIHFRORJLFDOIXQFWLRQDQGVWUXFWXUHb(XURSHDQ-RXUQDORI2SHUDWLRQDO5HVHDUFKåbKWWSVGRLRUJbb+RVWHWOHU0$OOHQ:	0HXUN&&RQVHUYLQJXUEDQELRGLYHUVLW\"&UHDWLQJJUHHQbLQIUDVWUXFWXUHLVRQO\WKHILUVWVWHS/DQGVFDSHDQG8UEDQ3ODQQLQJåbKWWSVGRLRUJMODQGXUESODQb+R\RV'7KHVWDWHRIWKHDUWRIHQYLURQPHQWDOYDOXDWLRQZLWKGLVFUHWHFKRLFHbH[SHULPHQWV(FRORJLFDO(FRQRPLFVåbKWWSVGRLRUJMHFROHFRQb+XEDFHN.	.URQHQEHUJ-6\QWKHVL]LQJGLIIHUHQWSHUVSHFWLYHVRQWKHYDOXHRIXUEDQbHFRV\VWHPVHUYLFHV/DQGVFDSHDQG8UEDQ3ODQQLQJåbKWWSVGRLRUJMODQGXUESODQb.DOWHQERUQ%3	%MHUNH7$VVRFLDWLRQEHWZHHQHQYLURQPHQWDOYDOXHRULHQWDWLRQVDQGbODQGVFDSHSUHIHUHQFHV/DQGVFDSHDQG8UEDQ3ODQQLQJåbKWWSVGRLRUJ6b.RHWVH0-9HUKRHI(7	%UDQGHU/0$JHQHULFPDUJLQDOYDOXHIXQFWLRQIRUQDWXUDObDUHDV$QQDOVRI5HJLRQDO6FLHQFHåbKWWSVGRLRUJVb.UXWLOOD-9&RQVHUYDWLRQUHFRQVLGHUHG7KH$PHULFDQ(FRQRPLF5HYLHZåbKWWSVZZZMVWRURUJVWDEOHbb/DXULOD3DQW0/HKLNRLQHQ$8XVLWDOR/	9HQHVM¦UYL5+RZWRYDOXHELRGLYHUVLW\LQbHQYLURQPHQWDOPDQDJHPHQW"(FRORJLFDO,QGLFDWRUVåbKWWSVGRLRUJMHFROLQGbbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b0¾OOHU1,JQDWLHYD01LORQ&+:HUQHU3	=LSSHUHU:&3DWWHUQVDQG7UHQGVLQb8UEDQ%LRGLYHUVLW\DQG/DQGVFDSH'HVLJQ,Q7(OPTYLVW0)UDJNLDV-*RRGQHVV%b*¾QHUDOS3-0DUFRWXOOLR5,0F'RQDOG63DUQHOO06FKHZHQLXV06HQGVWDG.&b6HWR	&:LONLQVRQ(GV8UEDQL]DWLRQ%LRGLYHUVLW\DQG(FRV\VWHP6HUYLFHV&KDOOHQJHVDQGb2SSRUWXQLWLHVSSå6SULQJHU1HWKHUODQGVbKWWSVGRLRUJBb1RUWRQ%*	8ODQRZLF]5(6FDOHDQG%LRGLYHUVLW\3ROLF\$+LHUDUFKLFDO$SSURDFK,Qb)%6DPVRQ	)/.QRSI(GV(FRV\VWHP0DQDJHPHQW6HOHFWHG5HDGLQJVSSåb6SULQJHUKWWSVGRLRUJBb1XQHV3$/'	9DQ'HQ%HUJK-&-0(FRQRPLFYDOXDWLRQRIELRGLYHUVLW\VHQVHRUbQRQVHQVH"(FRORJLFDO(FRQRPLFVåbKWWSVGRLRUJ6b2SRNX$%LRGLYHUVLW\DQGWKHEXLOWHQYLURQPHQW,PSOLFDWLRQVIRUWKH6XVWDLQDEOHb'HYHORSPHQW*RDOV6'*V5HVRXUFHV&RQVHUYDWLRQDQG5HF\FOLQJåbKWWSVGRLRUJMUHVFRQUHFbb2WHURV5R]DV(0DUW¯Q/µSH]%)DJHUKROP1%LHOLQJ&	3OLHQLQJHU78VLQJVRFLDObPHGLDSKRWRVWRH[SORUHWKHUHODWLRQEHWZHHQFXOWXUDOHFRV\VWHPVHUYLFHVDQGODQGVFDSHbIHDWXUHVDFURVVILYH(XURSHDQVLWHV(FRORJLFDO,QGLFDWRUVåbKWWSVGRLRUJMHFROLQGbb3DVFXDO80XUDGLDQ5%UDQGHU/*µPH]%DJJHWKXQ(0DUW¯Q/µSH]%	9HUPD0b7KHHFRQRPLFVRIYDOXLQJHFRV\VWHPVHUYLFHVDQGELRGLYHUVLW\,Q3.XPDU(G7KHb(FRQRPLFVRI(FRV\VWHPVDQG%LRGLYHUVLW\(FRORJLFDODQG(FRQRPLF)RXQGDWLRQVSSåbKWWSVGRLRUJb3XVKSDP.(G7KHHFRQRPLFVRIHFRV\VWHPVDQGELRGLYHUVLW\HFRORJLFDODQGHFRQRPLFbIRXQGDWLRQV81(3(DUWKSULQWb5DQGDOO$7RWDOHFRQRPLFYDOXHDVDEDVLVIRUSROLF\7UDQVDFWLRQVRIWKH$PHULFDQ)LVKHULHVb6RFLHW\åbKWWSVGRLRUJ&7(9$$%(&2b5\DQ'-DQXDU\7KHEêJUHHQëEUDQGLQJRI9DQFRXYHU9DQFRXYHU6XQ5HWULHYHGbIURPbKWWSZZZYDQFRXYHUVXQFRPEXVLQHVVJUHHQEUDQGLQJ9DQFRXYHUVWRU\KWPOb6DVVHQ6%ULGJLQJWKH(FRORJLHVRI&LWLHVDQGRI1DWXUH&LWLHVåbKWWSVZZZUHVHDUFKJDWHQHWSURILOH6DVNLDB6DVVHQSXEOLFDWLRQB%5,'*,1*B7+(B(&2/2*,(6B2)B&,7,(6B$1'B2)B1$785(OLQNVIIFIEIHIGSGIbb6DVVHQ67KHHFRORJ\RIJOREDOHFRQRPLFSRZHU&KDQJLQJLQYHVWPHQWSUDFWLFHVWRbSURPRWHHQYLURQPHQWDOVXVWDLQDELOLW\-RXUQDORI,QWHUQDWLRQDO$IIDLUVåbKWWSVZZZMVWRURUJVWDEOHbb,17(*5$7('9$/8$7,212)%,2',9(56,7<b6HGGRQ10DFH*01DHHP67RELDV-$3LJRW$/&DYDQDJK5ð:DOSROH0b%LRGLYHUVLW\LQWKHDQWKURSRFHQH3URVSHFWVDQGSROLF\3URFHHGLQJVRIWKH5R\DO6RFLHW\%b%LRORJLFDO6FLHQFHVåKWWSVGRLRUJUVSEbb6KHUURXVH%&&OHPHQW-0	6HPPHQV'-$*,6DSSOLFDWLRQIRUDVVHVVLQJPDSSLQJbDQGTXDQWLI\LQJWKHVRFLDOYDOXHVRIHFRV\VWHPVHUYLFHV$SSOLHG*HRJUDSK\åbKWWSVGRLRUJMDSJHRJbb6XQ);LDQJ-7DR<7RQJ&	&KH<0DSSLQJWKHVRFLDOYDOXHVIRUHFRV\VWHPbVHUYLFHVLQXUEDQJUHHQVSDFHV,QWHJUDWLQJDYLVLWRUHPSOR\HGSKRWRJUDSK\PHWKRGLQWRb6RO9(68UEDQ)RUHVWU\DQG8UEDQ*UHHQLQJ0D\åbKWWSVGRLRUJMXIXJbb7DNHGD/	5ºSNH,3RZHUDQGFRQWHVWDWLRQLQFROODERUDWLYHHFRV\VWHPEDVHGbPDQDJHPHQW7KHFDVHRI+DLGD*ZDLL(FRORJLFDO(FRQRPLFVåbKWWSVGRLRUJMHFROHFRQb7KH1DWXUH&RQVHUYDQF\	5HVLOLHQW0HOERXUQH/LYLQJ0HOERXUQH2XU0HWURSROLWDQ8UEDQb)RUHVW7HFKQLFDO5HSRUW7KH1DWXUH&RQVHUYDQF\DQG5HVLOLHQW0HOERXUQHbKWWSVUHVLOLHQWPHOERXUQHFRPDXZSFRQWHQWXSORDGV/LYLQJ0HOERXUQHB7HFKQLFDO5HSRUWBRQOLQH/5SGIb7KH6WDWHRI9LFWRULD'UDIW0DULQHDQG&RDVWDO3ROLF\7KH6WDWHRI9LFWRULDbKWWSVZZZPDULQHDQGFRDVWVYLFJRYDXFRDVWDOPDQDJHPHQWGUDIWPDULQHDQGFRDVWDOSROLF\b:LONLQVRQ.&ODUN6	%XUFK:2WKHUYRLFHVRWKHUZD\VEHWWHUSUDFWLFHVEULGJLQJbORFDODQGSURIHVVLRQDOHQYLURQPHQWDONQRZOHGJH<DOH6FKRRORI)RUHVWU\	(QYLURQPHQWDOb6WXGLHV5HSRUW1RbKWWSHQYLURQPHQW\DOHHGXSXEOLFDWLRQVHULHVHQYLURQPHQWDOBSROLWLFVBDQGBPDQDJHPHQWRWKHUYRLFHVRWKHUZD\VEHWWHUSUDFWLFHVbbb

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            data-media="{[{embed.selectedMedia}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
https://iiif.library.ubc.ca/presentation/dsp.66428.1-0392605/manifest

Comment

Related Items