Ordinal benefits vs economic benefits as a reference guide for policy decision making. The case of hydrogen technologies

Corrado Giannantoni

Research output: Contribution to conferencePaper

1 Citation (Scopus)

Abstract

The concept of Ordinality takes origin from the formalization process of Emergy Algebra under dynamic conditions and the subsequent mathematical formulation of the Maximum Em-Power Principle (2001). The latter, in fact, introduces an extra-ordinary novelty in science: a renewed concept of Quality (thus indicated by a capital Q) which is generating a profound revision not only in Classical Thermodynamics but also in Economics. The traditional concept of Externality, in fact, can be reinterpreted as an "excess" of Quality, that is an "extra" Benefit of superior Ordinality, never ever reducible to the sole action of one subject or the other of the transaction, or to their "sum". Such a new concept can be thus referred to as Ordinal Externality (or Ordinal Benefit). An appropriate evaluation method, termed as Four-Sector Diagram of Benefits, was developed to account for Ordinal Externalities generated by the interaction of the four main "Subjects" (or Sectors) usually involved in any productive process: Firm, Society, the Environment as a Source and the Environment as a Sink. The advantages of a Decision Making Process based on Ordinal Benefits (vs traditional economic benefits) will be shown with reference to the evaluation of well-calibrated Incentives concerning Hydrogen Fuel Cells, both under static and dynamic conditions. Such an evaluation criterion, which is preferentially based on the estimated external Benefits to be "remunerated" rather than on possible damages to be internalized, represents a valid reference guide for a Policy Maker. This precisely because it is always orientated toward the genesis of the Maximum Ordinality Excess.
Original languageEnglish
Publication statusPublished - 2007
Externally publishedYes
Event20th International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, ECOS 2007 - Padova, Italy
Duration: 1 Jan 2007 → …

Conference

Conference20th International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, ECOS 2007
CountryItaly
CityPadova
Period1/1/07 → …

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All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Environmental Science(all)

Cite this

Giannantoni, C. (2007). Ordinal benefits vs economic benefits as a reference guide for policy decision making. The case of hydrogen technologies. Paper presented at 20th International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, ECOS 2007, Padova, Italy.