Accession Number : AD0699943

Title :   OPTIMAL INVESTMENT AND BORROWING DECISIONS IN NATURAL GAS TRANSMISSION.

Descriptive Note : Themis optimization research program,

Corporate Author : TEXAS A AND M UNIV COLLEGE STATION INST OF STATISTICS

Personal Author(s) : Thompson,Russell G. ; Proctor,Michael S. ; Hocking,R. R.

Report Date : DEC 1969

Pagination or Media Count : 60

Abstract : The investment problem in natural gas transmission as studied by Chenery in a static sense is reconsidered as a discrete-time optimal control problem using a special formulation. In the model, the objective is to maximize, subject to constraints, the terminal value of the investment in transmission pipe and pumping capacity plus the terminal value of the net savings (cash less indebtedness) plus the capitalized value of the dividends paid over a fixed decision-making period. The state variables are pumping capacity, indebtedness outstanding, depreciated value of the transmission pipe, depreciated value of the pumping capacity, and savings; the control parameters are the inside diameter of the transmission pipe (pipe size), the wall thickness of the pipe (thickness), initial pumping capacity, initial borrowings, and initial savings; and the control variables are investments in pumping capacity and borrowings during the period. (Author)

Descriptors :   (*GASES, *TRANSPORTATION), (*MANAGEMENT PLANNING AND CONTROL, MATHEMATICAL MODELS), DECISION MAKING, FACTOR ANALYSIS, COSTS, DIFFERENCE EQUATIONS, NONLINEAR SYSTEMS, PIPES, ECONOMICS, MATHEMATICAL PREDICTION

Subject Categories : Administration and Management
      Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE