IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v8y2019i2p73-d224493.html
   My bibliography  Save this article

Rational Behavior of an Enterprise in the Energy Market in a Circular Economy

Author

Listed:
  • Lazar Gitelman

    (Department of Management Systems for Energy and Industrial Enterprises, Ural Federal University, Mira str., 19, 620002 Ekaterinburg, Russia)

  • Elena Magaril

    (Department of Environmental Economics, Ural Federal University, Mira str., 19, 620002 Ekaterinburg, Russia)

  • Mikhail Kozhevnikov

    (Department of Management Systems for Energy and Industrial Enterprises, Ural Federal University, Mira str., 19, 620002 Ekaterinburg, Russia)

  • Elena Cristina Rada

    (Department of Theoretical and Applied Sciences, Insubria University of Varese, Via G.B. Vico, 46, 21100 Varese, Italy)

Abstract

In order to ensure their market sustainability, it is essential for energy-intensive industrial companies to address the issues of efficient energy use. Companies that are prepared to embrace tariff hikes, structural changes in fuel and energy markets, and a shortage of energy resources have a wider range of options to respond to the new challenges posed by the external environment and to reduce their risks. This task becomes particularly relevant in the context of the development of the circular economy that is aimed at resource optimization, energy conservation, zero-waste manufacturing, and business models that are based on maximum operational efficiency. This study aims to develop a methodology for rational behavior of the energy consumer in the context of the circular economy. The concept of “rational behavior” is defined by the authors as the intention to make the maximum use of the advantages and potential of energy markets in order to reduce the cost of energy supply, increase the level of electrification in industrial production, and use the capabilities of their own energy business. The article describes the main principles of rational behavior that serve as the foundation for effective implementation of various strategies (that of the seller, buyer, or both) in a company. A link is shown between rational behavior and energy market potential management in a company as a mix of technological, economic, and organizational activities performed by the energy consumer in a competitive market and effective market risk management. Forms of off-grid power supply and conditions for their application in manufacturing, for example, mini-combined heat and power (CHP) plants and quadgeneration plants at large metallurgical facilities were analyzed.

Suggested Citation

  • Lazar Gitelman & Elena Magaril & Mikhail Kozhevnikov & Elena Cristina Rada, 2019. "Rational Behavior of an Enterprise in the Energy Market in a Circular Economy," Resources, MDPI, vol. 8(2), pages 1-19, April.
    • Handle: RePEc:gam:jresou:v:8:y:2019:i:2:p:73-:d:224493
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/8/2/73/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/8/2/73/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Donia, Enrica & Mineo, Angelo Marcello & Sgroi, Filippo, 2018. "A methodological approach for assessing businness investments in renewable resources from a circular economy perspective," Land Use Policy, Elsevier, vol. 76(C), pages 823-827.
    2. Lucian Ionel Cioca & Navarro Ferronato & Paolo Viotti & Elena Magaril & Marco Ragazzi & Vincenzo Torretta & Elena Cristina Rada, 2018. "Risk Assessment in a Materials Recycling Facility: Perspectives for Reducing Operational Issues," Resources, MDPI, vol. 7(4), pages 1-10, December.
    3. Xiao Wu & Jiong Shen & Yiguo Li & Kwang Y. Lee, 2015. "Steam power plant configuration, design, and control," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(6), pages 537-563, November.
    4. Gabriel, Cle-Anne & Kirkwood, Jodyanne, 2016. "Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries," Energy Policy, Elsevier, vol. 95(C), pages 336-349.
    5. Candelise, Chiara & Winskel, Mark & Gross, Robert J.K., 2013. "The dynamics of solar PV costs and prices as a challenge for technology forecasting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 96-107.
    6. Mendel Giezen, 2018. "Shifting Infrastructure Landscapes in a Circular Economy: An Institutional Work Analysis of the Water and Energy Sector," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    7. Luca Ciacci & Ivano Vassura & Fabrizio Passarini, 2018. "Shedding Light on the Anthropogenic Europium Cycle in the EU–28. Marking Product Turnover and Energy Progress in the Lighting Sector," Resources, MDPI, vol. 7(3), pages 1-17, September.
    8. Jean-François Perrot & Alison Subiantoro, 2018. "Municipal Waste Management Strategy Review and Waste-to-Energy Potentials in New Zealand," Sustainability, MDPI, vol. 10(9), pages 1-12, August.
    9. Tom Lahti & Joakim Wincent & Vinit Parida, 2018. "A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    10. Barbara Tchórzewska-Cieślak & Katarzyna Pietrucha-Urbanik, 2018. "Approaches to Methods of Risk Analysis and Assessment Regarding the Gas Supply to a City," Energies, MDPI, vol. 11(12), pages 1-13, November.
    11. José Luis Ruiz-Real & Juan Uribe-Toril & Jaime De Pablo Valenciano & Juan Carlos Gázquez-Abad, 2018. "Worldwide Research on Circular Economy and Environment: A Bibliometric Analysis," IJERPH, MDPI, vol. 15(12), pages 1-14, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen-Tien Tsai, 2019. "Promoting the Circular Economy via Waste-to-Power (WTP) in Taiwan," Resources, MDPI, vol. 8(2), pages 1-9, May.
    2. Mihail Busu, 2020. "A Market Concentration Analysis of the Biomass Sector in Romania," Resources, MDPI, vol. 9(6), pages 1-10, May.
    3. А.P. Karaeva & E.R. Magaril, 2020. "Environmental Capacity Indicators as a Tool for Evaluation of Energy Projects Efficiency," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(2), pages 166-179.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    2. Gitelman, Lazar & Kozhevnikov, Mikhail & Ditenberg, Maksim, 2024. "Electrification as a factor in replacing hydrocarbon fuel," Energy, Elsevier, vol. 307(C).
    3. Elena R. Magaril & Leonid D. Gitelman & Anzhelika P. Karaeva & Andrey V. Kiselev & Mikhail V. Kozhevnikov, 2022. "Methodological Approach to the Environmental and Economic Assessment of Biogas Energy Projects," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(2), pages 217-256.
    4. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    5. Zhai, Jihua & Burke, Ian T. & Stewart, Douglas I., 2021. "Beneficial management of biomass combustion ashes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    6. Hinkelman, Kathryn & Anbarasu, Saranya & Wetter, Michael & Gautier, Antoine & Zuo, Wangda, 2022. "A fast and accurate modeling approach for water and steam thermodynamics with practical applications in district heating system simulation," Energy, Elsevier, vol. 254(PA).
    7. Lafond, François & Bailey, Aimee Gotway & Bakker, Jan David & Rebois, Dylan & Zadourian, Rubina & McSharry, Patrick & Farmer, J. Doyne, 2018. "How well do experience curves predict technological progress? A method for making distributional forecasts," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 104-117.
    8. Klein, Martin & Deissenroth, Marc, 2017. "When do households invest in solar photovoltaics? An application of prospect theory," Energy Policy, Elsevier, vol. 109(C), pages 270-278.
    9. Ahmad Aiman Zulkifli & Mohd Zulkhairi Mohd Yusoff & Latifah Abd Manaf & Mohd Rafein Zakaria & Ahmad Muhaimin Roslan & Hidayah Ariffin & Yoshihito Shirai & Mohd Ali Hassan, 2019. "Assessment of Municipal Solid Waste Generation in Universiti Putra Malaysia and Its Potential for Green Energy Production," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    10. Bianca Yamaguchi & Toru Takahashi & Cristian Iulian Vlad & Hiroaki Kaneko & Ana Damaschin, 2020. "The Impact of Resource-Based Circular Economic Models in Japan," Romanian Economic Business Review, Romanian-American University, vol. 15(3), pages 1-28, September.
    11. Keane, Seán F. & Cormican, Kathryn T. & Sheahan, Jerome N., 2018. "Comparing how entrepreneurs and managers represent the elements of the business model canvas," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 65-74.
    12. Rajvikram Madurai Elavarasan & G. M. Shafiullah & Nallapaneni Manoj Kumar & Sanjeevikumar Padmanaban, 2019. "A State-of-the-Art Review on the Drive of Renewables in Gujarat, State of India: Present Situation, Barriers and Future Initiatives," Energies, MDPI, vol. 13(1), pages 1-30, December.
    13. Paul Westacott & Chiara Candelise, 2016. "A Novel Geographical Information Systems Framework to Characterize Photovoltaic Deployment in the UK: Initial Evidence," Energies, MDPI, vol. 9(1), pages 1-20, January.
    14. Strupeit, Lars & Neij, Lena, 2017. "Cost dynamics in the deployment of photovoltaics: Insights from the German market for building-sited systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 948-960.
    15. Wiebe, Kirsten S. & Lutz, Christian, 2016. "Endogenous technological change and the policy mix in renewable power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 739-751.
    16. Jowita Trzcielinska & Renata Kaps, 2024. "Impact of Business Environment Perception on Pro-Ecological Activities in Polish Firms," European Research Studies Journal, European Research Studies Journal, vol. 0(Special A), pages 510-530.
    17. Amna Farrukh & Aymen Sajjad, 2024. "Investigating sustainability tensions and resolution strategies in the plastic food packaging industry—A paradox theory approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2868-2889, May.
    18. Miguel Carpintero-Rentería & David Santos-Martín & Josep M. Guerrero, 2019. "Microgrids Literature Review through a Layers Structure," Energies, MDPI, vol. 12(22), pages 1-22, November.
    19. Aida Hosseinian & Jenni Ylä-Mella & Eva Pongrácz, 2021. "Current Status of Circular Economy Research in Finland," Resources, MDPI, vol. 10(5), pages 1-16, April.
    20. Zbysław Dobrowolski & Łukasz Sułkowski, 2021. "Business Model Canvas and Energy Enterprises," Energies, MDPI, vol. 14(21), pages 1-10, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jresou:v:8:y:2019:i:2:p:73-:d:224493. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.