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Sunderasan S.,Verdurous Solutions Private Ltd
Green Energy and Technology | Year: 2011

Ethanol as a fuel/fuel-blend has been a success story in Brazil and select other countries; ethanol is an octane enhancer and fuel-ethanol blends help reduce hydrocarbon, carbon-di-oxide and nitrogen oxide emissions. In addition such fuels reduce emissions of benzene and butadiene, sulphur-dioxide and particulate matter. In summary, ethanol's credentials as a fuel additive with superior environmental outcomes are unchallenged. Sale of ethanol also represents an additional stream of cash-flows for the sugar mills that produce it. However, besides being a fuel additive, ethanol finds application in several other industry sectors, with the potable alcohol segment being among the largest consumers. © Springer-Verlag London Limited 2011. Source

Srinivasan S.,Verdurous Solutions Private Ltd
Sustainable Production and Consumption | Year: 2016

The Verdurous India Index consistently outperforms the market proxy when investors appear optimistic, and underperforms during each downturn: 46.50% (benchmark 17.4%), 22.50 (13.1), 15.53 (15.3), 32.65 (28.3) during four distinct growth phases; and -14.66% (benchmark 16.74%), 18.38 (21.97), 10.30 (9.80) during three distinct downturns. The observed cyclicality in returns from the environment-themed index may be construed as a "correction" of sentiment-in either direction-rather than a substantive alteration in the fundamental value of the underlying portfolio. Tobin's 'q' and marginal 'q' analyses of the index relative to the broader markets reveal that investor perceptions relating to 'efficiency of asset use' drag the broader markets down, and along with it the individual firms constituting the index. However, while 44% of the variability in the marginal 'q' is explained by movements in market capitalization of the Verdurous-index-constituents, 56% of the variability was a function of firm-specific management practices. Yet, the robustness of the index portfolio helps negate this impact to a limited extent. The loss in valuation concurrent with exogenous shocks, and a diminished valuation of the broader markets, would imply that the greener among the firms had not adequately or succinctly signaled their firm and sustained commitment to the natural environment to the investor community. © 2016 The Institution of Chemical Engineers. Source

Srinivasan S.,Verdurous Solutions Private Ltd
Mitigation and Adaptation Strategies for Global Change | Year: 2015

Retaining the option-to-harvest encourages people to cultivate forest stands on private land, and periodic purchases of the option keep the stand intact, thus contributing to a greater good. This paper develops and demonstrates the use of a real-option model to encourage the planting of new biologically-diverse forests, and to help conserve existing forests standing on private land. Payments for ecosystem services (PES) take several forms and several instruments and policies have been designed over the years. This study involves a detailed analysis of literature on PES and of various revenue streams generated by forest stands. It was observed that the option-to-harvest encouraged expansion and conservation of small-scale forests. The methodology adopted and product designed herein involves the purchase of the option-to-harvest at the beginning of each accounting period, especially by timber suppliers, with a view to preventing potentially steep declines in spot timber prices from the potentially excess supply. The incentive structure is simplified to include the interest foregone on the terminal value, reduced by the existential value derived from such delay. The real-option model employing bounded random walk projections is applied to a registered Clean Development Mechanism (CDM) project. Subject to the alternative use of the parcel of land, the option payments are found to represent 3.83–6.57 % of the value of stand conserved. Suitable institutional mechanisms would need to be developed to transfer the option payments to the growers, across large numbers of such projects. © 2013, Springer Science+Business Media Dordrecht. Source

Srinivasan S.,Verdurous Solutions Private Ltd
Energy Policy | Year: 2014

The Indian political class is known to employ populist, albeit economically unsustainable, measures to replace intrinsic 'valence', especially shortly prior to election windows. Such measures include loan-waivers, interest rate concessions, provision of free electricity for agriculturists, etc. The union government's leverage to maneuver and to micro-manage retail fuel prices within partially deregulated environments is hypothesized to provide incumbents with an advantage over rival contestants in the electoral process. This paper analyzes the evolution in the retail prices of diesel and petrol (gasoline), and the transfer of such evolution, into the inflation index of the 'all commodity' basket. It is observed that when international benchmark prices are relatively low and domestic inflation is moderate, the transfer occurs within about 42 weeks. During periods of high oil prices-frequently above USD 100 a barrel-and high inflation-higher than 5.00-5.50%-prices of petroleum distillates tend to feed into overall inflation more rapidly, within about 34-40 weeks.The study, covering a total of 82 elections for the central and state (provincial) governments during the period 2000 to 2013, concludes that even as patterns of manipulation of prices are apparent, ceteris paribus, such leverage does not necessarily seem to translate into favorable electoral outcomes. This conclusion reiterates observations that economic im/prudence may not necessarily determine electoral outcomes, and that the basis for electoral choices made by the Indian voter-consumer remains subjective. © 2014 Elsevier Ltd. Source

Srinivasan S.,Verdurous Solutions Private Ltd
Energy Policy | Year: 2013

Electric power has traditionally been classified as a non-traded good, produced and consumed within the country of origin. More recently, electricity has been traded across national borders and in certain cases, viz., Bhutan, has been the dominant export; in other situations, it is used to repay debts owed to neighboring countries. This paper investigates the role of electricity as the primary export, analyzes its valuation, and then goes on to evaluate the impact on the terms of trade. We conclude that in the medium-term, the electric power exporting economy would be better off developing its manufacturing sector to diversify its exposure and to protect its trade interests. The case of Bhutanese hydro-electricity exports to India is studied and the change in trade advantage with every increase in power tariff is ascertained. It is found that a 1.26% annual increase in (non-food) consumer prices is correlated with a 1% increase in electricity export tariff. While the causality from electric power tariff to Indian manufactures prices is not established statistically, a change in manufactures prices feeding back into consumer prices in Bhutan is statistically significant. Suggestions are offered for Bhutan to reduce dependence on Indian imports and to diversify its export market exposure. © 2013 Elsevier Ltd. Source

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