See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/234797403

A concise review of exergy-based economic methods

Article · February 2008

CITATIONS READS
50 792

1 author:

Marc A. Rosen
Ontario Tech University
1,114 PUBLICATIONS   42,676 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Development of a Building Energy Management Software View project

SMART Material for Building Walls and Envelope based on Coupling 3D EN Model- CFD model and Hygrothermal model View project

All content following this page was uploaded by Marc A. Rosen on 24 May 2015.

The user has requested enhancement of the downloaded file.

 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

A Concise Review of Exergy-Based Economic Methods

MARC A. ROSEN
Faculty of Engineering and Applied Science
University of Ontario Institute of Technology
2000 Simcoe Street North, Oshawa, Ontario, L1H 7K4
CANADA

Abstract: In the analysis and design of energy systems, techniques are often used which combine scientific
disciplines (mainly thermodynamics) with economic disciplines (mainly cost accounting) to achieve optimum
designs. For energy conversion devices, cost accounting conventionally considers unit costs based on energy. Costs
are better distributed among outputs if cost accounting is based on the thermodynamic quantity exergy, partly
because exergy, but not energy, is often a consistent measure of economic value. In this article, we critically review
relations between exergy and economics, and exergy-based economic methods (exergoeconomics,
thermoeconomics, exergy-based pricing, EXCEM analysis, analysis based on the ratio of thermodynamic loss to
capital cost). Most such methods aim to determine appropriate allocations of economic resources for optimal
design and operation, and/or economic feasibility and profitability.

Key-Words: energy, exergy, economics, thermoeconomics, exergoeconomics, costing, prices, environment.

1 Introduction The exergy of an energy or material quantity

Although the merit of a system or process is usually
based on such varied factors as technical performance,
efficiency, resource availability, environmental impact,
health, safety and societal acceptance, economics is a
central consideration. Analysis, design and
optimization often utilize techniques that combine
technical disciplines like thermodynamics with
economics. Cost accounting applied to energy systems
normally considers unit costs based on energy.
Many authors suggest the second law of
thermodynamics, which embodies entropy concepts,
has significant implications for economics. A
thermodynamic theory of economics sought, for
instance, considering the first and second laws [1].
Relations between utility and the law of diminishing
marginal utility and a thermodynamic model of a
money system and thermodynamic-based measures for
economic value were developed.
Some researchers note that the thermodynamic
quantity exergy, which stems from the second law, is
often a consistent measure of economic value, while
energy is not. Many recommend that cost accounting
and pricing are better based on exergy than energy. For
instance, costs based on exergy are more rationally
distributed among outputs, since exergy-based unit
costs are more meaningful than energy-based ones.
measures its usefulness or quality. Although energy
cannot be destroyed, exergy can. Energy efficiencies
do not always assess how nearly performance
approaches ideality and do not properly describe
factors that cause performance to deviate from ideality.
Exergy analysis (e.g., [2-6]) overcomes many of the
shortcomings of energy analysis, yielding efficiencies
which provide a true measure of approach to ideality,
and identifying properly the causes, locations and
magnitudes of inefficiencies. Exergy indicates
theoretical and practical limitations imposed on a
system, which show that a real system can not
conserve exergy as only a portion of input exergy can
be recovered. Through its illuminating, rational and
meaningful approach, exergy analysis can help
improve and optimize designs. Applications of exergy
have been reported for power generation, cogeneration,
geothermal plants, thermal, chemical, and
metallurgical processes, transportation and countries
(e.g., Canada, United States, United Kingdom,
Sweden, Italy, Turkey, Saudi Arabia, Japan) [2-6].
Several exergy-based economic analysis methods
have been developed. Their goal is usually to
determine economic feasibility and profitability, or
appropriate allocations for economic resources for
achieving optimal or improved designs. Here, we
critically review relations between exergy and

ISSN: 1790-5095 Page 136 ISBN: 978-960-6766-43-5

 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
economics and many analysis methods which integrate
exergy and economics. This article is an abbreviated
version of a much longer chapter [7].
2 Exergy and Economics
Exergy is a useful concept in economics [8,9] and
crucial to cost accounting and economic analyses [10].
Costs should reflect value, and since value is not
generally associated with energy but with exergy,
assignments of cost to energy lead to
misappropriations, which are common and often
significant [10]. It has been further pointed out that
exergy possesses an intrinsic and direct correlation
with economic values [11]. On the one hand, therefore,
exergy allows rational evaluation of efficiencies and
inefficiencies (including internal exergy consumptions
due to irreversibilities and waste exergy emissions), as
well as the value of fuels and resources. On the other
hand, exergy facilitates the determination of the costs
associated with thermodynamic losses and the values
and costs of the outputs and accumulated quantities for
processes and devices. Consequently, using exergy as a
basis for cost accounting can help determine the real
costs of producing commodities and in pricing such
products. Also, exergy can help evaluate economic
viability and profitability.
Exergy can interface broadly with economics. In
microeconomics, exergy can be combined with cost-
benefit analyses to improve designs. In
macroeconomics, exergy provides a basis for
increasing efficiency, reducing resource utilization and
losses, and reducing environmental damage. These
objectives can be accomplished with, for example,
exergy-based incentives or exergy taxes. Exergy more
broadly can help in optimizing designs and making
operating decisions. Exergy-based concepts and
methods for analyzing and optimizing energy systems
including life cycle exergy analysis have been
described [10], as has the relation between exergy
destructions and investment costs in thermal systems
[12].
Thermodynamics, including exergy and entropy,
has been linked to economic systems [13]. Related
work involved modelling the economic order quantity
based on the second law [14], and using entropy cost to
evaluate the economic order quantity for repair and
waste disposal [15]. Diffusion-like economic
commodity flows were considered from a
thermodynamic perspective, by modelling a
ISSN: 1790-5095 Page 137
commodity flow as a quasi-thermodynamic irreversible
process [16]. In that work, which supposes
thermodynamics can explain commodity diffusion, a
coupling relation between commodity price and quality
is derived.
A cost balance can be written for a system as
cost input + cost generation − cost output
= cost accumulation
Cost input and output represent respectively the cost
associated with all inputs and outputs. Cost
accumulation represents build-up of cost, while cost
generation corresponds to the capital and other costs
associated with the creation and maintenance of the
system. The cost generation term emphasizes that cost
is a non-conserved quantity.
Although cost and thermodynamic balances appear
similar, they exhibit several significant differences:
• Energy is conserved but economic cost is not.
• Both cost and exergy are not conserved, with cost
generated due to the cost of devices and exergy
consumed due to irreversibilities associated with
their operation.
• In energy and exergy balances, the values
associated with all quantities are defined by
thermodynamics. Only cost input and generation are
defined for the cost balance, however, as the
distribution of costs over outputs and accumulations
is subjective. If costs are not allocated
appropriately, it is difficult to gauge the cost-
effectiveness of a device and to set prices for
salable commodities, especially when there are
multiple products.
Exergy is also useful in understanding and
assessing environmental impact, non-renewable
resource depletion, ecology and sustainable
development [2-6]. The ties between exergy and
economics can be extended to environmental and
ecological aspects in several ways:
• The potential of exergy to be an indicator of
environmental impact can be incorporated in
exergy-based economic assessments.
• The costs associated with environmental impact and
protection can be included in the economic portion
of an exergy-based economic assessment.
Extending exergy and economics to account for
environmental effects permit one to minimize life
cycle costs and thereby find the most appropriate
device or process. This can be accomplished while
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
reducing environmental effects, for prevailing
economic conditions.
3 Exergy-based Economic Methods
Methods integrating exergy and economics have been
developed over the last several decades. Georgescu-
Roegen [17] is often cited as a pioneer in the field of
the thermodynamics of economics. Details on exergy-
based economic methods are reported in books (e.g.,
[2,4]) and reviews and comparisons (e.g., [2,18,19]).
Most exergy-based economic methods have several
commonalities: they combine exergy and economics to
help achieve thermodynamic and economic objectives,
and they recognize that exergy, not energy, is the
commodity of value in a system and consequently
assign costs and/or prices to exergy-related variables.
These methods assess economic feasibility and
profitability, in part by determining actual costs of
products and appropriate prices; and/or determine
appropriate allocations of economic resources to
facilitate design and operation optimization.
Four main categories of exergy-based economic
methodologies have been identified, depending on
which of the following forms the basis [18]: 1) exergy-
economic cost accounting, 2) exergy-economic
calculus analysis, 3) exergy-economic similarity
number, and 4) product/cost efficiency diagrams.
Available energy costing methods were developed
[20], while thermoeconomics has been investigated
often [21]. Optimization is a particularly important
application of exergy-based economic techniques [22].
3.1 Exergy-based pricing and cost allocation
The selection of energy sources for residential,
commercial, transportation, industrial and other uses is
primarily based on prices, so it is important to
determine prices appropriately. Incorrect pricing can
lead to problems, e.g., businesses can be uncompetitive
when prices are too high, and unable to cover costs
they are too low.
Exergy-based prices can foster resource savings and
efficient technology. Prices for a commodity based on
exergy usually parallel its physical value, while prices
based on energy do not. Prices of physical resources
can thus be more rationally set based on exergy. The
use of exergy in economic valuations and the
correlation of exergy with money have been
considered [23]. Exergy-based production expenses are
shown to lead to natural price determination, and a
corresponding general macroeconomic dynamics
ISSN: 1790-5095 Page 138
approach is proposed which was tested using US data
over 25 years. The effect of energy and exergy values
on fuel pricing has been examined, including how
energy and exergy values and their differences affect
energy commodity prices [10].
The characteristics of different fuels and energy
forms vary. Energy and exergy prices are equal for
electricity and for work, and are approximately equal
for hydrocarbons. Energy and exergy costs for heat and
for cold usually differ, with the exergy cost
significantly dependent on temperature, which
determines the quality of thermal energy.
The energy-conversion technology used can
significantly affect price. For example, heat and
electricity can be produced independently, or
simultaneously via cogeneration. Determining the
portion of the cost that should be allocated to each
product is important to the commercial success of
cogeneration, yet there is no widely accepted
allocation method. If costs are not allocated
appropriately, one product may be overpriced (and
thus unlikely to be purchased) and one under-priced
(and thus unable to recover costs even if in great
demand).
3.2 EXCEM analysis
EXCEM (exergy, cost, energy and mass) analysis
focuses on the four key parameters represented by its
name [24], and can help assess and improve systems
and processes. EXCEM analysis is intended as a
unified aid for thermodynamic, economic and
environmental decisions and design.
EXCEM analysis presumes an understanding of
system or process performance requires examination of
all flows of exergy, cost, energy and mass through a
system. Balances can be written for each EXCEM
quantity. Mass and energy are conserved. Exergy and
cost are not conserved, as exergy can not increase
while cost can not decrease. The exergy-related aspects
of EXCEM are often the most informative.
EXCEM analyses of processes have demonstrated
that the method provides valuable insights into
efficiency, economics and environmental impact.
EXCEM analyses can yield results not obtainable
conventionally, and can sometimes find results
obtainable with conventional analyses more directly.
3.3 Loss-cost ratio analysis
Loss-cost ratio analysis focuses on the ratio of
thermodynamic loss rate to capital cost. The insights
provided with this exergy-based economic method can
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
assist in analysis and design [25,26]. Loss-cost ratio
analysis identifies correlations between capital costs
and specific second-law-based thermodynamic losses
(i.e., total and internal exergy losses).
The approach has been applied to mature devices,
with the relations between energy losses and capital
costs generally observed as not useful. Correlations are
observed between capital costs and exergy-based
thermodynamic losses for systems and their
components, suggesting that designers incorporate
exergy-based economic recommendations into designs,
overtly or unknowingly [9,19,25,26]. The ratio of loss
rate to cost based on total and internal exergy loss rates
are normally the most useful. A correlation also is
observed between the mean thermodynamic-loss-rate-
to-capital-cost ratio for all system devices and the ratio
for the overall system, when the ratio is based on total
or internal exergy losses, but not when it is based on
energy losses.
3.4 Thermoeconomics and exergoeconomics
Exergoeconomics and thermoeconomics are exergy-
based economic methods that have evolved over
several decades [11,27,28]. Exergy and
microeconomics forms the basis of thermoeconomics,
also called exergoeconomics and exergonomics [27].
Utility is a central concept in macroeconomics and is
closely related to exergy. An exergy tax is an example
of how exergy can be introduced into
macroeconomics.
With thermoeconomics, exergy efficiencies are
determined, while non-energy expenditures such as
financial and labour costs are related to the technical
parameters of the device under consideration. In
thermoeconomic optimization [29,30], the optimal
design point and operating conditions are determined
by minimising the total economic cost under financial,
technical, environmental and other constraints. A
systematic and general method for evaluating costs in
thermal systems is described [31].
Multi-objective energy and economic optimization
algorithms exist for thermal designs [32]. It is observed
that considering only economic minima may not
provide sound decisions, and that more efficient
solutions may yield preferred designs due to changes
in energy market prices or energy policies, despite
small increases in total costs.
Exergy accounting utilizes exergy costs and is
useful for diagnosing energy systems and accounting
for natural exergy resources [33]. The method
measures the amount of exergy resources to produce a
ISSN: 1790-5095 Page 139
good. Costs must be properly formed to understand
and evaluate exergy costs and resource degradation, as
well as cost and irreversibility relations. Numerous
applications are described of exergy cost accounting
and thermoeconomics, explaining thermoeconomic
costs, thermoeconomic analyses of complex systems
and operation diagnosis and optimization [34,35].
Uncertainty has been included in thermoeconomics
[36]. Such fuzzy thermoeconomic analysis considers
fuzzy nonlinear programming where local criteria like
maximum efficiency and minimum total cost rate as
well as constraints in an ill-structured situation can be
represented by fuzzy sets. Structural theory in
thermoeconomics has been examined [37], as has
malfunction and dysfunction analysis using structural
theory within thermoeconomics [38].
3.5 Exergy and environmental economics
Designing efficient and cost-effective systems, which
meet environmental requirements, is can be
challenging. Mass and energy conservation indicate
that raw material inputs to economic processes are not
consumed, but instead ultimately return to the
environment as wastes. If the Earth is treated as a
closed system, the concepts of exergy and entropy
yield different economic implications, suggesting that
constraints are imposed on economic growth because
economic processes utilize high-exergy (or low-
entropy) raw materials such as fuels and high-grade
minerals, and discard low-exergy (or high-entropy)
wastes. Since the Earth is an open system that receives
large quantities of high-exergy (or low-entropy) solar
radiation, energy resources may be adequate to sustain
economic activity over time, although non-renewable
natural resources like metal ores and fossil fuels may
eventually be exhausted.
Several researchers have investigated exergy and
environmental economics [39]. Economics and the
second law have been linked via eco-thermodynamics,
which assumes the economic significance of the
second law is that exergy is not conserved and is a
useful measure of resource quality and quantity [40].
Exergy is treated as a factor of production like labor
and capital, with strong implications on economic
growth theory, especially in assessing the role of
technical progress.
Exergy accounting and thermoeconomics have been
extended with environmental factors [11]. The
approach allows direct quantitative comparisons of
factors like labour, environmental impact and
externalities. The approach is seen to be a natural
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
development of the economic theory of commodity
production, which it extends by accounting for the
unavoidable exergy consumption in the production
chain. Extended Exergy Accounting exploits the
correlation between exergy and economics to develop
a theory of value based on exergy or monetary metrics.
The premise is that, while exergy and monetary costs
both represent the resources to be consumed for a
given output, their structures differ and yield different
optimal designs. Extended Exergy Accounting has also
been proposed as a cost analysis method using a
resource-based quantifier (extended exergy rather than
money) [41,42]. This quantifier links labour and
financial costs to an equivalent resource consumption,
expressing the total exergy consumption required to
produce one person-hour of work or one monetary unit
of currency circulation. Environmental remediation
costs are accounted for by determining the equivalent
cumulative exergy expenditure for zero impact.
Extended Exergy Accounting thus evaluates the
resource-based value of a commodity (not necessarily
monetary cost), enabling more comprehensive and
meaningful energy planning. The method complements
such tools as life-cycle assessment, environmental
footprint analysis, cumulative exergy analysis and
emergy analysis, incorporating some of their elements.
A comprehensive method is proposed based on
energy, exergy, economic and environmental factors
[43]. Environmental emissions are considered and
performance indicators developed, providing useful
information about performance and possible
improvements. Energy-system designs can be
optimized using separate objectives relating to energy,
economics and the environment [44]. This multi-
criterion optimization is argued to be advantageous to
single-objective thermoeconomic optimization and
two-objective energy and economic optimization. An
environmental impact objective function is expressed
in cost terms by weighting carbon dioxide and nitrogen
oxide emissions according to their unit damage costs.
A thermoeconomic method to increase exergy-
resource utilization efficiency based on a carbon
exergy tax is proposed to promote efficient exergy use
[45]. The author feels that the method, which evaluates
the cost of exergy destroyed and rejected in a system,
and which is connected with the CO2 emissions,
improves system economic suitability by permitting
better use of exergy. Exergoeconomics provides a
thermodynamic foundation for rational resource use
[46]. A method for performance evaluation under
maximum ecological and economic conditions is
ISSN: 1790-5095 Page 140
described [47]. The ecological function is represented
by the ratio of power output to entropy generation rate,
and the economic function by the ratio of power output
to total cost. Some authors extend exergy-based
economic methods encompassing environmental
factors to sustainability. For instance, thermodynamics
and economics are integrated to obtain exergy-based
indicators of sustainable development [48]. Exergy and
entropy are applied to the steady-state economy to
develop a model for sustainable development at the
macro-economic level [49]. The approach combines
resource depletion with pollution and focuses
environmental protection on reducing degradation.
Industries are thus able to seek alternatives for
environmentally sound processes and products. The
method permits companies to set environmental goals
and programs.
4 Applications
4.1 Thermal processes
EXCEM analysis has been applied to many thermal
systems and processes [24,34].
Several exergy-based economic assessments of
heating systems have been reported, such as
optimizations of hot water piping systems using
thermoeconomics and considering simultaneous
optimization of pipe diameter and insulation thickness
based on maximization of exergy efficiency and cost
minimization [50]. Exergoeconomic analyses have
been reported of ground-source heat pump systems for
buildings [51] and geothermal district heating [52]. A
greenhouse heating system using a solar-assisted
ground-source heat pump was assessed using EXCEM
and loss-cost ratio analyses [53]. The latter
demonstrated devices in successful air conditioning are
configured to achieve an overall optimal design by
appropriately balancing exergy and economic
behaviour of the overall system and its devices.
Exergy-based economic analyses have been
undertaken for cooling, refrigeration and air
conditioning. An exergoeconomic optimisation was
reported of aqua-ammonia absorption refrigeration for
air conditioning, by minimizing the overall operation
and amortization cost and utilizing exergetic costs
[54]. A small capital cost increase (2%) yielded a
significant product cost reduction (15%). An
exergoeconomic analysis of cold thermal storage using
a glycol working fluid was performed [53].
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
Exergoeconomic optimization was used to investigate
the effect of matrix thermal conductivity on an air-
conditioning rotary regenerator [56]. The optimum
rotary regenerator geometry was determined using the
unit exergy cost of the warm air delivered as the
objective. The operating cost was determined using
different unit costs for the pressure and thermal
components of exergy. The geometry of a precooling
air reheater for air conditioning was also
thermoeconomically optimized, with the total cost
given by the precooler capital cost and the operating
cost attributable to precooler irreversibility [57]. An
exergoeconomic optimisation of the geometry of
continuous fins on an array of tubes of a refrigeration
air-cooled condenser was performed [58]. The exergy
destruction was investigated by varying condenser tube
diameter. An optimum heat exchanger area was found
by optimally balancing exergy destruction
components, and the total cost was based on annual
capital cost and compensation cost for irreversibilities.
4.2 Power generation and cogeneration
Numerous exergy-based economic investigations
have been undertaken of power generation, including
exergoeconomic analyses of nuclear, oil and coal
plants [19.59]. Thermoeconomics was applied to a
power plant using structural theory with malfunction
and dysfunction analysis [60,61]. A Brayton cycle was
investigated considering ecological and economic
conditions [47], defining the economic function as the
ratio of power output to total cost and the ecological
function as the ratio of power output to entropy
generation rate. The cycle was maximized for
economic and ecological objectives while minimizing
entropy generation rate. An exergoeconomic
optimisation of a Kalina power cycle, as a bottoming
application for cogeneration, was carried out [63]. The
objective was the exergoeconomic unit cost of
electricity produced by both cogeneration and the
absorption cycle. An exergoeconomic analysis of a
PEM fuel cell was undertaken for various operating
conditions [64]. The effects of varying parameters on
the fuel-cell exergy cost were determined; a significant
reduction in exergy cost was possible with lower fuel
cell capital costs, annual operation and maintenance
costs and hydrogen costs. A power plant combining a
solid oxide fuel cell and gas turbine was assessed using
a thermoeconomic method based on a carbon exergy
tax aimed at increasing the efficient use of exergy
resources [45]. Hydroelectric and thermoelectric power
generation were analyzed based on exergetic,
ISSN: 1790-5095 Page 141
economic and environmental factors [43], and a
thermoeconomic analysis was reported of a residential
photovoltaic-hydrogen system [65].
Several exergy-based economic investigations have
been carried out of processes for multiple products,
including cogeneration, including an exergy cost
minimisation of gas turbine-based cogeneration [66]
and a thermoeconomic analysis of institutional
cogeneration using a gas turbine and waste boiler [67].
The most advantageous systems were found based on
pay-back period and maximum savings in ten years.
Several combined-cycle cogeneration configurations
were thermoeconomically compared using specific-
exergy costing [68]. Cost balances of the subsystems
and unit exergy costs were found. Combined-cycle
cogeneration with condensing extraction steam
turbines was found to be thermoeconomically
advantageous to those with back-pressure steam
turbines. Methods extending exergy accounting and
thermoeconomics with environmental factors were
applied to cogeneration based on a gas turbine,
yielding an optimal design [11,41]. For gas turbine-
based power generation and desalination,
thermoeconomic analyses were carried out [69], and
exergy costs determined [70].
4.3 Chemical processes
Chemical processes vary widely [4]. Desalination was
examined with thermoeconomics [69,70] and a method
based on exergetic, economic and environmental
parameters was applied to bioethanol production [43].
High-purity product generation from air separators was
thermoeconomically analyzed [71]. A thermoeconomic
investigation was carried out of multi-effect
evaporation and multi-stage flash [72], showing that
operating cost decreases with increasing module
number, and the combined system is more economic
than stand-alone systems.
5 Conclusions
Useful relations exist between exergy and economics,
different from those between energy and economics,
which provide the basis for exergy-based economic
methods. Such methods are useful in analysis and
improvement activities. The methods generally
combine thermodynamics with economics to achieve
advantageous designs, acknowledging that costs are
better distributed among outputs if costs are based on
exergy rather than energy, and that a consistent
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
measure of economic value is provided by exergy but
not energy. Exergy analysis has advantages over
energy analysis from a combined thermodynamic and
economic perspective. Exergy-based economic
methods usually determine appropriate economic-
resource allocations for the design and operation of a
system, and economic feasibility and profitability.
Acknowledgements: Support for this work provided by
the Natural Sciences and Engineering Research
Council of Canada is gratefully acknowledged.
References:
[1] Bryant, J. A Thermodynamic theory of
economics. Int. J. Exergy, 4, 2007, 302-337.
[2] Kotas, T. J. The Exergy Method of Thermal Plant
Analysis (reprint ed.). Malabar, Florida: Krieger,
1995.
[3] Szargut, J. Exergy Method: Technical and
Ecological Applications. UK: WIT Press, 2005.
[4] Szargut, J., Morris, D. R, and Steward F. R. Exergy
Analysis of Thermal, Chemical, and Metallurgical
Processes. New York: Hemisphere, 1988.
[5] Sato, N. Chemical Energy and Exergy: An
Introduction to Chemical Thermodynamics for
Engineers. Oxford, UK: Elsevier, 2005.
[6] Dincer, I., and Rosen, M. A. Exergy: Energy,
Environment and Sustainable Development.
Oxford, UK: Elsevier, 2007.
[7] Rosen, M.A. Integrating Exergy and Economics:
An Enhanced Approach to Energy Economics.
Chapter in New Research on Energy Economics,
Nova Science, Hauppauge, New York (in press).
[8] Tsatsaronis, G., and Valero, A. Thermodynamics
meets economics. Mechanical Engineering,
August, 1989, 84-86.
[9] Rosen, M.A. Exergy and economics: Is exergy
profitable? Exergy, An Int. J., 2, 2002, 218-220.
[10] Wall, G. Exergy tools. Proc. Inst. Mechanical
Engineers, Part A: J. Power and Energy, 217,
2003, 125-136.
[11] Sciubba, E. Beyond thermoeconomics? The
concept of Extended Exergy Accounting and its
application to the analysis and design of thermal
systems. Exergy, An Int. J., 1, 2001, 68-84.
[12] Tsatsaronis, G., and Park, M. H. On avoidable
and unavoidable exergy destructions and
investment costs in thermal systems. Energy
ISSN: 1790-5095 Page 142
Conversion and Management, 43, 2002, 1259-
1270.
[13] Jaber, M. Y., Nuwayhid, R. Y., and Rosen, M. A.
Price-driven economic order systems from a
thermodynamic point of view. Int. J. Production
Research, 42, 2004, 5167-5184.
[14] Jaber, M. Y., Nuwayhid, R. Y., and Rosen, M. A.
A thermodynamic approach to modelling the
economic order quantity. Applied Mathematical
Modelling, 30, 2006, 867-883.
[15] Jaber, M. Y., and Rosen, M. A. The economic
order quantity repair and waste disposal model
with entropy cost. European Journal of
Operational Research (in press).
[16] Nuwayhid, R. Y., Jaber, M. Y., Rosen, M. A., and
Sassine, G. P. On the thermodynamic treatment of
diffusion-like economic commodity flows.
International Journal of Exergy, 3, 2006, 103-
117.
[17] Georgescu-Roegen, N. The Entropy Law and
Economic Process. Cambridge: Harvard
University Press, 1971.
[18] Tsatsaronis, G. A review of exergoeconomic
methodologies. In Second Law Analysis of
Thermal Systems (pp. 81-87). New York:
American Soc. of Mechanical Engineers, 1987.
[19] Rosen, M. A., and Dincer, I. Thermoeconomic
analysis of power plants: An application to a coal-
fired electrical generating station. Energy
Conversion and Management, 44, 2003, 2743-
2761.
[20] Reistad, G. M., and Gaggioli, R. A. Available
energy costing. In Thermodynamics: Second Law
Analysis (ACS Symposium Series 122, pp. 143-
159). Washington, DC: American Chemical
Society, 1980.
[21] EI-Sayed, Y. M., and Tribus, M. Strategic use of
thermoeconomics for system improvement. In R.
A. Gaggioli (Ed.), Efficiency and Costing: Second
Law Analysis of Processes (ACS Symposium
Series 235, pp. 215-238). Washington, DC:
American Chemical Society, 1983.
[22] Hua, B., Yin, Q., and Wu, G. Energy optimization
through exergy-economic evaluation. ASME J.
Energy Resources Technology, 111, 1989, 148-
153.
[23] Bandura, A. V., and Brodiansky, V. M.
Thermodynamics extends economics potentials.
Energy, 26, 2001, 811-814.
[24] Rosen, M. A., and Dincer, I. Exergy-cost-energy-
mass analysis of thermal systems and processes.
ISBN: 978-960-6766-43-5
 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008

Energy Conversion and Management, 44, 2003,
1633-1651.
[25] Rosen, M. A. The relation between
thermodynamic losses and capital costs for a
modern coal-fired electrical generation station. In
Computer-Aided Energy Systems Analysis (AES-
Vol. 21, pp. 69-78). New York: American Society
of Mechanical Engineers, 1990.
[26] Rosen, M. A. An investigation of the relation
between capital costs and selected
thermodynamic losses. In Second Law Analysis
(AES-Vol. 25/HTD-Vol. 191, pp. 55-62). New
York: American Society of Mechanical
Engineers, 1991.
[27] Yantovskii, E. I. Energy and Exergy Currents: An
Introduction to Exergonomics. New York: Nova
Science Publishers, 1994.
[28] El-Sayed, Y. The Thermoeconomics of Energy
Conversion. Elsevier: Amsterdam, 2004.
[29] Gogus, Y. A. 2005, Thermoeconomic
optimization. International Journal of Energy
Research, 29, 559-580.
[30] Tsatsaronis, G. Exergoeconomics: Is it only a new
name? Chemical Engineering and Technology,
19, 1996, 163-169.
[31] Lazzaretto, A., and Tsatsaronis, G. SPECO: A
systematic and general methodology for
calculating efficiencies and costs in thermal
systems. Energy, 31, 2006, 1257-1289.
[32] Toffolo, A., and Lazzaretto, A. Evolutionary
algorithms for multi-objective energetic and
economic optimization in thermal system design.
Energy, 27, 2002, 549-567.
[33] Verda, V., Serra, L., and Valero, A.
Thermoeconomic diagnosis: zooming strategy
applied to highly complex energy systems. ASME
J. Energy Resources Technology, 127, 2005, 42-
58.
[34] Valero, A., Serra, L., and Uche, J. Fundamentals
of exergy cost accounting and thermoeconomics.
ASME J. Energy Resources Technology, 128,
2006, 1-15.
[35] Valero, A. Exergy accounting: Capabilities and
drawbacks. Energy, 31, 2006, 164-180.
[36] Mazur, V. A. Fuzzy thermoeconomic
optimization. Int. J. Exergy, 2, 2005, 1-13.
[37] Erlach, B., Serra, L., and Valero, A. Structural
theory as standard for thermoeconomics. Energy
Conversion and Management, 40, 1999, 1627-
1649.
[38] Torres, C., Valero, A., Serra, L., and Royo, J.
Structural theory and thermoeconomic diagnosis.
Part I: On malfunction and dysfunction analysis.
Energy Conversion and Management, 43, 2002,
1503-1518.
[39] Edgerton R. H. Available Energy and
Environmental Economics. Toronto: D. C. Heath,
1982.
[40] Ayres, R. U. Eco-thermodynamics: economics
and the second law. Ecological Economics,
26, 1998, 189-209.
[41] Sciubba, E. Cost analysis of energy conversion
systems via a novel resource-based quantifier.
Energy, 28, 2003, 457-477.
[42] Sciubba, E. From engineering economics to
extended exergy accounting: a possible path from
monetary to resource-based costing. J. Industrial
Ecology, 8, 2004, 19-40.
[43] Tonon, S., Brown, M. T., Luchi, F., Mirandola,
A., Stoppato, A., and Ulgiati, S. An integrated
assessment of energy conversion processes by
means of thermodynamic, economic and
environmental parameters. Energy, 31, 2006, 149-
163.
[44] Lazzaretto, A., and Toffolo, A. Energy, economy
and environment as objectives in multi-criterion
optimization of thermal systems design. Energy,
29, 2004, 1139-1157.
[45] Santarelli, M. G. L. Carbon exergy tax: a thermo-
economic method to increase the efficient use of
exergy resources. Energy Policy, 32, 2004, 413-
427.
[46] Sciubba, E. Exergo-economics: thermodynamic
foundation for a more rational resource use. Int. J.
Energy Res., 29, 2005, 613-636.
[47] Tyagi, S. K., Wang, S. W., Chen, G. M., Wang,
Q., Chandra, H., and Wu, C. Performance
investigations under maximum ecological and
maximum economic conditions of a complex
Brayton cycle. International Journal of Exergy, 4,
2007, 98-116.
[48] Ferrari, S., Genoud, S., and Lesourd, J.-B.
Thermodynamics and economics: towards
exergy-based indicators of sustainable
development. Schweizerische Zeitschrift für
Volkswirtschaft und Statistik, 137, 2001, 319-336.
[49] Honkasalo, A. Entropy, exergy and steady-state
economy. Sustainable Development, 6, 1998,
130-142.
[50] Ozturk, I. T., Karabay, H., and Bilgen, E.
Thermo-economic optimization of hot water

ISSN: 1790-5095 Page 143 ISBN: 978-960-6766-43-5

 3rd IASME/WSEAS Int. Conf. on Energy & Environment, University of Cambridge, UK, February 23-25, 2008
piping systems: A comparison study. Energy, 31,
2006, 2094-2107.
[51] Ozgener, O., Hepbasli, A., Dincer, I., and Rosen,
M. A. Modelling and assessment of ground-
source heat pump systems using exergoeconomic
analysis for building applications. Proc. 9th Int.
Building Performance Simulation Assoc. Conf.,
Montreal, 2005, pp. 915-920.
[52] Ozgener, L., Hepbasli, A., Dincer, I., and Rosen,
M. A. Exergoeconomic analysis of geothermal
district heating systems: A case study. Applied
Thermal Engineering, 2, 2007, 1303-1310.
[53] Ozgener, O., and Hepbasli, A. Exergoeconomic
analysis of a solar assisted ground-source heat
pump greenhouse heating system. Applied
Thermal Engineering, 25, 2005, 1459-1471.
[54] Sahoo, P. K., Misra, R. D., and Gupta, A.
Exergoeconomic optimisation of an aqua-
ammonia absorption refrigeration system.
International Journal of Exergy, 1, 2004, 82-93.
[55] Bakan, K., Dincer, I., and Rosen, M. A.
Exergoeconomic analysis of glycol cold thermal
energy storage systems. Int. J. Energy Research
(in press).
[56] Jassim, R. K., and Khir, T. Exergoeconomic
optimisation of an air-conditioning rotary
regenerator: effect of matrix thermal conductivity
on its performance. International Journal of
Exergy, 1, 2004, 215-236.
[57] Jassim, R. K., Khir, T., and Ghaffour, N.
Thermoeconomic optimization of the geometry of
an air conditioning precooling air reheater
dehumidifier. Int. J. Energy Res., 30, 2005, 237-
258.
[58] Jassim, R. K., Khir, T., Habeebullah, B. A., and
Zaki, G. M. Exergoeconomic optimisation of the
geometry of continuous fins on an array of tubes
of a refrigeration air cooled condenser. Int.
Journal of Exergy, 2, 2005, 146-171.
[59] Rosen, M. A., and Dincer, I. Exergoeconomic
analysis of power plants operating on various
fuels. Applied Thermal Engineering, 23, 2003,
643-658.
[60] Valero, A., Lerch, F., Serra, L., and Royo, J.
Structural theory and thermoeconomic diagnosis.
Part II. Application to an actual power plant.
Energy Conv. and Mngt., 43, 2002, 1519-1535.
[61] Zhang, C., Wang, Y., Zhen, C., and Lou, X.
Exergy cost analysis of a coal fired power plant
based on structural theory of thermoeconomics.
Energy Conv. and Mngt., 47, 2006, 817-843.
ISSN: 1790-5095 Page 144
View publication stats
[62] Zhang, C., Chen, S., Zhen, C., and Lou, X.
Thermoeconomic diagnosis of a coal fired power
plant. Energy Conversion and Management, 48,
2007, 405-419.
[63] Borgert, J. A., and Velasquez, J. A.
Exergoeconomic optimisation of a Kalina cycle
for power generation. Int. J. Exergy, 1, 2004, 18-
28.
[64] Kazim, A. Exergoeconomic analysis of a PEM
fuel cell at various operating conditions. Energy
Conv. and Mngt., 46, 2005, 1073-1081.
[65] Santarelli, M., and Macagno, S. A. A
thermoeconomic analysis of a PV-hydrogen
system feeding the energy requests of a
residential building in an isolated valley of the
Alps. Energy Conv. and Mngt., 45, 2004, 427-
451.
[66] Sugimoto, K., Fujii, T., and Ohta, J. An appraisal
method of exergy cost minimisation for
cogeneration systems. Int. J. Exergy, 3, 2006,
255-271.
[67] Luz-Silveira, J., Beyene, A., Leal, E. M., Santana,
J. A., and Okada, D. Thermoeconomic analysis of
a cogeneration system of a university campus.
Applied Thermal Engineering, 22, 2002, 1471-
1483.
[68] Colpan, C. O., and Yesin, T. Thermodynamic and
thermoeconomic comparison of combined cycle
cogeneration systems. Int. J. Exergy, 3, 2006,
272-290.
[69] Rensonnet, T., Uche, J., and Serra, L. Simulation
and thermoeconomic analysis of different
configurations of gas turbine (GT)-based dual-
purpose power and desalination plants (DPPDP)
and hybrid plants (HP). Energy, 32, 2007, 1012-
1023.
[70] Uche, J., Serra, L., and Valero, A. Exergy costs
and inefficiency diagnosis of a dual-purpose
power and desalination plant. ASME J. Energy
Resources Tech., 128, 2006, 186-193.
[71] Boyarskii, M. Y., Garin, V. A., Smorodin, A. I.,
and Matveev, S. A. Thermal and economic
analysis of costs in obtaining ultrapure products
from air separators. Chemical and Petroleum
Engineering, 28, 1992, 497-500.
[72] Nafey, A. S., Fath, H. E. S., and Mabrouk, A. A.
Thermo-economic investigation of multi effect
evaporation (MEE) and hybrid multi effect
evaporation-multi stage flash (MEE-MSF)
systems. Desalination, 201, 2006, 241-254.
ISBN: 978-960-6766-43-5