Investment Valuation of Energy Efficiency Measures within Mining Companies
The research is aimed at revealing and classifying the multiple benefits that mining companies obtain implementing energy efficiency measures. The relevance of the subject is justified with two substantial issues. Firstly, mining companies are seeking energy cost reduction to achieve competitive advantages. Secondly, it is important to reveal essential benefits that can improve investment attractiveness of energy efficiency measures from business point of view. Within the study, multiple effects are considered, which are relevant to corporate level of gold mining companies operating in the Russian business environment. The research framework implied a case study. The process of primary and secondary data collection was performed through in-depth expert interviews with company’s management, analysis of relevant Russian tax legislation, and some statistical data. The revealed effects were classified into measurable and non-measurable in order to show explicitly which effects might be directly included in investment analysis. The measurable effects include energy savings, increase in output, tax benefits, decrease in environmental compliance payments. These effects are essential from business point of view since they improve project’s financial indicators. The tax benefits, which are applicable to the Russian mining companies implementing energy efficiency measures, were evaluated.
 Arnold, G.C., and Hatzopoulos, P.D. 2000. The theory-practice gap in capital budgeting: evidence from the United Kingdom. Journal of Business Finance and Accounting, 10(5): 603-626.
 Bennouna, K., Meredith, G. G., and Marchant, T. 2010. Improved capital budgeting decision making: evidence from Canada. Management decision, 48(2): 225-247.
 Brealey, R.A., Myers, S.C., and Allen, F. 2015. Principles of corporate finance, concise edition. Moscow: LLC ‘I.D. Vil'yams’.
 Brigham, E.F., and Houston, J.A. 2013. Fundamentals of financial management. SPb.: Piter.
 Cagno, E., Worrell, E., Trianni, A., and Pugliese, G. 2013. A novel approach for barriers to industrial energy efficiency. Renewable and Sustainable Energy Reviews, 19: 290-308.
 Cooremans, C. 2012. Investment in energy efficiency: do the characteristics of investments matter? Energy Efficiency, 5(4): 497-518.
 Damodaran, A. 2011. Investment valuation: tools and techniques for determining the value of any asset. Moscow: Al'pina Pablisher.
 DeCanio, S.J. 1993. Barriers within firms to energy-efficient investments. Energy Policy, 21(9): 906-914.
 Ernst & Young. 2016. The overview of Russian gold-mining companies in 2014-2015. Available at: http://www.ey.com/Publication/vwLUAssets/ey-gold-survey-2016-rus/$FILE/ey-gold-survey-2016-rus.pdf
 Fleiter, T., Hirzel, S., and Worrell, E. 2012. The characteristics of energy-efficiency measures – a neglected dimension. Energy Policy, 51: 502-513.
 Gomes, C.M., Kneipp, J.M., Kruglianskas, I., da Rosa, L.A.B. and Bichueti, R.S. 2014. Management for sustainability in companies of the mining sector: an analysis of the main factors related with the business performance. Journal of Cleaner Production, 84: 84-93.
 Henriques, J., and Catarino, J. 2016. Motivating towards energy efficiency in small and medium enterprises. Journal of Cleaner Production, 139: 42-50.
 International Energy Agency. 2014. Capturing the Multiple Benefits of Energy Efficiency. Available at: http://www.iea.org/publications/freepublications/publication/Captur_the_MultiplBenef_ofEnergyEficiency.pdf
 Jackson, J. 2010. Promoting energy efficiency investments with risk management decision tools. Energy Policy, 38: 3865-3873.
 Levesque, M., Millar, D., and Paraszczak, J. 2014. Energy and mining – the home truths. Journal of Cleaner Production, 84: 233-255.
 Makridou, G., Andriosopoulos, K., Doumpos, M., and Zopounidis, C. 2016. Measuring the efficiency of energy-intensive industries across European countries. Energy Policy, 88: 573-583.
 Mineeva, A., and Sergeev, I. 2016. Energy efficiency in a gold mining industry: barriers and drivers. Economy and business, 5: 51-56.
 Mukherjee, K. 2008. Energy use efficiency in US manufacturing: A nonparametric analysis. Energy Economics, 30(1): 76-96.
 Nehler, T., and Rasmussen, J. 2016. How do firms consider non-energy benefits? Empirical findings on energy-efficiency investments in Swedish industry. Journal of Cleaner Production, 113: 472-482.
 Polymetal International PLC. 2016. Delivering value. Driving further growth, Annual report 2015. Available at: http://www.polymetal.ru/~/media/Files/P/Polymetal/Annual%20Reports/2015_Annual_report_eng.pdf
 Pye, M., and McKane, A. 2000. Making a stronger case for industrial energy efficiency by quantifying non-energy benefits. Resources, Conservation and Recycling, 28(3): 171-183.
 Rohdin, P., and Thollander, P. 2006. Barriers to and driving forces for energy efficiency in the non-energy intensive manufacturing industry in Sweden. Energy, 31(12): 1836-1844.
 Russian Federal Tax Code. 2000. Available at: http://www.consultant.ru/document/cons_doc_LAW_28165/
 Ryan, L., and Campbell, N. 2012. Spreading the Net: The Multiple Beneﬁts of Energy Efﬁciency Improvements. Insight Series. Paris: Organ. Econ. Co-op. Dev./Int. Energy Agency.
 Ryan, P.A., and Ryan, G.P. 2002. Capital budgeting practices of Fortune 1000: how have things changed? Journal of Business and Management, 8(4): 355-64.
 Sandahl, G., and Sjogren, S. 2003. Capital budgeting methods among Sweden's largest groups of companies. The state of the art and a comparison with earlier studies. Int. J. Prod. Econ., 84: 51-69.
 Sorrell, S., et al. 2000. Barriers to energy efficiency in public and private organisations. Final report to DG Research under the project. SPRU (Science & Technology Policy): University of Sussex, Brighton.
 The World Bank. 2016. Pump price for diesel fuel (US$ per liter) (2010-2015). GNI per capita. Available at: http://data.worldbank.org/
 Trianni, A., and Cagno, E. 2012. Dealing with barriers to energy efficiency and SMEs: some empirical evidences. Energy, 37(1): 494-504.
 Trianni, A., Cagno, E., Thollander, P., and Backlund, S. 2013. Barriers to industrial energy efficiency in foundries: a European comparison. Journal of Cleaner Production, 40: 161-176.
 Truong, G., Partington, G., and Peat, M. 2008. Cost-of-capital estimation and capital-budgeting practice in Australia. Australian Journal of Management, 33(1): 95-122.
 United Nations. 2015. Transforming our world: the 2030 Agenda for Sustainable Development. Available at: http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E
 Walsh, C., and Thornley, P. 2012. Barriers to improving energy efficiency within the process industries with a focus on low grade heat utilisation. Journal of Cleaner Production, 23(1): 138-146.
 Worrell, E., Laitner, J. A., Ruth, M., and Finman, H. 2003. Productivity benefits of industrial energy efficiency measures. Energy, 28(11): 1081-1098.
 Yin, R. 2009. Case study research: design and methods. Thousand Oaks, California, US: Sage Publications.
The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.