Academic literature on the topic 'Cost-based Transfer Price'

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Journal articles on the topic "Cost-based Transfer Price"

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Sahay, Savita A. "Transfer Pricing Based on Actual Cost." Journal of Management Accounting Research 15, no. 1 (2003): 177–92. http://dx.doi.org/10.2308/jmar.2003.15.1.177.

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This paper analyzes a simple transfer-pricing policy based on the actual cost of production. I show that the performance of actual cost-based transfer pricing can be improved by using an additive markup above the unit production cost. I also show that this additive policy dominates an entire class of alternative markup policies, including the more common multiplicative policy, in which the transfer price is set at the actual cost plus a percentage markup. The optimal additive markup is shown to increase with increasing prices for the firm's product, and decrease with the cost of the supplying
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Gangyi, Wang, Si Runxiang, Li Cuixia, Zhang Guitong, and Zhu Nengyue. "Asymmetric price transmission effect of corn on hog: evidence from China." Agricultural Economics (Zemědělská ekonomika) 64, No. 4 (2018): 186–96. http://dx.doi.org/10.17221/227/2016-agricecon.

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In this study, we used monthly corn price and hog price data from January 2000 to June 2015 to conduct an empirical analysis based on a smooth transition regression (STR) model. The analysis confirms and explains the asymmetric transmission mechanism and process of the smooth transformation of corn prices to hog prices and measures the mechanism conversion threshold. Using the smooth transformation mechanism and its threshold as its foundations, this study breaks up continuous smooth transfer price volatility transmission effects into completely linear, not completely linear, and nonlinear mec
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Smith, Michael J. "Ex Ante and Ex Post Discretion over Arm's Length Transfer Prices." Accounting Review 77, no. 1 (2002): 161–84. http://dx.doi.org/10.2308/accr.2002.77.1.161.

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Treasury Regulations typically require a firm to use its manufacturing cost as one input in calculating the transfer price to be used for tax purposes. Because the characteristics of the firm's capital assets determine the realized manufacturing cost, the firm has an incentive to distort its investment choices in order to receive a more favorable tax transfer price. This represents an ex ante form of shifting income across divisions. Practical difficulties in enforcing the regulations provide the firm with another way to shift income. In particular, regulators often can identify only a range o
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Baldenius, Tim, Nahum D. Melumad, and Stefan Reichelstein. "Integrating Managerial and Tax Objectives in Transfer Pricing." Accounting Review 79, no. 3 (2004): 591–615. http://dx.doi.org/10.2308/accr.2004.79.3.591.

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This paper examines transfer pricing in multinational firms when individual divisions face different income tax rates. Assuming that a firm decouples its internal transfer price from the arm's length price used for tax purposes, we analyze the effectiveness of alternative pricing rules under both cost- and market-based transfer pricing. In a tax-free world, Hirshleifer (1956) advocated that the internal transfer price be set equal to the marginal cost of the supplying division. Extending this solution, we argue that the optimal internal transfer price should be a weighted average of the pre-ta
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Zhao, Linlin, Jasper Mbachu, and Zhansheng Liu. "Modelling Residential Building Costs in New Zealand: A Time-Series Transfer Function Approach." Mathematical Problems in Engineering 2020 (January 27, 2020): 1–18. http://dx.doi.org/10.1155/2020/7028049.

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Cost estimating based on a building cost index plays an important role in project planning and cost management by providing accurate cost information. However, an effective method to predict the building cost index of New Zealand is lacking. This study proposes a transfer function method to improve the forecasting accuracy of the building cost index. In this study, the New Zealand house price index is included in the transfer function models as an explanatory variable to produce cost forecasts. The proposed method is used to estimate the building cost index of residential buildings including o
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Friis, Ivar. "Preservation of Incentives Inside the Firm: A Case Study of a Quasi-Market for Cost-Based Transfer Pricing." Journal of Management Accounting Research 32, no. 2 (2019): 137–57. http://dx.doi.org/10.2308/jmar-52562.

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ABSTRACT According to organizational economists, the implementation of market-like control mechanisms, such as transfer prices, can never completely replicate the market since “the use of high-powered incentives in firms is inherently subject to corruption” (Williamson 1985, 140). This paper illustrates that this is not necessarily always so. By means of a case study, this paper illustrates that many problems that extant research claims are related to cost-based transfer prices were mitigated through an organizational design that created a quasi-market inside the firm. The paper contributes to
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Akanni, Lateef Olawale. "Climatic Variations and Spatial Price Differentials of Perishable Foods in Nigeria." Econometric Research in Finance 5, no. 1 (2020): 1–15. http://dx.doi.org/10.2478/erfin-2020-0001.

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AbstractIn this study, we attempt to examine the factors that explain the spatial price differentials of selected perishable food crops across Nigerian markets. Based on monthly market prices of onions and tomatoes across different States, we examine the implications of climatic variations, cost of transportation and differences in economic sizes on the price spread of these items. The empirical findings from the dynamic heterogeneous panel regressions show that these factors have significant long-run impacts on the difference in food prices across markets. The results highlight climatic diffe
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Clark, Robert, and Jean-François Houde. "Collusion with Asymmetric Retailers: Evidence from a Gasoline Price-Fixing Case." American Economic Journal: Microeconomics 5, no. 3 (2013): 97–123. http://dx.doi.org/10.1257/mic.5.3.97.

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We point out a fundamental difficulty of successfully colluding in retail markets with heterogeneous firms, and characterize the mechanism recent gasoline cartels in Canada used to sustain collusion. Heterogeneity in cost and network size necessitates arrangements whereby participants split the market unequally to favor stronger players. We characterize empirically the strategy and transfer mechanism using court documents containing summaries and extracts of conversations between participants. The mechanism implements transfers based on adjustment delays during price changes. We estimate that
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Rahmiati, Alfa, and Resti Sandi. "Exploring The Arm's Length Transfer Pricing Strategy for Taxation Purpose: An Ethnographic Study in a Manufacturing Enterprise." Asian Journal of Accounting Research 1, no. 1 (2016): 8–15. http://dx.doi.org/10.1108/ajar-2016-01-01-b002.

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Practices of transfer pricing in among companies having “special relationship” (hubungan istimewa in Bahasa Indonesia, this study uses a term of ‘related party’) to others are very common nowadays. However, the complexity of transfer pricing strategy and practices in many companies made the use of individual level data become insufficient, therefore we conduct an ethnographic study to explore how taxpayer determines the reasonable transfer pricing based on five methods (i.e. Comparable uncontrolled Price/CUP, Resale Price/RPM, Cost Plus, Transactional Net Margin Method/TNMM and Profit Split Me
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Zhang, Wenge, Li Tan, Huijuan Yin, and Xinwei Guo. "Study on the price of water rights trading between agriculture and industry based on emergy theory." Water Supply 19, no. 7 (2019): 2044–53. http://dx.doi.org/10.2166/ws.2019.083.

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Abstract A water rights trading scheme in China is currently in its initial stage of development, but is without a complete pricing mechanism. This paper proposes a pricing model for transfers of water rights from agriculture to industry in water-deficient areas of China. Both the cost price and the earnings price are considered and incorporated into the model. The cost price includes construction costs, operation and maintenance costs, renewal and reconstruction costs, and economic compensation for ecological damage. The earnings price is calculated according to a reasonable return coefficien
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Dissertations / Theses on the topic "Cost-based Transfer Price"

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Husain, Shakir, and Emre Yilmaz. "The Transfer Pricing Problem in a Service Firm : A Case Study on a Swedish Multinational Enterprise." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-260559.

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The purpose of this study is to answer the research question of how a service company (ServiceCo) could achieve a transfer price of its services. This is of particular interest, due to the growth of service firms that have rapidly increased and surpassed the manufacturing firms, as well as the dominant logic shifting towards services. However, the problem with this field of study is that transfer pricing with regards to the service industry, is a rather unexplored phenomenon in which the guidelines and theories are mostly directed towards manufacturing firms. This study uses a single case stud
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Machado, Manuel Diogo Gonçalves Lopes. "Preços de transferência e gestão de custos na cadeia de abastecimento: caso de estudo." Master's thesis, 2017. http://hdl.handle.net/1822/49868.

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Dissertação de mestrado integrado em Engenharia e Gestão Industrial<br>Perante a necessidade que as empresas sentem, cada vez mais, em reduzir custos e aumentarem a sua competitividade no mercado, é necessário fazer uma melhor e mais cuidada gestão dos custos internos e, ao mesmo tempo, ter um conhecimento mais aprofundado dos custos de toda a cadeia de abastecimento. Entre empresas de um mesmo grupo empresarial, há um denominador comum na relação cliente-fornecedor na cadeia de abastecimento: o preço de transferência. Neste projeto de investigação, primeiramente, estudou-se a fundamentação t
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Book chapters on the topic "Cost-based Transfer Price"

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Schuster, Peter. "Cost-Based Transfer Prices." In Transfer Prices and Management Accounting. Springer International Publishing, 2015. http://dx.doi.org/10.1007/978-3-319-14750-5_4.

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Zheng, Haixia, Stale Navrud, and Shiran Shen. "What Price for Ecosystem Services in China?" In Advances in Business Strategy and Competitive Advantage. IGI Global, 2017. http://dx.doi.org/10.4018/978-1-5225-1886-0.ch010.

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Payment for Environmental Services (PES) in the watershed has been widely adopted as an important policy instrument to compensate upstream water users for providing water quality improvement for the whole river basin. In this paper, we use three independent valuation methods to determine the price of ecosystem service (ES), particularly water quality, in Miyun Reservoir, the main surface water source for Beijing. We find that the value of water quality is lowest using opportunity cost of limitation of development rights (OCLDR), highest with contingent valuation method (CVM), and water resources benefits assessment (WRBA) gives an in-between value. OCLDR determines the size of subsidies from those that benefit from water quality improvement from upstream. WRBA is a reference for compensation criteria to the upstream government and farmers when water resources are transferred across jurisdictional boundaries. CVM not only captures the direct value of water quality improvement, but also the indirect value of improvement in other ecosystem services as a result of improvement in water quality. Based on the results, we propose a multi-level ecological compensation system for the Miyun Reservoir river basin. We use OCLDR to determine subsides/ compensation to upstream farmers and other suppliers of the ES; WRBA set the price of water transfer; and CVM to figure out the size of payments for integrated water quality improvement.
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Quan, Jing. "Evaluating E-Business Leadership and Its Links to Firm Performance." In Electronic Business. IGI Global, 2009. http://dx.doi.org/10.4018/978-1-60566-056-1.ch109.

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The rapid expansion of e-business witnessed in the late 1990s was nothing short of a spectacle. It seemed that almost everyone was talking about it, and every firm was eager to invest in it, hoping to take away a slice of the pie. Andy Grove, chairman of Intel Corp, stated in 1998: “Within 5 years, all companies will be Internet companies or they would not be companies” (Intel, 2000). Merely mentioning of the “e” word could mean multi-million dollars. The case at hand was Zapata Corp., a fish oil processing company, co-founded by former U.S. President George H. W. Bush. The company announced on December 23, 1998 that it would transform itself into an Internet portal to compete with Yahoo!, Lycos, and alike. Immediately following the announcement, Zapata’s stock price skyrocketed nearly 100% from 7.19 to 14.25 with trading volume at more than 2,000% higher than normal, according to Yahoo! Finance. Academic researchers rushed in and concluded that “a new economy was born.” The potential benefits of e-business are well documented by academic researchers and practitioners alike (InternetWeek, 2000/2001; Phan, 2003). Organizations that integrate e-business applications, such as shared online database and Internet-based reporting in their business processes, can lead to reduced cost, increased efficiency and profitability, and better customer relationship management. Perhaps one of the most significant contributions of e-business applications is its abilities to directly bring sellers and buyers together with little middleman’s interventions. Although the advantages of e-business exist in theory, little empirical work has been done to confirm them.
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Chochliouros, Ioannis, Anastasia S. Spiliopoulou, Tilemachos D. Doukoglou, and Stergios P. Chochliouros. "E-Learning Applications through Space Observations." In Encyclopedia of Multimedia Technology and Networking, Second Edition. IGI Global, 2009. http://dx.doi.org/10.4018/978-1-60566-014-1.ch061.

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In the context of the present work, we discuss several fundamental issues originating from the work already performed in the scope of the Discovery Space (DSpace) Research Project, founded by the European eTEN Work Program. The Project has been awarded as the “Project of the Month - November, 2006” and the “second best European research activity” in the scope of e-learning thematic activities (http://www. discoveryspace.net/). The prime purpose of the work was the development of a virtual science center, able to integrate robotic telescopes from all over the world into one “virtual observatory” through a proper Web-based interface, to provide an automated scheduling of the telescopes to end-users (i.e., students, teachers, and researchers) and access to a library of data and resources for lifelong learners. Potential users can benefit from professional-quality data from their local sites, using modern broadband (Internet-based) facilities (European Commission, 2002). Following the echo from the market request for more cost-effective and compelling applications to be delivered over the currently-launched broadband networks supporting the expansion of the global information society (The European Survey of National Priorities in Astronomy, 2004), the relevant service application aimed to take advantage of the convenience of the high-speed Internet access to involve its various users (originating from distinct thematic categories) in extended episodes of playful learning. The basic issue was the creation and presentation, to the market, of an entirely interoperable worldwide service, able to support options for further enhancement of e-learning facilities for teachers, students, researchers, and other practitioners. The approach has been considered the existing Internet-based facilities as the basis to “transform the today’s classroom to a research laboratory” and to develop further the European e-learning market (Chochliouros &amp; Spiliopoulou, 2004; Danish Technological Institute, 2004).
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Conference papers on the topic "Cost-based Transfer Price"

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Gill, Gurjot S., and Alan S. Fung. "30-Year Life Cycle Cost of Solar Based Domestic Hot Water Systems for Ontario." In ASME 2008 2nd International Conference on Energy Sustainability collocated with the Heat Transfer, Fluids Engineering, and 3rd Energy Nanotechnology Conferences. ASMEDC, 2008. http://dx.doi.org/10.1115/es2008-54313.

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The heating of water for domestic purposes presently accounts for 24 percent of Canadian residential energy consumption (Natural Resources Canada, 2006). This energy demand is primarily met by conventional sources such as electricity, natural gas and oil. Recent changes in fuel availability and price as well as environmental concerns lead consumers to give further consideration to the use of solar energy for heating water. The objective of this paper is to simulate the different domestic hot water (DHW) systems to examine their fuel consumption, greenhouse gases (GHG) emissions, life cycle cos
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Martinek, Janna, and Zhiwen Ma. "Granular Flow and Heat Transfer Study in a Near-Blackbody Enclosed Particle Receiver." In ASME 2014 8th International Conference on Energy Sustainability collocated with the ASME 2014 12th International Conference on Fuel Cell Science, Engineering and Technology. American Society of Mechanical Engineers, 2014. http://dx.doi.org/10.1115/es2014-6393.

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Concentrating solar power (CSP) is an effective means of converting solar energy into electricity with an energy-storage capability for continuous, dispatchable, renewable power generation. However, challenges with current CSP systems include high initial capital cost and electricity price. The U.S. Department of Energy’s (DOE) SunShot program aims to reduce cost and improve performance of CSP technology. To this end, NREL is developing a solid-particle based CSP system projected to have significant cost and performance advantages over current nitrate-based molten salt systems. The design uses
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Cohen, Stuart M., John Fyffe, Gary T. Rochelle, and Michael E. Webber. "The Effect of Fossil Fuel Prices on Flexible CO2 Capture Operation." In ASME 2009 3rd International Conference on Energy Sustainability collocated with the Heat Transfer and InterPACK09 Conferences. ASMEDC, 2009. http://dx.doi.org/10.1115/es2009-90308.

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Coal consumption for electricity generation produces over 30% of U.S. carbon dioxide (CO2) emissions, but coal is also an available, secure, and low cost fuel that is currently utilized to meet roughly half of America’s electricity demand. While the world transitions from the existing fossil fuel-based energy infrastructure to a sustainable energy system, carbon dioxide capture and sequestration (CCS) will be a critical technology that will allow continued use of coal in an environmentally acceptable manner. Techno-economic analyses are useful in understanding the costs and benefits of CCS. Ho
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Manoharan, Yogesh, Alexander Headley, Keith Olson, Laurence Sombardier, and Benjamin Schenkman. "Energy Storage Versus Demand Side Management for Peak-Demand Reduction at the Hawaii Ocean Science and Technology Park." In ASME 2021 15th International Conference on Energy Sustainability collocated with the ASME 2021 Heat Transfer Summer Conference. American Society of Mechanical Engineers, 2021. http://dx.doi.org/10.1115/es2021-63799.

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Abstract There is a growing interest in utilizing energy storage for behind-the-meter customers. Energy storage systems have many functions for behind-the-meter use such as energy time shifting, peak demand shaving, and backup power. However, demand side management of energy consuming systems can also provide similar energy shifting functionality often with a significantly lower upfront cost. Though energy storage systems and demand side management can both be applied, each option has strengths and weaknesses that can make the optimal selection of measures difficult in many cases. In this stud
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Zhai, Chaoqin, David H. Archer, and John C. Fischer. "Integration of the Active Desiccant Wheel in CHP System Design." In ASME 2008 2nd International Conference on Energy Sustainability collocated with the Heat Transfer, Fluids Engineering, and 3rd Energy Nanotechnology Conferences. ASMEDC, 2008. http://dx.doi.org/10.1115/es2008-54190.

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A solid desiccant based ventilation system has been installed to provide ventilation, and cooling/heating as needed, to the Intelligent Workplace (IW) of Carnegie Mellon University, as part of the IW Energy Supply System (IWESS). Since its installation, extensive testing data have been collected and analyzed to characterize the operating performance and cost of each major component, namely the enthalpy recovery module, the active desiccant module, the heat pump module, and the overall system. It has been determined that the active desiccant wheel is expensive to operate due to the high price o
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Zhang, Qunli, Lin Fu, Lihua Li, and Hongfa Di. "The Energy Efficiency and Economic Feasibility Analysis of the Distributed Absorption Cooling Combined With District Heating System." In ASME 2009 3rd International Conference on Energy Sustainability collocated with the Heat Transfer and InterPACK09 Conferences. ASMEDC, 2009. http://dx.doi.org/10.1115/es2009-90070.

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The distributed absorption cooling based district heating system was investigated in order to utilizing the reject heat from the combined heat and power (CHP) plant in summer. Compared with the electric compressor cooling, the energy efficient and cost-effectiveness of the distributed absorption cooling were furthermore analyzed by the Fuel Energy Saving Ratio (FESR) method. The sensitivity of some variables, such as the average electric efficiency, heating and electric generation efficiency of the CHP system, and the coefficient of performance (COP) of the chiller, were analyzed. The marginal
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Tse, Louis A., Antoine Stopin, Gani B. Ganapathi, Miguel A. Garcia-Garibay, and Richard E. Wirz. "Thermal Testing of Organic Fluids for Supercritical Thermal Energy Storage Systems." In ASME 2013 7th International Conference on Energy Sustainability collocated with the ASME 2013 Heat Transfer Summer Conference and the ASME 2013 11th International Conference on Fuel Cell Science, Engineering and Technology. American Society of Mechanical Engineers, 2013. http://dx.doi.org/10.1115/es2013-18195.

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Concentrating solar power (CSP) continues to advance as worldwide interest in renewable energy continues to grow. CSP technologies, including parabolic troughs, power towers, and dish/engines, provide the unique potential for low-cost thermal energy storage that will ensure that renewable energy can become cost-competitive with traditional fossil fuel sources on a large scale and comprise a significant portion of the global energy portfolio. The challenge is to develop cost-effective thermal energy storage to ensure that renewable energy can become a major part of the national and global energ
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Chabukswar, Kaustubh A., and Charles A. Garris. "Analysis of Application of Pressure Exchange Device in Thermal Vapor Compression Desalination System." In ASME 2009 3rd International Conference on Energy Sustainability collocated with the Heat Transfer and InterPACK09 Conferences. ASMEDC, 2009. http://dx.doi.org/10.1115/es2009-90065.

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Recent advances in direct fluid-fluid flow induction provide potential for major improvement in performance of thermal distillation systems based on the pressure exchange phenomenon compared to the conventional turbulent mixing controlled ejectors. Pressure exchange devices utilize the work of nonsteady pressure forces acting across moving interfaces. Optimal performances of such devices can be determined through the use of the ideal turbomachinery analog. The analog is configured as a turbine-compressor unit, where the high energy primary fluid expands through the turbine that drives a compre
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Heath, Garvin, Craig Turchi, Terese Decker, John Burkhardt, and Chuck Kutscher. "Life Cycle Assessment of Thermal Energy Storage: Two-Tank Indirect and Thermocline." In ASME 2009 3rd International Conference on Energy Sustainability collocated with the Heat Transfer and InterPACK09 Conferences. ASMEDC, 2009. http://dx.doi.org/10.1115/es2009-90402.

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In the United States, concentrating solar power (CSP) is one of the most promising renewable energy (RE) technologies for reduction of electric sector greenhouse gas (GHG) emissions and for rapid capacity expansion. It is also one of the most price-competitive RE technologies, thanks in large measure to decades of field experience and consistent improvements in design. One of the key design features that makes CSP more attractive than many other RE technologies, like solar photovoltaics and wind, is the potential for including relatively low-cost and efficient thermal energy storage (TES), whi
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Wong, Kau-Fui Vincent, and Guillermo Amador. "Power Generation for the Near Future." In ASME 2010 International Mechanical Engineering Congress and Exposition. ASMEDC, 2010. http://dx.doi.org/10.1115/imece2010-37714.

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As society continues advancing into the future, more energy is required to supply the increasing population and energy demands. Unfortunately, traditional forms of energy production through the burning of carbon-based fuels are dumping harmful pollutants into the environment, resulting in detrimental, and possibly irreversible, effects on our planet. The burning of coal and fossil fuels provides energy at the least monetary cost for countries like the US, but the price being paid through their negative impact of our atmosphere is difficult to quantify. A rapid shift to clean, alternative energ
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