{"id":"https://openalex.org/W2986142895","doi":"https://doi.org/10.1016/j.scs.2019.101953","title":"Using real estate market fundamentals to determine the correct discount rate for decentralised energy investments","display_name":"Using real estate market fundamentals to determine the correct discount rate for decentralised energy investments","publication_year":2019,"publication_date":"2019-11-14","ids":{"openalex":"https://openalex.org/W2986142895","doi":"https://doi.org/10.1016/j.scs.2019.101953","mag":"2986142895"},"language":"en","primary_location":{"id":"doi:10.1016/j.scs.2019.101953","doi":"https://doi.org/10.1016/j.scs.2019.101953","is_oa":true,"landing_page_url":"https://doi.org/10.1016/j.scs.2019.101953","pdf_url":"https://www.sciencedirect.com/science/article/pii/S2210670719316956/pdf","source":{"id":"https://openalex.org/S163634330","display_name":"Sustainable Cities and Society","issn_l":"2210-6707","issn":["2210-6707","2210-6715"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["anvur-class-a","anvur-scientific","cwts-core","dongbi-b","jufo-1","ki-jl-1","norway-2","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320990","host_organization_name":"Elsevier BV","host_organization_lineage":["https://openalex.org/P4310320990"],"host_organization_lineage_names":["Elsevier BV"],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Sustainable Cities and Society","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"hybrid","oa_url":"https://www.sciencedirect.com/science/article/pii/S2210670719316956/pdf","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5084064243","display_name":"Niina Leskinen","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I9927081","display_name":"Aalto University","ror":"https://ror.org/020hwjq30","country_code":"FI","type":"education","lineage":["https://openalex.org/I9927081"]}],"countries":["FI"],"is_corresponding":true,"raw_author_name":"Niina Leskinen","raw_affiliation_strings":["Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland","institution_ids":["https://openalex.org/I9927081"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5046962148","display_name":"Jussi Vimpari","orcid":"https://orcid.org/0000-0002-0592-9826","observed_orcids":["https://orcid.org/0000-0002-0592-9826"]},"institutions":[{"id":"https://openalex.org/I9927081","display_name":"Aalto University","ror":"https://ror.org/020hwjq30","country_code":"FI","type":"education","lineage":["https://openalex.org/I9927081"]}],"countries":["FI"],"is_corresponding":false,"raw_author_name":"Jussi Vimpari","raw_affiliation_strings":["Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland","institution_ids":["https://openalex.org/I9927081"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5047685882","display_name":"Seppo Junnila","orcid":"https://orcid.org/0000-0002-2984-0383","observed_orcids":["https://orcid.org/0000-0002-2984-0383"]},"institutions":[{"id":"https://openalex.org/I9927081","display_name":"Aalto University","ror":"https://ror.org/020hwjq30","country_code":"FI","type":"education","lineage":["https://openalex.org/I9927081"]}],"countries":["FI"],"is_corresponding":false,"raw_author_name":"Seppo Junnila","raw_affiliation_strings":["Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Built Environment, School of Engineering, Aalto University, P.O. Box 11000, Otakaari 4, Espoo, Finland","institution_ids":["https://openalex.org/I9927081"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":["https://openalex.org/A5084064243"],"corresponding_institution_ids":["https://openalex.org/I9927081"],"apc_list":{"value":2600,"currency":"USD","value_usd":2600},"apc_paid":{"value":1166,"currency":"EUR","value_usd":1257},"fwci":4.5456,"has_fulltext":true,"cited_by_count":32,"citation_normalized_percentile":{"value":0.94589078,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":95,"max":98},"biblio":{"volume":"53","issue":null,"first_page":"101953","last_page":"101953"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T11976","display_name":"Capital Investment and Risk Analysis","score":0.37209999561309814,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T11976","display_name":"Capital Investment and Risk Analysis","score":0.37209999561309814,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12838","display_name":"Photovoltaic Systems and Sustainability","score":0.19699999690055847,"subfield":{"id":"https://openalex.org/subfields/2305","display_name":"Environmental Engineering"},"field":{"id":"https://openalex.org/fields/23","display_name":"Environmental Science"},"domain":{"id":"https://openalex.org/domains/3","display_name":"Physical Sciences"}},{"id":"https://openalex.org/T13920","display_name":"Urban Planning and Valuation","score":0.10220000147819519,"subfield":{"id":"https://openalex.org/subfields/2308","display_name":"Management, Monitoring, Policy and Law"},"field":{"id":"https://openalex.org/fields/23","display_name":"Environmental Science"},"domain":{"id":"https://openalex.org/domains/3","display_name":"Physical Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/on-site-renewable-energy","display_name":"on-site renewable energy","score":0.7379999756813049},{"id":"https://openalex.org/keywords/rooftop-solar","display_name":"rooftop solar","score":0.9359999895095825},{"id":"https://openalex.org/keywords/discount-rate","display_name":"discount rate","score":0.9399999976158142},{"id":"https://openalex.org/keywords/property-yields","display_name":"property yields","score":0.8799999952316284},{"id":"https://openalex.org/keywords/investment-risk","display_name":"investment risk","score":0.5289999842643738},{"id":"https://openalex.org/keywords/levelized-cost-of-electricity","display_name":"levelized cost of electricity","score":0.8130000233650208},{"id":"https://openalex.org/keywords/vantaa","display_name":"Vantaa","score":0.8700000047683716}],"concepts":[{"id":"https://openalex.org/C82279013","wikidata":"https://www.wikidata.org/wiki/Q684740","display_name":"Real estate","level":2,"score":0.8326746225357056},{"id":"https://openalex.org/C129361004","wikidata":"https://www.wikidata.org/wiki/Q2470236","display_name":"Profitability index","level":2,"score":0.7042070627212524},{"id":"https://openalex.org/C2778348673","wikidata":"https://www.wikidata.org/wiki/Q739302","display_name":"Production (economics)","level":2,"score":0.48378321528434753},{"id":"https://openalex.org/C27548731","wikidata":"https://www.wikidata.org/wiki/Q88272","display_name":"Investment (military)","level":3,"score":0.47544121742248535},{"id":"https://openalex.org/C188573790","wikidata":"https://www.wikidata.org/wiki/Q12705","display_name":"Renewable energy","level":2,"score":0.46373167634010315},{"id":"https://openalex.org/C189950617","wikidata":"https://www.wikidata.org/wiki/Q937228","display_name":"Property (philosophy)","level":2,"score":0.4441065788269043},{"id":"https://openalex.org/C186370098","wikidata":"https://www.wikidata.org/wiki/Q442787","display_name":"Energy (signal processing)","level":2,"score":0.4397910535335541},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.4344533383846283},{"id":"https://openalex.org/C134560507","wikidata":"https://www.wikidata.org/wiki/Q753291","display_name":"Environmental economics","level":1,"score":0.4340501129627228},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.42713463306427},{"id":"https://openalex.org/C112136304","wikidata":"https://www.wikidata.org/wiki/Q5035804","display_name":"Capitalization rate","level":4,"score":0.4208192229270935},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.31640124320983887},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.3139365315437317},{"id":"https://openalex.org/C38815200","wikidata":"https://www.wikidata.org/wiki/Q697852","display_name":"Real estate investment trust","level":3,"score":0.2221129834651947},{"id":"https://openalex.org/C127413603","wikidata":"https://www.wikidata.org/wiki/Q11023","display_name":"Engineering","level":0,"score":0.14541283249855042},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.0},{"id":"https://openalex.org/C33923547","wikidata":"https://www.wikidata.org/wiki/Q395","display_name":"Mathematics","level":0,"score":0.0},{"id":"https://openalex.org/C105795698","wikidata":"https://www.wikidata.org/wiki/Q12483","display_name":"Statistics","level":1,"score":0.0},{"id":"https://openalex.org/C94625758","wikidata":"https://www.wikidata.org/wiki/Q7163","display_name":"Politics","level":2,"score":0.0},{"id":"https://openalex.org/C138885662","wikidata":"https://www.wikidata.org/wiki/Q5891","display_name":"Philosophy","level":0,"score":0.0},{"id":"https://openalex.org/C119599485","wikidata":"https://www.wikidata.org/wiki/Q43035","display_name":"Electrical engineering","level":1,"score":0.0},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.0},{"id":"https://openalex.org/C111472728","wikidata":"https://www.wikidata.org/wiki/Q9471","display_name":"Epistemology","level":1,"score":0.0}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.1016/j.scs.2019.101953","doi":"https://doi.org/10.1016/j.scs.2019.101953","is_oa":true,"landing_page_url":"https://doi.org/10.1016/j.scs.2019.101953","pdf_url":"https://www.sciencedirect.com/science/article/pii/S2210670719316956/pdf","source":{"id":"https://openalex.org/S163634330","display_name":"Sustainable Cities and Society","issn_l":"2210-6707","issn":["2210-6707","2210-6715"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["anvur-class-a","anvur-scientific","cwts-core","dongbi-b","jufo-1","ki-jl-1","norway-2","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320990","host_organization_name":"Elsevier BV","host_organization_lineage":["https://openalex.org/P4310320990"],"host_organization_lineage_names":["Elsevier BV"],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Sustainable Cities and Society","raw_type":"journal-article"},{"id":"pmh:oai:aaltodoc.aalto.fi:123456789/42945","doi":null,"is_oa":true,"landing_page_url":"https://research.aalto.fi/en/publications/c693923e-d2f9-4c27-8515-d849e53baa75","pdf_url":"https://research.aalto.fi/files/40615707/1_s2.0_S2210670719316956_main.pdf","source":{"id":"https://openalex.org/S4306401662","display_name":"Aaltodoc (Aalto University)","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I9927081","host_organization_name":"Aalto University","host_organization_lineage":["https://openalex.org/I9927081"],"host_organization_lineage_names":[],"type":"repository"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"info:eu-repo/semantics/article"}],"best_oa_location":{"id":"doi:10.1016/j.scs.2019.101953","doi":"https://doi.org/10.1016/j.scs.2019.101953","is_oa":true,"landing_page_url":"https://doi.org/10.1016/j.scs.2019.101953","pdf_url":"https://www.sciencedirect.com/science/article/pii/S2210670719316956/pdf","source":{"id":"https://openalex.org/S163634330","display_name":"Sustainable Cities and Society","issn_l":"2210-6707","issn":["2210-6707","2210-6715"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["anvur-class-a","anvur-scientific","cwts-core","dongbi-b","jufo-1","ki-jl-1","norway-2","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320990","host_organization_name":"Elsevier BV","host_organization_lineage":["https://openalex.org/P4310320990"],"host_organization_lineage_names":["Elsevier BV"],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Sustainable Cities and Society","raw_type":"journal-article"},"sustainable_development_goals":[{"score":1.0,"display_name":"Affordable and clean energy","id":"https://metadata.un.org/sdg/7"},{"score":0.7250000238418579,"display_name":"Sustainable cities and communities","id":"https://metadata.un.org/sdg/11"},{"score":0.685699999332428,"display_name":"Climate action","id":"https://metadata.un.org/sdg/13"}],"study_designs":[],"awards":[{"id":"https://openalex.org/G6294644203","display_name":null,"funder_award_id":"13327800","funder_id":"https://openalex.org/F4320321108","funder_display_name":"Academy of Finland"},{"id":"https://openalex.org/G6759498649","display_name":null,"funder_award_id":"211694","funder_id":"https://openalex.org/F4320328501","funder_display_name":"Business Finland"}],"funders":[{"id":"https://openalex.org/F4320321108","display_name":"Academy of Finland","ror":"https://ror.org/05k73zm37"},{"id":"https://openalex.org/F4320321394","display_name":"Aalto-Yliopisto","ror":"https://ror.org/020hwjq30"},{"id":"https://openalex.org/F4320328501","display_name":"Business Finland","ror":"https://ror.org/05bgf9v38"}],"has_content":{"pdf":true,"grobid_xml":true},"content_urls":{"pdf":"https://content.openalex.org/works/W2986142895.pdf","grobid_xml":"https://content.openalex.org/works/W2986142895.grobid-xml"},"referenced_works_count":85,"referenced_works":["https://openalex.org/W50942273","https://openalex.org/W84452352","https://openalex.org/W175851703","https://openalex.org/W932685903","https://openalex.org/W1484009469","https://openalex.org/W1487834948","https://openalex.org/W1490546587","https://openalex.org/W1500591148","https://openalex.org/W1518795959","https://openalex.org/W1533548062","https://openalex.org/W1537690198","https://openalex.org/W1602427517","https://openalex.org/W1602640837","https://openalex.org/W1762719523","https://openalex.org/W1804826256","https://openalex.org/W1907462124","https://openalex.org/W1907479512","https://openalex.org/W1913572160","https://openalex.org/W1973012441","https://openalex.org/W1981670580","https://openalex.org/W1992966123","https://openalex.org/W1999240043","https://openalex.org/W2001378482","https://openalex.org/W2002786648","https://openalex.org/W2010837373","https://openalex.org/W2011894049","https://openalex.org/W2014603979","https://openalex.org/W2019331705","https://openalex.org/W2025499619","https://openalex.org/W2040380856","https://openalex.org/W2043675749","https://openalex.org/W2045786485","https://openalex.org/W2047654950","https://openalex.org/W2047972956","https://openalex.org/W2048559626","https://openalex.org/W2049841559","https://openalex.org/W2051691925","https://openalex.org/W2054797479","https://openalex.org/W2060911455","https://openalex.org/W2063493827","https://openalex.org/W2063715511","https://openalex.org/W2068558806","https://openalex.org/W2071501434","https://openalex.org/W2082283112","https://openalex.org/W2083248070","https://openalex.org/W2086987659","https://openalex.org/W2089567862","https://openalex.org/W2092507089","https://openalex.org/W2106729225","https://openalex.org/W2138380733","https://openalex.org/W2142536883","https://openalex.org/W2166436350","https://openalex.org/W2169988107","https://openalex.org/W2186334919","https://openalex.org/W2195580567","https://openalex.org/W2237076304","https://openalex.org/W2260022348","https://openalex.org/W2480834891","https://openalex.org/W2506709496","https://openalex.org/W2515912751","https://openalex.org/W2555223278","https://openalex.org/W2564895162","https://openalex.org/W2608866889","https://openalex.org/W2746456090","https://openalex.org/W2755199627","https://openalex.org/W2764311880","https://openalex.org/W2806566552","https://openalex.org/W2810816287","https://openalex.org/W2899547584","https://openalex.org/W2912448804","https://openalex.org/W2929880897","https://openalex.org/W2952806923","https://openalex.org/W3021572595","https://openalex.org/W3121238722","https://openalex.org/W3121728211","https://openalex.org/W3122721886","https://openalex.org/W3125121909","https://openalex.org/W3125504800","https://openalex.org/W3125571439","https://openalex.org/W3125707644","https://openalex.org/W4213049083","https://openalex.org/W4231922375","https://openalex.org/W4234422621","https://openalex.org/W4250956649","https://openalex.org/W4252474687"],"related_works":["https://openalex.org/W3147806185","https://openalex.org/W2564895162","https://openalex.org/W3022401377","https://openalex.org/W7036072672","https://openalex.org/W2912448804","https://openalex.org/W2963703015","https://openalex.org/W3102924823","https://openalex.org/W1931957769","https://openalex.org/W2747478865","https://openalex.org/W7112658788"],"abstract_inverted_index":{"Decentralised":[0],"renewable":[1],"energy":[2,41,52,78,123,138,178,197],"production":[3,42],"(on-site":[4],"energy)":[5],"is":[6,70,111,141],"potentially":[7],"more":[8],"profitable":[9],"than":[10],"commonly":[11],"believed,":[12],"especially":[13],"in":[14,129,156,159,180],"urban":[15],"areas":[16,183],"characterized":[17],"with":[18,145],"well-functioning":[19],"real":[20,93],"estate":[21,94],"markets":[22],"and":[23,103,124,143,184],"low":[24],"property":[25,46,84,89,109,118,125,187],"yields.":[26],"Traditional":[27],"calculation":[28],"methods,":[29],"such":[30],"as":[31,79,99,192],"the":[32,38,50,65,74,82,108,115,151,160,168,173],"levelized":[33],"cost":[34],"of":[35,76,81,117,122,136,153,162,171,176],"energy,":[36],"ignore":[37],"value":[39,105],"on-site":[40,77,137,177,196],"can":[43,96,189],"create":[44],"to":[45,64,107],"owners":[47],"through":[48],"capitalizing":[49],"decreased":[51],"costs.":[53],"Past":[54],"research":[55],"has":[56,85],"found":[57],"that":[58,186],"these":[59],"methods":[60],"are":[61,127],"very":[62,71],"sensitive":[63],"discount":[66,101,174,193],"rate,":[67],"whose":[68],"selection":[69],"difficult.":[72],"Evaluating":[73],"profitability":[75,152],"part":[80],"underlying":[83],"two":[86],"major":[87],"benefits:":[88],"yields,":[90,119],"defined":[91],"by":[92],"markets,":[95],"be":[97,190],"used":[98,191],"accurate":[100],"rates":[102,175,194],"economic":[104],"created":[106,142],"owner":[110],"quantified.":[112],"To":[113],"justify":[114],"use":[116],"risk":[120],"profiles":[121],"investments":[126,179],"compared":[128],"this":[130],"paper.":[131],"Subsequently,":[132],"a":[133],"theoretical":[134],"framework":[135],"investment":[139],"risks":[140],"demonstrated":[144],"geographical":[146,182],"information":[147],"system":[148],"analysis":[149],"modelling":[150],"rooftop":[154],"photovoltaics":[155],"all":[157],"buildings":[158],"city":[161],"Vantaa,":[163],"Finland.":[164],"The":[165],"findings":[166],"question":[167],"traditional":[169],"way":[170],"equalising":[172],"larger":[181],"suggest":[185],"yields":[188],"for":[195],"investments.":[198]},"counts_by_year":[{"year":2026,"cited_by_count":2},{"year":2025,"cited_by_count":5},{"year":2024,"cited_by_count":5},{"year":2023,"cited_by_count":5},{"year":2022,"cited_by_count":5},{"year":2021,"cited_by_count":7},{"year":2020,"cited_by_count":3}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2019-11-22T00:00:00"}