Abstract
Most countries intending to replace traditional energy sources with renewable energy sources have started to make major investments in this field. Since renewable energy is a sector requiring large amount of investment costs, evaluation of investment risks are extremely important to make the best investment decisions. However, as risk assessment is a process based on expert judgments, the indecisiveness and cognitive bias of the experts should be eliminated. Therefore, a modified Failure Mode and Effect Analysis (FMEA) based on the prospect theory and interval-valued intuitionistic fuzzy Analytic Hierarchy Process (AHP) is introduced to assess the risks in renewable energy investments for the first time. As a result of the proposed risk assessment approach, renewable energy investment risks are prioritized by effectively overcoming the indecisiveness and cognitive bias of experts.
Original language | English |
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Article number | 121907 |
Journal | Energy |
Volume | 239 |
DOIs | |
Publication status | Published - 15 Jan 2022 |
Bibliographical note
Publisher Copyright:© 2021 Elsevier Ltd
Keywords
- Fuzzy sets
- Investment risks
- Prospect theory
- Renewable energy
- Risk assessment