Productive forces development and regional economy

Economic or financial substantiation for smart city solutions: a literature study

Economic Annals-XXI

Economic Annals-ХХI: Volume 183, Issue 5-6, Pages: 125-133

Citation information:
Popova, Ye. (2020). Economic or financial substantiation for smart city solutions: a literature study. Economic Annals-XXI, 183(5-6), 125-133. doi: https://doi.org/10.21003/ea.V183-12

View Full-TextDownload PDF

Yelena Popova
D.Sc. (Economics),
Associate Professor,
Transport and Telecommunication Institute
1 Lomonosov Str., Riga, LV-1019, Latvia
yelenagp@gmail.com
ORCID ID: https://orcid.org/0000-0002-8034-5935

Economic or financial substantiation for smart city solutions: a literature study

Abstract. The research is aimed to find the answer for the research question: Do the researchers demonstrate economic or financial substantiation for implementation of smart solutions for different dimensions of smart city? The goal of the research is to determine the publications presenting the economic or financial substantiations for smart solutions for smart city and to determine the type of the provided substantiation. It is very important, since Smart City is becoming our life step by step, though the components of it are introduced without any economic study, estimation and substantiation. This research is done to discover the areas where such substantiations exist, and to estimate the possibility of applying the methods, described in these studies, for smart solutions in smart city.

The study considers the academic articles in English included in Scopus database and available online in full text. The primary selection comprised 927 publications for the period 1993-2020, and only 22 of them contained the comprehensive or close to comprehensive economic or financial analysis. This fact demonstrates the lack of economic and financial researches in the sphere of Smart City. The study allows the scholars to use the reviewed publications as providing the economic and financial basis for smart city; it also demonstrates the areas of smart city and smart solutions where specialists in economy can apply their competences.

Keywords: Smart City; Economic Analysis; Financial Analysis; Cost Efficiency; Cost-Benefit Analysis; Scopus; Bibliometrics; Bibliometric Analysis; Problem-Oriented Database; Literature Review

JEL Classification: A19; O14; R19; R58

Acknowledgements and Funding: This work was financially supported by the specific support objective activity 1.1.1.2. «Post-doctoral Research Aid», Project id. N. 1.1.1.2/16/I/001) of the Republic of Latvia, funded by the European Regional Development Fund. Research project No.1.1.1.2/VIAA/3/19/458 «Development of Model of Smart Economy in Smart City».

Contribution: The author contributed personally to this work.

DOI: https://doi.org/10.21003/ea.V183-12

References

  1. Ahvenniemi, H., & Häkkinen, T. (2020). Households’ potential to decrease their environmental impacts: A cost-efficiency analysis of carbon saving measures. International Journal of Energy Sector Management, 14(1), 193-212.
    doi: https://doi.org/10.1108/IJESM-02-2019-0009
  2. Alamaniotis, M., Tsoukalas, L. H., & Bourbakis, N. (2014). Virtual cost approach: Electricity consumption scheduling for smart grids/cities in price-directed electricity markets. IEEE Xplore.
    doi: https://doi.org/10.1109/iisa.2014.6878831
  3. Al-Saadi, S. N. J., & Al-Jabri, K. S. (2017). Energy-efficient envelope design for residential buildings: A case study in Oman. IEEE Xplore.
    doi: https://doi.org/10.1109/scsp.2017.7973853
  4. Angelidou, M. (2015). Smart cities: A conjuncture of four forces. Cities, 47, 95-106.
    doi: https://doi.org/10.1016/j.cities.2015.05.004
  5. Anisetti, M., Ardagna, C., Bellandi, V., Cremonini, M., Frati, F., & Damiani, E. (2018). Privacy-aware Big Data Analytics as a service for public health policies in smart cities. Sustainable Cities and Society, 39, 68-77.
    doi: https://doi.org/10.1016/j.scs.2017.12.019
  6. Bačeković, I., & Østergaard, P. A. (2018). A smart energy system approach vs a non-integrated renewable energy system approach to designing a future energy system in Zagreb. Energy, 155, 824-837.
    doi: https://doi.org/10.1016/j.energy.2018.05.075
  7. Bataev, A. V., Dedyukhina, N., & Nasrutdinov, M. N. (2020). Innovations in the Financial Sphere: Performance Evaluation of Introducing Service Robots with Artificial Intelligence. Institute of Electrical and Electronics Engineers.
    doi: https://doi.org/10.1109/icitm48982.2020.9080379
  8. Beccali, M., Bonomolo, M., Galatioto, A., & Pulvirenti, E. (2017). Smart lighting in a historic context: a case study. Management of Environmental Quality, 28(2), 282-298.
    doi: https://doi.org/10.1108/meq-06-2015-0109
  9. Bibri, S. (2018). The IoT for smart sustainable cities of the future: An analytical framework for sensor-based big data applications for environmental sustainability. Sustainable Cities and Society, 38, 230-253.
    doi: https://doi.org/10.1016/j.scs.2017.12.034
  10. Boeri, A., Gianfrate, V., & Longo, D. (2016). Green buildings and design for adaptation: strategies for renovation of the built environment. International Journal of Energy Production and Management, 1(2), 172-191.
    doi: https://doi.org/10.2495/EQ-V1-N2-172-191
  11. Chen, C., Liu, J., Li, Q., Wang, Y., Xiong, H., & Wu, S. (2017). Warehouse Site Selection for Online Retailers in Inter-Connected Warehouse Networks. 2017 IEEE International Conference on Data Mining (ICDM).
    doi: https://doi.org/10.1109/icdm.2017.96
  12. Dominković, D. F., Dobravec, V., Jiang, Y., Nielsen, P. S., & Krajačić, G. (2018). Modelling smart energy systems in tropical regions. Energy, 155, 592-609.
    doi: https://doi.org/10.1016/j.energy.2018.05.007
  13. Dongol, D., Feldmann, T., Schmidt, M., & Bollin, E. (2019). A MPC Based Peak Shaving Application for a Household with Photovoltaic Battery System. Smart Cities, Green Technologies and Intelligent Transport Systems, 44-66.
    doi: https://doi.org/10.1007/978-3-030-26633-2_3
  14. El Yamami, A., Mansouri, K., Qbadou, M., Illoussamen, E., Laaziri, M., & Benmoussa, K. (2018). An Ontological Representation of PMBOK Framework Knowledge Areas. Proceedings of the 3rd International Conference on Smart City Applications – SCA, 18, 1-6.
    doi: https://doi.org/10.1145/3286606.3286825
  15. Ferreira, V., Fortes, M., Borba, B., Marques, W., Maciel, R., Ferreira, T., & Correia, W. (2017). Technical and financial assessments for comparison of measurement technologies in the Smart City Buzios Project. CIRED-Open Access Proceedings Journal, 2017(1), 2914-2917.
    doi: https://doi.org/10.1049/oap-cired.2017.0671
  16. Gavalas, D., Konstantopoulos, C., & Pantziou, G. (2016). Design and management of vehicle-sharing systems: a survey of algorithmic approaches. In M. S. Obaidat, & P. Nicopolitidis (Eds.). Smart Cities and Homes (pp. 261-289). Morgan Kaufmann.
    doi: https://doi.org/10.1016/b978-0-12-803454-5.00013-4
  17. Huang, M., Fu, L., Zhang, Y., & Gao, X. (2017). Optimal design of an island microgrid with considering scheduling optimization. Institute of Electrical and Electronics Engineers.
    doi: https://doi.org/10.1109/isc2.2017.8090809
  18. Laha, M., Kamble, S., & Datta, R. (2020). Edge Nodes Placement in 5G enabled Urban Vehicular Networks: A Centrality-based Approach. 2020 National Conference on Communications (NCC), Kharagpur, India, 2020 (pp. 1-6). Institute of Electrical and Electronics Engineers.
    doi: https://doi.org/10.1109/ncc48643.2020.9056059
  19. Lazaroiu, G. C., & Roscia, M. (2012). Definition methodology for the smart cities model. Energy, 47(1), 326-332.
    doi: https://doi.org/10.1016/j.energy.2012.09.028
  20. Li, X., Chalvatzis, K., & Stephanides, P. (2018). Innovative Energy Islands: Life-Cycle Cost-Benefit Analysis for Battery Energy Storage. Sustainability, 10(10), 3371.
    doi: https://doi.org/10.3390/su10103371
  21. Martin, C. J., Evans, J., & Karvonen, A. (2018). Smart and sustainable? Five tensions in the visions and practices of the smart-sustainable city in Europe and North America. Technological Forecasting and Social Change, 133, 269-278.
    doi: https://doi.org/10.1016/j.techfore.2018.01.005
  22. Pournaras, E., Yadhunathan, S., & Diaconescu, A. (2019). Holarchic structures for decentralized deep learning: a performance analysis. Cluster Computing, 23, 219-240.
    doi: https://doi.org/10.1007/s10586-019-02906-4
  23. Ramli, M. A. M., Bouchekara, H. R. E. H., & Alghamdi, A. S. (2018). Optimal sizing of PV/wind/diesel hybrid microgrid system using multi-objective self-adaptive differential evolution algorithm. Renewable Energy, 121, 400-411.
    doi: https://doi.org/10.1016/j.renene.2018.01.058
  24. Rodrigues Filho, B. A., Gonçalves, R. F., & Pessôa, M. S. P. (2018). Measuring the impact of utility services for a Smart City infrastructure using an Input-Output approach. Journal of Physics: Conference Series, 1065(20).
    doi: https://doi.org/10.1088/1742-6596/1065/20/202003
  25. Sarma, U., & Ganguly, S. (2018). Modelling and cost-benefit analysis of PEM fuel-cell-battery hybrid energy system for locomotive application. Institute of Electrical and Electronics Engineers.
    doi: https://doi.org/10.1109/icsesp.2018.8376691
  26. Silva, B. N., Khan, M., & Han, K. (2018). Towards sustainable smart cities: A review oftrends, architectures, components, and open challenges in smart cities. Sustainable Cities and Society, 38, 697-713.
    doi: https://doi.org/10.1016/j.scs.2018.01.053
  27. Soderstrom, O., Paasche, T., & Klauser, F. (2014). Smart cities as corporate storytelling. City, 18(3), 307-320.
    doi: https://doi.org/10.1080/13604813.2014.906716
  28. Sta, H. B. (2017). Quality and the efficiency of data in «Smart-Cities». Future Generation Computer Systems, 74, 409-416.
    doi: https://doi.org/10.1016/j.future.2016.12.021
  29. Tsegaye, S., Gallagher, K. C., & Missimer, T. M. (2020). Coping with future change: Optimal design of flexible water distribution systems. Sustainable Cities and Society, 61, 102306.
    doi: https://doi.org/10.1016/j.scs.2020.102306
  30. Turečková, K., & Nevima, J. (2020). The Cost Benefit Analysis for the Concept of a Smart City: How to Measure the Efficiency of Smart Solutions? Sustainability, 12(7), 2663.
    doi: https://doi.org/10.3390/su12072663
  31. Wee, B. V., & Banister, D. (2016). How to write a literature review paper? Transport Reviews, 36(2), 278-288.
    doi: https://doi.org/10.1080/01441647.2015.1065456

Received 3.02.2020
Received in revised form 19.02.2020
Accepted 25.02.2020
Available online 4.06.2020
Updated version of the paper as of 29.08.2020

View Full-TextDownload PDF
In, , , , , , , , ,

More Papers

Certain issues of the sustainability of public services in municipalities on macro and micro levels, with special regard to the period of the COVID-19 pandemic crisis in Hungary

Lentner, Cs., & Hegedűs, Sz. (2021). Certain issues of the sustainability of public services in municipalities on macro and micro levels, with special regard to the period of the COVID-19 pandemic crisis in Hungary. Economic Annals-XXI, 190(5-6(2)), 149-161. doi: https://doi.org/10.21003/ea.V190-14

Economic Annals-XXI