Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism
The scale of distribution network construction is huge and the differences in construction areas are significant. The accuracy of investment strategies would directly affect the effectiveness of upgrading distribution networks. In response to the current subjectivity and lack of precision in the...
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| Format: | Article |
| Language: | English |
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Editura ASE
2025-05-01
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| Series: | Amfiteatru Economic |
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| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3428.pdf |
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| author | Jian Zhang Jianzhou Wen Zhen Lu Jiang Qian Ning Wei |
| author_facet | Jian Zhang Jianzhou Wen Zhen Lu Jiang Qian Ning Wei |
| author_sort | Jian Zhang |
| collection | DOAJ |
| description | The scale of distribution network construction is huge and the differences in construction
areas are significant. The accuracy of investment strategies would directly affect the
effectiveness of upgrading distribution networks. In response to the current subjectivity and
lack of precision in the distribution network investment allocation process, this study
proposed a method to allocate the investment amount to distribution networks based on a
panel data model and an incentive–penalty mechanism. First, the type of panel data model
was selected using the joint hypothesis test and the Hausman test. Second, the initial
allocation of the investment amount was calculated based on the selected panel data model.
Third, investment productivity in each region in recent years was calculated using the data
envelope analysis model. Given the variations in the importance of information during
different periods, the concept of time degree was introduced to establish a time degree model.
The weights of the model during different periods were assigned to the investment
productivity and then the sum was calculated separately to obtain the comprehensive
investment productivity of each distribution network. The final allocation of the investment
amount for each distribution network was obtained based on its initial allocation of the
investment amount and the comprehensive investment productivity. The case study showed
the following points. (1) The differences among the distribution networks were significant
and, thus, the fixed effects model could be employed to effectively compute the investment
scale. (2) Given the differences in the construction and investment productivity of various
distribution networks, the proposed method to calculate the complete investment productivity
could be used to adjust the allocation of the investment amount and achieve an optimal
allocation of funds. The research results exhibited practical significance in improving the
investment allocation strategy of distribution networks. |
| format | Article |
| id | doaj-art-449ca2c37d8f4bd6b842485fcf86409c |
| institution | Kabale University |
| issn | 1582-9146 2247-9104 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Amfiteatru Economic |
| spelling | doaj-art-449ca2c37d8f4bd6b842485fcf86409c2025-08-20T03:37:23ZengEditura ASEAmfiteatru Economic1582-91462247-91042025-05-01276965667310.24818/EA/2025/69/656 Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty MechanismJian Zhang0https://orcid.org/0009-0005-3973-8058Jianzhou Wen1https://orcid.org/0009-0006-5367-3374 Zhen Lu2https://orcid.org/0009-0003-6079-9766Jiang Qian 3https://orcid.org/0009-0003-0471-3657Ning Wei4https://orcid.org/0009-0001-9019-6873State Grid Shanxi Electric Power Company Yuncheng Power Supply Company, Yuncheng City, ChinaState Grid Shanxi Electric Power Company Yuncheng Power Supply Company, Yuncheng City, ChinaState Grid Shanxi Electric Power Company Yuncheng Power Supply Company, Yuncheng City, ChinaState Grid Shanxi Electric Power Company Yuncheng Power Supply Company, Yuncheng City, ChinaState Grid Shanxi Electric Power Company Yuncheng Power Supply Company, Yuncheng City, ChinaThe scale of distribution network construction is huge and the differences in construction areas are significant. The accuracy of investment strategies would directly affect the effectiveness of upgrading distribution networks. In response to the current subjectivity and lack of precision in the distribution network investment allocation process, this study proposed a method to allocate the investment amount to distribution networks based on a panel data model and an incentive–penalty mechanism. First, the type of panel data model was selected using the joint hypothesis test and the Hausman test. Second, the initial allocation of the investment amount was calculated based on the selected panel data model. Third, investment productivity in each region in recent years was calculated using the data envelope analysis model. Given the variations in the importance of information during different periods, the concept of time degree was introduced to establish a time degree model. The weights of the model during different periods were assigned to the investment productivity and then the sum was calculated separately to obtain the comprehensive investment productivity of each distribution network. The final allocation of the investment amount for each distribution network was obtained based on its initial allocation of the investment amount and the comprehensive investment productivity. The case study showed the following points. (1) The differences among the distribution networks were significant and, thus, the fixed effects model could be employed to effectively compute the investment scale. (2) Given the differences in the construction and investment productivity of various distribution networks, the proposed method to calculate the complete investment productivity could be used to adjust the allocation of the investment amount and achieve an optimal allocation of funds. The research results exhibited practical significance in improving the investment allocation strategy of distribution networks. https://www.amfiteatrueconomic.ro/temp/Article_3428.pdfdistribution network investmentinvestment allocationpanel data modeltimedegree modelincentive–penalty mechanism |
| spellingShingle | Jian Zhang Jianzhou Wen Zhen Lu Jiang Qian Ning Wei Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism Amfiteatru Economic distribution network investment investment allocation panel data model timedegree model incentive–penalty mechanism |
| title | Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism |
| title_full | Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism |
| title_fullStr | Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism |
| title_full_unstemmed | Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism |
| title_short | Investment Allocation Method for Distribution Networks Based on a Panel Data Model and an Incentive–Penalty Mechanism |
| title_sort | investment allocation method for distribution networks based on a panel data model and an incentive penalty mechanism |
| topic | distribution network investment investment allocation panel data model timedegree model incentive–penalty mechanism |
| url | https://www.amfiteatrueconomic.ro/temp/Article_3428.pdf |
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