OpenEconomics leverages its extensive experience in in-depth analysis of the economic, social, and environmental effects of investments and policies, to support the decision process and stakeholder engagement of governmental bodies and large enterprises.
Our team builds and applies advanced models in line with the most rigorous scientific methodologies and the best practices of multilateral institutions to perform cost-benefit analysis, impact analysis, and financial risk assessments including ESG ratings.
The firm operates in compliance with the most relevant laws and reporting frameworks, designing and applying advanced economic models, exploiting AI tools to improve the data retrieve, and an exclusive platform (Externalytics) to facilitate the exploration of results.
Our team has performed analysis in over 30 countries in multiple industries, including oil & gas, electricity, telecommunications, water, transportation, hydrogen, manufacturing, sports and culture, public concessions and real estate.
Real Option Analysis
OpenEconomics applies the Financial Cost Benefit Analysis (FCBA) to assess the potential outcomes and economic viability of an investment from the proponent standpoint when a significant degree of unpredictability is involved.
We use, in particular, the “Real Options” techniques to assess and quantify the value of flexibility and adaptability in case of critical investment decisions.
Real Options are especially useful when traditional net present value (NPV) analysis may not fully capture the value of managerial flexibility. This is the case of situations of market volatility, long-term public concession contracts, and fair price determination.
Economic Cost Benefit Analysis
ECBA provides a standard and structured framework for the decision-making process by supporting informed choices that maximize societal value.
OpenEconomics has an extensive experience in estimating in monetary terms the benefits related to a policy or investments, which represents the main challenge of ECBA.
The firm has successfully applied ECBA to Feasibility and Economic viability assessment of infrastructure, energy investments, and public services, policy analysis, environmental impact assessment, natural resource management, and public investments.
Impact Analysis ranks among the most accurate methods for assessing macroeconomic “externalities” due to its holistic approach and ability to estimate the economic, social and environmental effects that can be potentially determined by a policy or spending program.
In this respect, Impact Analysis extends the Economic Cost-Benefit Analysis to induced effect in a multidimensional representation including the natural and human capital.
To this aim, OpenEconomics has developed a library of macroeconomic models for over 150 regions (at country and sub-country level). The library includes Social Accounting Matrices (SAM), Partial Equilibrium Models (PEM), Computable General Equilibrium Models (CGE) and Econometric models (EM).
Financial risks assessment
OpenEconomics analyses the potential impact of various risks on asset portfolio, including climate physical and transition risks.
Our analysis and models support investors in making informed investment decisions and optimizing risk-return trade-offs.
OpenEconomics is also committed in developing and applying innovate hybrid models incorporating (micro-macroeconomic + financial) to enable a much more accurate and scientific-based assessment of transition related risks.
Taxonomy compliance (DNSH)
The “Do Not Significant Harm (DNSH)“ principle set a standard to ensures that economic activities that are classified as environmentally sustainable under the EU Taxonomy do not result in significant negative environmental impacts.
Compliance with DNSH is a crucial step in a wide range of assurance and authorization processes and in accessing to public subsidies and programs.
OpenEconomics operate as third party, in a framework of independency and transparency, and according to the relevant laws and practices, in executing all the verification steps, including: Preparation and data gathering, identification of environmental objectives, impact assessment, DNSH criteria assessment, identify mitigation measures, DNSH reporting, monitoring and review.
Sustainability proofing is a dynamic and iterative process that helps ensure that projects contribute positively to environmental protection, social well-being, and good governance.
OpenEconomics helps investors in infrastructures in managing the sustainability proofing process according to the European Investment Bank (EIB) guidelines through its systematic integration into the planning, design and implementation of the projects.
Our team supports all the process steps, including identification and screening, scoping and stakeholder engagement, baseline assessment, impact assessment, mitigation and enhancement measures, project design and integration, monitoring and reporting, decision-making and approval, implementation and evaluation.