Capital Value Calculation via Social Objective Index
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current capital value calculation systems fail to accurately assess non-market assets, such as natural capital, under social objectives, leading to inconsistent valuations and a lack of consideration for environmental and social values, which hinders the achievement of a sustainable society.
Innovation Solution
A capital value calculation system and method that utilize a computer to combine economic, environmental, and social utilities from market and non-market asset parameters, calculating a weighted social objective index and capital value through a weighting coefficient function, ensuring alignment with social objectives and regional conditions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If non-market assets are evaluated based on market prices decided by market principal, then the calculation method is simple and market-based, but the social objective of sustainable society cannot be guaranteed and values may be underestimated
Solution Approach 1:
The patent introduces a mediator component that translates market asset prices into non-market asset values through a structured evaluation framework. This mediator includes modules for obtaining market asset parameters, calculating social objective indices, and determining weighting coefficients that reflect social priorities, thereby ensuring that market-based calculations align with social sustainability objectives
Solution Approach 2:
The patent changes the parameters used in valuation from pure market prices to a composite index that includes social objective indices and weighting coefficients. By transforming the valuation parameters to incorporate environmental and social factors, the system maintains calculation feasibility while ensuring alignment with sustainable society goals
2Productivity
If only economic values are considered in dynamic market analysis, then the calculation is straightforward, but environmental and social values are not taken into account
Solution Approach 1:
The patent merges economic utility, environmental utility, and social utility into a unified social objective index. By combining these three dimensions of value into a single composite metric with appropriate weighting, the system maintains calculation efficiency while achieving comprehensive consideration of economic, environmental, and social values
Solution Approach 2:
The patent creates a composite valuation index that integrates multiple types of utilities (economic, environmental, social) into a unified measure. This composite social objective index functions similarly to composite materials, combining different value dimensions into a single robust metric that reflects comprehensive welfare
3Duration of action of moving object
If natural capital stock values change dynamically based on societal demand, then the valuation reflects market conditions, but values are not maximized for sustainable society
Solution Approach 1:
The patent implements a feedback mechanism where the social objective index and weighting coefficients continuously adjust non-market asset valuations based on sustainability criteria. This feedback loop ensures that dynamic market conditions are considered while systematically optimizing values to achieve sustainable society goals, preventing purely market-driven undervaluation
Data Source
Figure 1
Figure 2
Figure 3
AI summary
In a capital value calculation system that calculates a capital value using a computer, the computer includes: an input unit obtaining a market asset parameter that relates to economic activity of a human and is tradable in a market, and a non-market asset parameter that relates to activity of the human and is non-tradable in the market; and a calculation processing unit obtaining 3 utilities consisting of economic utility, environmental utility, and social utility of a concerned region from the market asset parameter and the non-market asset parameter, calculating a social objective index of the concerned region as a weighted combined value of the 3 utilities, calculating a weighting coefficient function of a restriction condition function that expresses correlation between the market asset parameter and the non-market-asset parameter and that gives an extremum that is a difference between the social objective index and the restriction condition function, and calculating a capital value by inputting the market asset parameter, and the non-market asset parameter into the weighting coefficient function; and an output unit outputting the capital value.