With the rapid development of geographic information system (GIS) technology, the application of digital elevation model (dem) data has become increasingly important in various fields. In particular, in the field of investment analysis, dem data provides key terrain information that is crucial for site selection and risk assessment. By overlaying dem with other spatial data layers, investors can identify suitable locations, estimate site preparation costs, assess environmental impacts, and simulate potential risks. This article introduces common dem data sources, processing methods, and applications in investment analysis, aiming to provide references for integrating dem into investment research and decision-making.
DEM can help investors select ideal locations by analyzing terrain suitability
DEM contains elevation data that reveal terrain characteristics like slope, aspect, and terrain roughness. By calculating slope gradient and terrain complexity from DEM, investors can assess site’s constructability and accessibility. Gentler slopes require less earthworks for construction, while rougher terrain increases transportation costs. DEM analysis helps investors select sites with optimal combination of slope and smoothness for the project. For example, for a solar farm project, south-facing slopes with 5-10 degree inclinations are preferred for maximizing solar radiation collection. Overlaying DEM with road network data further informs site’s connectivity and helps select locations that balance ideal terrain conditions and easy access.
DEM enables investors to estimate earthwork volumes and site preparation costs
Construction on uneven terrain requires earthworks like cutting, filling and levelling. By comparing original and planned terrain models derived from DEM, investors can accurately estimate earthwork volumes and costs. DEM can also be used to design site layouts that minimize terrain modification needs. Moreover, high-resolution DEM helps construct digital terrain model to optimize tower locations for wind energy projects, minimizing earthworks while maximizing power output.
DEM helps assess environmental impacts and risks for investment projects
DEM provides fundamental information to model surface runoff, flooding risks, and soil erosion, which are critical for evaluating project’s environmental impacts. High-resolution DEM as input for hydrological models enables natural terrain modelling and flood risk estimation. DEM is also used in soil erosion models like USLE to assess potential soil loss on construction sites. Additionally, DEM reveals landscapes where projects may impact natural habitats or conservation areas. By integrating DEM with other data like land use and protected areas, investors can conduct comprehensive environmental impact and risk assessments.
Multiple DEM data sources and processing methods are available
Global DEM datasets like SRTM and ASTER GDEM provide free medium-resolution elevation data. Higher resolution DEM can be sourced from commercial satellites or airborne LiDAR surveys. DEM processing entails techniques like void-filling, smoothing, re-sampling before using DEM in spatial analysis and modelling. GIS provides a rich toolbox for DEM preprocessing and enables seamless integration of DEM with other data to support investment decision-making.
DEM has become an essential component in investment analysis
In summary, DEM provides vital terrain information for site selection, design optimization, cost estimation, environmental impact assessment and risk analysis. DEM has evolved into an indispensable data source and analysis tool in the investment analysis process. With the increasing availability of high-quality DEM data and GIS platforms, integrating DEM modelling and spatial analysis to identify ideal investment locations, minimize costs and risks will unleash the full potential of DEM applications in investment research and decision support.
In conclusion, DEM is playing an increasingly important role in investment analysis, site selection, cost estimation, environmental impact assessment, and risk management. Investors should take advantage of DEM data and GIS technology to make more informed investment decisions.