Modelling the impact of business risk on the competitiveness of purpose-grown biomass of annual and perennial crops

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21230%2F24%3A00376143" target="_blank" >RIV/68407700:21230/24:00376143 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/00027073:_____/24:N0000018

Výsledek na webu

<a href="https://doi.org/10.1016/j.rser.2024.114707" target="_blank" >https://doi.org/10.1016/j.rser.2024.114707</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.rser.2024.114707" target="_blank" >10.1016/j.rser.2024.114707</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Modelling the impact of business risk on the competitiveness of purpose-grown biomass of annual and perennial crops

Popis výsledku v původním jazyce

Perennial energy crops compete with conventional annual crops in land-use. The production price of biomass from perennial energy crops is thus derived on the basis of the opportunity cost principle. This means that in deciding whether to grow perennial energy crops, the farmer will demand a price for biomass that will at least provide him with the same economic effect over the lifetime of the plantation in the form of the present value of net cash flows over the lifetime of the energy crop plantation. The level of discounts used to discount the cash flows associated with (annual) conventional crops and perennial energy crops plays an important role in modelling the biomass production price. The business risk associated with the two types of crops is different, with generally higher risk associated with perennial energy crops. This study focuses on developing a methodology to incorporate the risk associated with growing conventional and energy crops and to derive the discount rate for both crop groups. The methodology is demonstrated using the example of the Czech Republic and the price level in 2021. The analysis using Czech data led to a discount rate of 8.5 % for conventional crops and 11.5 % for perennial energy crops. The increase in the discount value for perennial energy crops leads to an increase in the expected biomass sales price by a producer. The sensitivity of the biomass production price level to an increase in the discount rate is lower for Miscanthus plantations compared to short rotation coppice.

Název v anglickém jazyce

Modelling the impact of business risk on the competitiveness of purpose-grown biomass of annual and perennial crops

Popis výsledku anglicky

Perennial energy crops compete with conventional annual crops in land-use. The production price of biomass from perennial energy crops is thus derived on the basis of the opportunity cost principle. This means that in deciding whether to grow perennial energy crops, the farmer will demand a price for biomass that will at least provide him with the same economic effect over the lifetime of the plantation in the form of the present value of net cash flows over the lifetime of the energy crop plantation. The level of discounts used to discount the cash flows associated with (annual) conventional crops and perennial energy crops plays an important role in modelling the biomass production price. The business risk associated with the two types of crops is different, with generally higher risk associated with perennial energy crops. This study focuses on developing a methodology to incorporate the risk associated with growing conventional and energy crops and to derive the discount rate for both crop groups. The methodology is demonstrated using the example of the Czech Republic and the price level in 2021. The analysis using Czech data led to a discount rate of 8.5 % for conventional crops and 11.5 % for perennial energy crops. The increase in the discount value for perennial energy crops leads to an increase in the expected biomass sales price by a producer. The sensitivity of the biomass production price level to an increase in the discount rate is lower for Miscanthus plantations compared to short rotation coppice.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

20704 - Energy and fuels

Projekt

<a href="/cs/project/TK04010166" target="_blank" >TK04010166: Komplexní řešení lokální a regionální energetiky jako součást opatření GreenDealu pro dosažení udržitelného zemědělského a lesnického hospodaření</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Renewable and Sustainable Energy Reviews

ISSN

1364-0321

e-ISSN

1879-0690

Svazek periodika

202

Číslo periodika v rámci svazku

114707

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

12

Strana od-do

1-12

Kód UT WoS článku

001266194200001

EID výsledku v databázi Scopus

2-s2.0-85197398332