Economics and Uncertainty of Lignocellulosic Biofuel Production from Energy Cane and Sweet Sorghum in South Texas

Government support uncertainty, scarce yiel d information, and the inherent risk in bio- economic phenomena are some of the deterrents faced by investors in the nascent cellulosic biofuel industry. A financial probabilistic model was developed to contrast the economic feasibility of producing cellulosic biofuels from energy cane and sweet sorghum using three technologies: hydrolysis, pyrolysis, and gasification. Hydrolysis and pyrolysis proved feasible (showed possibilities of a positive net present value) without government support and conditioned to stochastic feedstock yields and biofuel prices. Gasification was feasible with government support. Improved feedstock and biofuel productivity would considerably raise the feasibility probabilities for hydrolysis and pyrolysis without government support.


Issue Date:
2014-11
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/189142
Published in:
Journal of Agricultural and Applied Economics, Volume 46, Number 4
Page range:
457-485
Total Pages:
28
JEL Codes:
G17; Q16; Q48
Series Statement:
46
4




 Record created 2017-04-01, last modified 2017-08-28

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