@article{Romets:245876,
      recid = {245876},
      author = {Romets, Dmytro and Menrad, Klaus},
      title = {Which Factors Influence Investments of Ukrainian  Agroholdings in Biogas?},
      address = {2016-09-20},
      number = {720-2016-48772},
      pages = {23},
      month = {Sep},
      year = {2016},
      abstract = {Investments in biogas technologies are regarded with  increasing interest as an effective instrument for natural  gas substitution, accelerating the recovery from the recent  financial crisis in Ukraine. Yet, despite economic,  environmental and social advantages of biogas and  regulations implemented to support it, biogas investments  remain below expectations. Therefore, it is necessary to  understand the investment behaviour of Ukrainian  agricultural companies regarding biogas and their reactions  to the support measures. This paper aims to empirically  analyse the willingness-to-invest in biogas of large  Ukrainian agroholdings. Top-managers of 68 agroholdings in  Ukraine were interviewed personally. We proposed and tested  a conceptual model that examines the institutional and  individual factors affecting the investment behaviour of  agricultural companies in the context of biogas. Our  findings reveal that, confirming a rational evaluation of  investment opportunities, primarily financial factors  affect the willingness-to-invest in biogas in Ukraine. The  investment behaviour of interviewed companies is mainly  influenced by payback period, investment costs and  subjective perception of relative advantages of biogas.  Furthermore, other decision relevant parameters like  feed-in tariff and natural gas price seem to play only  minor roles. However, there are systemic problems which  hamper biogas investments, such as lack of capital,  geopolitical uncertainty and non-reliable legislative  framework for biogas production. Our results shed new light  on impact of institutional and individual factors on biogas  investments in the agricultural sector of Ukraine and have  meaningful implications for policy actions.},
      url = {http://ageconsearch.umn.edu/record/245876},
      doi = {https://doi.org/10.22004/ag.econ.245876},
}