Production function estimation and economics of fast-growing plants cultivation for bioenergy purposes. Case study of Kolíňany

• Main Author: Martin Mariš
• Format: Article
• Language: English
• Published: Slovak University of Agriculture in Nitra 2020-07-01
• Series: Mathematics in Education, Research and Applications
• Subjects: dry ground biomass; perpetuity; miscanthus giganteus; gompertz curve; discounted cash-flow model; deferred annuity
• Online Access: http://meraa.uniag.sk/docs/2020-01/maris.pdf

The paper explores the economic opportunities of growing fast-growing plants for bioenergy production and use. Based on primary data of the above-ground dry biomass of the Miscanthus × giganteus, from the experimental field of Kolíňany, the average yield during the life cycle of the crop was 33.31 t/ha (stand. dev. 7.07). The next step was assembling the economic model of gross financial yield based on using the biomass for the production of bioenergy. Using the Discounted Cash-flow model, the gross financial yield, neglecting the costs, was set to 1547 €/ha. Finally, adjusting for the growing conditions of the Miscanthus, we set the gross financial yield as a deferred annuity to 3036.93 €/ha per one life cycle of the crop.