Effect of Production Parameters On the Economic Feasibility of a Biofuel Enterprise

Samuel Zapata, Luis Ribera () and Marco Palma ()

No 229804, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: The optimal allocation of resources and efforts is needed to fulfill the latest Renewable Fuel Standard mandate. In order to warranty the success of the nascent cellulose-based biofuel industry, it is crucial to better understand the effects that production parameters have on the economic feasibility of a biofuel enterprise. The main goal of this study is to estimate the impact that the different feedstock production and biofuel conversion parameters have on the probability of economic success. To this aim, an original stochastic financial model is developed to analyze and identify the most economically relevant components of the biofuel production path. Estimation of the model was carried out using Monte Carlo simulation techniques along with parametric maximum likelihood estimation procedures. Results indicate that operational efficiency strategies should concentrate on improving feedstock yields and extending the feedstock growing season.

Keywords: Agribusiness; Agricultural Finance; Crop Production/Industries; Production Economics; Research Methods/ Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 22
Date: 2016
New Economics Papers: this item is included in nep-ene and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/229804/files/E ... NTERPRISE%20SAEA.pdf (application/pdf)

Related works:
Journal Article: Effect of Production Parameters on the Economic Feasibility of a Biofuel Enterprise (2017)
Journal Article: EFFECT OF PRODUCTION PARAMETERS ON THE ECONOMIC FEASIBILITY OF A BIOFUEL ENTERPRISE (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:229804

DOI: 10.22004/ag.econ.229804

Access Statistics for this paper

More papers in 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().