Agricultural Land: Crop Production or Photovoltaic Power Plants

Valerii Havrysh, Antonina Kalinichenko, Edyta Szafranek and Vasyl Hruban
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Valerii Havrysh: Department of Tractors and Agricultural Machines, Operating and Maintenance, Mykolayiv National Agrarian University, 54020 Mykolaiv, Ukraine
Antonina Kalinichenko: Institute of Socio-Economic Geography and Spatial Management, University of Opole, 45-040 Opole, Poland
Edyta Szafranek: Institute of Socio-Economic Geography and Spatial Management, University of Opole, 45-040 Opole, Poland
Vasyl Hruban: Department of Tractors and Agricultural Machines, Operating and Maintenance, Mykolayiv National Agrarian University, 54020 Mykolaiv, Ukraine

Sustainability, 2022, vol. 14, issue 9, 1-23

Abstract: Mitigation of climate change requires a decrease in greenhouse gas emissions. It motivates an increase in renewable electricity generation. Farmers can develop renewable energy and increase their profitability by allocating agricultural land to PV power plants. This transition from crop production to electricity generation needs ecological and economic assessment from alternative land utilization. The novelty of this study is an integrated assessment that links economic and environmental (carbon dioxide emissions) indicators. They were calculated for crop production and solar power generation in a semi-arid zone. The results showed that gross income (crop production) ranges from USD 508/ha to USD 1389/ha. PV plants can generate up to 794 MWh/ha. Their market cost is EUR 82,000, and their production costs are less than wholesale prices in Ukrainian. The profitability index of a PV project ranges from 1.26 (a discount range is 10%) to 3.24 (a discount rate is 0). The sensitivity analysis was carried out for six variables. For each chosen variable, we found its switching value. It was revealed that the most sensitive variable is a feed-in tariff. Operational expenses and investment costs are the most sensitive variables. Carbon dioxide footprints range from 500 to 3200 kgCO 2 /ha (depending on the crop). A 618 kW PV plant causes a release of carbon dioxide in the range of 5.2–11.4 gCO 2 /kWh. The calculated carbon dioxide payback period varies from 5 to 10 months.

Keywords: photovoltaic; carbon dioxide; emission; agricultural land; profitability index; sensitivity analysis; crop production (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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