Economic Sustainability Assessment of Paulownia Farms in a Dual Production System—Case Studies in Temperate Climates

Cornel Negrușier, Livia-Ramona Buzan, Ioan Păcurar, Steluța Maria Sîngeorzan, Vasile Ceuca, Alexandru Colișar, Ileana Andreica, Sándor Rózsa and Orsolya Borsai ()
Additional contact information
Cornel Negrușier: Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Livia-Ramona Buzan: Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Ioan Păcurar: Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Steluța Maria Sîngeorzan: Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Vasile Ceuca: Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Alexandru Colișar: Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Ileana Andreica: Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Sándor Rózsa: Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania
Orsolya Borsai: Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania

Sustainability, 2024, vol. 17, issue 1, 1-24

Abstract: Paulownia trees represent a convergence of ecological innovation and economic opportunity. Beyond their extraordinary growth rates, adaptability to diverse climates, and capacity to produce high-value timber, Paulownia farms offer a unique solution to pressing environmental and economic challenges. However, economic sustainability is the most crucial factor for any farmer when deciding to introduce this species. Therefore, the current study aimed to evaluate the profitability of seven existing Paulownia farms in Romania. The economic analysis has been carried out by adopting the discounted cash flow method. The results showed that the cultivation of Paulownia for both timber and woodchip production as a dual production system with an annual gross margin between 27 and 55% can present a viable alternative as compared to other agricultural crops. However, profitability highly depends on the selection of plant species according to the environmental conditions and agricultural practices applied, as well as demand and market price variations.

Keywords: biomass; timber; Paulownia Shan Tong; economic analysis; discounted cash flow; sensitivity analysis; IRR; NPV; AGM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/1/21/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/1/21/ (text/html)

Related works:
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:gam:jsusta:v:17:y:2024:i:1:p:21-:d:1551753

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().