When Will Controlled Environment Agriculture in Its Vertical Form Fulfill Its Potential?

Megan Burritt, Simone Valle de Souza and H. Christopher Peterson ()
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Megan Burritt: Department of Horticulture, Michigan State University, East Lansing, MI 48824, USA
Simone Valle de Souza: Department of Horticulture, Michigan State University, East Lansing, MI 48824, USA
H. Christopher Peterson: Department of Agricultural, Food, and Resources Economics, Michigan State University, East Lansing, MI 48824, USA

Sustainability, 2025, vol. 17, issue 7, 1-21

Abstract: Food systems around the world are challenged to meet increased demand while also mitigating ecosystem pressures from their current structure. Controlled environment agriculture (CEA) offers a potential solution to augment the food supply by adopting innovative production systems designed to overcome environmental resource limitations and efficiently serve densely populated urban areas. By utilizing Elkington’s profit, plant, and people framework (3Ps), this article assesses the sustainability of a major subcategory of CEA farms: indoor agriculture vertical farms (IA/VFs). The qualitative analysis attempts to answer the question of whether IA/VFs have fulfilled their potential. Results suggest that IA/VFs have not yet optimized their positive impact on future food system sustainability. For each of the three Ps, IA/VF’s observed progress and required breakthroughs are summarized. Notably, the financial viability of an IA/VF is more likely to be achieved through whole systems solutions: growing the right crops in the right environment, efficient use of resources, and effective consumer targeting. Significant progress is being made in the direction of innovating IA/VF’s role in future food systems. Through public–private partnerships and further analyses, further progress can be made toward realizing IA/VF’s potential to address the growing demands of an expanding world population and shrinking resource base.

Keywords: controlled environment agriculture (CEA); vertical farming; indoor agriculture; urban agriculture; sustainable food systems; 3P framework; triple bottom line; people-planet-profit (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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