TY - JOUR
T1 - Investing in methane digesters on pennsylvania dairy farms
T2 - Implications of scale economies and environmental programs
AU - Leuer, Elizabeth R.
AU - Hyde, Jeffrey
AU - Richard, Tom L.
PY - 2008/10
Y1 - 2008/10
N2 - A stochastic capital budget was used to analyze the effect of net metering policies and carbon credits on profitability of anaerobic digesters on dairy farms in Pennsylvania. We analyzed three different farm sizes-500, 1,000, and 2,000 cows-and considered the addition of a solids separator to the project. Results indicate that net metering policies and carbon credits increase the expected net present value (NPV) of digesters. Moreover, the addition of a solids separator further increases the mean NPV of the venture. In general, the technology is profitable only for very large farms (1,000+ cows) that use the separated solids as bedding material.
AB - A stochastic capital budget was used to analyze the effect of net metering policies and carbon credits on profitability of anaerobic digesters on dairy farms in Pennsylvania. We analyzed three different farm sizes-500, 1,000, and 2,000 cows-and considered the addition of a solids separator to the project. Results indicate that net metering policies and carbon credits increase the expected net present value (NPV) of digesters. Moreover, the addition of a solids separator further increases the mean NPV of the venture. In general, the technology is profitable only for very large farms (1,000+ cows) that use the separated solids as bedding material.
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U2 - 10.1017/S1068280500002999
DO - 10.1017/S1068280500002999
M3 - Article
AN - SCOPUS:57449113078
SN - 1068-2805
VL - 37
SP - 188
EP - 203
JO - Agricultural and Resource Economics Review
JF - Agricultural and Resource Economics Review
IS - 2
ER -