Production function estimation and economics of fast-growing plants cultivation for bioenergy purposes. Case study of Kolíňany

Abstract

The paper explores the economic opportunities of growing fast-growing plants for bioenergy production and use. Based on primary data of the above-ground dry biomass of the Miscanthus × giganteus, from the experimental field of Kolíňany, the average yield during the life cycle of the crop was 33.31 t/ha (stand. dev. 7.07). The next step was assembling the economic model of gross financial yield based on using the biomass for the production of bioenergy. Using the Discounted Cash-flow model, the gross financial yield, neglecting the costs, was set to 1547 €/ha. Finally, adjusting for the growing conditions of the Miscanthus, we set the gross financial yield as a deferred annuity to 3036.93 €/ha per one life cycle of the crop.

Keywords

• dry ground biomass
• perpetuity
• miscanthus giganteus
• gompertz curve
• discounted cash-flow model
• deferred annuity