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Environmental Bio Economic Impact in Nicaragua

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  • Blanco Orozco, Napoleón Vicente
  • Zúniga-González, Carlos Alberto

Abstract

In this article the Bio economy of power plants connected to the national interconnected system of Nicaragua is analyzed, through the study of environmental effects of greenhouse gases emissions from the use of solid biomass from sugarcane bagasse and oil to generate electricity. In addition, an analysis of Cost - Benefit of investments to the electricity generation using fossil fuel and bagasse is done. The Methodology EX-Ante Carbon-balance Tool (EX-ACT) was used; this methodology was proposed by the United Nations Organization for Food and Agriculture (FAO) to determine the overall greenhouse gases (GHG) emission balance. Additionally, the WinDASI program, also developed by FAO, was used for the Cost - Benefit Analysis of investment in power plants. Furthermore, we performed marginal costing GHG reduction. The results show, that all plants are sources of GHG emissions, however the impact of sugar mills is partially positive by reforestation components and annual crops. However, the component inputs had negative environmental and socially impact. In the case of thermal power generation plants based on petroleum connected to the national grid, they were found to be sources of greenhouse gases. The analysis of the Benefit Cost in their investment indicates that there is a positive financially impact except in ALBANISA power plant and sugar Mills power plants.

Suggested Citation

  • Blanco Orozco, Napoleón Vicente & Zúniga-González, Carlos Alberto, 2013. "Environmental Bio Economic Impact in Nicaragua," Working Papers 153854, National Autonomous University of Nicaragua, León (Unan-León), Researching Center for Applied Economics (RCAE).
    • Handle: RePEc:ags:naunwp:153854
    DOI: 10.22004/ag.econ.153854
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    References listed on IDEAS

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    1. Zúniga-González, Carlos Alberto, 2012. "Total Factor Productivity And The Bio Economy Effects," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 122939, International Association of Agricultural Economists.
    2. Warit Jawjit & Carolien Kroeze & Wit Soontaranun & Leen Hordijk, 2006. "An analysis of the environmental pressure exerted by the eucalyptus-based kraft pulp industry in Thailand," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 8(2), pages 289-311, May.
    3. Renó, Maria Luiza Grillo & Lora, Electo Eduardo Silva & Palacio, José Carlos Escobar & Venturini, Osvaldo José & Buchgeister, Jens & Almazan, Oscar, 2011. "A LCA (life cycle assessment) of the methanol production from sugarcane bagasse," Energy, Elsevier, vol. 36(6), pages 3716-3726.
    4. Gernot Pehnelt & Christoph Vietze, 2013. "Recalculating GHG emissions saving of palm oil biodiesel," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 429-479, April.
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    More about this item

    Keywords

    Environmental Economics and Policy; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies; Resource /Energy Economics and Policy;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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