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Economic feasibility of tobacco leaves for biofuel production and high value squalene

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  • Maisashvili, Aleksandre
  • Bryant, Henry L.
  • Richardson, James W.

Abstract

In this paper, we estimate the economic feasibility of biofuel production and high value squalene from tobacco-based biomass. Pro-forma stochastic financial statements were constructed and the feasibility of multi-year financial projects were evaluated. The results suggest the commercialization of biofuel production from tobacco is not economical in the short run, but may have a potential in the long run. The results also indicate the economic feasibility of high value squalene is viable under the certain conditions.

Suggested Citation

  • Maisashvili, Aleksandre & Bryant, Henry L. & Richardson, James W., 2016. "Economic feasibility of tobacco leaves for biofuel production and high value squalene," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), September.
    • Handle: RePEc:ags:ifaamr:264200
    DOI: 10.22004/ag.econ.264200
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    References listed on IDEAS

    as
    1. Richardson, James W. & Herbst, Brian K. & Outlaw, Joe L. & Gill, Robert Chope, II, 2007. "Including Risk in Economic Feasibility Analyses: The Case of Ethanol Production in Texas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2), pages 1-18.
    2. Outlaw, Joe L. & Ribera, Luis A. & Richardson, James W. & Silva, Jorge da & Bryant, Henry & Klose, Steven L., 2007. "Economics of Sugar-Based Ethanol Production and Related Policy Issues," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(2), pages 357-363, August.
    3. Aleksandrov, Nikolay & Espinoza, Raphael & Gyurkó, Lajos, 2013. "Optimal oil production and the world supply of oil," Journal of Economic Dynamics and Control, Elsevier, vol. 37(7), pages 1248-1263.
    4. Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-17, August.
    5. Rezende, Marcelo L. & Richardson, James W., 2015. "Economic feasibility of sugar and ethanol production in Brazil under alternative future prices outlook," Agricultural Systems, Elsevier, vol. 138(C), pages 77-87.
    6. Palma, Marco A. & Richardson, James W. & Roberson, Brad E. & Ribera, Luis A. & Outlaw, Joe L. & Munster, Clyde, 2011. "Economic Feasibility of a Mobile Fast Pyrolysis System for Sustainable Bio-crude Oil Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(3), pages 1-16, September.
    7. Monge, Juan J. & Ribera, Luis A. & Jifon, John L. & da Silva, Jorge A. & Richardson, James W., 2014. "Economics and Uncertainty of Lignocellulosic Biofuel Production from Energy Cane and Sweet Sorghum in South Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 457-485, November.
    8. Richardson, James W. & Lemmer, Wessel J. & Outlaw, Joe L., 2007. "Bio-ethanol Production from Wheat in the Winter Rainfall Region of South Africa: A Quantitative Risk Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-24.
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