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Circular Economy Model: Insights from a Case Study in South Italy

Author

Listed:
  • Nadia Palmieri

    (CREA Research Centre for Engineering and Agro-Food Processing, 00015 Rome, Italy)

  • Alessandro Suardi

    (CREA Research Centre for Engineering and Agro-Food Processing, 00015 Rome, Italy)

  • Vincenzo Alfano

    (CREA Research Centre for Engineering and Agro-Food Processing, 00015 Rome, Italy)

  • Luigi Pari

    (CREA Research Centre for Engineering and Agro-Food Processing, 00015 Rome, Italy)

Abstract

This study aims to analyze the economic and environmental sustainability of a case study of an energy power plant that produces electricity from pruning residues of olive groves from nine municipalities in southern Italy. To assess the economic sustainability of the agro-energetic chain, the profitability and efficiency ratios are calculated. Moreover, the GHG emissions of the agro-energetic pruning supply chain due to both the pruning collection at the field level, and their combustion for energy production at the power plant, are calculated. To put together the environmental and economic evaluations, the ecoefficiency ratio was calculated to measure the value added per 1Mg of GHG emitted into the atmosphere. The findings show the whole agro-energetic chain, namely the power plant and the collection company have both a good return on owner’s equity (ROE) ratio (15.89% and 31.48%, respectively) and ROI ratio (4.34% and 6.14% respectively). Moreover, the power plant’s ecoefficiency ratio (2.64€ per 1Mg of GHG) is slightly lower than harvest firm one (2.91€ per 1Mg of GHG). The findings could be useful to develop new business models based on the circular economy concept. In fact, the business model proposed could push entrepreneurs towards new income opportunities, at the same time, helping local farms and reducing the environmental impacts.

Suggested Citation

  • Nadia Palmieri & Alessandro Suardi & Vincenzo Alfano & Luigi Pari, 2020. "Circular Economy Model: Insights from a Case Study in South Italy," Sustainability, MDPI, vol. 12(8), pages 1-11, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3466-:d:349757
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    References listed on IDEAS

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    1. Luigi Pari & Vincenzo Alfano & Daniel Garcia-Galindo & Alessandro Suardi & Enrico Santangelo, 2018. "Pruning Biomass Potential in Italy Related to Crop Characteristics, Agricultural Practices and Agro-Climatic Conditions," Energies, MDPI, vol. 11(6), pages 1-16, May.
    2. Thomassen, M.A. & Dolman, M.A. & van Calker, K.J. & de Boer, I.J.M., 2009. "Relating life cycle assessment indicators to gross value added for Dutch dairy farms," Ecological Economics, Elsevier, vol. 68(8-9), pages 2278-2284, June.
    3. Arkadiusz Dyjakon & Daniel García-Galindo, 2019. "Implementing Agricultural Pruning to Energy in Europe: Technical, Economic and Implementation Potentials," Energies, MDPI, vol. 12(8), pages 1-28, April.
    4. Won, Gu-Hwan, 2007. "Electric power industry restructuring and ROE: The case of Korea Electric Power Corporation," Energy Policy, Elsevier, vol. 35(10), pages 5080-5090, October.
    5. Giuseppe Toscano & Vincenzo Alfano & Antonio Scarfone & Luigi Pari, 2018. "Pelleting Vineyard Pruning at Low Cost with a Mobile Technology," Energies, MDPI, vol. 11(9), pages 1-17, September.
    6. Acampora, Andrea & Croce, Sara & Assirelli, Alberto & Del Giudice, Angelo & Spinelli, Raffaele & Suardi, Alessandro & Pari, Luigi, 2013. "Product contamination and harvesting losses from mechanized recovery of olive tree pruning residues for energy use," Renewable Energy, Elsevier, vol. 53(C), pages 350-353.
    7. Yi, Qun & Zhao, Yingjie & Huang, Yi & Wei, Guoqiang & Hao, Yanhong & Feng, Jie & Mohamed, Usama & Pourkashanian, Mohamed & Nimmo, William & Li, Wenying, 2018. "Life cycle energy-economic-CO2 emissions evaluation of biomass/coal, with and without CO2 capture and storage, in a pulverized fuel combustion power plant in the United Kingdom," Applied Energy, Elsevier, vol. 225(C), pages 258-272.
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    Cited by:

    1. Nadia Palmieri & Roberto Tomasone & Carla Cedrola & Daniele Puri & Mauro Pagano, 2023. "Factors Affecting Disabled Consumer Preferences for an Electric Vehicle for Rural Mobility: An Italian Experimental Study," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    2. Cristina Moliner & Elisabetta Arato & Filippo Marchelli, 2021. "Current Status of Energy Production from Solid Biomass in Southern Italy," Energies, MDPI, vol. 14(9), pages 1-21, April.
    3. Teodora Stillitano & Emanuele Spada & Nathalie Iofrida & Giacomo Falcone & Anna Irene De Luca, 2021. "Sustainable Agri-Food Processes and Circular Economy Pathways in a Life Cycle Perspective: State of the Art of Applicative Research," Sustainability, MDPI, vol. 13(5), pages 1-28, February.
    4. Francesco Latterini & Walter Stefanoni & Alessandro Suardi & Vincenzo Alfano & Simone Bergonzoli & Nadia Palmieri & Luigi Pari, 2020. "A GIS Approach to Locate a Small Size Biomass Plant Powered by Olive Pruning and to Estimate Supply Chain Costs," Energies, MDPI, vol. 13(13), pages 1-17, July.
    5. Luigi Pari & Alessandro Suardi & Walter Stefanoni & Francesco Latterini & Nadia Palmieri, 2021. "Economic and Environmental Assessment of Two Different Rain Water Harvesting Systems for Agriculture," Sustainability, MDPI, vol. 13(7), pages 1-13, March.

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