IDEAS home Printed from https://ideas.repec.org/a/oup/revage/v31y2009i3p394-410..html
   My bibliography  Save this article

The Economics of Dairy Anaerobic Digestion with Coproduct Marketing

Author

Listed:
  • Clark P. Bishop
  • C. Richard Shumway

Abstract

Increasing national focus on renewable energy has prompted a reappearance of anaerobic digestion technology installations on dairy farms. The focus of this study is on an operational digester in Washington State. Using the first two years of physical and financial data from the operational digester, a base scenario is constructed. The analysis focuses on the impact of developing various coproduct markets on the digestion system’s feasibility. The coproduct markets analyzed include electricity, digested fiber, tipping fees, and carbon credits. The results of the economic analysis show that tipping fees and electricity are key revenue sources for the digester.

Suggested Citation

  • Clark P. Bishop & C. Richard Shumway, 2009. "The Economics of Dairy Anaerobic Digestion with Coproduct Marketing," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 394-410.
    • Handle: RePEc:oup:revage:v:31:y:2009:i:3:p:394-410.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2009.01445.x
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. William F. Lazarus & Margaretha Rudstrom, 2007. "The Economics of Anaerobic Digester Operation on a Minnesota Dairy Farm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 349-364.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Njuki, Eric & Bravo-Ureta, Boris, 2014. "A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming," Working Papers 33, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    2. Benavidez, Justin & Thayer, Anastasia W., 2018. "Poo Power: Revisiting Energy Generation from Biogas on Dairies in Texas," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266636, Southern Agricultural Economics Association.
    3. Usack, J.G. & Gerber Van Doren, L. & Posmanik, R. & Labatut, R.A. & Tester, J.W. & Angenent, L.T., 2018. "An evaluation of anaerobic co-digestion implementation on New York State dairy farms using an environmental and economic life-cycle framework," Applied Energy, Elsevier, vol. 211(C), pages 28-40.
    4. Kabyanga, Moris & Balana, Bedru B. & Mugisha, Johnny & Walekhwa, Peter N. & Smith, Jo & Glenk, Klaus, 2018. "Economic potential of flexible balloon biogas digester among smallholder farmers: A case study from Uganda," Renewable Energy, Elsevier, vol. 120(C), pages 392-400.
    5. Li, Xue & Mupondwa, Edmund, 2018. "Commercial feasibility of an integrated closed-loop ethanol-feedlot-biodigester system based on triticale feedstock in Canadian Prairies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 401-413.
    6. Dalke, Rachel & Demro, Delaney & Khalid, Yusra & Wu, Haoran & Urgun-Demirtas, Meltem, 2021. "Current status of anaerobic digestion of food waste in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    7. Rojas-Downing, M. Melissa & Harrigan, Timothy & Nejadhashemi, A. Pouyan, 2017. "Resource use and economic impacts in the transition from small confinement to pasture-based dairies," Agricultural Systems, Elsevier, vol. 153(C), pages 157-171.
    8. DeVuyst, Eric A. & Pryor, Scott W. & Lardy, Greg & Eide, Wallace & Wiederholt, Ron, 2011. "Cattle, ethanol, and biogas: Does closing the loop make economic sense?," Agricultural Systems, Elsevier, vol. 104(8), pages 609-614, October.
    9. Willeghems, Gwen & Buysse, Jeroen, 2016. "Changing old habits: The case of feeding patterns in anaerobic digesters," Renewable Energy, Elsevier, vol. 92(C), pages 212-221.
    10. Sean O’Connor & Ehiaze Ehimen & Suresh C. Pillai & Gary Lyons & John Bartlett, 2020. "Economic and Environmental Analysis of Small-Scale Anaerobic Digestion Plants on Irish Dairy Farms," Energies, MDPI, vol. 13(3), pages 1-20, February.
    11. Cowley, Cortney & Brorsen, B. Wade, 2018. "Anaerobic Digester Production and Cost Functions," Ecological Economics, Elsevier, vol. 152(C), pages 347-357.
    12. Anderson, Robert C. & Hilborn, Don & Weersink, Alfons, 2013. "An economic and functional tool for assessing the financial feasibility of farm-based anaerobic digesters," Renewable Energy, Elsevier, vol. 51(C), pages 85-92.
    13. Namuli, R. & Pillay, P. & Jaumard, B. & Laflamme, C.B., 2013. "Threshold herd size for commercial viability of biomass waste to energy conversion systems on rural farms," Applied Energy, Elsevier, vol. 108(C), pages 308-322.
    14. Key, Nigel & Sneeringer, Stacy, 2012. "Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 139-157, August.
    15. Kay Camarillo, Mary & Stringfellow, William T. & Jue, Michael B. & Hanlon, Jeremy S., 2012. "Economic sustainability of a biomass energy project located at a dairy in California, USA," Energy Policy, Elsevier, vol. 48(C), pages 790-798.
    16. Qingbin Wang & Laurel Valchuis & Ethan Thompson & David Conner & Robert Parsons, 2019. "Consumer Support and Willingness to Pay for Electricity from Solar, Wind, and Cow Manure in the United States: Evidence from a Survey in Vermont," Energies, MDPI, vol. 12(23), pages 1-13, November.
    17. Robert C. Anderson & Alfons Weersink, 2014. "A Real Options Approach for the Investment Decisions of a Farm-Based Anaerobic Digester," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 69-87, March.
    18. Brent A. Gloy & Jonathan B. Dressler, 2010. "Financial barriers to the adoption of anaerobic digestion on US livestock operations," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(2), pages 157-168, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Megan Swindal & Gilbert Gillespie & Rick Welsh, 2010. "Community digester operations and dairy farmer perspectives," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 27(4), pages 461-474, December.
    2. Di Corato, Luca & Moretto, Michele, 2011. "Investing in biogas: Timing, technological choice and the value of flexibility from input mix," Energy Economics, Elsevier, vol. 33(6), pages 1186-1193.
    3. Key, Nigel & Sneeringer, Stacy, 2012. "Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 139-157, August.
    4. Ciliberti, Carlo & Jordaan, Sarah M. & Smith, Stephen V. & Spatari, Sabrina, 2016. "A life cycle perspective on land use and project economics of electricity from wind and anaerobic digestion," Energy Policy, Elsevier, vol. 89(C), pages 52-63.
    5. Cowley, Cortney & Brorsen, B. Wade, 2018. "Anaerobic Digester Production and Cost Functions," Ecological Economics, Elsevier, vol. 152(C), pages 347-357.
    6. Namuli, R. & Pillay, P. & Jaumard, B. & Laflamme, C.B., 2013. "Threshold herd size for commercial viability of biomass waste to energy conversion systems on rural farms," Applied Energy, Elsevier, vol. 108(C), pages 308-322.
    7. Siegmeier, Torsten & Blumenstein, Benjamin & Möller, Detlev, 2015. "Farm biogas production in organic agriculture: System implications," Agricultural Systems, Elsevier, vol. 139(C), pages 196-209.
    8. T. Chen & M. Liu & Y. Takahashi & J.D. Mullen & G.C.W. Ames, 2016. "Carbon emission reduction and cost--benefit of methane digester systems on hog farms in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(6), pages 948-966, June.
    9. Willeghems, Gwen & Buysse, Jeroen, 2016. "Changing old habits: The case of feeding patterns in anaerobic digesters," Renewable Energy, Elsevier, vol. 92(C), pages 212-221.
    10. Cowley, Cortney & Brorsen, B. Wade & Hamilton, Doug, 2014. "Economic Feasibility of Anaerobic Digesters with Swine Operations," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170621, Agricultural and Applied Economics Association.
    11. Rojas-Downing, M. Melissa & Harrigan, Timothy & Nejadhashemi, A. Pouyan, 2017. "Resource use and economic impacts in the transition from small confinement to pasture-based dairies," Agricultural Systems, Elsevier, vol. 153(C), pages 157-171.
    12. Gloy, Brent A., 2010. "Carbon Dioxide Offsets from Anaerobic Digestion of Dairy Waste," Working Papers 126750, Cornell University, Department of Applied Economics and Management.
    13. White, Andrew J. & Kirk, Donald W. & Graydon, John W., 2011. "Analysis of small-scale biogas utilization systems on Ontario cattle farms," Renewable Energy, Elsevier, vol. 36(3), pages 1019-1025.
    14. Bachewe, Fantu & Lazarus, William F. & Goodrich, Philip & Drewitz, Matt & Balk, Becky, 2008. "Review of the Literature on the Economics of Central Anaerobic Digesters," Staff Papers 44116, University of Minnesota, Department of Applied Economics.
    15. DeVuyst, Eric A. & Pryor, Scott W. & Lardy, Greg & Eide, Wallace & Wiederholt, Ron, 2011. "Cattle, ethanol, and biogas: Does closing the loop make economic sense?," Agricultural Systems, Elsevier, vol. 104(8), pages 609-614, October.
    16. Liebrand, Carolyn Betts & Ling, K. Charles, 2009. "Cooperative Approaches for Implementation of Dairy Manure Digesters," Research Reports 280105, United States Department of Agriculture, Rural Development.
    17. Anderson, Robert C. & Hilborn, Don & Weersink, Alfons, 2013. "An economic and functional tool for assessing the financial feasibility of farm-based anaerobic digesters," Renewable Energy, Elsevier, vol. 51(C), pages 85-92.
    18. Benavidez, Justin R. & Thayer, Anastasia W. & Anderson, David P., 2019. "Poo Power: Revisiting Biogas Generation Potential on Dairy Farms in Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 682-700, November.
    19. Eidman, Vernon R., 2005. "Agriculture's Role in Energy Production: Current Levels and Future Prospects," Energy from Agriculture: New Technologies, Innovative Programs and Success Stories, December 14-15, 2005, St. Louis, Missouri 7628, Farm Foundation.
    20. Kay Camarillo, Mary & Stringfellow, William T. & Jue, Michael B. & Hanlon, Jeremy S., 2012. "Economic sustainability of a biomass energy project located at a dairy in California, USA," Energy Policy, Elsevier, vol. 48(C), pages 790-798.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:revage:v:31:y:2009:i:3:p:394-410.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.