A Discounted Cash Flow Analysis of Financial Returns from Biomass Crops in Ireland

Daragh Clancy, James Breen, A.m Butler, Fiona Thorne and M. Wallace
Additional contact information
James Breen: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
A.m Butler: School of Agriculture, Food Science and Veterinary Medicine, University College Dublin
Fiona Thorne: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
M. Wallace: School of Agriculture, Food Science and Veterinary Medicine, University College Dublin

No 808, Working Papers from Rural Economy and Development Programme,Teagasc

Abstract: The economic case for the production of biomass crops can only be established through a comprehensive analysis of the potential costs and returns of these crops. Using data from Ireland, this paper provides a Discounted Cash Flow (DCF) investment analysis for two of the most common biomass crops, willow and miscanthus. We find that miscanthus consistently generates investment returns greater than willow. Sensitivity analysis is used to examine the effects on the estimates of variation in key physical and financial parameters. The superseded enterprise, establishment grant level, yield level, price level, and length of production lifespan are shown to significantly influence the returns generated by investments in willow and miscanthus.

Keywords: Willow; Miscanthus; Discounted Cash Flow; Sensitivity Analysis (search for similar items in EconPapers)
Pages: 22 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.teagasc.ie/rural-economy/downloads/workingpapers/08wpre08.pdf First version, 2008 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.teagasc.ie/rural-economy/downloads/workingpapers/08wpre08.pdf [301 Moved Permanently]--> https://www.teagasc.ie/rural-economy/downloads/workingpapers/08wpre08.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tea:wpaper:0808

Access Statistics for this paper

More papers in Working Papers from Rural Economy and Development Programme,Teagasc Contact information at EDIRC.
Bibliographic data for series maintained by John Lennon ().