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Indoor Vertical Farming in the Urban Nexus Context: Business Growth and Resource Savings

Author

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  • Dafni Despoina Avgoustaki

    (Department of Business Development and Technology, Centre for Energy Technologies, Aarhus University, Birk Centerpark 15, 7400 Herning, Denmark)

  • George Xydis

    (Department of Business Development and Technology, Centre for Energy Technologies, Aarhus University, Birk Centerpark 15, 7400 Herning, Denmark
    Energy Policy and Climate Program, Advanced Academic Programs, Johns Hopkins University, Baltimore, MD 21218, USA)

Abstract

In recent years, a new urban environment in the large metropolitan areas, the so-called “megacities”, has emerged. It is estimated that more than five billion people will be located in urban areas by 2030. Many projects have been initiated in the megacities to support the new ecosystem services in providing the most sustainable and efficient food supply solutions, as well as for transporting fresh and clean vegetables. One of the most important focus areas is research on energy sustainability, including how to optimize energy efficiency to meet the needs of citizens and companies. Indoor urban vertical farming (IUVF) is one of the greatest achievements of our time in agriculture, as it is entirely focused on meeting the food needs of people living in urban areas with the lowest environmental and energy costs. IUVF creates a new foundation in the urban food production system, providing opportunities for many other sustainable activities, such as energy and grey water recycling, but beyond all, it helps citizens to have access in fresh and nutritious fruits and vegetables and to become more creative building up their skills regarding sustainable food production. In this study, the internal rate of return (IRR) and the net present value (NPV) indexes were used to compare IUVF and greenhouse (GH) facilities under various financing schemes. Consistent with similar studies, this research also confirms that IUVF is much more profitable for investors, saving significant resources compared to GHs.

Suggested Citation

  • Dafni Despoina Avgoustaki & George Xydis, 2020. "Indoor Vertical Farming in the Urban Nexus Context: Business Growth and Resource Savings," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1965-:d:328462
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    References listed on IDEAS

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    1. Dafni Despoina Avgoustaki & George Xydis, 2020. "Plant factories in the water-food-energy Nexus era: a systematic bibliographical review," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 253-268, April.
    2. Halloran, Afton & Clement, Jesper & Kornum, Niels & Bucatariu, Camelia & Magid, Jakob, 2014. "Addressing food waste reduction in Denmark," Food Policy, Elsevier, vol. 49(P1), pages 294-301.
    3. Dafni Despoina Avgoustaki, 2019. "Optimization of Photoperiod and Quality Assessment of Basil Plants Grown in a Small-Scale Indoor Cultivation System for Reduction of Energy Demand," Energies, MDPI, vol. 12(20), pages 1-13, October.
    4. Dorward, Andrew, 2013. "Agricultural labour productivity, food prices and sustainable development impacts and indicators," Food Policy, Elsevier, vol. 39(C), pages 40-50.
    5. Food and Agriculture Organization, 2015. "The State of Food Insecurity in the World Meeting the 2015 International Hunger Targets: Taking Stock of Uneven Progress," Working Papers id:7595, eSocialSciences.
    6. James Eaves & Stephen Eaves, 2018. "Comparing the Profitability of a Greenhouse to a Vertical Farm in Quebec," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 43-54, March.
    7. Xydis, George, 2013. "A techno-economic and spatial analysis for the optimal planning of wind energy in Kythira island, Greece," International Journal of Production Economics, Elsevier, vol. 146(2), pages 440-452.
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    Cited by:

    1. Caixia Ivy Gan & Ruth Soukoutou & Denise Maria Conroy, 2022. "Sustainability Framing of Controlled Environment Agriculture and Consumer Perceptions: A Review," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    2. Francis J. Baumont de Oliveira & Scott Ferson & Ronald A. D. Dyer & Jens M. H. Thomas & Paul D. Myers & Nicholas G. Gray, 2022. "How High Is High Enough? Assessing Financial Risk for Vertical Farms Using Imprecise Probability," Sustainability, MDPI, vol. 14(9), pages 1-29, May.
    3. Sheridan Ribbing & George Xydis, 2021. "Renewable Energy at Home: A Look into Purchasing a Wind Turbine for Home Use—The Cost of Blindly Relying on One Tool in Decision Making," Clean Technol., MDPI, vol. 3(2), pages 1-12, April.
    4. Jue Wang & Keyi Ju & Xiaozhuo Wei, 2022. "Where Will ‘Water-Energy-Food’ Research Go Next?—Visualisation Review and Prospect," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    5. Adrián Csordás & István Füzesi, 2023. "The Impact of Technophobia on Vertical Farms," Sustainability, MDPI, vol. 15(9), pages 1-17, May.
    6. Delorme, Maxence & Santini, Alberto, 2022. "Energy-efficient automated vertical farms," Omega, Elsevier, vol. 109(C).
    7. Roberto S. Velazquez-Gonzalez & Adrian L. Garcia-Garcia & Elsa Ventura-Zapata & Jose Dolores Oscar Barceinas-Sanchez & Julio C. Sosa-Savedra, 2022. "A Review on Hydroponics and the Technologies Associated for Medium- and Small-Scale Operations," Agriculture, MDPI, vol. 12(5), pages 1-21, April.
    8. Hemeng Zhou & Kathrin Specht & Caitlin K. Kirby, 2022. "Consumers’ and Stakeholders’ Acceptance of Indoor Agritecture in Shanghai (China)," Sustainability, MDPI, vol. 14(5), pages 1-28, February.
    9. Yiming Shao & Zhugen Wang & Zhiwei Zhou & Haojing Chen & Yuanlong Cui & Zhenghuan Zhou, 2022. "Determinants Affecting Public Intention to Use Micro-Vertical Farming: A Survey Investigation," Sustainability, MDPI, vol. 14(15), pages 1-26, July.

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