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The Economics of Dairy Anaerobic Digestion with Coproduct Marketing

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  • 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. Copyright 2009 Agricultural and Applied Economics Association

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

Volume (Year): 31 (2009)
Issue (Month): 3 (09)
Pages: 394-410

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Handle: RePEc:oup:revage:v:31:y:2009:i:3:p:394-410

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Cited by:
  1. 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, vol. 70(2), pages 157-168, August.
  2. 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.
  3. Key, Nigel D. & Sneeringer, Stacy E., 2012. "Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(2), August.

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