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Oil Mallee must look to multi-product industries

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  • Cooper, Don
  • Bartle, John
  • Schilizzi, Steven
  • Pannell, David J.

Abstract

Oil mallees are one of the preferred options to combat dryland salinity in the Western Australian wheatbelt, but their economics are uncertain. We compare three scenarios: on-farm mallee oil production, industrial oil and wood-based electricity production, and a combined oil, electricity and activated carbon system. Only the third option has any serious chances of being a profitable venture, with the second being the worst. The first could break even if oil yields increased from 3 to 4%. Results are sensitive to the price volatility of activated carbon and the operations cost of the cogeneration plant.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2001 Conference (45th), January 23-25, 2001, Adelaide with number 125582.

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Date of creation: Jan 2001
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Handle: RePEc:ags:aare01:125582

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Keywords: dryland salinity; oil mallee plantations; value-adding economics; Environmental Economics and Policy; Resource /Energy Economics and Policy;

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