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A bio-economic analysis of a sustainable agricultural transition using green biorefinery

Author

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  • Cong, Rong-Gang
  • Termansen, Mette

Abstract

Traditional pig production often relies on cereal-based feed, which has adverse environmental effects, e.g. nitrogen leaching and greenhouse gas (GHG) emissions. Alternative production systems are therefore sought to improve the sustainability of pig production. A promising alternative is to use proteinaceous feed from grass, produced in a green bio-refinery (GBR), to substitute part of the cereals in the feed. Cultivation of grass on arable land can reduce nitrogen leaching and pesticide application, and increase carbon storage. The GBR using grass as feedstock also produces valuable byproducts, e.g. fibre and biogas. In this study we combine a life-cycle analysis (LCA) and a cost-benefit analysis to compare the economic and environmental effects of producing the pig feed to produce 1 ton of pork using two feeding systems. We apply this approach to the intensive Danish pork production as a case study. The results show that compared with traditional cereal-based feeding system for producing a ton of pork, using proteinaceous concentrate from small-scale GBR will (1) decrease the average feed cost by 5.01%; (2) produce a profit of 96 € before tax in the GBR; and (3) decrease the nitrogen leaching (NO3-N) by 28.2%. However, in most of the scenarios (except for G2), the nitrogen emissions into the air (N2O-N) will also increase because of the increased N fertilizer application compared to a cereal-based system. In most of the scenarios (except for S1 and G1), the energy and land use will also be saved. However, some important factors, e.g. the soil characteristics, pressed juice fraction in fresh biomass and scale of GBR, could subvert the conclusion about energy and land use saving in the alternative feeding system.

Suggested Citation

  • Cong, Rong-Gang & Termansen, Mette, 2016. "A bio-economic analysis of a sustainable agricultural transition using green biorefinery," MPRA Paper 112189, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:112189
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    References listed on IDEAS

    as
    1. Rong-Gang Cong & Mark Brady, 2012. "How to Design a Targeted Agricultural Subsidy System: Efficiency or Equity?," PLOS ONE, Public Library of Science, vol. 7(8), pages 1-12, August.
    2. Lipp, Judith, 2007. "Lessons for effective renewable electricity policy from Denmark, Germany and the United Kingdom," Energy Policy, Elsevier, vol. 35(11), pages 5481-5495, November.
    3. Cong, Rong-Gang & Hedlund, Katarina & Andersson, Hans & Brady, Mark, 2014. "Managing soil natural capital: An effective strategy for mitigating future agricultural risks," MPRA Paper 112155, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Cong, Rong-Gang & Caro, Dario & Thomsen, Marianne, 2017. "Is it beneficial to use biogas in the Danish transport sector?–An environmental-economic analysis," MPRA Paper 112291, University Library of Munich, Germany.
    2. Cong, Rong-Gang & Thomsen, Marianne, 2021. "Review of ecosystem services in a bio-based circular economy and governance mechanisms," Ecosystem Services, Elsevier, vol. 50(C).
    3. Cong, Rong-Gang & Stefaniak, Irena & Madsen, Bjarne & Dalgaard, Tommy & Jensen, Jørgen Dejgård & Nainggolan, Doan & Termansen, Mette, 2017. "Where to implement local biotech innovations? A framework for multi-scale socio-economic and environmental impact assessment of Green Bio-Refineries," Land Use Policy, Elsevier, vol. 68(C), pages 141-151.
    4. James Gaffey & Cathal O’Donovan & Declan Murphy & Tracey O’Connor & David Walsh & Luis Alejandro Vergara & Kwame Donkor & Lalitha Gottumukkala & Sybrandus Koopmans & Enda Buckley & Kevin O’Connor & Jo, 2023. "Synergetic Benefits for a Pig Farm and Local Bioeconomy Development from Extended Green Biorefinery Value Chains," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    5. Inga C. Melchior & Jens Newig, 2021. "Governing Transitions towards Sustainable Agriculture—Taking Stock of an Emerging Field of Research," Sustainability, MDPI, vol. 13(2), pages 1-27, January.

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    More about this item

    Keywords

    Biotechnology; Cost-benefit analysis; Greenhouse gas emissions; Nitrogen leaching; Proteinaceous feed; Sustainable agriculture;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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