IDEAS home Printed from https://ideas.repec.org/p/tea/wpaper/0808.html
   My bibliography  Save this paper

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

Author

Listed:
  • Darragh Clancy

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • 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)

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 The superseded enterprise, establishment grant level, yield level, price level, and length of production lifespan are shown to significantly influence the returns generated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.

Suggested Citation

  • Darragh Clancy & James Breen & A.M Butler & Fiona Thorne & M. Wallace, 2008. "A Discounted Cash Flow Analysis of Financial Returns from Biomass Crops in Ireland," Working Papers 0808, Rural Economy and Development Programme,Teagasc.
    • Handle: RePEc:tea:wpaper:0808
    as

    Download full text from publisher

    File URL: http://www.teagasc.ie/rural-economy/downloads/workingpapers/08wpre08.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ingersoll, Jonathan E, Jr & Ross, Stephen A, 1992. "Waiting to Invest: Investment and Uncertainty," The Journal of Business, University of Chicago Press, vol. 65(1), pages 1-29, January.
    2. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Darragh Clancy & A. Kazukauskas & C. Newman & Fiona Thorne, 2009. "An investigation of the level of structural change in the agrifood sector of Ireland, Denmark and the Netherlands," Working Papers 0915, Rural Economy and Development Programme,Teagasc.
    2. Clancy, D. & Breen, J.P. & Thorne, F. & Wallace, M., 2012. "The influence of a Renewable Energy Feed in Tariff on the decision to produce biomass crops in Ireland," Energy Policy, Elsevier, vol. 41(C), pages 412-421.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Breen & Darragh Clancy & Mary Ryan & M. Wallace, 2010. "Can’t See the Wood for the Trees: The Returns to Farm Forestry in Ireland," Working Papers 1003, Rural Economy and Development Programme,Teagasc.
    2. Alan Gregory, 2011. "The Expected Cost of Equity and the Expected Risk Premium in the UK," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 3(1), pages 1-26, April.
    3. Ana-Maria BERCU, 2014. "Performance Appraisal Of Civil Servants. Sustainability And Development," Proceedings of Administration and Public Management International Conference, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 10(1), pages 35-43, June.
    4. repec:fip:fedhep:y:2013:i:qii:p:30-46:n:vol.37no.2 is not listed on IDEAS
    5. Gedikoglu, Haluk & McCann, Laura M.J. & Artz, Georgeanne M., 2011. "Off-Farm Employment Effects on Adoption of Nutrient Management Practices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-14, August.
    6. Scherrer-Rathje, Maike & Boyle, Todd A. & Deflorin, Patricia, 2009. "Lean, take two! Reflections from the second attempt at lean implementation," Business Horizons, Elsevier, vol. 52(1), pages 79-88.
    7. Shachmurove, Yochanan & Vulanovic, Milos, 2013. "SPACs in Shipping," EconStor Preprints 88633, ZBW - Leibniz Information Centre for Economics.
    8. Benmelech, Efraim & Dlugosz, Jennifer, 2009. "The alchemy of CDO credit ratings," Journal of Monetary Economics, Elsevier, vol. 56(5), pages 617-634, July.
    9. Farrell, Terence C., 2008. "An Economic Evaluation of Conservation Farming Practices for the Central West of NSW," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6177, Australian Agricultural and Resource Economics Society.
    10. Felipe Jiménez & Wilmar Cabrera-Montiel, 2014. "System for Road Vehicle Energy Optimization Using Real Time Road and Traffic Information," Energies, MDPI, vol. 7(6), pages 1-23, June.
    11. Agata Mesjasz-Lech, 2009. "Selected Problems Of Reverse Logistics In Poland," Advanced Logistic systems, University of Miskolc, Department of Material Handling and Logistics, vol. 3(1), pages 181-190, December.
    12. J�r�me Massiani, Giovanni Santoro, 2012. "The relevance of the concept of capacity for the management of a tourist destination: theory and application to tourism management in Venice," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 66(2), pages 141-156.
    13. J. Mutti & R. Sampson & B. Yeung, 2000. "The effects of the Uruguay round: empirical evidence from U.S. industry," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 59-69, January.
    14. Anuta Porutiu, 2010. "Decision and decision makers," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 15.
    15. Vassili Joannides & N. Berland, 2008. "Grounded theory: quels usages dans les recherches en contrôle de gestion?," Grenoble Ecole de Management (Post-Print) hal-00676580, HAL.
    16. Lino Cinquini & Andrea Tenucci, 2011. "Management Accounting for Service: A Research Agenda," Working Papers 201102, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    17. Cristina Cella & Andrew Ellul & Mariassunta Giannetti, 2013. "Investors' Horizons and the Amplification of Market Shocks," The Review of Financial Studies, Society for Financial Studies, vol. 26(7), pages 1607-1648.
    18. Schürg, Carolin V. & Bannier, Christina Evelies, 2015. "Corporate investment, debt and liquidity choices in the light of financial constraints and hedging needs," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 114561, Verein für Socialpolitik / German Economic Association.
    19. Christopher H. Herbst & Monique Vledder & Karen Campbell & Mirja Sjöblom & Agnes Soucat, 2011. "The Human Resources for Health Crisis in Zambia : An Outcome of Health Worker Entry, Exit, and Performance within the National Health Labor Market," World Bank Publications - Books, The World Bank Group, number 5938, December.
    20. Tzu-Chun Weng, 2014. "Exploring Customer Knowledge from Social Media to Improve the Performance of Strategy," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(2), pages 261-279.
    21. Martin Gächter & David A. Savage & Benno Torgler, 2009. "Retaining the Thin Blue Line: What Shapes Workers' Intentions not to Quit the Current Work Environment," Working Papers 2010-05, Faculty of Economics and Statistics, Universität Innsbruck, revised Mar 2010.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tea:wpaper:0808. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John Lennon (email available below). General contact details of provider: https://edirc.repec.org/data/reteaie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.