IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v120y2018icp392-400.html
   My bibliography  Save this article

Economic potential of flexible balloon biogas digester among smallholder farmers: A case study from Uganda

Author

Listed:
  • Kabyanga, Moris
  • Balana, Bedru B.
  • Mugisha, Johnny
  • Walekhwa, Peter N.
  • Smith, Jo
  • Glenk, Klaus

Abstract

Biogas technology, as a pro-poor renewable energy source, has been promoted in Uganda since the 1980s by the government and NGOs. However, many of the biogas designs promoted have proved to be too expensive for the average Ugandan to afford. A cheaper flexible balloon digester has been proposed, but there have been lack of evidence on the economic viability of this design. The purpose of this study was to analyze the economic potential of a flexible balloon digester among smallholder farmers in Uganda using the tool of cost-benefit analysis. Primary data were obtained from survey of experimental households and 144 non-biogas households in central Uganda. The results revealed that the net present value was negative and the payback period was greater than the economic life of the digester. However, sensitivity analysis revealed that with a 50% reduction in investment cost the technology is financially viable for 67% of the households and to all households as a group (NPV= UGX5,804,730). The initial investment cost is a critical factor to economic viability and potential technology adoption. We suggest that government and development partners interested in the sector should consider strategies that could reduce the technology cost, for example, by manufacturing low cost balloon digester locally instead of importing prefabricated digesters.

Suggested Citation

  • Kabyanga, Moris & Balana, Bedru B. & Mugisha, Johnny & Walekhwa, Peter N. & Smith, Jo & Glenk, Klaus, 2018. "Economic potential of flexible balloon biogas digester among smallholder farmers: A case study from Uganda," Renewable Energy, Elsevier, vol. 120(C), pages 392-400.
  • Handle: RePEc:eee:renene:v:120:y:2018:i:c:p:392-400
    DOI: 10.1016/j.renene.2017.12.103
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148117313150
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2017.12.103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Walekhwa, Peter N. & Mugisha, Johnny & Drake, Lars, 2009. "Biogas energy from family-sized digesters in Uganda: Critical factors and policy implications," Energy Policy, Elsevier, vol. 37(7), pages 2754-2762, July.
    2. Abbas, Tahir & Ali, Ghaffar & Adil, Sultan Ali & Bashir, Muhammad Khalid & Kamran, Muhammad Asif, 2017. "Economic analysis of biogas adoption technology by rural farmers: The case of Faisalabad district in Pakistan," Renewable Energy, Elsevier, vol. 107(C), pages 431-439.
    3. Clark P. Bishop & C. Richard Shumway, 2009. "The Economics of Dairy Anaerobic Digestion with Coproduct Marketing," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 394-410.
    4. White, Andrew J. & Kirk, Donald W. & Graydon, John W., 2011. "Analysis of small-scale biogas utilization systems on Ontario cattle farms," Renewable Energy, Elsevier, vol. 36(3), pages 1019-1025.
    5. World Bank, 2014. "World Development Indicators 2014," World Bank Publications, The World Bank, number 18237, July.
    6. Clark P. Bishop & C. Richard Shumway, 2009. "The Economics of Dairy Anaerobic Digestion with Coproduct Marketing," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 394-410, September.
    7. Abdullah, Sabah & Jeanty, P. Wilner, 2011. "Willingness to pay for renewable energy: Evidence from a contingent valuation survey in Kenya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2974-2983, August.
    8. Gwavuya, S.G. & Abele, S. & Barfuss, I. & Zeller, M. & Müller, J., 2012. "Household energy economics in rural Ethiopia: A cost-benefit analysis of biogas energy," Renewable Energy, Elsevier, vol. 48(C), pages 202-209.
    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. Nazia Yasmin & Philipp Grundmann, 2019. "Pre- and Post-Adoption Beliefs about the Diffusion and Continuation of Biogas-Based Cooking Fuel Technology in Pakistan," Energies, MDPI, Open Access Journal, vol. 12(16), pages 1-16, August.

    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. Li, Xue & Mupondwa, Edmund, 2018. "Commercial feasibility of an integrated closed-loop ethanol-feedlot-biodigester system based on triticale feedstock in Canadian Prairies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 401-413.
    2. Smith, Jo U. & Fischer, Anke & Hallett, Paul D. & Homans, Hilary Y. & Smith, Pete & Abdul-Salam, Yakubu & Emmerling, Hanna H. & Phimister, Euan, 2015. "Sustainable use of organic resources for bioenergy, food and water provision in rural Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 903-917.
    3. Syed M Amir & Yonggong Liu & Ashfaq A Shah & Umer Khayyam & Zafar Mahmood, 2020. "Empirical study on influencing factors of biogas technology adoption in Khyber Pakhtunkhwa, Pakistan," Energy & Environment, , vol. 31(2), pages 308-329, March.
    4. Anderson, Robert C. & Hilborn, Don & Weersink, Alfons, 2013. "An economic and functional tool for assessing the financial feasibility of farm-based anaerobic digesters," Renewable Energy, Elsevier, vol. 51(C), pages 85-92.
    5. Qingbin Wang & Laurel Valchuis & Ethan Thompson & David Conner & Robert Parsons, 2019. "Consumer Support and Willingness to Pay for Electricity from Solar, Wind, and Cow Manure in the United States: Evidence from a Survey in Vermont," Energies, MDPI, Open Access Journal, vol. 12(23), pages 1-13, November.
    6. Uhunamure, S.E. & Nethengwe, N.S. & Tinarwo, D., 2019. "Correlating the factors influencing household decisions on adoption and utilisation of biogas technology in South Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 264-273.
    7. Rupf, Gloria V. & Bahri, Parisa A. & de Boer, Karne & McHenry, Mark P., 2015. "Barriers and opportunities of biogas dissemination in Sub-Saharan Africa and lessons learned from Rwanda, Tanzania, China, India, and Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 468-476.
    8. Shane, Agabu & Gheewala, Shabbir H. & Kafwembe, Young, 2017. "Urban commercial biogas power plant model for Zambian towns," Renewable Energy, Elsevier, vol. 103(C), pages 1-14.
    9. Nazia Yasmin & Philipp Grundmann, 2019. "Pre- and Post-Adoption Beliefs about the Diffusion and Continuation of Biogas-Based Cooking Fuel Technology in Pakistan," Energies, MDPI, Open Access Journal, vol. 12(16), pages 1-16, August.
    10. Cowley, Cortney & Brorsen, B. Wade, 2018. "Anaerobic Digester Production and Cost Functions," Ecological Economics, Elsevier, vol. 152(C), pages 347-357.
    11. Kelebe, Haftu Etsay & Ayimut, Kiros Meles & Berhe, Gebresilasse Hailu & Hintsa, Kidane, 2017. "Determinants for adoption decision of small scale biogas technology by rural households in Tigray, Ethiopia," Energy Economics, Elsevier, vol. 66(C), pages 272-278.
    12. Kabir, H & Palash, M S & Bauer, S, 2012. "Appraisal of domestic biogas plants in Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(1-2).
    13. Namuli, R. & Pillay, P. & Jaumard, B. & Laflamme, C.B., 2013. "Threshold herd size for commercial viability of biomass waste to energy conversion systems on rural farms," Applied Energy, Elsevier, vol. 108(C), pages 308-322.
    14. Willeghems, Gwen & Buysse, Jeroen, 2016. "Changing old habits: The case of feeding patterns in anaerobic digesters," Renewable Energy, Elsevier, vol. 92(C), pages 212-221.
    15. Sean O’Connor & Ehiaze Ehimen & Suresh C. Pillai & Gary Lyons & John Bartlett, 2020. "Economic and Environmental Analysis of Small-Scale Anaerobic Digestion Plants on Irish Dairy Farms," Energies, MDPI, Open Access Journal, vol. 13(3), pages 1-20, February.
    16. Usack, J.G. & Gerber Van Doren, L. & Posmanik, R. & Labatut, R.A. & Tester, J.W. & Angenent, L.T., 2018. "An evaluation of anaerobic co-digestion implementation on New York State dairy farms using an environmental and economic life-cycle framework," Applied Energy, Elsevier, vol. 211(C), pages 28-40.
    17. Mengistu, Mulu Getachew & Simane, Belay & Eshete, Getachew & Workneh, Tilahun Seyoum, 2016. "Factors affecting households' decisions in biogas technology adoption, the case of Ofla and Mecha Districts, northern Ethiopia," Renewable Energy, Elsevier, vol. 93(C), pages 215-227.
    18. Sarker, Swati Anindita & Wang, Shouyang & Adnan, K.M. Mehedi & Sattar, M. Nahid, 2020. "Economic feasibility and determinants of biogas technology adoption: Evidence from Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    19. Robert C. Anderson & Alfons Weersink, 2014. "A Real Options Approach for the Investment Decisions of a Farm-Based Anaerobic Digester," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 69-87, March.
    20. Charléty, Patricia & Romelli, Davide & Santacreu-Vasut, Estefania, 2017. "Appointments to central bank boards: Does gender matter?," Economics Letters, Elsevier, vol. 155(C), pages 59-61.

    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:eee:renene:v:120:y:2018:i:c:p:392-400. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.