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Economic Sustainability Assessment of Paulownia Farms in a Dual Production System—Case Studies in Temperate Climates

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  • Cornel Negrușier

    (Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Livia-Ramona Buzan

    (Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Ioan Păcurar

    (Faculty of Agriculture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Steluța Maria Sîngeorzan

    (Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Vasile Ceuca

    (Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Alexandru Colișar

    (Faculty of Forestry and Cadastre, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Ileana Andreica

    (Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Sándor Rózsa

    (Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

  • Orsolya Borsai

    (Faculty of Horticulture and Business in Rural Development, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Mănăștur St., 400372 Cluj-Napoca, Romania)

Abstract

Paulownia trees represent a convergence of ecological innovation and economic opportunity. Beyond their extraordinary growth rates, adaptability to diverse climates, and capacity to produce high-value timber, Paulownia farms offer a unique solution to pressing environmental and economic challenges. However, economic sustainability is the most crucial factor for any farmer when deciding to introduce this species. Therefore, the current study aimed to evaluate the profitability of seven existing Paulownia farms in Romania. The economic analysis has been carried out by adopting the discounted cash flow method. The results showed that the cultivation of Paulownia for both timber and woodchip production as a dual production system with an annual gross margin between 27 and 55% can present a viable alternative as compared to other agricultural crops. However, profitability highly depends on the selection of plant species according to the environmental conditions and agricultural practices applied, as well as demand and market price variations.

Suggested Citation

  • Cornel Negrușier & Livia-Ramona Buzan & Ioan Păcurar & Steluța Maria Sîngeorzan & Vasile Ceuca & Alexandru Colișar & Ileana Andreica & Sándor Rózsa & Orsolya Borsai, 2024. "Economic Sustainability Assessment of Paulownia Farms in a Dual Production System—Case Studies in Temperate Climates," Sustainability, MDPI, vol. 17(1), pages 1-24, December.
    • Handle: RePEc:gam:jsusta:v:17:y:2024:i:1:p:21-:d:1551753
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    References listed on IDEAS

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    1. Malico, Isabel & Nepomuceno Pereira, Ricardo & Gonçalves, Ana Cristina & Sousa, Adélia M.O., 2019. "Current status and future perspectives for energy production from solid biomass in the European industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 960-977.
    2. Qingbin Wang & Jason F. Shogren, 1991. "Characteristics of the Crop-Paulownia System in China," Center for Agricultural and Rural Development (CARD) Publications 91-wp84, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Carlo Alberto Magni, 2009. "Investment decisions, net present value and bounded rationality," Quantitative Finance, Taylor & Francis Journals, vol. 9(8), pages 967-979.
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