A cost benefit analysis of bioethanol production from cereals in Sweden
This study makes an attempt to evaluate the Net Present Value of production of bioethanol. The study is predominately focusing on the production of bioethanol with cereals as feed stock. The study is a case study of the Swedish farmers cooperative (SvL) and is carried through with aim to get an aggr...
| Autor principal: | |
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| Formato: | Otro |
| Lenguaje: | sueco Inglés |
| Publicado: |
2007
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| Materias: | |
| Acceso en línea: | https://stud.epsilon.slu.se/10861/ |
| _version_ | 1855571764418969600 |
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| author | Larsson, Johanna |
| author_browse | Larsson, Johanna |
| author_facet | Larsson, Johanna |
| author_sort | Larsson, Johanna |
| collection | Epsilon Archive for Student Projects |
| description | This study makes an attempt to evaluate the Net Present Value of production of bioethanol. The study is predominately focusing on the production of bioethanol with cereals as feed stock. The study is a case study of the Swedish farmers cooperative (SvL) and is carried through with aim to get an aggregated social value for bioethanol production for the case study company with Sweden as a reference group. The method used in the study is a Cost Benefit Analysis (CBA) approach where an excel model has been developed and used to derive results. The CBA approach considers the difference between with and without the project approach and the opportunity cost is essential. It is assumed that without this investment the land would be used for cultivation of cereals for human food consumption. It is found that bioethanol production from cereals at SvL's production plant can lead to environmental net benefits in form of reduced overall CO2 emissions. It is also found that there is net energy saving as well a reduction of the overall oil dependency by this production process.
The social net benefit is however dependent on how expensive it is assumed to be to emit CO2 to the atmosphere. This figure also varies with the level of discount rate that is used for the calculation. It is here argued that it is reasonable to put a high cost on CO2 emissions due to the insecurities regarding climate change. It is also argued that the importance of investments in environmentally friendly technologies decreases when a high discount rate is used. The net benefits are distributed both within and outside the Swedish society. The environment, the maintenance suppliers and the bank are large net gainers. There is however a considerable negative distribution for the government due to the total tax exemption on bioethanol. The results can however change with changes in the assumptions. If it is assumed that the land used for cultivation of wheat for bioethanol not would be cultivated at all without the project, the results changes. In that case also the CO2 emissions and energy input during the cultivation and transportation of the wheat should burden the social NPV. This results in a lower social net benefits and a lower total reduction of CO2 emissions and oil dependency. |
| format | Otro |
| id | RepoSLU10861 |
| institution | Swedish University of Agricultural Sciences |
| language | Swedish Inglés |
| publishDate | 2007 |
| publishDateSort | 2007 |
| record_format | eprints |
| spelling | RepoSLU108612017-09-25T08:05:08Z https://stud.epsilon.slu.se/10861/ A cost benefit analysis of bioethanol production from cereals in Sweden Larsson, Johanna Energy resources management This study makes an attempt to evaluate the Net Present Value of production of bioethanol. The study is predominately focusing on the production of bioethanol with cereals as feed stock. The study is a case study of the Swedish farmers cooperative (SvL) and is carried through with aim to get an aggregated social value for bioethanol production for the case study company with Sweden as a reference group. The method used in the study is a Cost Benefit Analysis (CBA) approach where an excel model has been developed and used to derive results. The CBA approach considers the difference between with and without the project approach and the opportunity cost is essential. It is assumed that without this investment the land would be used for cultivation of cereals for human food consumption. It is found that bioethanol production from cereals at SvL's production plant can lead to environmental net benefits in form of reduced overall CO2 emissions. It is also found that there is net energy saving as well a reduction of the overall oil dependency by this production process. The social net benefit is however dependent on how expensive it is assumed to be to emit CO2 to the atmosphere. This figure also varies with the level of discount rate that is used for the calculation. It is here argued that it is reasonable to put a high cost on CO2 emissions due to the insecurities regarding climate change. It is also argued that the importance of investments in environmentally friendly technologies decreases when a high discount rate is used. The net benefits are distributed both within and outside the Swedish society. The environment, the maintenance suppliers and the bank are large net gainers. There is however a considerable negative distribution for the government due to the total tax exemption on bioethanol. The results can however change with changes in the assumptions. If it is assumed that the land used for cultivation of wheat for bioethanol not would be cultivated at all without the project, the results changes. In that case also the CO2 emissions and energy input during the cultivation and transportation of the wheat should burden the social NPV. This results in a lower social net benefits and a lower total reduction of CO2 emissions and oil dependency. I detta examensarbete görs ett försök att estimera samhällsvärdet av inhemsk etanolproduktion, studien fokuserar huvudsakligen på etanol från säd som råvara. Beräkningarna är baserat på en fallstudie av Svenska Lantmännens och har som syfte att estimera det samhällsekonomiska värde som denna och liknande produktion har för det svenska samhället. En ”Cost benefit analys (CBA)” används i denna studie där en modell i Excel upprättas och används för beräkningar. En CBA jämför skillnader mellan scenariot ”med” eller ”utan” projektet vilket gör att alternativkostnaden är mycket viktig. Här förutsätts det att om etanolproduktion inte skulle förekomma skulle marken istället uppodlas av säd för matkonsumption. Studien finner att etanolproduktion med säd som råvara kan ge miljöfördelar i form av nettominskning av koldioxidutsläpp. Det visas också att sådan produktion kan leda till minskat energi och oljeberoende. Den samhällsekonomiska nettoeffektens storlek beror dock på hur högt man värderar utsläpp av koldioxid. Detta värde varierar bland annat med den valda diskonteringsräntan. Det argumenteras i denna studie att utsläppen ska värderas relativt högt på grund av den osäkerhet som finns kring framtida effekter och kostnader för koldioxidutsläpp. Det poängteras också att investeringar i miljövänlig teknik minskar med ökad diskonteringsränta. Studien finner att värdet av investeringen i etanolproduktion är distribuerade både i och utanför Sverige där miljön, byggföretag, banksektorn är de stora vinnarna i Sverige. Regeringen är dock, på grund skattelättnaden på etanol, den stora förloraren. Det måste poängteras att resultaten förändras om antagandena i studien förändras. Om det i stället skulle antas att marken som används för produktion av säd till etanolproduktion inte skulle uppodlas alls om inte etanolproduktion skulle förekomma förändras till exempel resultatet. Under sådana antaganden måste också den energi och de koldioxidutsläpp som uppkommer under odling och transport inkluderas i beräkningarna och belasta kalkylen. Detta skulle resultera i en lägre nettoreduktion vad gäller koldioxidutsläpp och en generell minskning av svenskt oljeberoende. 2007-05-29 Other NonPeerReviewed application/pdf sv https://stud.epsilon.slu.se/10861/1/larsson_j_170925.pdf Larsson, Johanna, 2007. A cost benefit analysis of bioethanol production from cereals in Sweden : a case study approach. UNSPECIFIED, Uppsala. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-7103 eng |
| spellingShingle | Energy resources management Larsson, Johanna A cost benefit analysis of bioethanol production from cereals in Sweden |
| title | A cost benefit analysis of bioethanol production from cereals in Sweden |
| title_full | A cost benefit analysis of bioethanol production from cereals in Sweden |
| title_fullStr | A cost benefit analysis of bioethanol production from cereals in Sweden |
| title_full_unstemmed | A cost benefit analysis of bioethanol production from cereals in Sweden |
| title_short | A cost benefit analysis of bioethanol production from cereals in Sweden |
| title_sort | cost benefit analysis of bioethanol production from cereals in sweden |
| topic | Energy resources management |
| url | https://stud.epsilon.slu.se/10861/ https://stud.epsilon.slu.se/10861/ |