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Potential Economic Impacts Of Allocating More Land For Bioenergy Biomass Production In Virginia, Thomas O. Ochuodho, Janaki R. R. Alavalapati, Pankaj Lal, Domena A. Agyeman, Bernabas Wolde, Pralhad Burli Oct 2019

Potential Economic Impacts Of Allocating More Land For Bioenergy Biomass Production In Virginia, Thomas O. Ochuodho, Janaki R. R. Alavalapati, Pankaj Lal, Domena A. Agyeman, Bernabas Wolde, Pralhad Burli

Pankaj Lal

The growing attention to renewable energy and rural development has created greater demand for production of biomass feedstock for bioenergy. However, forest growth rates and the amount of land in most existing forests may not be sufficient to sustainably supply the forest biomass required to support existing forest products industries and the expanding bioenergy industry. Additionally, concerns about agricultural land use competition have dampened expansion of biomass production on agricultural land base. One of the ways to meet the growing forest biomass feedstock demand for bioenergy production is by allocating currently marginal non-forested land for growing bioenergy feedstocks. In Virginia, …


Adoption Of Switchgrass Cultivation For Biofuel Under Uncertainty: A Discrete-Time Modeling Approach, Pralhad Burli, Eric Forgoston, Pankaj Lal, Lora Billings, Bernabas Wolde Jul 2017

Adoption Of Switchgrass Cultivation For Biofuel Under Uncertainty: A Discrete-Time Modeling Approach, Pralhad Burli, Eric Forgoston, Pankaj Lal, Lora Billings, Bernabas Wolde

Pankaj Lal

Production of biofuels from cellulosic sources, such as switchgrass, is being encouraged through mandates, incentives, and subsidies. However, uncertainty in future prices coupled with large establishment costs often inhibit their cultivation. Owing to their inability to incorporate uncertainty and dynamic decision-making, standard discounted cash flow techniques are ineffective for analyzing such investments. We formulate a discrete-time binomial framework to model output prices, allowing us to incorporate price uncertainty, stand age, and variable crop yields into the analytical framework. We analyze the feasibility of investments in switchgrass cultivation under varying price transition paths, evaluate the relationship between risk …