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
Lora Billings
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 …
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
Eric Forgoston
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 …
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 …
