The impact of commodity price uncertainty on the economic value of waste-to-energy conversion in agricultural processing
Publication Type
Journal Article
Publication Date
7-2023
Abstract
This section studies the economic implications of waste-to-energy conversion; that is, converting organic waste into a saleable product to be used as a feedstock in another firm (e.g., biomass boiler) to generate energy (e.g., heat, electricity). We focus on the context of an agricultural processor that uses a commodity input to produce both a commodity output and organic waste. By making a comparison with a benchmark case in which waste goes to landfill, we characterize the economic value of waste-to-energy conversion. Using a model calibration based on palm oil industry in Malaysia, we examine how this economic value is impacted by (i) input and output spot price uncertainties and (ii) organic waste price’s dependence on the output spot price.
Keywords
Process industries, technology management and strategy
Discipline
Agribusiness | Operations and Supply Chain Management
Research Areas
Operations Management
Publication
Foundations and Trends in Technology, Information and Operations Management
Volume
16
Issue
3-4
First Page
229
Last Page
249
ISSN
1571-9545
Identifier
10.1561/0200000106-4
Publisher
Now Publishers
Citation
BIN, Li; BOYABATLI, Onur; and AVCI, Buket.
The impact of commodity price uncertainty on the economic value of waste-to-energy conversion in agricultural processing. (2023). Foundations and Trends in Technology, Information and Operations Management. 16, (3-4), 229-249.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7459
Additional URL
https://doi.org/10.1561/0200000106-4