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

Additional URL

https://doi.org/10.1561/0200000106-4

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