DOI: 10.1016/j.enpol.2020.112018
论文题名: Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program
作者: McCarty T. ; Sesmero J.
刊名: Energy Policy
ISSN: 03014215
出版年: 2021
卷: 149 语种: 英语
中文关键词: Biomass crop assistance program
; Cellulosic biofuels
; Contract farming
; Miscanthus
英文关键词: Biomass
; Budget control
; Cellulosic ethanol
; Cost effectiveness
; Cost reduction
; Crops
; Machine design
; Supply chains
; Biomass-processing plants
; Cellulosic biofuels
; Contract terms
; Cost-effectiveness criterion
; Mechanism design theories
; Production cost
; Program budget
; Real options analysis
; Cost benefit analysis
英文摘要: Using a framework that meshes mechanism design theory and real options analysis, we recover the contract terms that a biomass processing plant would offer a farmer to induce conversion of land to perennial energy crops. We consider three contract terms: performance payment (price per dry ton of biomass), establishment payment (one-time payment per acre planted), and acreage payment (annual payment per acre planted). We find that, in equilibrium, the contract signed by farmers and buyers of Miscanthus (the perennial energy crop of choice in our analysis) uses a combination of all three payments. Conditional on the equilibrium contract, we show how changes in the structure of the Biomass Crop Assistance Program affect cost and risk along the vertical supply chain. Our analysis reveals that subsidies to both establishment and acreage payments are equally cost-effective in reducing production cost of cellulosic biofuels. However, establishment subsidies are more effective at reducing risk for the buyer and, therefore, dominate acreage subsidies from a risk-adjusted cost-effectiveness criterion. This suggests that a larger share of the Biomass Crop Assistance Program budget should be allocated to establishment subsidies to the detriment of matching payments (subsidies to performance payments) and maintenance payments (subsidies to acreage payments). © 2020 Citation statistics:
资源类型: 期刊论文
标识符: http://119.78.100.158/handle/2HF3EXSE/167929
Appears in Collections: 气候变化与战略
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作者单位: Department of Applied Economics, Utah State University, Agricultural Science Building Champ Drive, Logan, UT 84322, United States; Department of Agricultural Economics, Purdue University, Krannert Building 403 West State Street, West LafayetteIN 47907, United States
Recommended Citation:
McCarty T.,Sesmero J.. Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program[J]. Energy Policy,2021-01-01,149