The Value of Switching Production Options in a Flexible Biorefinery-Reference-Cited by-同舟云学术

The Value of Switching Production Options in a Flexible Biorefinery

Published:2017-03-21 Issue:1 Volume:46 Page:146-173
ISSN:1068-2805
Container-title:Agricultural and Resource Economics Review
language:en
Short-container-title:Agric. Resour. Econom. Rev.

Author:

Hossiso Kassu Wamisho,Ripplinger David

Abstract

This study analyses the value of a switching option in a flexible biorefinery plant that produces ethanol and sugar juice in a single plant using energy beets. A real-options approach is used to compute threshold prices and optimal switching decision rules for switching between sugar and ethanol production modes. The analysis shows that it is economically optimal to keep producing ethanol then switching to sugar juice, given the stochastic price parameters of the two products.

Publisher

Cambridge University Press (CUP)

Subject

Economics and Econometrics,Agronomy and Crop Science

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4. The Effects of Contract Mechanism Design and Risk Preferences on Biomass Supply for Ethanol Production;Hossiso;Agribusiness,2017

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