Economic Evaluation of the Production of Perennial Crops for Energy Purposes—A Review

Abstract

Biomass is widely used for the production of renewable energy, which calls for an economic evaluation of its generation. The aim of the present work was to review the literature concerning the economic evaluation of the production of perennial crop biomass for energy use. Statistical analysis of the bibliographic data was carried out, as well as an assessment of methods and values of economic indicators of the production of perennial crops for bioenergy. Most of the papers selected for the review were published in the years 2015–2019, which was probably stimulated by the growing interest in sustainable development, particularly after 2015, when the United Nations declared 17 sustainable development goals. The earliest articles concerned the economic analysis of plantations of short rotation coppice; the subsequent ones included the analysis of feedstock production in terms of the net present value and policy. The latest references also investigated transport and sustainability issues. The crops most commonly selected for production cost analysis were willow, poplar, and Miscanthus. The cost of production of willow and poplar were similar, 503 EUR ha−1 year−1 and 557 EUR ha−1 year−1, respectively, while the cost of Miscanthus production was significantly higher, 909 EUR ha−1 year−1 on average. By analogy, the distribution of revenue was similar for willow and poplar, at 236 EUR ha−1 year−1 and 181 EUR ha−1 year−1; Miscanthus production reached the value of 404 EUR ha−1 year−1. The economic conditions of perennial crop production differed in terms of geography; four areas were identified: Canada, the USA, southern Europe, and central and northern Europe.