An assessment of economic viability of jatropha plantation in North East India

2019 ◽  
Vol 13 (4) ◽  
pp. 935-959
Author(s):  
Kishor Goswami ◽  
Hari K. Choudhury ◽  
Atanu Hazarika ◽  
Rohit Tripathi
Keyword(s):  
Discount Rate ◽  
Social Cost ◽  
Net Present Value ◽  
Energy Crop ◽  
Economic Viability ◽  
Cost Ratio ◽  
Content Type ◽  
North East India ◽  
North East ◽  
Plantation Crops

Purpose This paper aims to analyze the economic viability of jatropha plantation in North East India. Design/methodology/approach Economic viability is measured through the net present value and the benefit–cost ratio (BCR) at four different production standards along with four different prices of jatropha seed. Findings At a very low price and small production, jatropha plantation is economically not feasible. However, when the price of seed increases from INR 5 to 8, BCRs become greater than 1, provided that the discount rate is less than equal to 8 per cent. The minimum threshold of BCR indicates that the threshold of 1.5 BCR at a production level of 1.5 tons/ha can be achieved with a combination of seed price of INR 10 per kg and a discount rate of 1 to 3 per cent. Thus, jatropha cultivation is economically viable but not highly profitable. Research limitations/implications Present study analyzes the economic viability of jatropha plantation from purely financial point of view. Social cost and benefit of energy crop plantation is not included in the study. This suggests to adopt social cost–benefit analysis to evaluate the overall feasibility of plantation crops in future studies. Originality/value This paper contributes to the academic literature of economic viability of energy plantation crops. Economic viability of jatropha plantation is shown in different cost and revenue conditions with statistical evidences.

An analysis of the economic viability of waste-to-energy generation in the Kumasi metropolis of Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
De-Graft Owusu-Manu ◽  
E. Amo-Asamoah ◽  
Frank Ato Ghansah ◽  
George Asumadu
Keyword(s):  
Waste Management ◽  
Current Knowledge ◽  
Methodological Approach ◽  
Energy Generation ◽  
Waste To Energy ◽  
Energy Deficit ◽  
Economic Viability ◽  
Cost Ratio ◽  
Unique Contribution ◽  
Content Type

Purpose Kumasi Metropolis, the second-largest city in Ghana is known to be bewildered with challenges relating to waste management. As a means of solving the waste management challenge, several suggestions are often made for the establishment of a waste-to-energy plant to manage the disposal of waste and generation of income. There have been no studies conducted to determine how economically viable such plants will be. This study aims to examine the economic viability of waste-to-energy generation in the Kumasi Metropolis to find out how economically viable such an approach will be. Design/methodology/approach To achieve this, a simple debt-equity ratio business model based on discounted cash flow technique was applied to estimate the internal rate of returns (IRR) as a measure of the economic viability and profitability of a modelled 50 MWH waste-energy generation plant in the Kumasi Metropolis. The analysis was performed using the RetScreen Expert Software. Findings The results show that the IRR and benefits cost ratio of the facility were 36% and 5.8%, respectively, indicating high levels of profitability and economic viability. The study concludes that waste-to-energy generation will be an economically viable venture in the Kumasi Metropolis. Practical implications It is, however, important for users of the findings of this study to take caution of the fact that the various assumptions although based on current knowledge and expert opinion may vary with time; therefore, the sensitive analysis on price and costs should always be considered. Practically, this study will contribute to solving the waste management situation in most cities, as well as generating revenue and helping close the energy deficit most developing countries are grabbling with. Originality/value The unique contribution of the study to knowledge is that it has professed an alternative analytical and methodological approach to measuring the financial viability of waste-to-energy plants in situations where there is none in the geographical jurisdiction of the proposed project.

scholarly journals The discounted money value of human lives lost due to COVID-19 in Spain

2020 ◽  
Vol 34 (5) ◽  
pp. 455-460
Author(s):  
Joses Muthuri Kirigia ◽  
Rose Nabi Deborah Karimi Muthuri
Keyword(s):  
Life Expectancy ◽  
Discount Rate ◽  
Economic Model ◽  
Net Present Value ◽  
Negative Impact ◽  
Human Life ◽  
National Health System ◽  
Agriculture Education ◽  
Content Type ◽  
Value Of Health

PurposeTo estimate the discounted money value of human lives lost (DMVHL) due to COVID-19 in Spain.Design/methodology/approachThe study employs the human capital approach to estimate the DMVHL (assuming Spain's life expectancy of 83 years and a 3% discount rate) of the 20,453 human lives lost in Spain from COVID-19 as of 19 April 2020. Sensitivity analysis was conducted alternately assuming (a) 5% and 10% discount rate; and (b) global life expectancy of 72 years, and the world's highest life expectancy of 87.1 years.FindingsThe 20,453 human lives lost due to COVID-19 had a total DMVHL of Int$ 9,629,234,112, and an average of Int$ 470,798 per human life lost. Alternate re-estimation of the economic model with a 5% and 10% discount rates led to 19.8% and 47.4% reductions in the DMVHL, respectively. Re-calculation of the economic model using the global life expectancy of 72 years, while holding the discount rate constant at 3%, diminished the DMVHL by 41%. While the re-run of the same model using the world's highest life expectancy of 87.1 years instead, it increased the DMVHL by 18%.Research limitations/implicationsThe study omits the value of health systems inputs used in preventing, diagnosing and treating COVID-19 cases; and the negative impact of COVID-19 on the agriculture, education, finance, manufacturing, travel, tourism, and trade sectors.Social implicationsThere is a need to use this kind of evidence to advocate for increased investments into the strengthening of the national health system, IHR capacities, and coverage of safe water and sanitation facilities.Originality/valueIn Spain, no other study had attempted to estimate the net present value of human lives lost from COVID-19.

scholarly journals MANFAAT EKONOMI PEMBANGUNAN RUAS JALAN SIMPANG LAMIE – KUALA TUHA DITINJAU DARI ASPEK PRODUCER SURPLUS

2021 ◽  
Vol 3 (3) ◽  
pp. 196-202
Author(s):  
Eddy Priatno ◽  
Sugiarto Sugiarto ◽  
Muhammad Isya
Keyword(s):  
Discount Rate ◽  
Agricultural Sector ◽  
Net Present Value ◽  
High Mobility ◽  
Economic Feasibility ◽  
Cost Ratio ◽  
The Road ◽  
Benefit Cost Ratio ◽  
Livestock Sector ◽  
Producer Surplus

The policy of Nagan Raya District Government to develop the Lamie - Kuala Tuha provincial road section aims to shorten travel time, reduce high mobility, facilitate travel, and support the movement of the plantation and agricultural sectors. This study aims to determine the magnitude of the benefits obtained from the producer surplus aspect in the plantation sector, agricultural sector and livestock sector and to evaluate economic feasibility based on Benefit Cost Ratio (BCR), Net Present Value (NPV), and Internal Rate of Return (IRR) . This research was conducted by collecting data related to the budget, wages, the Nagan Raya Regency Spatial Planning Book, the area of land and the production of the agricultural sector, the area of land and production of the plantation sector, and the amount and price of cattle. Data is processed by producer surplus method in the transportation economy, namely evaluating economic feasibility with BCR, NPV, IRR indicators. The results of this study indicate that the construction of the Lamie - Kuala Tuha Road in the 24th (twenty four) year or the 20th (twenty) year since the road was opened has met economic feasibility standards at a discount rate of 10, 12 and 15 percent with a value BCR 1.85, 1.54 and 1.15, NPV value of Rp. 64,828,481,000, Rp. 35,422,332,000 and Rp. 8,322,171,000. The IRR value obtained in this study is at the discount rate of 16.44 percent.

Location and neighbourhood conditions for housing choice and its rental value

2017 ◽  
Vol 10 (4) ◽  
pp. 519-538 ◽  
Author(s):  
Utpal Kumar De ◽  
Vitsosie Vupru
Keyword(s):  
Urban Area ◽  
Structural Characteristics ◽  
House Price ◽  
Hedonic Pricing ◽  
Series Data ◽  
Housing Choice ◽  
Content Type ◽  
North East India ◽  
North East ◽  
Practical Implications

Purpose The purpose of the study is to understand the relative impacts of structural characteristics of house, its locational attributes and neighbourhood characteristics on the choice of house and the rent paid by the individual tenants. The micro level study helps in understanding the issues of urban housing and help in policy formulation. Design/methodology/approach This paper tried to identify the socio-economic, locational and neighbourhood factors that influence tenant households in determining their residential choices in an urban area of North-east India. Also, the extent of impacts of those characteristics on the monthly rent for housing is analysed. The analysis is based on the primary data collected from the sample residents of Dimapur Town in Nagaland. The sample units are selected by cluster sampling technique from all the wards. Regression technique is used under hedonic pricing technique to examine the impacts of various potential factors on the rent. Findings The analysis reveals that family size, income, education of the head of family, water availability, security, convenience to access workplace, road conditions, etc. have significant positive impacts on the monthly rent. However, the impacts of some locational and neighbourhood variables vary across social and economic groups. Research limitations/implications Time series data on the growth of house price are not available, so that the authors could examine the escalation of house price and rising scarcity of houses in the selected town. Practical implications Rental housing accounts for a significant percentage of housing in many urban centres. It is particularly important for the migrants and urban poor for whom it is the only source of accommodation. Location choice depending on capability, availability, requirement and neighbourhood conditions are integral parts of selection of accommodation in a city. Hence the present study has its relevant practical implications. Social implications Housing choice in a hilly urban area like Dimapur assumes a special significance for the presence of heterogeneous ethnic, social and cultural groups with majority of Tribal inhabitants with varied requirements and lifestyle. Originality/value No study on housing choice or pricing of residential accommodation has been done in North-East India. Here along with the socio-economic characteristics of the individuals, structural characteristics of house, neighbourhood and locational characteristics are used simultaneously to find out the impact of various factors on the total prices through hedonic pricing method.

scholarly journals Kelayakan Finansial Fasilitas Parkir Pasar Aceh Berdasarkan Qanun Kota Banda Aceh

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Rahmat Djamaluddin ◽  
Edi Mawardi
Keyword(s):  
Discount Rate ◽  
Net Present Value ◽  
Payback Period ◽  
Cost Ratio ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Financial Feasibility ◽  
Benefit Cost ◽  
Parking Facilities ◽  
Banda Aceh

Off Street Parking building  in Pasar Aceh Baru is one of the parking facilities available in the area. Withthe increase of visitors to Pasar Aceh Baru, the need for parking space is also increasing. In this case the authors want to analyze the feasibility in terms of finance based on parking rates using Qanun Banda Aceh City No. 4 year 2012. The objective of the study is to calculate the number of parking vehicles, vehicles accumulation and to see the financial feasibility level of the parking facilities based on Laws Banda Aceh city regulated by Qanun No. 4 year 2012, so the results obtained when the parking facility has a period of turnover point of payback (Payback Period). This study uses 3 methods, namely NPV, BCR and IRR and discount rate of 10%, 12%, 15% and 18%. From the data processing using 3 methods, resulted in Net Present Value (NPV) largest value is Rp. -3,853,539,000, - at 10% discount rate while the Benefit Cost Ratio (BCR) is 0,809 at discount rate 10% and IRR value equal to -1,149%. This proves that with parking rates using Qanun Banda Aceh City No. 4 year 2012 the parking facilities are not feasible to be built financially. Keywords: Financial Feasibility, Parking Rates, NPV, BCR, and IRR

scholarly journals FINANCIAL FEASIBILITY OF PRECISION FARMING IN PADDY- A CASE STUDY

2017 ◽  
Vol 5 (3) ◽  
pp. 318-324
Author(s):  
Shruthi K ◽  
G. M. Hiremath ◽  
Amrutha T. Joshi
Keyword(s):  
Discount Rate ◽  
Technical Assistance ◽  
Net Present Value ◽  
Precision Farming ◽  
Primary Data ◽  
Cost Ratio ◽  
Farm Level ◽  
Benefit Cost Ratio ◽  
Farming Community ◽  
Financial Feasibility

Precision farming is an emerging, highly promising technology that helps in dealing with the present agricultural challenges by proper and effective management of soil and crop variability with the use of information technology. In order to initiate precision farming in India through state agricultural universities, the precision farming project in selected field crops was implemented in University of Agricultural Sciences, Raichur, Karnataka. The objective of the study was to assess the financial feasibility of project implementation at farm level in paddy. Primary data was collected with the aid of a well-structured, pre tested schedule. Findings showed that the project of precision farming in paddy which was implemented by the University was economically viable and financially feasible. The cost incurred in cultivation of paddy by adopting precision farming practices was ` 75,825.35/ha and gross returns were ` 1,22,656.30/ha. Results of financial feasibility measures showed that the Net Present Value at 12 per cent discount rate, at the end of ten years was found to be positive, Benefit-Cost ratio was more than one and Internal Rate of Returns of the precision farming in paddy was more than discount rate (12 %). It was also revealed that payback period was 6.84 months and profitability index due to adoption of precision farming was found to be 8.83. Hence it was concluded that investment on precision farming in paddy at farm level was feasible to operate at farm level with the technical assistance from University. Considering the adoption strategy of precision farming and its benefits, there is a need to bring awareness among farming community by the joint effort of public and private sectors through the extension agencies, non-governmental organizations and state agricultural universities

scholarly journals Assessment of Environmental Impact and Economic Viability of Domestic Biogas Plant Technology in Bangladesh

2021 ◽  
Vol 14 (5) ◽  
pp. 44
Author(s):  
Suraya Akter ◽  
Humayun Kabir ◽  
Shamima Akhter ◽  
Md. Mehedi Hasan
Keyword(s):  
Net Present Value ◽  
Economic Benefits ◽  
Economic Feasibility ◽  
Environmental Benefits ◽  
Economic Viability ◽  
Small Scale ◽  
Cost Ratio ◽  
Cow Dung ◽  
Liquefied Petroleum Gas ◽  
Biogas Technology

The study investigated the distinct environmental impacts and economic viability of domestic biogas technology in the countryside of Bangladesh. The study was carried out by a survey through personal interviews with biogas users. Seventy households were selected purposively and interviews were conducted through semi-structured questionnaires. The study mainly highlighted the potential reduction of greenhouse gas (GHG) emission and economic benefits of biogas utilization which were evaluated considering the substitution of traditional biomass fuels, by saving Liquefied Petroleum Gas (LPG) and cost of chemical fertilizer, and carbon trading. The economic benefits are addressed using some well-known economic indicators like Net Present Value (NPV), Payback Period (PBP), and Benefit-Cost Ratio (BCR). The results of the study revealed that a small-scale household anaerobic cow dung biogas digester not only exhibited the potential to cut carbon emissions on average by about 7.8 tons of CO2 equivalents yearly, but it also demonstrated the economic feasibility of doing so as the value of NPV and BCR was positive. This study recommends that the government approach, awareness program, and continuous and proper performing of the biogas technology are needed to intensify the multiples environmental benefits of the technology.

scholarly journals WOOD AND CHARCOAL PRODUCTION IN THE KILN-FURNACE SYSTEM: HOW DO THE COSTS AND REVENUES VARIATION AFFECT ECONOMIC FEASIBILITY?

2021 ◽  
Vol 45 ◽  
Author(s):  
Bruno Leão Said Schettini ◽  
Laércio Antônio Gonçalves Jacovine ◽  
Carlos Moreira Miquelino Eleto Torres ◽  
Angélica de Cássia Oliveira Carneiro ◽  
Paulo Henrique Villanova ◽  
...  
Keyword(s):  
Sensitivity Analysis ◽  
Net Present Value ◽  
Mean Value ◽  
Economic Feasibility ◽  
Economic Viability ◽  
Cost Ratio ◽  
Charcoal Production ◽  
New Production ◽  
System Sensitivity ◽  
Benefit Cost Ratio

ABSTRACT Traditional methods of economic evaluation of wood and charcoal production projects are based on indicators analysis, however, they are subject to market variations and uncertainties. The study was carried out in the city of Lamim, Minas Gerais State, to evaluate the economic viability of wood and charcoal production using the kiln-furnace system, due to the need to know the economic viability of this new production system. Sensitivity analysis using the Monte Carlo technique was performed on costs and revenues. The wood and charcoal production cash flow was elaborated and the following criteria were used in the economic analysis: Net Present Value (NPV), Benefit-Cost Ratio (BCR), Equivalent Periodic Value (EPV), and Internal Return Rate (IRR). The wood and charcoal production sensitivity analysis was carried out using the software @RISK, according to the VPE parameter, which allows comparing projects with different durations. Wood production was economically viable, with NPV of $40.26 ha-1 and EPV of $ 16.80 ha-1, with an average production cost of $13.51 m3 wood-1. The EPV mean value found in the sensitivity analysis was $18.33 ha-1. The charcoal production was economically viable, with NPV of $4.43 mdc charcoal-1 and EPV of $3.52 mdc charcoal-1. The EPV mean value found in the sensitivity analysis was $9.80 mdc charcoal-1. It was possible to conclude that the wood and charcoal production are economically viable in the region.

Branding of green tea leaf: a disruptive innovation for building market competitiveness of small tea growers in North East India

2021 ◽  
Vol 11 (2) ◽  
pp. 88-104
Author(s):  
S. John Mano Raj
Keyword(s):  
Customer Value ◽  
Developing Economies ◽  
Disruptive Innovation ◽  
Tea Leaves ◽  
Content Type ◽  
North East India ◽  
North East ◽  
Market Competitiveness ◽  
Building Market ◽  
Farm Produce

PurposeThis study aims to explore the opportunities and methods for branding fresh tea leaves, currently sold as commodities in the B2B market, as an innovative method by engaging with a smallholder group. The purpose is to enhance the market competitiveness of the significant number of small tea growers in developing economies.Design/methodology/approachAn exploratory study was conducted comprising a qualitative survey of a farmers' group formed by the smallholding of tea gardens and the sourcing factories in the state of Assam, India. Relevant case studies on the branding of agricultural commodities were also analyzed.FindingsSmallholding farmers, through collective efforts and with adequate extension and marketing support, can comply with the standards expected from their buyer. Perishable farm produce sold in the B2B market can be differentiated by exploiting attributes beyond the physical product. Market linkages established through innovative practices can enhance the market competitiveness of smallholdings.Research limitations/implicationsSuccessful branding of tea leaves can encourage similar practice in other agricultural crops as well. This will improve the quality of produce, increase the earnings of smallholdings and at the same time enhance customer value and satisfaction.Originality/valueThis paper is the first of its kind to investigate the opportunities for branding tea leaves produced by smallholdings and sold in the B2B market. The findings will be useful to researchers, smallholdings, policymakers, and consumers at large.

scholarly journals Analisis Kelayakan Finansial Pengembangan Sistem Irigasi Cakram Otomatis Bertenaga Surya di Nusa Tenggara Barat

2015 ◽  
Vol 10 (2) ◽  
pp. 125
Author(s):  
Popi Rejekiningrum ◽  
Satyanto Krido Saptomo
Keyword(s):  
Discount Rate ◽  
Net Present Value ◽  
Payback Period ◽  
Cost Ratio ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Internal Rate ◽  
Benefit Cost

Penelitian implementasi teknologi irigasi hemat air menggunakan sistem irigasi otomatis yang berbentuk emiter melingkar(cakram/cincin) bertenaga surya telah dilakukan. Untuk mengetahui kelayakan investasi pembuatan sistem irigasi cakram otomatis bertenaga surya, dilakukan analisis Net Present Value (NPV), Internal Rate of Interest (IRR), dan Benefit Cost Ratio (BCR). Suatu investasi dikatakan layak bila memenuhi kriteria sebagai berikut: (1) NPV lebih besar dari nol, (2) IRR lebih besar dari discount rate yang sedang berlaku, (3) BCR lebih besar dari 1. Hasil analisis menunjukkan bahwa sistem irigasi cakram otomatis bertenaga surya untuk pengembangan komoditas mangga, srikaya, anggur, dan cabe sangat layak untuk dilaksanakan, dengan nilai NPV dari investasi berkisar antara Rp 1.533.423,00 – Rp 21.995.452, nilai BCR antara 1,34 - 3,78, dan nilai IRR antara 17,38% - 34,10%. Implementasi sistem irigasi cakram otomatis bertenaga surya dengan pengembangan srikaya dan mangga paling layak dikembangkan di Pringgabaya dengan nilai NPV, BCR, dan IRR paling tinggi. Sedangkan implementasi irigasi cakram otomatis dengan hanya mengembangkan cabe tidak layak secara finansial karena nilai NPV < 0, nilai BCR < 1, dan nilai IRR < suku bunga 14%. Investasi pembuatan irigasi otomatis dengan sistem cakram rata-rata kembali modal pada tahun ke-4 hal ini tercermin dari nilai payback period (periode kembali modal).

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