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The prospects of cost reductions in willow production in Sweden

Rosenquist, Hakan; Berndes, Goran and Börjesson, Pål LU (2013) In BIOMASS & BIOENERGY 48. p.139-147
Abstract
The current and future costs of willow short rotation coppice production in Sweden are analysed, considering all relevant cost factors explicitly. The future production costs are estimated considering effects of coppice area expansion and learning. The current and future costs of land and of risk premiums are subsequently estimated. Subsidies for farmers are not considered. If the area of willow cultivation were to expand enough to generate economies of scale, the production cost could be cut by about 10% compared to the current level. When learning effects are also considered, the total cost reduction potential is about 35%. Two major cost components (fertilization and road transport) are roughly stable while two other major cost... (More)
The current and future costs of willow short rotation coppice production in Sweden are analysed, considering all relevant cost factors explicitly. The future production costs are estimated considering effects of coppice area expansion and learning. The current and future costs of land and of risk premiums are subsequently estimated. Subsidies for farmers are not considered. If the area of willow cultivation were to expand enough to generate economies of scale, the production cost could be cut by about 10% compared to the current level. When learning effects are also considered, the total cost reduction potential is about 35%. Two major cost components (fertilization and road transport) are roughly stable while two other major cost components (establishment and harvest) have larger prospects for cost reduction, primarily due to potential for learning. Land costs and risk premiums vary and are uncertain, but both are estimated to be potentially significant compared to other cost components. Requirements of risk premiums may become lower as a consequence of area expansion and learning. Land costs are subject to many factors that are inherently uncertain, not the least future food prices. Efficient policies promoting an expansion of willow cultivation are discussed. (C) 2012 Elsevier Ltd. All rights reserved. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Salix spp, Short rotation coppice, Economic aspects, Production cost, Learning effects, Sweden
in
BIOMASS & BIOENERGY
volume
48
pages
139 - 147
publisher
Elsevier
external identifiers
  • wos:000315079300016
  • scopus:84871598542
ISSN
1873-2909
DOI
10.1016/j.biombioe.2012.11.013
language
English
LU publication?
yes
id
b7a9b783-e746-42ff-b924-a316ee596d5b (old id 3589712)
date added to LUP
2013-03-20 10:47:04
date last changed
2019-01-06 03:11:02
@article{b7a9b783-e746-42ff-b924-a316ee596d5b,
  abstract     = {The current and future costs of willow short rotation coppice production in Sweden are analysed, considering all relevant cost factors explicitly. The future production costs are estimated considering effects of coppice area expansion and learning. The current and future costs of land and of risk premiums are subsequently estimated. Subsidies for farmers are not considered. If the area of willow cultivation were to expand enough to generate economies of scale, the production cost could be cut by about 10% compared to the current level. When learning effects are also considered, the total cost reduction potential is about 35%. Two major cost components (fertilization and road transport) are roughly stable while two other major cost components (establishment and harvest) have larger prospects for cost reduction, primarily due to potential for learning. Land costs and risk premiums vary and are uncertain, but both are estimated to be potentially significant compared to other cost components. Requirements of risk premiums may become lower as a consequence of area expansion and learning. Land costs are subject to many factors that are inherently uncertain, not the least future food prices. Efficient policies promoting an expansion of willow cultivation are discussed. (C) 2012 Elsevier Ltd. All rights reserved.},
  author       = {Rosenquist, Hakan and Berndes, Goran and Börjesson, Pål},
  issn         = {1873-2909},
  keyword      = {Salix spp,Short rotation coppice,Economic aspects,Production cost,Learning effects,Sweden},
  language     = {eng},
  pages        = {139--147},
  publisher    = {Elsevier},
  series       = {BIOMASS & BIOENERGY},
  title        = {The prospects of cost reductions in willow production in Sweden},
  url          = {http://dx.doi.org/10.1016/j.biombioe.2012.11.013},
  volume       = {48},
  year         = {2013},
}