15. Economic Sustainability of Cellulosic Energy Cropping Systems

  1. Douglas L. Karlen
  1. Kelly D. Zering

Published Online: 1 MAR 2014

DOI: 10.1002/9781118676332.ch15

Cellulosic Energy Cropping Systems

Cellulosic Energy Cropping Systems

How to Cite

Zering, K. D. (2014) Economic Sustainability of Cellulosic Energy Cropping Systems, in Cellulosic Energy Cropping Systems (ed D. L. Karlen), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9781118676332.ch15

Author Information

  1. Department of Agricultural and Resource Economics, North Carolina State University, U.S.A.

Publication History

  1. Published Online: 1 MAR 2014
  2. Published Print: 13 MAR 2014

ISBN Information

Print ISBN: 9781119991946

Online ISBN: 9781118676332

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Keywords:

  • cellulosic energy cropping systems;
  • crop production;
  • economic sustainability;
  • risk management

Summary

This chapter includes an overview of economic principles applied to sustainable cellulosic energy cropping systems. Economic sustainability of cellulosic energy cropping systems requires that cellulosic feedstock production is a profitable alternative for farmers, as well as other suppliers, handlers, and processors in the supply chain. Crop production is a risky proposition for farmers. A variety of risk management and risk mitigation alternatives such as insurance and futures markets and options, are available for farmers and processors. Longer-term commitments by farmers and commitment to single outlet markets by farmers are likely to require more start-up cost sharing and risk mitigation through contracts. Explicit criteria for resource, environmental, and social sustainability can be incorporated into the expected profit maximization model.