气候变化领域集成服务门户(CCPortal): Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program

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DOI	10.1016/j.enpol.2020.112018
	Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program
	McCarty T.; Sesmero J.
发表日期	2021
ISSN	03014215
卷号	149
英文摘要	Using a framework that meshes mechanism design theory and real options analysis, we recover the contract terms that a biomass processing plant would offer a farmer to induce conversion of land to perennial energy crops. We consider three contract terms: performance payment (price per dry ton of biomass), establishment payment (one-time payment per acre planted), and acreage payment (annual payment per acre planted). We find that, in equilibrium, the contract signed by farmers and buyers of Miscanthus (the perennial energy crop of choice in our analysis) uses a combination of all three payments. Conditional on the equilibrium contract, we show how changes in the structure of the Biomass Crop Assistance Program affect cost and risk along the vertical supply chain. Our analysis reveals that subsidies to both establishment and acreage payments are equally cost-effective in reducing production cost of cellulosic biofuels. However, establishment subsidies are more effective at reducing risk for the buyer and, therefore, dominate acreage subsidies from a risk-adjusted cost-effectiveness criterion. This suggests that a larger share of the Biomass Crop Assistance Program budget should be allocated to establishment subsidies to the detriment of matching payments (subsidies to performance payments) and maintenance payments (subsidies to acreage payments). © 2020
关键词	Biomass crop assistance program Cellulosic biofuels Contract farming Miscanthus
英文关键词	Biomass; Budget control; Cellulosic ethanol; Cost effectiveness; Cost reduction; Crops; Machine design; Supply chains; Biomass-processing plants; Cellulosic biofuels; Contract terms; Cost-effectiveness criterion; Mechanism design theories; Production cost; Program budget; Real options analysis; Cost benefit analysis
语种	英语
来源期刊	Energy Policy
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/205253
作者单位	Department of Applied Economics, Utah State University, Agricultural Science Building Champ Drive, Logan, UT 84322, United States; Department of Agricultural Economics, Purdue University, Krannert Building 403 West State Street, West LafayetteIN 47907, United States
推荐引用方式 GB/T 7714	McCarty T.,Sesmero J.. Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program[J],2021,149.
APA	McCarty T.,&Sesmero J..(2021).Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program.Energy Policy,149.
MLA	McCarty T.,et al."Contracting for perennial energy crops and the cost-effectiveness of the Biomass Crop Assistance Program".Energy Policy 149(2021).