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Regional Economics: Theory and Practice
 

Biogas complexes: the economic rationale for use in various regions and countries of the world

Vol. 13, Iss. 28, JULY 2015

PDF  Article PDF Version

Received: 22 May 2015

Accepted: 1 June 2015

Available online: 26 August 2015

Subject Heading: ENVIRONMENTAL ECONOMICS

JEL Classification: 

Pages: 2-14

Pavlov K.V. Kama Institute of Humanities and Engineering Technology, Izhevsk, Udmurt Republic, Russian Federation
kvp_ruk@mail.ru

Gavrish V.I. Mykolayiv National Agrarian University, Mykolaiv, Ukraine
rector @mdau.mk.ua

Nitsenko V.S. Odessa National Mechnickov University, Odessa, Ukraine
nicik11071981@yandex.ru

Importance The article discusses the improving the economic sustainability through the use of types of biomass for the production of energy resources.
     Objectives The article aims to justify the use of biogas to achieve the maximum economic effect.
     Methods For the study, we used system and institutional analyses, economic-statistical methods, and mathematical modeling techniques of manufacturing processes involving the use of biogas in the agrarian economy.
     Results We propose a methodological approach to simulate a bioenergy complex the functioning of which would maximize the net present value. We developed an economic-mathematical optimization model the criterion of which is a net-present-value indicator. We prove that in terms of effective use of biofuels (ethanol, rapeseed oil, methyl ether of vegetable oil, biogas or biomethane) per unit of area, the most promising is the biogas and its derivative, i.e. biomethane.
     Conclusions and Relevance We concluded that the production of gaseous biofuel will replace non-renewable fossil energy resources and reduce the cost of production of agricultural units. In addition, we prove that the cultivation of energy type of biomass for the production of biogas can give significantly higher gross income than the growing of traditional crops to further sell them at market prices. The proposed methodological approach to determining the economic feasibility of growing the energy type of biomass can be used in various regions and countries of the world.

Keywords: biogas, biomethane, complex, economic-mathematical optimizing model, methodological approach

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