Carbon emission reduction and cost–benefit of methane digester systems on hog farms in China |
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| Authors: | T Chen M Liu Y Takahashi JD Mullen GCW Ames |
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| Institution: | 1. Department of Agricultural Economics and Management, Shanghai Ocean University, Shanghai, P.R. China;2. Department of Agricultural and Applied Economics, University of Georgia, Athens, GA, USA;3. Laboratory of Environmental Economics, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Fukuoka, Japan;4. Department of Agricultural and Applied Economics, University of Georgia, Athens, GA, USA |
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| Abstract: | Three different sizes of hog farms were selected to analyze the carbon emissions reduction and the cost–benefit of three methane digester systems. The sizes of the digesters are 2,200, 2,200 and 800 m3, respectively. The sales of slaughter hogs from them are 50,000, 35,000 and 10,000 head, respectively. The carbon emissions reductions were 5,237, 4,017, and 1,334 tons, respectively. The results show that while the methane digester systems have a significant effect on carbon emissions reduction, it is difficult to operate the systems sustainably. If the carbon emissions reduction can be traded at high enough prices in the carbon offset markets, then the systems will be profitable and sustainable. Newly established China's domestic carbon offset market could provide this possibility, but more government support is needed. In addition, this study shows that scale economies make the digester adoption relatively more profitable for larger farms than smaller ones. |
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| Keywords: | methane digester Clean Development Mechanism net present value economy of scale |
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