Thesis
THE ECONOMICS OF COMPLIANCE CAP-AND-TRADE AND LOW CARBON FUELS PROGRAMS FOR WASHINGTON STATE’S DAIRY INDUSTRY
Washington State University
Master of Science (MS), Washington State University
05/2024
DOI:
https://doi.org/10.7273/000006938
Abstract
Compliance cap-and-trade and low carbon fuels programs may offer dairy industry a unique opportunity to generate additional revenue while curbing emissions from their manure management systems through the installation of an anaerobic digester. In 2023, Washington state implemented historic climate laws and programs, creating financial incentives and cost-share funding for dairies within the state, enabling them to voluntarily participate either by generating renewable fuels or developing “offset” projects through installing an anaerobic digester.
Due to the price volatility and risk common to these markets and economies of scale traditionally needed for dairy anaerobic digesters (AD) to be profitable within them, it’s unclear if adoption of AD within the state will occur, even in the face of historic levels of incentives. In this paper I use three economic indicators: net present value (NPV), internal rate of return (IRR) and modified internal rate of return (MIRR) to assess digester project feasibility in the state of Washington using costs associated with the three common types of digesters used on dairies under each compliance pathway. I utilize existing data on Washington state dairy farm sizes to determine the proportion of dairies in the state where anaerobic digester projects may be economically viable depending on which compliance program they participate in.
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Details
- Title
- THE ECONOMICS OF COMPLIANCE CAP-AND-TRADE AND LOW CARBON FUELS PROGRAMS FOR WASHINGTON STATE’S DAIRY INDUSTRY
- Creators
- Nina Gibson
- Contributors
- Joseph Shannon Neibergs (Chair)Marcos Marcondes (Committee Member)Bidisha Mandal (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- School of Economic Sciences
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Publisher
- Washington State University
- Number of pages
- 88
- Identifiers
- 99901124819501842
- Language
- English
- Resource Type
- Thesis