Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets
Charcoal plays a relevant role in developing countries, with potential to contribute to the energy needs as a cheaper and carbon-friendly alternative. In Brazil, eucalyptus-charcoal has gained attention as an input for metal-steel industries, mostly supplied by small and medium forest producers. Tho...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Cleaner Environmental Systems |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666789424000114 |
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| author | Gabriel Browne de Deus Ribeiro Maisa Isabela Rodrigues Sebastião Renato Valverde Angélica de Cássia Oliveira Carneiro Gilson Fernandes da Silva Nívea Maria Mafra Rodrigues Pedro Paulo de Oliveira Rodrigues |
| author_facet | Gabriel Browne de Deus Ribeiro Maisa Isabela Rodrigues Sebastião Renato Valverde Angélica de Cássia Oliveira Carneiro Gilson Fernandes da Silva Nívea Maria Mafra Rodrigues Pedro Paulo de Oliveira Rodrigues |
| author_sort | Gabriel Browne de Deus Ribeiro |
| collection | DOAJ |
| description | Charcoal plays a relevant role in developing countries, with potential to contribute to the energy needs as a cheaper and carbon-friendly alternative. In Brazil, eucalyptus-charcoal has gained attention as an input for metal-steel industries, mostly supplied by small and medium forest producers. Those commonly use rudimentary charcoal-kilns, characterized by higher greenhouse gas (GHG) emissions, reduced productivity and economically unsustainable impacted by their reduced financial management. In order to fulfill this gap, a simplified financial planning model and an economic analysis of a less polluting charcoal productive system, called kilns-furnace system, were performed, also comparing to traditional charcoal-kilns. A differentiated cost of capital pricing model was also proposed, adjusted to bioenergy projects in emerging markets. Results showed that kilns-furnace system presented the best financial indicators, with greater free cash flow capacity, shorter reimbursement period, reduced charcoal production cost, better return on invested capital and a financial resilience even under pessimistic conditions. With its risk-return ratio verified, kilns-furnace larger insertion may be an attraction for charcoal producers, with probable increased long-term economic sustainability when compared to traditional kilns. The proposed cost of capital pricing model opened a new perspective for its calculation in developing countries, and should be used by producers, companies, and government in investment decision and as a guidance for financing lines. |
| first_indexed | 2024-04-24T20:02:30Z |
| format | Article |
| id | doaj.art-589797fe712143c18dd503ebce99e021 |
| institution | Directory Open Access Journal |
| issn | 2666-7894 |
| language | English |
| last_indexed | 2024-04-24T20:02:30Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Cleaner Environmental Systems |
| spelling | doaj.art-589797fe712143c18dd503ebce99e0212024-03-24T07:01:58ZengElsevierCleaner Environmental Systems2666-78942024-03-0112100173Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging marketsGabriel Browne de Deus Ribeiro0Maisa Isabela Rodrigues1Sebastião Renato Valverde2Angélica de Cássia Oliveira Carneiro3Gilson Fernandes da Silva4Nívea Maria Mafra Rodrigues5Pedro Paulo de Oliveira Rodrigues6Department of Forest and Wood Sciences, Federal University of Espírito Santo, UFES, 29550-000, Jerônimo Monteiro, ES, Brazil; Corresponding author.Department of Agribusiness Management, University of Brasilia, UnB, 70910-900, Brasília, DF, BrazilDepartment of Forest Engineering, Federal University of Viçosa, UFV, 36570-900, Viçosa, MG, BrazilDepartment of Forest Engineering, Federal University of Viçosa, UFV, 36570-900, Viçosa, MG, BrazilDepartment of Forest and Wood Sciences, Federal University of Espírito Santo, UFES, 29550-000, Jerônimo Monteiro, ES, BrazilDepartment of Forest and Wood Sciences, Federal University of Espírito Santo, UFES, 29550-000, Jerônimo Monteiro, ES, BrazilMechanical Sciences Graduate Program, Laboratory of Energy and Environment, University of Brasilia, UnB, 70910-900, Brasília, DF, BrazilCharcoal plays a relevant role in developing countries, with potential to contribute to the energy needs as a cheaper and carbon-friendly alternative. In Brazil, eucalyptus-charcoal has gained attention as an input for metal-steel industries, mostly supplied by small and medium forest producers. Those commonly use rudimentary charcoal-kilns, characterized by higher greenhouse gas (GHG) emissions, reduced productivity and economically unsustainable impacted by their reduced financial management. In order to fulfill this gap, a simplified financial planning model and an economic analysis of a less polluting charcoal productive system, called kilns-furnace system, were performed, also comparing to traditional charcoal-kilns. A differentiated cost of capital pricing model was also proposed, adjusted to bioenergy projects in emerging markets. Results showed that kilns-furnace system presented the best financial indicators, with greater free cash flow capacity, shorter reimbursement period, reduced charcoal production cost, better return on invested capital and a financial resilience even under pessimistic conditions. With its risk-return ratio verified, kilns-furnace larger insertion may be an attraction for charcoal producers, with probable increased long-term economic sustainability when compared to traditional kilns. The proposed cost of capital pricing model opened a new perspective for its calculation in developing countries, and should be used by producers, companies, and government in investment decision and as a guidance for financing lines.http://www.sciencedirect.com/science/article/pii/S2666789424000114BioenergyCharcoalFinancial planInvestment analysisForest economics |
| spellingShingle | Gabriel Browne de Deus Ribeiro Maisa Isabela Rodrigues Sebastião Renato Valverde Angélica de Cássia Oliveira Carneiro Gilson Fernandes da Silva Nívea Maria Mafra Rodrigues Pedro Paulo de Oliveira Rodrigues Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets Cleaner Environmental Systems Bioenergy Charcoal Financial plan Investment analysis Forest economics |
| title | Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets |
| title_full | Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets |
| title_fullStr | Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets |
| title_full_unstemmed | Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets |
| title_short | Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets |
| title_sort | economic sustainability for developing a less polluting eucalyptus charcoal productive system in emerging markets |
| topic | Bioenergy Charcoal Financial plan Investment analysis Forest economics |
| url | http://www.sciencedirect.com/science/article/pii/S2666789424000114 |
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