A Spatially Explicit Evaluation of Economic Performance of a Perennial Energy Crop on the Marginal Land of the Loess Plateau, China

Abstract

The Loess Plateau with 13–21 Mha marginal land has the potential to produce 62–106 Tg switchgrass biomass. To determine its economic feasibility, we conducted a spatially explicit evaluation of economic performance of producing switchgrass in this region. The farm-gate feedstock production cost and the supply potential on the marginal land were analysed in 1 km 2 grid cells with inputs of the spatially explicit quantified cost factors related to the spatial variation of crop yield, soil properties, land quality, and inputs. The obtained results showed a large spatial variation in the farm-gate production costs. The most areas dedicated to produce switchgrass biomass are scattered in the south and southeast of the Loess Plateau. The average farm-gate cost is 710 CHY ton -1 , 1125 CHY ton -1 , 1596 CHY ton -1 for switchgrass small bale, large bale and chip, respectively. The projected energy supply potential is 1,927 PJ per year, of which 30–93% can be supplied below the market prices of fossil fuel. Compared with the residue, 50–66 Tg switchgrass feedstock is competitive. This study provides a methodological framework that enables the assessment of the perennial energy crops feedstock production in a spatially explicit way by considering the spatial heterogeneity of the yield, and the biophysical and social-economic context of a region. Detailed information obtained in this study can be used to select the optimal locations with the minimum cost.

Keywords: Bio-economic, Farm-gate production cost, Energy supply, Switchgrass, Marginal land use, Biomass