Cost-Benefit Analysis and Financial Viability of Household Biogas Plant Installation in Aleta Wondo District, Southern Ethiopia
The objective of this study was to investigate the cost-benefit analysis and financial viability related to biogas plant installation. A multi-stage sampling technique was employed to select sample households. A total of 105 adopter households were selected for household survey. Results indicated the most commonly installed biogas plant volumes were 6 m3 and 8 m.3 The cost of installation was ETB (Ethiopian currency) 12,775 for 6 m3 and ETB 15,460 for 8 m3. This took the largest share of the total cost of installation and was one of the main constraints that hindered installation. Installation increased households' income by reducing the costs incurred for buying firewood, kerosene and chemical fertilizers. It saved ETB 9,744 for the 6 m3 and ETB 10,341 for the 8 m3 plants annually (1 USD was equivalent to 22.60 ETB, at the time of data collection). Relatively, the 6 m3 plant was more profitable than the 8 m3 plant. The 6 m3 and 8 m3 plants, installed with subsidy, were more financially viable at 10 % discount rate than their counterparts. The sensitivity analysis disclosed that the profitability of the 6 m3 plant was more sensitive to changes in discount rates, level of expenditure savings and input prices than the 8 m3 plant, under an assumption of with and without subsidy. Installation of low cost plants may help attracting the engagement of the large number of rural households with low economic capacity
Year of publication: |
2020
|
---|---|
Authors: | Sime, Getachew |
Other Persons: | Gedefa, Tale (contributor) ; Melka, Yoseph (contributor) |
Publisher: |
[2020]: [S.l.] : SSRN |
Subject: | Kosten-Nutzen-Analyse | Cost-benefit analysis | Äthiopien | Ethiopia | Privater Haushalt | Household | Bioenergie | Bioenergy |
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