skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Demand Curve Estimation of Locally Produced Woody Biomass Products

Abstract

Abstract.The goal of the Waste-to-Wisdom project is to produce and sell value-added products derived from post-harvest forest residues including wood briquettes, torrefied briquettes, and biochar. The consumer demand for these products (i.e., market size) determines the success of manufacturers especially when the location of production is far away from a population center and the producer is a price taker. Consumers are often scattered and transportation costs from the factory to retail stores lower the net sales revenue at the plant. The objective of this study was to estimate the demand curves and the associated revenue functions of the bioenergy products in five case locations applying a market-based analysis. We first estimated the size of the potential market for the products in each location and then assumed a market penetration rate to estimate consumer demand. This information was used to develop a set of mathematical functions based on deductive logic. Plugging presumable values based on scenario assumptions into the models contributes to the economic feasibility studies. Keywords: Biochar, Forest products marketing, Market penetration rate, Price skimming strategy, Wood briquette.

Authors:
;
Publication Date:
Research Org.:
Humboldt State Univ., Arcata, CA (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1541895
DOE Contract Number:  
EE0006297
Resource Type:
Journal Article
Journal Name:
Applied Engineering in Agriculture
Additional Journal Information:
Journal Volume: 34; Journal Issue: 1; Journal ID: ISSN 1943-7838
Publisher:
American Society of Agricultural and Biological Engineers
Country of Publication:
United States
Language:
English
Subject:
Agriculture

Citation Formats

Sasatani, Daisuke, and Eastin, Ivan L. Demand Curve Estimation of Locally Produced Woody Biomass Products. United States: N. p., 2018. Web. doi:10.13031/aea.12392.
Sasatani, Daisuke, & Eastin, Ivan L. Demand Curve Estimation of Locally Produced Woody Biomass Products. United States. doi:10.13031/aea.12392.
Sasatani, Daisuke, and Eastin, Ivan L. Mon . "Demand Curve Estimation of Locally Produced Woody Biomass Products". United States. doi:10.13031/aea.12392.
@article{osti_1541895,
title = {Demand Curve Estimation of Locally Produced Woody Biomass Products},
author = {Sasatani, Daisuke and Eastin, Ivan L.},
abstractNote = {Abstract.The goal of the Waste-to-Wisdom project is to produce and sell value-added products derived from post-harvest forest residues including wood briquettes, torrefied briquettes, and biochar. The consumer demand for these products (i.e., market size) determines the success of manufacturers especially when the location of production is far away from a population center and the producer is a price taker. Consumers are often scattered and transportation costs from the factory to retail stores lower the net sales revenue at the plant. The objective of this study was to estimate the demand curves and the associated revenue functions of the bioenergy products in five case locations applying a market-based analysis. We first estimated the size of the potential market for the products in each location and then assumed a market penetration rate to estimate consumer demand. This information was used to develop a set of mathematical functions based on deductive logic. Plugging presumable values based on scenario assumptions into the models contributes to the economic feasibility studies. Keywords: Biochar, Forest products marketing, Market penetration rate, Price skimming strategy, Wood briquette.},
doi = {10.13031/aea.12392},
journal = {Applied Engineering in Agriculture},
issn = {1943-7838},
number = 1,
volume = 34,
place = {United States},
year = {2018},
month = {1}
}