Date of Award
8-2016
Degree Type
Thesis
Degree Name
Master of Science (MS)
Department
Agricultural Economics
First Advisor
Juan P. Sesmero
Committee Chair
Juan P. Sesmero
Committee Member 1
Benjamin M. Gramig
Committee Member 2
Gerald E. Shively
Abstract
This study examines the economic viability of flexible irrigation pumps that can run on biogas as well as diesel fuel in Bangladesh. Such examination faces two main hurdles. First, the ease with which farmers running flexible pumps can switch from one energy source to another is unknown and perhaps highly heterogeneous. Second, diesel prices in Bangladesh are volatile and limited information precludes direct estimation of their probability distribution. We address the first issue by evaluating the economics of flexible pumps for varying degrees of inter-fuel substitutability. To deal with the second issue, we model the probability distribution of Bangladeshi diesel prices conditional on prices in India (these markets are integrated) plus a directly estimated distribution of the error-in-prediction. Our analysis identifies conditions (patterns in diesel markets, inter-fuel substitutability, and policy) that would render flexible pumps economically attractive. Results show that flexible pumps can generate large benefits for Bangladeshi farmers.
Recommended Citation
Matin, Saima A., "Economic viability of flexible biogas pumps in Bangladesh" (2016). Open Access Theses. 954.
https://docs.lib.purdue.edu/open_access_theses/954