This page is a literature review for investigating the economics of building or purchasing a greenhouse to grow various crops in various locations.
Background[edit | edit source]
The goal of this literature review is to determine the feasibility and economics or building or purchasing a greenhouse. Greenhouse have significant initial investment and require thorough financial planning before pursuing this project. They are capable of creating environments necessary to grow crops that would otherwise be unable to grow in the geographic area providing farming flexibility for surrounding populations. As the climate continues to change and populations continue to rise, farmers must adapt and remain flexible to provide necessary crop yields to support the dynamic demand. Greenhouses can enable community autonomy and sustainability for those that live in remote areas without direct access to groceries forcing them to resort to extenuating transportation and fuel costs and thus premiums on the products.
Search Terms[edit | edit source]
Greenhouse economics
Literature[edit | edit source]
Valuing Climate Change: The Economics of the Greenhouse[edit | edit source]
Fankhauser, S. (2013). "Valuing Climate Change: The Economics of the Greenhouse." London: Routledge, 194.
Abstract: Within only a few years, global warming has emerged from scientific speculation into an environmental threat of worldwide concern. Yet the scientific community remains uncertain as to the long-term trends and effects of climate change, and this uncertainty has been seized on as justification for inaction by an international community reluctant to bear the costs of policies to reduce greenhouse gas emissions. Valuing Climate Change presents concrete, economic evidence of the need for action. Fankhauser assesses the costs of a doubling of GHG emissions to be a significant percentage of gross world product; a figure which he then compares to the costs of reducing emissions. In his comparison, he looks at regional as well as global estimates of damage, and takes account of the non-climate change benefits of GHG reductions, such as a switch in the energy sector to cleaner technologies or renewable fuels, and the impacts on transport, with reduced congestion and improved air quality. It is clear that the stakes are high, and Fankhauser believes that tougher targets may be needed than those set out in the Framework Convention on Climate Change. He assesses the optimum policy responses to GHG reduction, the likely instruments for achieving it and the potential for international cooperation in dealing with the problems. This is a major contribution to the rapidly changing debate on global warming.
Summary:
- Discusses the global catastrophic effects of climate change and the need of human intervention.
- Presents economic evidence for the need of intervention in addition to environmental.
- Analyzes the impact of potential changes such as GHG emission reduction and GDP.
- Investigates potential solutions for climate change such as the move toward renewable energy sources and greenhouse growing.
TO SLOW OR NOT TO SLOW: THE ECONOMICS OF THE GREENHOUSE EFFECT[edit | edit source]
Nordhaus W, D. (1991). "To Slow or Not to Slow: The Economics of The Greenhouse Effect." The Economic Journal. 101(407):920–37.
Abstract: Over the last decade, scientists have studied extensively the greenhouse effect, which holds that the accumulation of carbon dioxide (CO2) and other greenhouse gases (GHGs) is expected to produce global warming and other significant climatic changes over the next century. Along with the scientific research have come growing alarm and calls for drastic curbs on the emissions of greenhouse gases, as for example the reports of the Intergovernmental Panel on Climate Change (IPCC [I990]) and the Second World Climate Conference (October I990). To date, these call to arms for forceful measures to slow greenhouse warming have been made without any serious attempt to weigh the costs and benefits of climatic change or alternative control strategies. The present study presents a simple approach for analyzing policies to slow climate change. We begin by summarizing the elements of an economic analysis of different approaches to controlling greenhouse warming. We then sketch a mathematical model of economic growth that links the economy, emissions, and climate changes and summarize the empirical evidence on the costs of reducing emissions and concentrations of greenhouse gases and on the damages from greenhouse warming, relying primarily on data for the United States. The different sections are then integrated to provide estimates of the efficient reduction of greenhouse gases, after which the final section summarizes the major results.
Summary:
- In-depth analysis of the greenhouse effect and its relation to climate change through GHG and CO2.
- Presents policy analysis to slow climate change.
- Economic analysis of the costs required to implement solutions to slow climate change.
- Used data primarily from the United States for empirical evidence on the costs and benefits of reducing emissions.
- Mathematical model of economic growth that links the economy, emissions, and climate change.
Economics and environmental analysis of Mediterranean greenhouse crops[edit | edit source]
Manzano-Agugliaro, F., Cañero-Leon, R. (2010) "Economics and Environmental Analysis of Mediterranean Greenhouse Crops." African Journal of Agricultural Research 5.
Abstract: The aim of this paper is to show that intensive agriculture, as greenhouse crops that produce a high level of environmental pollution, both by nitrogen fertilization as pesticides used, may be distributed based on weighted goal programming using utility functions, in a way as to decrease the pollution, maintaining benefit and lowering risk, based on, to change the crop alternatives employed. To prepare this model, accounts were tracked on 46 (year 2006 to 2007) and 49 greenhouses (year 2007 to 2008), in which 16 crops were rotated, these being representative in percentage terms of the distribution of crops in the area. The data obtained were gross margin (GM), irrigation water consumption (W), nitrate consumption (N), labour needed (L) and toxicity level (TL) through the use of plant protection products. The utility function obtained shows that the objectives considered by the average farmer are gross margin, risk (R) and labour. This study has also considered other scenarios such as minimum W, minimum N and minimum TL. Comparing the actual situation with all the scenarios studied, it is observed that these scenarios are better in terms of economics and environment. The scenarios they want to achieve are environmental objectives, like W, N and TL. They have a limited distribution of crops. Also, it was observed that the greenhouse crops studied have consumption of water, nitrogen and labour close to the optimal. With planning, the crops would achieve the utility function, thereby reducing the environmental pollution and improving the gross margin and the risk of farmers.
Summary:
- The use of nitrogen fertilization and pesticides on greenhouse crops produce a high level of environmental pollution.
- The data obtained were gross margin (GM), irrigation water consumption (W), nitrate consumption (N), labour needed (L) and toxicity level (TL) through the use of plant protection products
- Utility function obtained shows that the objectives considered by the average farmer are gross margin, risk (R) and labour
- Greenhouse crops studied have consumption of water, nitrogen and labour close to the optimal.
- Crops would achieve the utility function, thereby reducing the environmental pollution and improving the gross margin and the risk of farmers.
Economics- and physical-based metrics for comparing greenhouse gases[edit | edit source]
Johansson, D, J, A. (2012) "Economics- and physical-based metrics for comparing greenhouse gases." Climatic Change 110, 123–141.
Abstract: A range of alternatives to the Global Warming Potential (GWP) have been suggested in the scientific literature. One of the alternative metrics that has received attention is the cost-effective relative valuation of greenhouse gases, recently denoted Global Cost Potential (GCP). However, this metric is based on complex optimising integrated assessment models that are far from transparent to the general scientist or policymaker. Here we present a new analytic metric, the Cost-Effective Temperature Potential (CETP) which is based on an approximation of the GCP. This new metric is constructed in order to enhance general understanding of the GCP and elucidate the links between physical metrics and metrics that take economics into account. We show that this metric has got similarities with the purely physical metric, Global Temperature change Potential (GTP). However, in contrast with the GTP, the CETP takes the long-term temperature response into account.
Summary:
- Alternatives to the Global Warming Potential (GWP) are presented including cost-effective relative valuation of greenhouse gasses denoted as Global Cost potential (GCP).
- Study presents a new analytic metric; Cost-Effective Temperature Potential (CETP) which is an approximation of the GCP.
- CETP clarifies the links between physical metrics and metrics revolving around economics.
- CETP has similarities with the purely physical metric, Global Temperature change Potential (GTP) but considers. long-term temperature response.
The Economics of Controlling Stock Pollutants: An Efficient Strategy for Greenhouse Gases[edit | edit source]
Falk, I., Mendelsohn, R. (1993). "The Economics of Controlling Stock Pollutants: An Efficient Strategy for Greenhouse Gases." Journal of Environmental Economics and Management 25, 76–88.
Abstract: Optimal control theory is applied to develop an efficient strategy to control stock pollutants such as greenhouse gases and hazardous waste. The optimal strategy suggests that, at any time, the marginal costs of abatement should be equated with the present value of the marginal damage of timely unabated emission. The optimal strategy calls for increasingly light abatement over time as the pollutant stock accumulates. The optimal policy applied to greenhouse gases suggests moderate abatement efforts, at present, with the potential for much greater future efforts.
Summary:
- This study investigate the Optimal Control Theory to control GHG emissions and hazardous waste.
- The theory is applied to create an efficient strategy in which at any time, the marginal cost of abatement should be equal to the present value of the marginal damage of a timely unbated emission.
- Requires an incremental abatement overtime as waste and emissions accumulate.
- Strategy currently calls for moderate abetment with potential of much larger efforts in the future.
Greenhouse Crop Production: Counting the Costs and Making Cents[edit | edit source]
Biernbaum, J., A. (1998). "Greenhouse Crop Production: Counting the Costs and Making Cents." Michigan State University 1-12.
Summary:
- This study thoroughly analyzes the costs associated with building various types of greenhouse to produce various types of crops.
- Cost for maintaining crop production and their respective profit margins are evaluated.
- Action plan and schedules.
- Requirements on a unit level including temperature, water, fertilizer etc.
- Variable and direct costs.
- Fixed and overhead costs along with labor and utility costs.
Articles in the media[edit | edit source]
Citations[edit | edit source]
- Fankhauser, S. (2013). "Valuing Climate Change: The Economics of the Greenhouse." London: Routledge, 194.
- Nordhaus W, D. (1991). "To Slow or Not to Slow: The Economics of The Greenhouse Effect." The Economic Journal. 101(407):920–37.
- Manzano-Agugliaro, F., Cañero-Leon, R. (2010) "Economics and Environmental Analysis of Mediterranean Greenhouse Crops." African Journal of Agricultural Research 5.
- Johansson, D, J, A. (2012) "Economics- and physical-based metrics for comparing greenhouse gases." Climatic Change 110, 123–141.
- Falk, I., Mendelsohn, R. (1993). "The Economics of Controlling Stock Pollutants: An Efficient Strategy for Greenhouse Gases." Journal of Environmental Economics and Management 25, 76–88.
- Biernbaum, J., A. (1998). "Greenhouse Crop Production: Counting the Costs and Making Cents." Michigan State University 1-12.
