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Anaerobic digestion systems can reduce greenhouse gas emissions while turning waste products into energy. Past U.S. economic research on anaerobic digesters has studied dairy farms, but limited economic information is available on anaerobic digestion systems for swine. Net present values (NPVs) were calculated for biodigesters and covered lagoons under different coproduct and policy scenarios. With no government intervention, covered lagoons are more promising for swine operations than more capital-intensive biodigesters. As there is interest in subsidizing anaerobic digestion systems, subsidies equal to a $38/t social cost of carbon would provide positive NPVs.

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Present address: Federal Reserve Bank of Kansas City, Omaha, Nebraska

The views expressed are those of the authors and do not necessarily reflect the positions of the Federal Reserve Bank of Kansas City or the Federal Reserve System. The authors would like to thank Wilbert Hundl, Jr., and Jayson Lusk for considerable assistance with the survey form. Helpful comments from Rodney Holcomb, Jody Campiche, Nathan Kauffman, and Jason Brown are gratefully acknowledged. This research received funding from the Oklahoma Agricultural Experiment Station and the National Institute for Agriculture Hatch project OKL0293.



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