Background: Installation of biogas plants has both costs and incomes; installation and maintenance service demand financial costs and reduction of costs for purchasing firewood, kerosene and chemical fertilizers are benefits or incomes. This study investigates the cost-benefit analysis and financial viability related to biogas plant installation in Southern Ethiopia. Method: A multi-stage sampling technique was employed to select sample households. A total of 105 adopter households were selected for household survey.Results and conclusion: The installation cost took the largest share of the total cost of installation and was one of the main constraints that hindered installation. Installation increased household income by reducing the costs incurred for buying firewood, kerosene and chemical fertilizers. Relatively, lower plant size was more profitable than larger plant size. Installation under the subsidy scheme was more financially viable at 10 % discount rate than its counterparts. The profitability of lower plant size was more sensitive to changes in the discount rate, the level of expenditure saving and input price than larger plant size, under an assumption and without subsidy. Installation of low cost plants could more attract the engagement of a large number of rural households with low economic capacity. Besides, installation of lower plant sizes could more substantially enhance household income by saving costs incurred for buying firewood, kerosene and chemical fertilizers.
Background: Installation of biogas plants has both costs and incomes; installation and maintenance service demand nancial costs and reduction of costs for purchasing rewood, kerosene and chemical fertilizers are bene ts or incomes. This study investigates the cost-bene t analysis and nancial viability related to biogas plant installation in Southern Ethiopia.Method: A multi-stage sampling technique was employed to select sample households. A total of 105 adopter households were selected for household survey.Results and conclusion: The installation cost took the largest share of the total cost of installation and was one of the main constraints that hindered installation. Installation increased household income by reducing the costs incurred for buying rewood, kerosene and chemical fertilizers. Relatively, lower plant size was more pro table than larger plant size. Installation under the subsidy scheme was more nancially viable at 10 % discount rate than its counterparts. The pro tability of lower plant size was more sensitive to changes in the discount rate, the level of expenditure saving and input price than larger plant size, under an assumption and without subsidy. Installation of low cost plants could more attract the engagement of a large number of rural households with low economic capacity. Besides, installation of lower plant sizes could more substantially enhance household income by saving costs incurred for buying rewood, kerosene and chemical fertilizers.
Biogas technology, which converts biological waste into energy, is considered as an excellent tool to improve the lives, livelihoods, health, ecosystem and economy. In Ethiopia, biogas technology has been domesticated to improve the rural energy security and household's income by reducing their dependence on traditional biomass energy and chemical fertilizers. The profitability of biogas installation is rendered doubtful despite its numerous benefits and domestication efforts. Hence, this study aimed at evaluating the cost-benefit analysis and Profitability of biogas technology at household level in West Hararghe zone, Eastern Ethiopia. By using multistage sampling technique, cross-sectional data were collected from 105 systematically selected adopter households. The costs incurred and the benefits gained were analyzed using paired t-test. Payback Period (PBP), benefit cost ratio (BCR) and Net Present Value (NPV) were analyzed using different economic formula. The results indicated the most commonly domesticated plant is fixed dome biogas with volumes of 6 m 3 and 8 m 3. Investing 6 m 3 biogas plant with subsidy (0.73 year) had short PBP than the 8 m 3 plant (0.97 year). This implies, subsidy has been attracting households into biogas adoption. The BCR under assumption with subsidy was found to be 1.34 and 1.10 at 10% discount rate for 6 m 3 and 8 m 3 plants, respectively. Under both assumptions with and without subsidy, the NPV results for 6 m 3 and 8 m 3 biogas plant sizes turn out positive. In general, the results of PBP, BCR and NPV shown that the biogas investment is preferable and profitable for continuing the investment for the future.
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