Search

In Mexico, the tequila industry is the second most important economic activity within the alcoholic beverage industry, after the beer industry. Tequila vinasse is wastewater with a high organic load produced during the distillation of the fermented must of the blue agave (Agave tequilana Weber var. azul), which has a great impact on soils and water bodies in the tequila region. On the other hand, the decrease in fuel reserves causes instability in hydrocarbon prices, which makes it necessary to implement alternative fuel methods such as biogas. In this sense, it has recently been pointed out that the anaerobic digestion process is the most suitable for the treatment of tequila vinasse since it allows the removal of contaminating organic matter, together with the production of biogas that can be used in situ in the tequila industry. In this study, the financial feasibility of the production of biogas for self-consumption from tequila vinasse was calculated with the values achieved from a pilot system composed of a packed bed reactor (PBR) with technological and economic advantages to treat this waste. Profitability was evaluated over a 10-year production horizon (net present value $1 569 001) and was complemented with the Real Options methodology, taking into account price volatility and the option to expand. The results showed that the project is profitable with the 42.85 % biogas production expansion option. It is concluded that biogas production is financially feasible and it is possible to increase the profitability of the system by $6 325 109 if production is expanded. [ABSTRACT FROM AUTHOR]

Mexican peach production [Prunus persica (L.) Batsch] faces an economic crisis, as a result of the gradual decrease the area planted, production, prices, and national consumption per capita. Therefore, the producers have a low income. The objective of the study was to assess whether or not organic peach production would contribute to the improvement of the income of producers in the Estado de Mexico. The economic viability of turning the conventional production system into the organic production system was evaluated using the real options theory, while the abandonment option was assessed through the binomial option pricing model. In contrast to traditional valuation methods, the real options theory considers flexibility in decisions when the profitability of investments faces volatility and uncertainty. The quantified value of the crop by-products and residues was added to the farmer’s final income to find out if the amount would help to improve his income, during and after the conversion process. Given the positive value of the options, investing in organic production is feasible, even when the project abandonment option was considered. The economic valuation of the by-products contributed to improve the income of the producers. [ABSTRACT FROM AUTHOR]

The high degree of uncertainty inherent to the price of the fishing resources and the investment to initiate the activity in the sector show that fisheries need an instrument of valuation of the viability of each project that helps them make adequate investment decisions. The Real Options Valuation helps valuate the flexibility in decisions and include the possibility of the temporary abandonment of the fishing activity if the price conditions are not favorable. This study applied the Real Options Valuation on the economic valuation of an investment for the purchase of ships for hake fishing (Merluccius spp.) in the port of Santander (Spain).The value through real options turned out to be higher than the value through the traditional method, therefore accepting the decision to invest, which would have been rejected using the second method. This result was maintained after the sensitivity analyses developed, which considered variations in the volatility of the price of the resource, in the risk-free interest rate and in the convenience fee. Also, the value of the investment, including the option of the temporary abandonment of the activity was adjusted to a greater degree to the real value observed later on. In particular, the value of the option of abandoning the activity temporarily implied an additional value of 42.4 % of the cash flows generated by its use. This study showed the need to apply real options for the adequate valuation of investment projects related to this sector. [ABSTRACT FROM AUTHOR]