Economic and Technical Efficiency Aspects of Biogas Production for Farm Waste Processing: Case of Slovakia Agriculture

Abstract

The article focuses on evaluating both the economic and technical ef iciency of biogas plants that are designed to process agricultural waste and farm by products. The primary aim is to provide a comprehensive assessment of economic performance, applied technological solutions, and different capacity conigurations, while also examin ing their inluence on biogas production ef iciency and investment payback periods. The study compares various fermentation technologies, analyses the characteristics of input substrates, and explores optimization strategies aimed atmaximizingenergyoutput. Economicandtechnicalef iciencyisunderstoodastheabilityofabiogasplant to utilize available resources in the most effective way to produce energy and other outputs. To improve the alloca tion of agricultural land used for biomass production, the research applies the methodology of technical ef iciency frontiers. This approach helps identify optimal production combinations. Furthermore, correlation and regression analysis are used to measure the relationship between farm income and selected variables, allowing the identi ica tion of the most inluential factors affecting inancial performance. Sensitivity analysis is also conducted to examine howkey economic indicators, such as yields, Net Present Value (NPV), and Internal Rate of Return (IRR), respond to changes in input parameters. The results emphasize the crucial determinants of proitability and highlight the role of biogas plants in supporting sustainable agricultural development.