Three essays: Reservoir management; switchgrass land leasing; and its environmental impact

Abstract

First essay determines the optimal lake levels for Lake Tenkiller that maximizes the total net economic benefits derived from both marketed and non-marketed uses under stochastic inflows. It was found that for Lake Tenkiller when recreational benefits are included, it is beneficial to maintain the lake level at around 634 feet above mean sea level until mid-August, and then start drawing down for hydropower generation.

Second essay assists the proposed biorefinery by determining if it can reduce the overall year-to-year variability in switchgrass biomass production by strategically selecting a portfolio of land to be leased to meet the required feedstock demand of the biorefinery. It was found that strategically selecting land to lease would reduce both the expected costs of switchgrass feedstock and the number of forced shutdown days.

Third essay estimates the farm-gate breakeven price of switchgrass relative to wheat production, which is the dominant crop in Oklahoma. The breakeven price of switchgrass is determined with (social) and without (private) considering selected external environmental consequences. Results suggest that the farm-gate breakeven price of switchgrass from the private landowners' perspective is higher than from the social planners' perspective when environmental consequences are considered.