干旱区生态环境知识资源中心(Arid): Business valuation strategy for new hydroponic farm development - a proposal towards sustainable agriculture development in United Arab Emirates

Arid

DOI	10.1108/BFJ-06-2020-0557
	Business valuation strategy for new hydroponic farm development - a proposal towards sustainable agriculture development in United Arab Emirates
	Sisodia, Gyanendra Singh; Alshamsi, Raweya; Sergi, Bruno S.
通讯作者	Sisodia, GS (corresponding author), Ajman Univ, Coll Business Adm, Ajman, U Arab Emirates.
来源期刊	BRITISH FOOD JOURNAL
ISSN	0007-070X
EISSN	1758-4108
出版年	2021
卷号	123 期号:4 页码:1560-1577
英文摘要	Purpose This study aims to evaluate a hydroponic farm (through nutrient film technique) while considering uncertainty, sustainability and the system's utility in the dominant desert geography. The idea of the hydroponic farm is to allow individuals/businesses to grow plants. Given the geographical condition, the hydroponic system may be useful in the Gulf context and may lead to food security and sustainability. Additionally, the UAE government has initiated several support schemes that can be availed for investing in such businesses that can contribute to the nation's food security. Design/methodology/approach The hydroponic farm is evaluated using the net present value and real options approach. The authors studied five scenarios: 1. business as usual, 2. 50% subsidy on initial investment through Khalifa funding, 3. 4% premium, 4. Subsidy plus premium and 5. solar panel installation with bore well. Findings As per the assumptions and data usage, all the scenarios shows a positive net present value (NPV); Nevertheless, scenarios 4 and 5 report the significant highest net present and delay value. Research limitations/implications This study has environmental, economic and social implications. Lower imports indirectly lead to lower carbon footprints. The local production of food ensures higher employability in the sector and increase in local consumption. Additionally, fresh food consumption is directly associated to good health. Practical implications Supportive policies such as subsidies through Khalifa funding may accelerate the expansion of such projects through domestic and foreign investments. One of the important takeaway from the study is to invest in the training of the workforce. Social implications Given the geographical condition, the UAE usually depends on food imports. If the hydroponic farms become popular, the residents will have access to fresh vegetables and fruits. Higher engagement in agriculture activities also ensures a significant increase in agriculture-related businesses and higher employability. Originality/value The study adds novelty to the literature because the effect of Khalifa funding and investment analysis on solar (wells) has not been evaluated in any hydroponic studies. We presented the results with tornado graphs using NPV risk and real options approach in the Gulf context. The study represents functional scenarios that were previously not found in the literature.
英文关键词	Hydroponics Business risk Food economics International markets Net present value Real options approach Arabian Gulf
类型	Article
语种	英语
收录类别	SCI-E ; SSCI
WOS记录号	WOS:000604764400001
WOS类目	Agricultural Economics & Policy ; Food Science & Technology
WOS研究方向	Agriculture ; Food Science & Technology
资源类型	期刊论文
条目标识符	http://119.78.100.177/qdio/handle/2XILL650/349762
作者单位	[Sisodia, Gyanendra Singh; Alshamsi, Raweya] Ajman Univ, Coll Business Adm, Ajman, U Arab Emirates; [Sergi, Bruno S.] Harvard Univ, Davis Ctr Russian & Eurasian Studies, Cambridge, MA 02138 USA; [Sergi, Bruno S.] Harvard Univ, Harvard Ukrainian Res Inst, Cambridge, MA 02138 USA; [Sergi, Bruno S.] Univ Messina, Polit Econ & Int Finance, Messina, Italy
推荐引用方式 GB/T 7714	Sisodia, Gyanendra Singh,Alshamsi, Raweya,Sergi, Bruno S.. Business valuation strategy for new hydroponic farm development - a proposal towards sustainable agriculture development in United Arab Emirates[J],2021,123(4):1560-1577.
APA	Sisodia, Gyanendra Singh,Alshamsi, Raweya,&Sergi, Bruno S..(2021).Business valuation strategy for new hydroponic farm development - a proposal towards sustainable agriculture development in United Arab Emirates.BRITISH FOOD JOURNAL,123(4),1560-1577.
MLA	Sisodia, Gyanendra Singh,et al."Business valuation strategy for new hydroponic farm development - a proposal towards sustainable agriculture development in United Arab Emirates".BRITISH FOOD JOURNAL 123.4(2021):1560-1577.