Economic assessment of greenhouse and vertical farm production systems in arid regions: a case study of Qatar

Agriculture in arid regions faces challenges due to environmental constraints that hinder traditional farming methods. Controlled environment agriculture is emerging as a transformative solution, offering sustainable alternatives to these traditional practices. While the economic viability of vertical farms has been demonstrated in various contexts, such conclusions cannot be universally applied without considering specific regional characteristics. This highlights the necessity for detailed case studies. This research evaluates controlled environment agriculture within Qatar, comparing centralized greenhouses to decentralized vertical farms against the backdrop of the region’s distinct environmental challenges. By examining the capital and operational costs, including the critical factor of transportation expenses, the study offers an in-depth economic analysis of both systems. Dynamic analytical models for energy, water, and CO₂ utilization have been developed for greenhouses and vertical farms, to accurately estimate the respective resource usage in each cultivation system. The distribution cost, relevant for the greenhouse scenario, was evaluated using a vehicle routing problem. The findings reveal that greenhouses, with levelized cost of production of $3.19 per kg for tomatoes, offer a more cost-effective solution in Qatar’s specific context than vertical farms, which show a higher cost of $3.77 per kg Although greenhouses currently offer a more cost-effective solution, future studies should incorporate other context-specific factors, including ecological impacts such as water usage, which is particularly critical for regions like Qatar.