Introduction

On this page, we will dive into the economic models which we are developing to project economic results as Nangu grows into a global movement. We are doing this transparently and invite your feedback.

Nangu Economic Model

Below you will find a publicly accessible version of the economic forecasts for Nangu. The current version of the model is projecting the economic activities of one Nangu village with a total land foot-print of 1800 Hectares. For an explanation of the different modeling types which we apply, please have a look at the summary below the embedded spreadsheet.

Nangu Financial Model - Public

Modeling Types

Cost per unit

This is the simplest type which we apply for one-time investment. Think of purchasing land, which usually cost a certain price per Hectare.

One-time investments

This includes one-time investments for setting up a new farm or enterprise.

Materials per Hectare

Certain investments need to be made per X Hectares. We for instance need to purchase a tractor (Chapulin 45 HP) every 100 Ha. In addition, those assets currently have a maintenance factor. Maintenance is expressed in % of the purchase price.

Variable cost

We categorize any cost as variable for as long as it is currently changing per year per object which creates this cost. Think about gasoline cost for a single farm.

Variable over lifecycle of object

Certain cost or revenue items change over the lifecycle of the object creating the cost or revenue. Think for example of a farm that needs several years until revenue potential has completely unfolded. We factor this in where it applies. E.g. total farm revenue is calculated based on the revenue of the respective year for each farm.

Updates to the model

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