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Internal, external and location factors influencing cofiring of biomass with coal in the U.S. northern region

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  • Aguilar, Francisco X.
  • Goerndt, Michael E.
  • Song, Nianfu
  • Shifley, Stephen
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    Abstract

    The use of biomass as a source of energy has been identified as a viable option to diminish reliance on fossil fuels. We parameterized the effect of selected internal (e.g. coal-fire presence), external (e.g. price and renewable energy mandates) and location (e.g. biomass availability, infrastructure) variables on the likelihood of using biomass in cofiring with coal by building a two-stage econometric model. The first stage controlled for factors driving the spatial location of coal power plants and the second stage concentrated on factors influencing cofiring. The empirical model was applied in the Northeast quadrant of the U.S. where the unit of observation was an individual county. Results of our model stress the significant effect of existing flexible coal feeding systems that permit the incorporation of biomass, transportation infrastructure and biomass availability (woody biomass in particular in the form of residues from the wood products industry). State-level renewable energy portfolio standards showed no statistically significant effect on the adoption of cofiring biomass with coal. Further developments of biomass cofiring in the U.S. northern region are most likely to take place in the Great Lakes region.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0140988312001417
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 34 (2012)
    Issue (Month): 6 ()
    Pages: 1790-1798

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    Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1790-1798

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    Web page: http://www.elsevier.com/locate/eneco

    Related research

    Keywords: Cofiring; Biomass; Logit model; Infrastructure;

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    References

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    1. Muller, Nicholas Z. & Mendelsohn, Robert, 2007. "Measuring the damages of air pollution in the United States," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 1-14, July.
    2. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    3. Savolainen, Kati, 2003. "Co-firing of biomass in coal-fired utility boilers," Applied Energy, Elsevier, vol. 74(3-4), pages 369-381, March.
    4. Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer, vol. 79(2), pages 191-219.
    5. Jay Gregg & Steven Smith, 2010. "Global and regional potential for bioenergy from agricultural and forestry residue biomass," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(3), pages 241-262, March.
    6. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, April.
    7. Kahn, Matthew E., 2009. "Regional growth and exposure to nearby coal fired power plant emissions," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 15-22, January.
    8. Bird, Lori & Lokey, Elizabeth, 2008. "Interaction of Compliance and Voluntary Renewable Energy Markets," The Electricity Journal, Elsevier, vol. 21(1), pages 18-30.
    9. Hansson, Julia & Berndes, Gran & Johnsson, Filip & Kjrstad, Jan, 2009. "Co-firing biomass with coal for electricity generation--An assessment of the potential in EU27," Energy Policy, Elsevier, vol. 37(4), pages 1444-1455, April.
    10. Brouwer, A.E. & Mariotti, I. & Ommeren, J.N. van, 2003. "The firm relocation decision: an empirical investigation," Serie Research Memoranda 0023, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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    Cited by:
    1. Asche, Frank & Misund, Bård & Sikveland, Marius, 2013. "The relationship between spot and contract gas prices in Europe," Energy Economics, Elsevier, vol. 38(C), pages 212-217.
    2. Sedjo, Roger A. & Sohngen, Brent & Riddle, Anne, 2013. "Wood Bioenergy and Land Use: A Challenge to the Searchinger Hypothesis," Discussion Papers dp-13-33, Resources For the Future.

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