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Regional woody biomass supply and economic impacts from harvesting in the southern U.S

Author

Listed:
  • He, Lixia
  • English, Burton C.
  • Menard, Robert J.
  • Lambert, Dayton M.

Abstract

Demand for woody biomass from the southern United States (US) is increasing because of its reliability in supply, recent developments in co-firing and biofuel conversion technologies, overseas pellet demand, and the expected economic impacts from reorienting the forestry sector towards energy feedstock production. This research examines the interaction between a set of woody biomass harvesting sources (logging residue, non-merchantable, and merchantable roundwood) and wood types (hardwood, planted softwood, and natural softwood), and the impacts harvest costs have on the extraction of these materials in the southern US. The expected woody biomass availability and its geographic distribution are determined with a cost minimizing linear programming model. The marginal cost of woody biomass supply is determined for different energy production targets, subject to satisfying conventional wood demand. Given derived industry supply curves, the economic impacts of the sector are analyzed using the IMpact analysis for PLANning model (IMPLAN) at the Bureau of Economic Analysis (BEA) level. The results suggest that forest biomass for energy production is projected to be available over a much wider price range with logging, residue, and non-merchantable and merchantable roundwood in these regions. Supply of hardwood and softwood biomass from merchantable roundwood is expected to increase if these materials can be harvested for non-conventional uses. Development of harvesting woody biomass from logging residue, non-merchantable, and merchantable timber has positive effects on local economies, bringing with it employment opportunities to some BEA regions.

Suggested Citation

  • He, Lixia & English, Burton C. & Menard, Robert J. & Lambert, Dayton M., 2016. "Regional woody biomass supply and economic impacts from harvesting in the southern U.S," Energy Economics, Elsevier, vol. 60(C), pages 151-161.
  • Handle: RePEc:eee:eneeco:v:60:y:2016:i:c:p:151-161
    DOI: 10.1016/j.eneco.2016.09.007
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    References listed on IDEAS

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    1. He, Lixia & English, Burton C. & De La Torre Ugarte, Daniel G. & Hodges, Donald G., 2014. "Woody biomass potential for energy feedstock in United States," Journal of Forest Economics, Elsevier, vol. 20(2), pages 174-191.
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    Cited by:

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    2. Kuznetsov, G.V. & Malyshev, D. Yu & Syrodoy, S.V. & Gutareva, N. Yu & Purin, M.V. & Kostoreva, Zh. A., 2022. "Justification of the use of forest waste in the power industry as one of the components OF BIO-coal-water suspension fuel," Energy, Elsevier, vol. 239(PA).
    3. Lehtonen, Olli & Okkonen, Lasse, 2019. "Energy cost reduction creates additional socioeconomic benefits– The case of Eno Energy Cooperative, Finland," Energy Policy, Elsevier, vol. 129(C), pages 352-359.
    4. Brinkman, Marnix L.J. & Wicke, Birka & Faaij, André P.C. & van der Hilst, Floor, 2019. "Projecting socio-economic impacts of bioenergy: Current status and limitations of ex-ante quantification methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
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    6. Zhou, J. & Tabata, T., 2022. "Economic, societal, and environmental evaluation of woody biomass heat utilization: A case study in Kobe, Japan," Renewable Energy, Elsevier, vol. 188(C), pages 256-268.
    7. Silverman, Rochelle E. & Flores, Robert J. & Brouwer, Jack, 2020. "Energy and economic assessment of distributed renewable gas and electricity generation in a small disadvantaged urban community," Applied Energy, Elsevier, vol. 280(C).

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    More about this item

    Keywords

    Woody biomass; Economic impact analysis; Marginal value analysis; Timber land harvest;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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