IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v63y2013icp123-129.html
   My bibliography  Save this article

A microeconomic analysis of decentralized small scale biomass based CHP plants—The case of Germany

Author

Listed:
  • Wittmann, Nadine
  • Yildiz, Özgür

Abstract

Alternative energy sources, such as biomass CHP plants, have recently gained significantly in importance and action is due both on the large scale corporate level and on the small scale. Hence, making the scope and economic outline of such projects easily intelligible without losing relevant details seems a key factor to further promote the necessary developments. The model setup presented in this paper may therefore serve as a starting point for generating numerical results based on real life cases or scenarios. Its focus lies on the economic analysis of decentralized biomass CHP plants. It presents a new approach to analyzing the economic aspects of biomass CHP plants implementing a formal microeconomic approach. As Germany claims a leading role in the market for renewable energy production, the paper also takes a closer look on the effects of German energy policy with respect to biomass CHP plants.

Suggested Citation

  • Wittmann, Nadine & Yildiz, Özgür, 2013. "A microeconomic analysis of decentralized small scale biomass based CHP plants—The case of Germany," Energy Policy, Elsevier, vol. 63(C), pages 123-129.
  • Handle: RePEc:eee:enepol:v:63:y:2013:i:c:p:123-129
    DOI: 10.1016/j.enpol.2013.05.069
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513004217
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2013.05.069?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Di Corato, Luca & Moretto, Michele, 2011. "Investing in biogas: Timing, technological choice and the value of flexibility from input mix," Energy Economics, Elsevier, vol. 33(6), pages 1186-1193.
    2. Verbruggen, Aviel & Dufait, Nadine & Martens, Adwin, 1993. "Economic evaluation of independent CHP projects," Energy Policy, Elsevier, vol. 21(4), pages 408-417, April.
    3. Wickart, Marcel & Madlener, Reinhard, 2007. "Optimal technology choice and investment timing: A stochastic model of industrial cogeneration vs. heat-only production," Energy Economics, Elsevier, vol. 29(4), pages 934-952, July.
    4. Goulding, D. & Power, N., 2013. "Which is the preferable biogas utilisation technology for anaerobic digestion of agricultural crops in Ireland: Biogas to CHP or biomethane as a transport fuel?," Renewable Energy, Elsevier, vol. 53(C), pages 121-131.
    5. Gokcol, Cihan & Dursun, Bahtiyar & Alboyaci, Bora & Sunan, Erkan, 2009. "Importance of biomass energy as alternative to other sources in Turkey," Energy Policy, Elsevier, vol. 37(2), pages 424-431, February.
    6. K. Sato, 1967. "A Two-Level Constant-Elasticity-of-Substitution Production Function," Review of Economic Studies, Oxford University Press, vol. 34(2), pages 201-218.
    7. Kemfert, Claudia, 1998. "Estimated substitution elasticities of a nested CES production function approach for Germany," Energy Economics, Elsevier, vol. 20(3), pages 249-264, June.
    8. Claudia Kemfert & Dorothea Schäfer, 2012. "Financing the Energy Transition in Times of Financial Market Instability," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 2(9), pages 3-13.
    9. Rentizelas, Athanasios A. & Tatsiopoulos, Ilias P., 2010. "Locating a bioenergy facility using a hybrid optimization method," International Journal of Production Economics, Elsevier, vol. 123(1), pages 196-209, January.
    10. Toke, David & Fragaki, Aikaterini, 2008. "Do liberalised electricity markets help or hinder CHP and district heating? The case of the UK," Energy Policy, Elsevier, vol. 36(4), pages 1448-1456, April.
    11. Chris Papageorgiou & Marianne Saam, 2008. "Two‐level CES Production Technology in the Solow and Diamond Growth Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(1), pages 119-143, March.
    12. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 291-299.
    13. Evans, Rodney, 1993. "Environmental and economic implications of small-scale CHP," Energy Policy, Elsevier, vol. 21(1), pages 79-91, January.
    14. Daniel McFadden, 1963. "Constant Elasticity of Substitution Production Functions," Review of Economic Studies, Oxford University Press, vol. 30(2), pages 73-83.
    15. Prywes, Menahem, 1986. "A nested CES approach to capital-energy substitution," Energy Economics, Elsevier, vol. 8(1), pages 22-28, January.
    16. Hall, D. O., 1991. "Biomass energy," Energy Policy, Elsevier, vol. 19(8), pages 711-737, October.
    17. Berndes, Goran & Hansson, Julia, 2007. "Bioenergy expansion in the EU: Cost-effective climate change mitigation, employment creation and reduced dependency on imported fuels," Energy Policy, Elsevier, vol. 35(12), pages 5965-5979, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roth, Lucas & Lowitzsch, Jens & Yildiz, Özgür, 2023. "Which (co-)ownership types in renewables are associated with the willingness to adopt energy-efficient technologies and energy-conscious behaviour? Data from German households," Energy Policy, Elsevier, vol. 180(C).
    2. Lucas Roth & Özgür Yildiz & Jens Lowitzsch, 2021. "An Empirical Approach to Differences in Flexible Electricity Consumption Behaviour of Urban and Rural Populations—Lessons Learned in Germany," Sustainability, MDPI, vol. 13(16), pages 1-31, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bui, Linh & Hoang, Huyen & Bui, Hang, 2015. "Estimating the Constant Elasticity of Substitution Function of Rice Production.The case of Vietnam in 2012," MPRA Paper 71224, University Library of Munich, Germany.
    2. Malliet, Paul & Reynès, Frédéric G., 2022. "Empirical estimates of the elasticity of substitution of a KLEM production function without nesting constraints: The case of the Variable Output Elasticity-Cobb Douglas," Conference papers 333423, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Frédéric Reynès, 2017. "The Cobb-Douglas function as a flexible function. Analysing the substitution between capital, labor and energy," Documents de Travail de l'OFCE 2017-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    4. repec:hal:spmain:info:hdl:2441/1cpd872l2j8lb968d53pu5f30q is not listed on IDEAS
    5. Frédéric Reynés, 2019. "The Cobb-Douglas function as a flexible function: A new perspective on homogeneous functions through the lens of output elasticities," SciencePo Working papers Main hal-03403639, HAL.
    6. repec:hal:spmain:info:hdl:2441/62drs526639gbqbrni9v9kvsv5 is not listed on IDEAS
    7. Reynès, Frédéric, 2019. "The Cobb–Douglas function as a flexible function," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 11-17.
    8. Frédéric Reynés, 2017. "The Cobb-Douglas function as a flexible function," Working Papers hal-03582829, HAL.
    9. Knoblach, Michael & Rößler, Martin & Zwerschke, Patrick, 2016. "The Elasticity of Factor Substitution Between Capital and Labor in the U.S. Economy: A Meta-Regression Analysis," CEPIE Working Papers 03/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    10. Frédéric Reynés, 2019. "The Cobb-Douglas function as a flexible function: A new perspective on homogeneous functions through the lens of output elasticities," Sciences Po publications info:hdl:2441/62drs526639, Sciences Po.
    11. Paul E. Brockway & Matthew K. Heun & João Santos & John R. Barrett, 2017. "Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation," Energies, MDPI, vol. 10(2), pages 1-23, February.
    12. Frédéric Reynés, 2019. "The Cobb-Douglas function as a flexible function: A new perspective on homogeneous functions through the lens of output elasticities," Post-Print hal-03403639, HAL.
    13. Frédéric Reynés, 2017. "The Cobb-Douglas function as a flexible function," SciencePo Working papers Main hal-03582829, HAL.
    14. Satoshi Nakano & Kazuhiko Nishimura, 2017. "Structural propagation in a production network with restoring substitution elasticities," Papers 1701.02216, arXiv.org, revised Apr 2018.
    15. Lagomarsino, Elena, 2020. "Estimating elasticities of substitution with nested CES production functions: Where do we stand?," Energy Economics, Elsevier, vol. 88(C).
    16. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," SciencePo Working papers Main hal-01069515, HAL.
    17. Lagomarsino, Elena, 2021. "Which nesting structure for the CES? A new selection approach based on input separability," Economic Modelling, Elsevier, vol. 102(C).
    18. Lecca, Patrizio & Swales, Kim & Turner, Karen, 2011. "An investigation of issues relating to where energy should enter the production function," Economic Modelling, Elsevier, vol. 28(6), pages 2832-2841.
    19. Yazid Dissou & Lilia Karnizova & Qian Sun, 2015. "Industry-level Econometric Estimates of Energy-Capital-Labor Substitution with a Nested CES Production Function," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(1), pages 107-121, March.
    20. Michal Antoszewski, 2017. "Panel estimation of sectoral substitution elasticities for CES production functions," EcoMod2017 10160, EcoMod.
    21. Koetse, Mark J. & de Groot, Henri L.F. & Florax, Raymond J.G.M., 2008. "Capital-energy substitution and shifts in factor demand: A meta-analysis," Energy Economics, Elsevier, vol. 30(5), pages 2236-2251, September.
    22. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," Working Papers hal-01069515, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:63:y:2013:i:c:p:123-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.