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Economics and GHG emission reduction of a PLA bio-refinery system—Combining bottom-up analysis with price elasticity effects

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  • Dornburg, V.
  • Faaij, A.
  • Patel, M.
  • Turkenburg, W.C.

Abstract

This paper analyses energy savings, GHG emission reductions and costs of bio-refinery systems for polylactic acid (PLA) production. The systems comprise ‘multi-functional’ uses of biomass resources, i.e. use of agricultural residues for energy consumption, use of by-products, and recycling and waste-to-energy recovery of materials. We evaluate the performance of these systems per kg of bio-based polymer produced and per ha of biomass production. The evaluation is done using data of Poland assuming that biomass and PLA production is embedded in a European energy and material market. First, the performance of different bio-refinery systems is investigated by means of a bottom-up chain analysis. Second, an analysis is applied that derives market prices of products and land depending on the own-price elasticity of demand. Thus, the costs of bio-refinery systems depending on the demand of land and material are determined. It is found that all PLA bio-refinery systems considered lead to net savings of non-renewable energy consumption of 70–220GJ/(hayr) and net GHG emission reductions of 3–17MgCO2eq/(hayr). Most of these PLA bio-refinery systems lead to net costs for the overall system of up to 4600€/(hayr). PLA production from short rotation wood leads to net benefits of about 1100€/(hayr) if a high amount of a high value product, i.e. fibres, is produced. Multi-functionality is necessary to ensure the viability of PLA bio-refinery systems from biomass with regard to energy savings and GHG emission reduction. However, the multi-functional use of biomass does not contribute much to overall incomes. Multifunctional biomass use – especially the use of biomass residues for energy consumption – contributes significantly to savings of non-renewable energy sources. Own-price elasticity of the demand for materials influences the overall costs of the bio-refinery system strongly. The own-price elasticity of land demand markets could become important if bio-refineries are introduced on a large scale.

Suggested Citation

  • Dornburg, V. & Faaij, A. & Patel, M. & Turkenburg, W.C., 2006. "Economics and GHG emission reduction of a PLA bio-refinery system—Combining bottom-up analysis with price elasticity effects," Resources, Conservation & Recycling, Elsevier, vol. 46(4), pages 377-409.
    • Handle: RePEc:eee:recore:v:46:y:2006:i:4:p:377-409
    DOI: 10.1016/j.resconrec.2005.08.006
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    References listed on IDEAS

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    1. Annetts, J. E. & Audsley, E., 2003. "Modelling the value of a rural biorefinery--part II: analysis and implications," Agricultural Systems, Elsevier, vol. 76(1), pages 61-76, April.
    2. Pavel Ciaian, 2002. "The impact of the Common Agricultural Policy on income distribution and welfare in Central and Eastern European Countries," EERI Research Paper Series EERI_RP_2002_02, Economics and Econometrics Research Institute (EERI), Brussels.
    3. Veronika Dornburg & Iris Lewandowski & Martin Patel, 2003. "Comparing the Land Requirements, Energy Savings, and Greenhouse Gas Emissions Reduction of Biobased Polymers and Bioenergy," Journal of Industrial Ecology, Yale University, vol. 7(3‐4), pages 93-116, July.
    4. Audsley, E. & Annetts, J. E., 2003. "Modelling the value of a rural biorefinery--part I: the model description," Agricultural Systems, Elsevier, vol. 76(1), pages 39-59, April.
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