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Economic effects of bioenergy policy in the United States and Europe: A general equilibrium approach focusing on forest biomass

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  • Suttles, Shellye A.
  • Tyner, Wallace E.
  • Shively, Gerald
  • Sands, Ronald D.
  • Sohngen, Brent

Abstract

Renewable energy is an option for many countries simultaneously seeking to reduce dependence on imported petroleum and to reduce greenhouse gas (GHG) emissions that contribute to climate change. Forestry can play a role in environmental policies, such as renewable portfolio standards for bioelectricity, renewable fuel standards for biofuels, and forest carbon sequestration. This paper models interactions and interdependencies between bioelectricity and biofuel production, particularly from forest biomass. A global computable general equilibrium (CGE) model is used to measure the economic effects of bioenergy production from forest products, forest residues, and dedicated energy crops. The land use and emissions impacts on the global economy of revenue-neutral GHG mitigation policies are evaluated. Results show that mandated bioenergy production can substantially reduce carbon dioxide (CO2) emissions, especially through fossil fuel substitution in the electricity sector. Although emissions reductions from bioenergy production in the transportation fuel sector are less dramatic than those in the electricity sector, biofuels also have lower emissions rates than petroleum-based transportation fuels.

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  • Suttles, Shellye A. & Tyner, Wallace E. & Shively, Gerald & Sands, Ronald D. & Sohngen, Brent, 2014. "Economic effects of bioenergy policy in the United States and Europe: A general equilibrium approach focusing on forest biomass," Renewable Energy, Elsevier, vol. 69(C), pages 428-436.
    • Handle: RePEc:eee:renene:v:69:y:2014:i:c:p:428-436
    DOI: 10.1016/j.renene.2014.03.067
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    2. Kenneth R. Szulczyk & Muhammad A. Cheema & Ross Cullen & Atiqur Rahman Khan, 2020. "Bioelectricity in Malaysia: economic feasibility, environmental and deforestation implications," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 294-321, April.
    3. Svetlana Proskurina & Clara Mendoza-Martinez, 2023. "Expectations for Bioenergy Considering Carbon Neutrality Targets in the EU," Energies, MDPI, vol. 16(14), pages 1-16, July.
    4. Kamel Almutairi & Greg Thoma & Alvaro Durand-Morat, 2018. "Ex-Ante Analysis of Economic, Social and Environmental Impacts of Large-Scale Renewable and Nuclear Energy Targets for Global Electricity Generation by 2030," Sustainability, MDPI, vol. 10(8), pages 1-25, August.
    5. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Kuşkaya, Sevda, 2017. "Can biomass energy be an efficient policy tool for sustainable development?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 830-845.
    6. Anna Kożuch & Dominika Cywicka & Krzysztof Adamowicz & Marek Wieruszewski & Emilia Wysocka-Fijorek & Paweł Kiełbasa, 2023. "The Use of Forest Biomass for Energy Purposes in Selected European Countries," Energies, MDPI, vol. 16(15), pages 1-21, August.
    7. Pena-Levano, Luis M. & Taheripour, Farzad & Tyner, Wallace E., 2015. "The Economic Benefits and Costs of Mitigating Climate Change: Interactions among Carbon Tax, Forest Sequestration and Climate Change Induced Crop Yield Impacts," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205629, Agricultural and Applied Economics Association.
    8. Song, Shizhong & Liu, Pei & Xu, Jing & Chong, Chinhao & Huang, Xianzheng & Ma, Linwei & Li, Zheng & Ni, Weidou, 2017. "Life cycle assessment and economic evaluation of pellet fuel from corn straw in China: A case study in Jilin Province," Energy, Elsevier, vol. 130(C), pages 373-381.
    9. Szulczyk, Kenneth R. & Ziaei, Sayyed Mahdi & Zhang, Changyong, 2021. "Environmental ramifications and economic viability of bioethanol production in Malaysia," Renewable Energy, Elsevier, vol. 172(C), pages 780-788.
    10. Guo, Jinggang & Gong, Peichen, 2019. "Assessing the impacts of rising fuelwood demand on Swedish forest sector: An intertemporal optimization approach," Forest Policy and Economics, Elsevier, vol. 105(C), pages 91-98.
    11. Jonas Zetterholm & Elina Bryngemark & Johan Ahlström & Patrik Söderholm & Simon Harvey & Elisabeth Wetterlund, 2020. "Economic Evaluation of Large-Scale Biorefinery Deployment: A Framework Integrating Dynamic Biomass Market and Techno-Economic Models," Sustainability, MDPI, vol. 12(17), pages 1-28, September.
    12. Jiang, Zhong-Zhong & He, Na & Huang, Song, 2021. "Government penalty provision and contracting with asymmetric quality information in a bioenergy supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    13. Haddad, Salwa & Britz, Wolfgang & Börner, Jan, 2017. "Impacts Of Increased Forest Biomass Demand In The European Bioeconomy," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 261986, German Association of Agricultural Economists (GEWISOLA).

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