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An assessment of competition for biomass resources within the energy and transport sectors

Author

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  • Graham, Paul W.
  • Brinsmead, T.S.
  • Reedman, Luke J.

Abstract

Bio-energy is expected to become increasingly attractive in the future owing to its potential to contribute to lowering greenhouse gas emissions, increasing rural and regional employment and improving energy security through substituting for oil imports. The volume of sustainable biomass resources that are economically competitive but do not significantly impact on food production is expected to slowly expand as new feedstock varieties and refining pathways are developed. However, these volumes will remain limited relative to total energy and transport sector fuel demand. Limited biomass resources will be allocated to the sector that is most able to afford them. This will depend on the price of existing fossil fuel products and the relative cost of converting biomass into substitute final fuels such as bio-derived electricity, ethanol blends, biodiesel and bio-derived jet fuel. It will also depend on factors such as the availability and cost of alternative fuel and energy sources, government policies including excise rates, and the emission intensity of each sector. This paper presents a number of alternative cost curves for bio-energy resource to final energy costs and applies a partial equilibrium model of the electricity and transport sectors, called the Energy Sector Model (ESM), to determine where the limited biomass resources are likely to be allocated under various scenarios. Preliminary projections are presented for biomass uptake in each of the electricity, road and aviation sectors to 2050.

Suggested Citation

  • Graham, Paul W. & Brinsmead, T.S. & Reedman, Luke J., 2011. "An assessment of competition for biomass resources within the energy and transport sectors," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100553, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare11:100553
    DOI: 10.22004/ag.econ.100553
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    References listed on IDEAS

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    1. Joanne Evans & Lester C. Hunt (ed.), 2009. "International Handbook on the Economics of Energy," Books, Edward Elgar Publishing, number 12764.
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    Cited by:

    1. Clancy, John Matthew & Curtis, John & Ó’Gallachóir, Brian, 2018. "Modelling national policy making to promote bioenergy in heat, transport and electricity to 2030 – Interactions, impacts and conflicts," Energy Policy, Elsevier, vol. 123(C), pages 579-593.
    2. Bentsen, Niclas Scott & Jack, Michael W. & Felby, Claus & Thorsen, Bo Jellesmark, 2014. "Allocation of biomass resources for minimising energy system greenhouse gas emissions," Energy, Elsevier, vol. 69(C), pages 506-515.

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