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Bio-energy from Mountain Pine Beetle Timber and Forest Residuals: The Economics Story

Author

Listed:
  • Kurt Niquidet
  • Brad Stennes
  • G.Cornelis van Kooten

Abstract

In light of the large volumes of pine killed in the Interior forests in British Columbia by the mountain pine beetle, many are keen to employ forest biomass as an energy source. To assess the feasibility of a wood biomass-fired power plant in the BC Interior it is necessary to know both how much physical biomass might be available over the life of a plant, but also its location because transportation costs are likely to be a major operating cost for any facility. To address these issues, we construct a mathematical programming model of fiber flows in the Quesnel Timber Supply Area of BC over a 25-year time horizon. The focus of the model is on minimizing the cost of supplying feedstock throughout space and time. Results indicate that over the life of the project feedstock costs will more than double, increasing from $54.60/BDt ($0.039/kWh) to $116.14/BDt ($0.083/kWh).

Suggested Citation

  • Kurt Niquidet & Brad Stennes & G.Cornelis van Kooten, 2008. "Bio-energy from Mountain Pine Beetle Timber and Forest Residuals: The Economics Story," Working Papers 2008-11, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2008-11
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    File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2008-11.pdf
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    References listed on IDEAS

    as
    1. Kumar, Amit & Flynn, Peter & Sokhansanj, Shahab, 2008. "Biopower generation from mountain pine infested wood in Canada: An economical opportunity for greenhouse gas mitigation," Renewable Energy, Elsevier, vol. 33(6), pages 1354-1363.
    2. W. A. Kurz & C. C. Dymond & G. Stinson & G. J. Rampley & E. T. Neilson & A. L. Carroll & T. Ebata & L. Safranyik, 2008. "Mountain pine beetle and forest carbon feedback to climate change," Nature, Nature, vol. 452(7190), pages 987-990, April.
    3. G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Tim Bogle & G. Cornelis van Kooten, 2011. "What Makes Mountain Pine Beetle a Tricky Pest? Difficult Decisions when Facing Beetle Attack in a Mixed Species Forest," Working Papers 2011-07, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    2. G. Cornelis van Kooten, 2013. "Economic analysis of feed-in tariffs for generating electricity from renewable energy sources," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 9, pages 224-253, Edward Elgar Publishing.
    3. G. Cornelis van Kooten, 2011. "Biotechnology in Agriculture and Forestry: Economic Perspectives," Working Papers 2011-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    4. Brad Stennes & Kurt Niquidet & G. Cornelis van Kooten, 2009. "Implications of Expanding Bioenergy Production from Wood in British Columbia: An Application of a Regional Wood Fibre Allocation Model," Working Papers 2009-02, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    5. Craig M.T. Johnston & G. Cornelis van Kooten, 2014. "Carbon Neutrality of Hardwood and Softwood Biomass: Issues of Temporal Preference," Working Papers 2014-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    6. G. Cornelis van Kooten & Tim Bogle & Frans P. de Vries, 2012. "Rent Seeking and the Smoke and Mirrors Game in the Creation of Forest Sector Carbon Credits: An Example from British Columbia," Working Papers 2012-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.

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    More about this item

    Keywords

    forest economics; biomass and bio-energy; forest pests;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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