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Dynamic Economic Analysis of Perennial Energy Crops - EffectS of The CAP Reform on Biomass Supply in Greece

Author

Listed:
  • Vassilis Lychnaras
  • Uwe A. Schneider

    (Department of Agricultural Economics, Agricultural University of Athens)

Abstract

Energy from the biomass of perennial crops can offset emissions of greenhouse gases from fossil fuel combustion and increase energy self sufficiency. This study uses a dynamic, multi-farm, mathematical programming model to analyze the impact of the Common Agricultural Policy reform in 2003 on biomass supply from the Kopais plain in central Greece. The perennial energy crops under review are Arundo donax L. (Giant Reed), Miscanthus x giganteus (Miscanthus), Panicum virgatum L. (Switchgrass) and Cynara cardunculus L. (Cardoon). Farm survey results from 40 farms are processed with the Biomass Economic Evaluation model to obtain micro-economic data for both conventional and energy crops. Policy simulations with the multi-farm model show that the 2003 policy reform with decoupled subsidies except for cotton and energy crops lowers the cost of biomass between 2 and 4 Euro per ton. Switchgrass appears to be the most attractive option, followed by Cardoon and Miscanthus. Arundo is never preferred. Relative to the previous agricultural policy setting of Agenda 2000, the biomass potential increases more for smaller farms and farms with a higher share of cotton, vegetables, or trees.

Suggested Citation

  • Vassilis Lychnaras & Uwe A. Schneider, 2007. "Dynamic Economic Analysis of Perennial Energy Crops - EffectS of The CAP Reform on Biomass Supply in Greece," Working Papers FNU-132, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2007.
    • Handle: RePEc:sgc:wpaper:132
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    File URL: https://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/FNU132_GreeceBioen.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Uwe A. Schneider & Bruce A. McCarl, 2006. "Appraising agricultural greenhouse gas mitigation potentials: effects of alternative assumptions," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 277-287, November.
    2. Bruce A. McCarl & Uwe A. Schneider, 2000. "U.S. Agriculture's Role in a Greenhouse Gas Emission Mitigation World: An Economic Perspective," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 134-159.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
    2. Christine Schleupner & P. Michael Link, 2008. "Eiderstedt im Spannungsfeld zwischen Naturschutz- und Agrarpolitik - Entwicklung eines methodischen Ansatzes für ein nachhaltiges Ressourcenmanagement," Working Papers FNU-168, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2008.
    3. P. Michael Link & C. Ivie Ramos & Uwe A. Schneider & Erwin Schmid & J. Balkovic & R. Skalsky, 2008. "The interdependencies between food and biofuel production in European agriculture - an application of EUFASOM," Working Papers FNU-165, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.

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    More about this item

    Keywords

    Energy crops; Common Agricultural Policy; Climate mitigation Economics; Arundo; Miscanthus; Switchgrass; Cardoon; Mathematical programming; Dynamic cost minimization; Bioenergy potential; Biomass supply curve; Kopaida; Greece;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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