Regional economic impacts of biomass based energy service use: A comparison across crops and technologies for East Styria, Austria
Biomass action plans in many European countries seek to expand biomass heat and fuel supply, mainly to be supplied by peripheral, agricultural regions. We develop a two-plus-ten-region energy-focused computable general equilibrium (CGE) model that acknowledges land competition in analysing the sub-state local-regional economic implications of such a strategy, embedded within a global context. Our model is based on a full cost analysis of selected biomass technologies covering a range of agricultural and forestry crops, as well as thermal insulation. The local-regional macroeconomic effects differ significantly across technologies and are governed by factors such as net labour intensity in crop production. The high land intensity of agricultural biomass products crowds out conventional agriculture, and thus lowers employment and drives up land prices and the consumer price index. The regional economic results show that net employment effects are positive for all forestry based biomass energy, and also show for which agriculture based biomass systems this is true, even when accounting for land competition. When regional consumer price development governs regional wages or when the agricultural sector is in strong enough competition to the international market, positive employment and welfare impacts vanish fully for agriculture based bio-energy.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Uwe Schneider & Bruce McCarl, 2003.
"Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
- Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(2), pages 117-141, June.
- Berndes, Goran & Hansson, Julia, 2007. "Bioenergy expansion in the EU: Cost-effective climate change mitigation, employment creation and reduced dependency on imported fuels," Energy Policy, Elsevier, vol. 35(12), pages 5965-5979, December.
- Birgit Bednar-Friedl & Pablo Muñoz Jaramillo & Thomas Schinko & Karl Steininger, 2010. "The Carbon Content of Austrian Trade Flows in the European and International Trade Context," FIW Research Reports series II-005, FIW.
- Wiepke Wissema & Rob Dellink, .
"CGE Analysis of the Impact of a Carbon Energy Tax on the Irish Economy,"
- Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
- Karl Steininger & Herbert Voraberger, 2003. "Exploiting the Medium Term Biomass Energy Potentials in Austria: A Comparison of Costs and Macroeconomic Impact," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 359-377, April.
- Faaij, Andre P.C., 2006. "Bio-energy in Europe: changing technology choices," Energy Policy, Elsevier, vol. 34(3), pages 322-342, February.
- Reinhard Madlener & Martin Koller, 2006.
"Economic and CO2 mitigation impacts of promoting biomass heating systems: an input-output study for Vorarlberg, Austria,"
CEPE Working paper series
06-50, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
- Wiepke Wissema, 2006. "Building a Social Accounting Matrix for Ireland with specific detail in relation to energy and carbon dioxide emissions," The Institute for International Integration Studies Discussion Paper Series iiisdp170, IIIS.
- Ignaciuk, Adriana M. & Dellink, Rob B., 2006. "Biomass and multi-product crops for agricultural and energy production--an AGE analysis," Energy Economics, Elsevier, vol. 28(3), pages 308-325, May.
- Ignaciuk, A. & Vohringer, F. & Ruijs, A. & van Ierland, E.C., 2006. "Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis," Energy Policy, Elsevier, vol. 34(10), pages 1127-1138, July.
- Robert Küster & ingo Ellersdorfer & Ulrich Fahl, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Working Papers 2007.7, Fondazione Eni Enrico Mattei.
- Madlener, Reinhard, 2007. "Innovation diffusion, public policy, and local initiative: The case of wood-fuelled district heating systems in Austria," Energy Policy, Elsevier, vol. 35(3), pages 1992-2008, March.
- Bilgic, Abdulbaki & King, Stephen A. & Lusby, Aaron K. & Schreiner, Dean F., 2002. "Estimates of U.S. Regional Commodity Trade Elasticities of Substitution," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(2).
- Breuss, Fritz & Steininger, Karl, 1998. "Biomass Energy Use to Reduce Climate Change: A General Equilibrium Analysis for Austria," Journal of Policy Modeling, Elsevier, vol. 20(4), pages 513-535, August.
- Claudia Pichl & Wilfried Puwein & Karl W. Steininger, 2000. "Aus WIFO-Studien: Erneuerbare Energieträger in Österreichs Wirtschaft. Volkswirtschaftliche Evaluierung am Beispiel der Biomasse," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(3), pages 211-215, March.
- Bentzen, Jan & Smith, Valdemar & Dilling-Hansen, Mogens, 1997. "Regional income effects and renewable fuels : Increased usage of renewable energy sources in Danish rural areas and its impact on regional incomes," Energy Policy, Elsevier, vol. 25(2), pages 185-191, February.
- Elghali, Lucia & Clift, Roland & Sinclair, Philip & Panoutsou, Calliope & Bauen, Ausilio, 2007. "Developing a sustainability framework for the assessment of bioenergy systems," Energy Policy, Elsevier, vol. 35(12), pages 6075-6083, December.
- Jacoby, Henry D. & Reilly, John M. & McFarland, James R. & Paltsev, Sergey, 2006. "Technology and technical change in the MIT EPPA model," Energy Economics, Elsevier, vol. 28(5-6), pages 610-631, November.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:5912-5926. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.