Cost-effective policy instruments for greenhouse gas emission reduction and fossil fuel substitution through bioenergy production in Austria
Climate change mitigation and security of energy supply are important targets of Austrian energy policy. Bioenergy production based on resources from agriculture and forestry is an important option for attaining these targets. To increase the share of bioenergy in the energy supply, supporting policy instruments are necessary. The cost-effectiveness of these instruments in attaining policy targets depends on the availability of bioenergy technologies. Advanced technologies such as second-generation biofuels, biomass gasification for power production, and bioenergy with carbon capture and storage (BECCS) will likely change the performance of policy instruments. This article assesses the cost-effectiveness of energy policy instruments, considering new bioenergy technologies for the year 2030, with respect to greenhouse gas emission (GHG) reduction and fossil fuel substitution. Instruments that directly subsidize bioenergy are compared with instruments that aim at reducing GHG emissions. A spatially explicit modeling approach is used to account for biomass supply and energy distribution costs in Austria. Results indicate that a carbon tax performs cost-effectively with respect to both policy targets if BECCS is not available. However, the availability of BECCS creates a trade-off between GHG emission reduction and fossil fuel substitution. Biofuel blending obligations are costly in terms of attaining the policy targets.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Leduc, S. & Starfelt, F. & Dotzauer, E. & Kindermann, G. & McCallum, I. & Obersteiner, M. & Lundgren, J., 2010. "Optimal location of lignocellulosic ethanol refineries with polygeneration in Sweden," Energy, Elsevier, vol. 35(6), pages 2709-2716.
- Tzimas, Evangelos & Georgakaki, Aliki, 2010. "A long-term view of fossil-fuelled power generation in Europe," Energy Policy, Elsevier, vol. 38(8), pages 4252-4264, August.
- 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.
- Bram, S. & De Ruyck, J. & Lavric, D., 2009. "Using biomass: A system perturbation analysis," Applied Energy, Elsevier, vol. 86(2), pages 194-201, February.
- Andre Faaij, 2006. "Modern Biomass Conversion Technologies," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 11(2), pages 335-367, March.
- Cerqueira Leite, Rogério Cezar de & Verde Leal, Manoel Regis Lima & Barbosa Cortez, Luís Augusto & Griffin, W. Michael & Gaya Scandiffio, Mirna Ivonne, 2009. "Can Brazil replace 5% of the 2025 gasoline world demand with ethanol?," Energy, Elsevier, vol. 34(5), pages 655-661.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3777016 is not listed on IDEAS
- Eriksson, Ljusk Ola & Bjorheden, Rolf, 1989. "Optimal storing, transport and processing for a forest-fuel supplier," European Journal of Operational Research, Elsevier, vol. 43(1), pages 26-33, November.
- van der Zwaan, B. & Gerlagh, R., 2009. "Economics of geological CO2 storage and leakage," Other publications TiSEM cee3746c-8c8f-4c8d-8046-5, Tilburg University, School of Economics and Management.
- Sørensen Torekov, Mikkel & Bahnsen, Niels & Qvale, Bjørn, 2007. "The relative competitive positions of the alternative means for domestic heating," Energy, Elsevier, vol. 32(5), pages 627-633.
- Havlík, Petr & Schneider, Uwe A. & Schmid, Erwin & Böttcher, Hannes & Fritz, Steffen & Skalský, Rastislav & Aoki, Kentaro & Cara, Stéphane De & Kindermann, Georg & Kraxner, Florian & Leduc, Sylvain & , 2011. "Global land-use implications of first and second generation biofuel targets," Energy Policy, Elsevier, vol. 39(10), pages 5690-5702, October.
- Uddin, Sk Noim & Barreto, Leonardo, 2007. "Biomass-fired cogeneration systems with CO2 capture and storage," Renewable Energy, Elsevier, vol. 32(6), pages 1006-1019.
- Möllersten, Kenneth & Gao, Lin & Yan, Jinyue & Obersteiner, Michael, 2004. "Efficient energy systems with CO2 capture and storage from renewable biomass in pulp and paper mills," Renewable Energy, Elsevier, vol. 29(9), pages 1583-1598.
- Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
- Karl Steininger & Herbert Voraberger, 2003. "Exploiting the Medium Term Biomass Energy Potentials in Austria: A Comparison of Costs and Macroeconomic Impact," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(4), pages 359-377, April.
- Azar, Christian & Lindgren, Kristian & Andersson, Bjorn A., 2003. "Global energy scenarios meeting stringent CO2 constraints--cost-effective fuel choices in the transportation sector," Energy Policy, Elsevier, vol. 31(10), pages 961-976, August.
- Delzeit, R. & Holm-Müller, K., 2009. "Steps to discern sustainability criteria for a certification scheme of bioethanol in Brazil: Approach and difficulties," Energy, Elsevier, vol. 34(5), pages 662-668.
- Schmidt, Johannes & Leduc, Sylvain & Dotzauer, Erik & Kindermann, Georg & Schmid, Erwin, 2010. "Cost-effective CO2 emission reduction through heat, power and biofuel production from woody biomass: A spatially explicit comparison of conversion technologies," Applied Energy, Elsevier, vol. 87(7), pages 2128-2141, July.
- Sanden, Bjorn A. & Azar, Christian, 2005. "Near-term technology policies for long-term climate targets--economy wide versus technology specific approaches," Energy Policy, Elsevier, vol. 33(12), pages 1557-1576, August.
- Marbe, Å & Harvey, S & Berntsson, T, 2004. "Biofuel gasification combined heat and power—new implementation opportunities resulting from combined supply of process steam and district heating," Energy, Elsevier, vol. 29(8), pages 1117-1137.
- Grohnheit, Poul Erik & Gram Mortensen, Bent Ole, 2003. "Competition in the market for space heating. District heating as the infrastructure for competition among fuels and technologies," Energy Policy, Elsevier, vol. 31(9), pages 817-826, July.
- Sues, Anna & Juraščík, Martin & Ptasinski, Krzysztof, 2010. "Exergetic evaluation of 5 biowastes-to-biofuels routes via gasification," Energy, Elsevier, vol. 35(2), pages 996-1007.
- Pope, Jeff & Owen, Anthony D., 2009. "Emission trading schemes: potential revenue effects, compliance costs and overall tax policy issues," Energy Policy, Elsevier, vol. 37(11), pages 4595-4603, November.
- König, Andreas, 2011. "Cost efficient utilisation of biomass in the German energy system in the context of energy and environmental policies," Energy Policy, Elsevier, vol. 39(2), pages 628-636, February.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:6:p:3261-3280. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.