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Price projections of feedstocks for biofuels and biopower in the U.S

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  • Langholtz, Matthew
  • Graham, Robin
  • Eaton, Laurence
  • Perlack, Robert
  • Hellwinkel, Chad
  • De La Torre Ugarte, Daniel G.

Abstract

The economic availability of biomass resources is a critical component in evaluating the commercial viability of biofuels. To evaluate projected farmgate prices and grower payments needed to procure 295 million dry Mg (325 million dry tons) of biomass in the U.S. by 2022, this research employs POLYSYS, an economic model of the U.S. agriculture sector. A price-run simulation suggests that a farmgate price of $58.42Mg−1 ($53.00dryton−1) is needed to procure this supply, while a demand-run simulation suggests that prices of $34.56 and $71.61Mg−1 ($30.00 and $62.00dryton−1) in are needed in 2012 and 2022, respectively, to procure the same supply, under baseline yield assumptions. Grower payments are reported as farmgate price minus resource-specific harvest costs.

Suggested Citation

  • Langholtz, Matthew & Graham, Robin & Eaton, Laurence & Perlack, Robert & Hellwinkel, Chad & De La Torre Ugarte, Daniel G., 2012. "Price projections of feedstocks for biofuels and biopower in the U.S," Energy Policy, Elsevier, vol. 41(C), pages 484-493.
    • Handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:484-493
    DOI: 10.1016/j.enpol.2011.11.009
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    1. Torre Ugarte, Daniel de la & Sanford, Scott & Skinner, Robert A. & Westcott, Paul C. & Lin, William W., 2000. "Supply Response Under The 1996 Farm Act And Implications For The U.S. Field Crops Sector," Technical Bulletins 33568, United States Department of Agriculture, Economic Research Service.
    2. Walsh, Marie E. & Ugarte, Daniel G. De La Torre & English, Burton C. & Jensen, Kimberly & Hellwinckel, Chad & Menard, R. Jamey & Nelson, Richard G., 2007. "Agricultural Impacts of Biofuels Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(2), pages 365-372, August.
    3. Dicks, Michael R. & Campiche, Jody L. & Torre Ugarte, Daniel de la & Hellwinckel, Chad M. & Bryant, Henry L. & Richardson, James W., 2009. "Land Use Implications of Expanding Biofuel Demand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(2), August.
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    Cited by:

    1. Ladislav Kristoufek & Karel Janda & David Zilberman, 2012. "Mutual Responsiveness of Biofuels, Fuels and Food Prices," CAMA Working Papers 2012-38, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Jeffers, Robert F. & Jacobson, Jacob J. & Searcy, Erin M., 2013. "Dynamic analysis of policy drivers for bioenergy commodity markets," Energy Policy, Elsevier, vol. 52(C), pages 249-263.
    3. Ladislav Kristoufek & Karel Janda & David Zilberman, 2013. "Non-linear Price Transmission between Biofuels, Fuels and Food Commodities," CERGE-EI Working Papers wp481, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Santos, Andreia & Carvalho, Ana & Barbosa-Póvoa, Ana Paula & Marques, Alexandra & Amorim, Pedro, 2019. "Assessment and optimization of sustainable forest wood supply chains – A systematic literature review," Forest Policy and Economics, Elsevier, vol. 105(C), pages 112-135.
    5. Gorelick, David E. & Baskaran, Latha M. & Jager, Henriëtte I., 2019. "Visualizing feedstock siting in biomass production: Tradeoffs between economic and water quality objectives," Land Use Policy, Elsevier, vol. 88(C).
    6. Langholtz, Matthew H. & Coleman, Andre M. & Eaton, Laurence M. & Wigmosta, Mark S. & Hellwinckel, Chad M. & Brandt, Craig C., 2016. "Potential land competition between open-pond microalgae production and terrestrial dedicated feedstock supply systems in the U.S," Renewable Energy, Elsevier, vol. 93(C), pages 201-214.
    7. Zhou, Xia “Vivian” & Clark, Christopher D. & Lambert, Dayton M. & English, Burton C. & Larson, James A. & Boyer, Christopher N., 2015. "Biomass supply and nutrient runoff abatement under alternative biofuel feedstock production subsidies," Agricultural Systems, Elsevier, vol. 139(C), pages 250-259.
    8. Dale, Virginia H. & Kline, Keith L. & Buford, Marilyn A. & Volk, Timothy A. & Tattersall Smith, C. & Stupak, Inge, 2016. "Incorporating bioenergy into sustainable landscape designs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1158-1171.
    9. Xu, Jie & Yuan, Zhenhong & Chang, Shiyan, 2018. "Long-term cost trajectories for biofuels in China projected to 2050," Energy, Elsevier, vol. 160(C), pages 452-465.

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