The impact of German biogas production on European and global agricultural markets, land use and the environment
As part of its climate policy, Germany promotes the production of biogas via its so-called Renewable-Energy-Act (EEG). The resulting boost in biogas output went along with a significant increase in production of green maize, the dominant feedstock. Existing studies of the EEG have analysed its impacts on German agriculture without considering market feedback. We thus expand existing quantitative analysis by also considering impacts on European and global agricultural markets, land use and the environment by combining a detailed location model for biogas plants, the Regionalised Location Information System-Maize (ReSi-M2012), with a global Partial Equilibrium model for agriculture, the Common Agricultural Policy Regional Impact (CAPRI) model. Our results indicate that the German biogas production is large enough to have sizeable impacts on global agricultural markets in prices and quantities, causing significant land use change outside of Germany. While profits in the agricultural sector increase, food consumer face higher prices, and subsidies for biogas production are passed on to electricity consumers. The German biogas program, as long as it is almost entirely based on non-waste feedstocks, is probably not a promising avenue towards a GHG-saving renewable energy production, but a rather expensive one.
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.:
- Britz, Wolfgang, 2008. "Automated model linkages: the example of CAPRI," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(8).
- Ruth Delzeit & Karin Holm-Müller & Wolfgang Britz, 2012.
"Ökonomische Bewertung des Erneuerbare Energien Gesetzes zur Förderung von Biogas,"
Perspektiven der Wirtschaftspolitik,
Verein für Socialpolitik, vol. 13(3), pages 251-265, 08.
- Ruth Delzeit & Karin Holm-Müller & Wolfgang Britz, 2011. "Ökonomische Bewertung des Erneuerbare Energien Gesetzes zur Förderung von Biogas," Kiel Working Papers 1682, Kiel Institute for the World Economy.
- Ruth Delzeit , Wolfgang Britz, 2012. "An Economic Assessment of Biogas Production and Land Use under the German Renewable Energy Source Act," Kiel Working Papers 1767, Kiel Institute for the World Economy.
- 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.
- Delzeit, Ruth & Britz, Wolfgang & Holm-Müller, Karin, 2011. "Modelling regional input markets with numerous processing plants: The case of green maize for biogas production in Germany," Discussion Papers 162892, University of Bonn, Institute for Food and Resource Economics.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:1268-1275. 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 references are entirely missing, you can add them using this form.