Trade of woody biomass for electricity generation under climate mitigation policy
Bio-energy with carbon capture and sequestration (BECCS) has the potential to be a key mitigation option, because it can generate electricity and absorb emissions at the same time. However, biomass is not distributed evenly across the globe and regions with a potentially high demand might be constrained by limited domestic supply. Therefore, climate mitigation policies might create the incentive to trade biomass internationally. This paper uses scenarios generated by the integrated assessment model WITCH to study trade of woody biomass from multiple perspectives: the volume of biomass traded, its value, the impact on other power generation technologies and on the efficiency of mitigation policy. The policy scenarios consist of three representative carbon tax policies (4.8W/m2, 3.8W/m2 and 3.2W/m2 radiative forcing values in 2100) and a cap-and-trade scheme (3.8W/m2 in 2100). Results show that the incentive to trade biomass is high: at least 50% of biomass consumed globally is traded internationally. Regions trade 13–69EJ/yr of woody biomass in 2050 and 55–81EJ/yr in 2100. In 2100 the value of biomass traded is equal to US$ 0.7–7.2 Trillion. Trade of woody biomass substantially increases the efficiency of the mitigation policy. In the tax scenarios, abatement increases by 120–323Gt CO2 over the century. In the cap-and-trade scenario biomass trade reduces the price of emission allowances by 34% in 2100 and cumulative discounted policy costs by 14%.
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.:
- Nordhaus, William D & Yang, Zili, 1996. "A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies," American Economic Review, American Economic Association, vol. 86(4), pages 741-65, September.
- Detlef Vuuren & Elke Stehfest & Michel Elzen & Tom Kram & Jasper Vliet & Sebastiaan Deetman & Morna Isaac & Kees Klein Goldewijk & Andries Hof & Angelica Mendoza Beltran & Rineke Oostenrijk & Bas Ruij, 2011. "RCP2.6: exploring the possibility to keep global mean temperature increase below 2°C," Climatic Change, Springer, vol. 109(1), pages 95-116, November.
- Rose, Steven K. & Ahammad, Helal & Eickhout, Bas & Fisher, Brian & Kurosawa, Atsushi & Rao, Shilpa & Riahi, Keywan & van Vuuren, Detlef P., 2012. "Land-based mitigation in climate stabilization," Energy Economics, Elsevier, vol. 34(1), pages 365-380.
- Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
- Valentina Bosetti, Carlo Carraro, Marzio Galeotti, Emanuele Massetti, Massimo Tavoni, 2006. "A World induced Technical Change Hybrid Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 13-38.
- Allison Thomson & Katherine Calvin & Steven Smith & G. Kyle & April Volke & Pralit Patel & Sabrina Delgado-Arias & Ben Bond-Lamberty & Marshall Wise & Leon Clarke & James Edmonds, 2011. "RCP4.5: a pathway for stabilization of radiative forcing by 2100," Climatic Change, Springer, vol. 109(1), pages 77-94, November.
- Gunnar Luderer & Valentina Bosetti & Michael Jakob & Marian Leimbach & Jan Steckel & Henri Waisman & Ottmar Edenhofer, 2012. "The economics of decarbonizing the energy system—results and insights from the RECIPE model intercomparison," Climatic Change, Springer, vol. 114(1), pages 9-37, September.
- Ottmar Edenhofer , Brigitte Knopf, Terry Barker, Lavinia Baumstark, Elie Bellevrat, Bertrand Chateau, Patrick Criqui, Morna Isaac, Alban Kitous, Socrates Kypreos, Marian Leimbach, Kai Lessmann, Bertra, 2010.
"The Economics of Low Stabilization: Model Comparison of Mitigation Strategies and Costs,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Special I).
- Ottmar Edenhofer & Brigitte Knopf & Terry Barker & Lavinia Baumstark & Elie Bellevrat & Bertrand Chateau & Patrick Criqui & Morna Isaac & Alban Kitous & Socrates Kypreos & Marian Leimbach & Kai Lessma, 2010. "The economics of low stabilization: Model comparison of mitigation strategies and costs," Post-Print halshs-00450290, HAL.
- 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.
- Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, December.
- Valentina Bosetti & Emanuele Massetti & Massimo Tavoni, 2007. "The WITCH Model. Structure, Baseline, Solutions," Working Papers 2007.10, Fondazione Eni Enrico Mattei.
- Enrica De Cian & Valentina Bosetti & Alessandra Sgobbi & Massimo Tavoni, 2009. "The 2008 WITCH Model: New Model Features and Baseline," Working Papers 2009.85, Fondazione Eni Enrico Mattei.
- van Vuuren, Detlef P. & Stehfest, Elke & den Elzen, Michel G.J. & van Vliet, Jasper & Isaac, Morna, 2010. "Exploring IMAGE model scenarios that keep greenhouse gas radiative forcing below 3 W/m2 in 2100," Energy Economics, Elsevier, vol. 32(5), pages 1105-1120, September.
- Kenneth Gillingham & Steven Smith & Ronald Sands, 2008. "Impact of bioenergy crops in a carbon dioxide constrained world: an application of the MiniCAM energy-agriculture and land use model," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(7), pages 675-701, August.
- Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:36:y:2014:i:1:p:166-190. 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: (Shamier, Wendy)
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.