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A Multi-Sector Intertemporal Optimization Approach to Assess the GHG Implications of U.S. Forest and Agricultural Biomass Electricity Expansion

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  • Latta, Gregory S.
  • Baker, Justin Scott
  • Beach, Robert H.
  • Rose, Steven K.
  • McCarl, Bruce A.

Abstract

This study applies an intertemporal partial equilibrium model of the U.S. Forest and Agricultural sectors to assess the market, land use, and greenhouse gas (GHG) implications of biomass electricity expansion. Results show how intertemporal optimization procedures can yield different biomass feedstock portfolios and GHG performance metrics at different points in time. We examine the implications of restricting feedstock eligibility, land use change, and commodity substitution to put our results in the context of previous forest-only modeling efforts. Our results highlight the importance of dynamic considerations and forest and agricultural sector interactions on projecting the GHG effects of biomass electricity expansion in the U.S.
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  • Latta, Gregory S. & Baker, Justin Scott & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013. "A Multi-Sector Intertemporal Optimization Approach to Assess the GHG Implications of U.S. Forest and Agricultural Biomass Electricity Expansion," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150293, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150293
    DOI: 10.22004/ag.econ.150293
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    Cited by:

    1. Kenneth R. Szulczyk & Muhammad A. Cheema & Ross Cullen & Atiqur Rahman Khan, 2020. "Bioelectricity in Malaysia: economic feasibility, environmental and deforestation implications," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 294-321, April.
    2. Baker, J.S. & Wade, C.M. & Sohngen, B.L. & Ohrel, S. & Fawcett, A.A., 2019. "Potential complementarity between forest carbon sequestration incentives and biomass energy expansion," Energy Policy, Elsevier, vol. 126(C), pages 391-401.
    3. Pokharel, Raju & Grala, Robert K. & Grebner, Donald L., 2017. "Woody residue utilization for bioenergy by primary forest products manufacturers: An exploratory analysis," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 161-171.
    4. Xian, Hui & Colson, Gregory & Karali, Berna & Wetzstein, Michael, 2017. "Do nonrenewable-energy prices affect renewable-energy volatility? The case of wood pellets," Journal of Forest Economics, Elsevier, vol. 28(C), pages 42-48.
    5. Vass, Miriam Münnich & Elofsson, Katarina, 2016. "Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?," Journal of Forest Economics, Elsevier, vol. 24(C), pages 82-105.
    6. Panichelli, Luis & Gnansounou, Edgard, 2015. "Impact of agricultural-based biofuel production on greenhouse gas emissions from land-use change: Key modelling choices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 344-360.
    7. Picciano, Paul & Aguilar, Francisco X. & Burtraw, Dallas & Mirzaee, Ashkan, 2022. "Environmental and socio-economic implications of woody biomass co-firing at coal-fired power plants," Resource and Energy Economics, Elsevier, vol. 68(C).
    8. Kim, Sei Jin & Baker, Justin S. & Sohngen, Brent L. & Shell, Michael, 2018. "Cumulative global forest carbon implications of regional bioenergy expansion policies," Resource and Energy Economics, Elsevier, vol. 53(C), pages 198-219.
    9. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    10. Johnston, Craig M.T. & Cornelis van Kooten, G., 2015. "Back to the past: Burning wood to save the globe," Ecological Economics, Elsevier, vol. 120(C), pages 185-193.
    11. Daigneault, Adam J. & Sohngen, Brent L. & Sedjo, Roger, 2020. "Carbon and market effects of U.S. forest taxation policy," Ecological Economics, Elsevier, vol. 178(C).
    12. Daigneault, Adam & Johnston, Craig & Korosuo, Anu & Baker, Justin S. & Forsell, Nicklas & Prestemon, Jeffrey P. & Abt, Robert C., 2019. "Developing Detailed Shared Socioeconomic Pathway (SSP) Narratives for the Global Forest Sector," Journal of Forest Economics, now publishers, vol. 34(1-2), pages 7-45, August.
    13. Andrea Sujová & Róbert Babuka & Václav Kupčák, 2021. "Methodology of monitoring wood sources and consumption in the Czech Republic," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 67(1), pages 1-11.
    14. Galik, Christopher S. & Abt, Robert C. & Latta, Gregory & Méley, Andréanne & Henderson, Jesse D., 2016. "Meeting renewable energy and land use objectives through public–private biomass supply partnerships," Applied Energy, Elsevier, vol. 172(C), pages 264-274.
    15. Galik, Christopher S. & Abt, Robert C. & Latta, Gregory & Vegh, Tibor, 2015. "The environmental and economic effects of regional bioenergy policy in the southeastern U.S," Energy Policy, Elsevier, vol. 85(C), pages 335-346.
    16. Weiwei Wang, 2022. "Agricultural and Forestry Biomass for Meeting the Renewable Fuel Standard: Implications for Land Use and GHG Emissions," Energies, MDPI, vol. 15(23), pages 1-21, November.
    17. Kovacs, Kent F. & Haight, Robert G. & Moore, Karli & Popp, Michael, 2021. "Afforestation for carbon sequestration in the Lower Mississippi River Basin of Arkansas, USA: Does modeling of land use at fine spatial resolution reveal lower carbon cost?," Forest Policy and Economics, Elsevier, vol. 130(C).
    18. Olivia Cintas & Göran Berndes & Annette L. Cowie & Gustaf Egnell & Hampus Holmström & Göran I. Ågren, 2016. "The climate effect of increased forest bioenergy use in Sweden: evaluation at different spatial and temporal scales," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(3), pages 351-369, May.
    19. Raghava Rao Kommalapati & Iqbal Hossan & Venkata Sai Vamsi Botlaguduru & Hongbo Du & Ziaul Huque, 2018. "Life Cycle Environmental Impact of Biomass Co-Firing with Coal at a Power Plant in the Greater Houston Area," Sustainability, MDPI, vol. 10(7), pages 1-18, June.
    20. Baker, Justin S. & Crouch, Adam & Cai, Yongxia & Latta, Greg & Ohrel, Sara & Jones, Jason & Latané, Annah, 2018. "Logging residue supply and costs for electricity generation: Potential variability and policy considerations," Energy Policy, Elsevier, vol. 116(C), pages 397-409.
    21. Lochhead, Kyle & Ghafghazi, Saeed & Havlik, Petr & Forsell, Nicklas & Obersteiner, Michael & Bull, Gary & Mabee, Warren, 2016. "Price trends and volatility scenarios for designing forest sector transformation," Energy Economics, Elsevier, vol. 57(C), pages 184-191.
    22. G. Cornelis van Kooten, 2016. "California Dreaming: The Economics of Renewable Energy," Working Papers 2016-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.

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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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