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Energy from biomass: linkages between the energy and the agricultural sector in the EU until 2050

  • Deppermann, Andre
  • Bruchof, David
  • Blesl, Markus
  • Boysen, Ole
  • Grethe, Harald

Over the last decades traditional energy sources are increasingly replaced by energy from biomass and this trend is expected to continue into the future. Assessing the efficiency of bioenergy policies requires a comprehensive analysis of the interrelationship between agricultural and energy markets. This study analyzes the impacts of two alternative EU greenhouse gas emission mitigation scenarios on the utilization of biomass for energy production and the price of agricultural products. To this end, we combine the energy system model TIMES PanEU and the agricultural sector model ESIM. We establish a consistent interface between the models and run them in an iterative procedure where TIMES PanEU represents the demand side for energy crops and ESIM their supply side. According to our results, an extension of the mandatory reduction of emissions has strong biomass demand effects and affects the agricultural sector in its entirety. Due to the increased demand for energy crops, average crop prices in the EU increase by an estimated 30 percentage points in 2050. The expanded area use for production of energy crops inside the EU27 turns the EU from being a net exporter to a net importer for many important agricultural commodities.

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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126754.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126754
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  1. Banse, Martin & Grethe, Harald, 2008. "Effects Of A Potential New Biofuel Directive On Eu Land Use And Agricultural Markets," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6331, European Association of Agricultural Economists.
  2. Kretschmer, Bettina & Peterson, Sonja, 2010. "Integrating bioenergy into computable general equilibrium models -- A survey," Energy Economics, Elsevier, vol. 32(3), pages 673-686, May.
  3. Ruth Delzeit & Horst Gömann & Karin Holm-Müller & Peter Kreins & Bettina Kretschmer & Julia Münch & Sonja Peterson, 2010. "Analysing Bioenergy and Land Use Competition in a Coupled Modelling System: The Role of Bioenergy in Renewable Energy Policy in Germany," Kiel Working Papers 1653, Kiel Institute for the World Economy.
  4. 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.
  5. Blesl, Markus & Kober, Tom & Bruchof, David & Kuder, Ralf, 2010. "Effects of climate and energy policy related measures and targets on the future structure of the European energy system in 2020 and beyond," Energy Policy, Elsevier, vol. 38(10), pages 6278-6292, October.
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