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The Impact of Different Energy Policy Options on Feedstock Price and Land Demand for Maize Silage: The Case of Biogas in Lombardy

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  • Bartoli, A.
  • Cavicchioli, D.
  • Kremmydas, D.
  • Rozakis, S.
  • Olper, Alessandro

Abstract

The growing demand of green maize for biogas production in Northern Italy has triggered an intense debate concerning land rents, maize prices and their possible negative consequences on important agri-food chains. The aim of this work is to quantify the extent to which the rapid spread of biogas raised the maize price at regional level, increasing the demand of land for energy crops. For this purpose we built a partial-equilibrium model simulating the agricultural sector and the biogas industry in Lombardy, under two alternative subsidization schemes. Results show that policy measures implemented in 2013 – reducing the average subsidy per kWh – may contribute to enforce the sustainability of the sector and decreasing its competition with agri-food chains: maize demand for biogas would decrease, compared to the old scheme, lessening the market clearing price and reducing land demand for energy purposes.

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  • Bartoli, A. & Cavicchioli, D. & Kremmydas, D. & Rozakis, S. & Olper, Alessandro, 2015. "The Impact of Different Energy Policy Options on Feedstock Price and Land Demand for Maize Silage: The Case of Biogas in Lombardy," 2015 Conference, August 9-14, 2015, Milan, Italy 211198, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211198
    DOI: 10.22004/ag.econ.211198
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    11. Cord-Friedrich von Hobe & Marius Michels & Oliver Musshoff, 2021. "German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results," Land, MDPI, vol. 10(2), pages 1-22, February.
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    13. Forleo, Maria Bonaventura & Palmieri, Nadia & Suardi, Alessandro & Coaloa, Domenico & Pari, Luigi, 2017. "Bioenergy crops production in Italy: environmental impacts and economic performances," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261276, Italian Association of Agricultural and Applied Economics (AIEAA).
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    15. Alper Bayram & Antonino Marvuglia & Maria Myridinas & Marta Porcel, 2022. "Increasing Biowaste and Manure in Biogas Feedstock Composition in Luxembourg: Insights from an Agent-Based Model," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    16. Grégory Claeys & Gustav Fredriksson & Georg Zachmann, . "The distributional effects of climate policies," Blueprints, Bruegel, number 28291, December.
    17. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, vol. 9(11), pages 1-23, November.
    18. Giovanna Croxatto Vega & Juliën Voogt & Joshua Sohn & Morten Birkved & Stig Irving Olsen, 2020. "Assessing New Biotechnologies by Combining TEA and TM-LCA for an Efficient Use of Biomass Resources," Sustainability, MDPI, vol. 12(9), pages 1-35, May.
    19. Bertoni, Danilo & Aletti, Giacomo & Ferrandi, Giulia & Micheletti, Alessandra & Cavicchioli, Daniele & Pretolani, Roberto, 2018. "Farmland Use Transitions After the CAP Greening: a Preliminary Analysis Using Markov Chains Approach," Land Use Policy, Elsevier, vol. 79(C), pages 789-800.
    20. Lauven, Lars-Peter & Geldermann, Jutta & Desideri, Umberto, 2019. "Estimating the revenue potential of flexible biogas plants in the power sector," Energy Policy, Elsevier, vol. 128(C), pages 402-410.
    21. Bartolini, Fabio & Gava, Oriana & Brunori, Gianluca, 2017. "Biogas and EU's 2020 targets: Evidence from a regional case study in Italy," Energy Policy, Elsevier, vol. 109(C), pages 510-519.

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    Keywords

    Agricultural and Food Policy; Land Economics/Use;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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