Cost-Effectiveness of Lignocellulose Biorefineries and their Impact on the Deciduous Wood Markets in Germany
Biorefineries, especially if based on woody biomass, may cause significant changes to the forest and wood-based industry. The resulting changes may, in turn, affect the economic feasibility of lignocellulosic biofuels production. In this article, we introduce a spatial partial equilibrium model of the forest and wood processing industries in Germany. The wood market model is linked to the Reaction Network Flux Analysis (RNFA), a model for the systematic selection of reaction pathways in the preliminary evaluation of the mass balance of innovative biofuel components. In doing so, we can simulate the impact of wood-based biorefineries on their feedstock markets and also assess the economic feasibility of the proposed production process. In a case study based on the transformation of beech wood to methyltetrahydrofuran (MTHF), a potential biofuel component currently under development, we show how the net present value of lignocellulosic biorefineries of various sizes is completely reversed once the wood market’s response to the entry of a new high-volume consumer is taken into account.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eonerc.rwth-aachen.de/fcn|
More information through EDIRC
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.:
- Lyon, Kenneth S., 1981. "Mining of the forest and the time path of the price of timber," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 330-344, December.
- T. Takayama & G. G. Judge, 1964. "An Interregional Activity Analysis Model for the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(2), pages 349-365.
- Maung, Thein A. & Gustafson, Cole R., 2010. "The Economic Feasibility of Sugarbeet Biofuel Production in Central North Dakota," Agribusiness & Applied Economics Report 95745, North Dakota State University, Department of Agribusiness and Applied Economics.
- Sedjo, Roger & Lyon, Kenneth, 1996. "Timber Supply Model 96: A Global Timber Supply Model with a Pulpwood Component," Discussion Papers dp-96-15, Resources For the Future.
- Michinaka, Tetsuya & Tachibana, Satoshi & Turner, James A., 2011. "Estimating price and income elasticities of demand for forest products: Cluster analysis used as a tool in grouping," Forest Policy and Economics, Elsevier, vol. 13(6), pages 435-445, July.
- Dug Lee & Kenneth Lyon, 2001.
"A dynamic analysis of the global timber market under global warming: an integrated modeling approach,"
2001-11, Utah State University, Department of Economics.
- Dug Man Lee & Kenneth S. Lyon, 2004. "A Dynamic Analysis of the Global Timber Market under Global Warming: An Integrated Modeling Approach," Southern Economic Journal, Southern Economic Association, vol. 70(3), pages 467-489, January.
- Berck, Peter, 1981. "Optimal management of renewable resources with growing demand and stock externalities," Journal of Environmental Economics and Management, Elsevier, vol. 8(2), pages 105-117, June.
- T. Takayama & G. G. Judge, 1964. "Spatial Equilibrium and Quadratic Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(1), pages 67-93.
- Leistritz, F. Larry & Senechal, Donald M. & Stowers, Mark D. & McDonald, William F. & Saffron, Chris M. & Hodur, Nancy M., 2006. "Preliminary Feasibility Analysis For An Integrated Biomaterials And Ethanol Biorefinery Using Wheat Straw Feedstock," Agribusiness & Applied Economics Report 23500, North Dakota State University, Department of Agribusiness and Applied Economics.
- He, Jie & Zhang, Wennan, 2011. "Techno-economic evaluation of thermo-chemical biomass-to-ethanol," Applied Energy, Elsevier, vol. 88(4), pages 1224-1232, April.
- Sylvain Caurla & Franck Lecocq & Philippe Delacote & Ahmed Barkaoui, 2010. "The French Forest Sector Model: version 1.0. Presentation and theorical foundations," Working Papers - Cahiers du LEF 2010-04, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
- Solow, Robert M, 1974. "The Economics of Resources or the Resources of Economics," American Economic Review, American Economic Association, vol. 64(2), pages 1-14, May.
- Peter Berck, 1979. "The Economics of Timber: A Renewable Resource in the Long Run," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 447-462, Autumn.
- Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
When requesting a correction, please mention this item's handle: RePEc:ris:fcnwpa:2012_008. 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: (Hendrik Schmitz)
If references are entirely missing, you can add them using this form.