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The regional economic impacts of biofuels: A review of multisectoral modelling techniques and evaluation of applications

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  • Grant Allan

    (Department of Economics, Fraser of Allander Institute, University of Strathclyde)

Abstract

The regional economic impact of biofuel production depends upon a number of interrelated factors: the specific biofuels feedstock and production technology employed; the sector’s embeddedness to the rest of the economy, through its demand for local resources; the extent to which new activity is created. These issues can be analysed using multisectoral economic models. Some studies have used (fixed price) Input-Output (IO) and Social Accounting Matrix (SAM) modelling frameworks, whilst a nascent Computable General Equilibrium (CGE) literature has also begun to examine the regional (and national) impact of biofuel development. This paper reviews, compares and evaluates these approaches for modelling the regional economic impacts of biofuels.

Suggested Citation

  • Grant Allan, 2011. "The regional economic impacts of biofuels: A review of multisectoral modelling techniques and evaluation of applications," Working Papers 11-30, University of Strathclyde Business School, Department of Economics.
  • Handle: RePEc:str:wpaper:11-30
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    Cited by:

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    2. Randall Jackson & Amir B. Ferreira Neto & Elham Erfanian, 2016. "Woody Biomass Processing: Potential Economic Impacts on Rural Regions," Working Papers Working Paper 2016-04-v3, Regional Research Institute, West Virginia University.
    3. Zanxin Wang & Wei Wei & Margaret Calderon & Xianchun Liao, 2019. "Impacts of biofuel policy on the regional economy and carbon emission reduction in Yunnan, China," Energy & Environment, , vol. 30(5), pages 930-948, August.
    4. Randall W. Jackson & Amir Borges Ferreira Neto & Elham Erfanian & Péter Járosi, 2019. "Woody Biomass Processing and Rural Regional Development," Economic Development Quarterly, , vol. 33(3), pages 234-247, August.
    5. Sievers, Luisa & Schaffer, Axel, 2016. "The impacts of the German biofuel quota on sectoral domestic production and imports of the German economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 497-505.
    6. Philip B. Whyman, 2018. "The local economic impact of shale gas extraction," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 184-196, February.
    7. Zhao, Bing & Wang, Nuo & Wang, Yixuan, 2022. "The role of different transportation modes in China's national economy: An input–output analysis," Transport Policy, Elsevier, vol. 127(C), pages 92-102.
    8. Brinkman, Marnix L.J. & Wicke, Birka & Faaij, André P.C. & van der Hilst, Floor, 2019. "Projecting socio-economic impacts of bioenergy: Current status and limitations of ex-ante quantification methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    9. Faße, Anja & Winter, Etti & Grote, Ulrike, 2014. "Bioenergy and rural development: The role of agroforestry in a Tanzanian village economy," Ecological Economics, Elsevier, vol. 106(C), pages 155-166.

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    More about this item

    Keywords

    biofuels; economic modelling; input-output; social accounting matrix; computable general equilibrium.;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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