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

  • Grant Allan

    ()

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

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.

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Paper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 11-30.

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Length: 48 pages
Date of creation: Oct 2011
Publication status: Published
Handle: RePEc:str:wpaper:11-30
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