Biomass and multi-product crops for agricultural and energy production—an AGE analysis

• Published in: Energy economics Vol. 28; no. 3; pp. 308 - 325
• Main Authors: Ignaciuk, Adriana M., Dellink, Rob B.
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.05.2006; Elsevier Science; Elsevier; Elsevier Science Ltd
• Series: Energy Economics
• Subjects: Agricultural production; Agriculture; Applied General Equilibrium (AGE); Applied sciences; bioenergy; Biomass; Biomass energy; bottom-up; climate-change policy; Economic data; Economic models; Economic theory; Electric energy; Electric power; Energy; Energy economics; Energy policy; Energy sector; Environmental aspects; Environmental economics; Environmental policy; Exact sciences and technology; general equilibrium-analysis; General, economic and professional studies; Land utilization; market; Methodology. Modelling; Natural energy; Poland; potentials; Renewable energy; Renewable energy sources; Renewable resources; Studies; top-down; Poland; Europe; Renewable energy; D58; Q28; H23; Energy policy; Biomass; Q42; Applied General Equilibrium (AGE); Script; Sensitivity analysis; Emission permit; Carbon dioxide; Market penetration; Subsidy; Pollutant emission; Energy plantation; Vegetal waste; Price; Environment impact; Agricultural waste; General equilibrium model; Electric power production
• ISSN: 0140-9883; 1873-6181
• DOI: 10.1016/j.eneco.2006.01.006

By-products from agriculture and forestry can contribute to production of clean and cheap (bio)electricity. To assess the role of such multi-product crops in the response to climate policies, we present an applied general equilibrium model with special attention to biomass and multi-product crops. The potential to boost production of bioelectricity in Poland through the use of multi-product crops turns out to be limited to only 2–3% of total electricity production. Further expansion of the bioelectricity sector will have to be based on biomass crops explicitly grown for energy purposes. The competition between agriculture and biomass for scarce land remains limited. In the scenarios, production of agricultural goods decreases at most with 5%, and the largest price increase for agricultural goods amounts to 5%. These changes in production induce substantial changes in land allocation: around 250,000 ha is converted from agricultural production to forestry and willow plantations.