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Analysing the economy-wide impact of the supply chains activated by a new biomass power plant. The case of cardoon in Sardinia

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  • Bonfiglio, Andrea
  • Esposti, Roberto

Abstract

This study investigates the impact on the economy of Sardinia (Italy) generated by a new biomass power plant fed by locally cultivated cardoon. The cardoon also serves the production of biopolymers. The impact is assessed at an economy-wide level using two multiregional closed Input-Output models, which allow us to take into account the entire supply chain activated and the supra-local effects generated by trade across local industries. The effects are computed under alternative scenarios simulating different levels of substitution of existing agricultural activities with the new activity (cardoon). Results show positive and locally significant impacts in terms of value added and employment. However, these impacts are substantially influenced by the degree of substitution. Results also suggest that there are specific territorial areas that are more sensitive to negative effects induced by substitution.

Suggested Citation

  • Bonfiglio, Andrea & Esposti, Roberto, 2016. "Analysing the economy-wide impact of the supply chains activated by a new biomass power plant. The case of cardoon in Sardinia," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(1), pages 1-22, April.
    • Handle: RePEc:ags:aieabj:239843
    DOI: 10.22004/ag.econ.239843
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    1. Bonfiglio, Andrea, 2006. "The Impact of Romania's Accession to the EU. An Analysis of the Effects of Regional Development Policy Through a Multi-regional I-O Model," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), pages 1-15, July.
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    3. English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Walsh, Marie E. & Torre Ugarte, Daniel de la & Brandt, Craig & Van Dyke, Jim & Hadley, Stanton, 2004. "Economic Impacts Resulting From Co-Firing Biomass Feedstocks In Southeastern United States Coal-Fired Plants," 2004 Annual meeting, August 1-4, Denver, CO 20200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    5. Andrea Bonfiglio, 2009. "On The Parameterization Of Techniques For Representing Regional Economic Structures," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 115-127.
    6. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    7. Heller, Martin C & Keoleian, Gregory A & Mann, Margaret K & Volk, Timothy A, 2004. "Life cycle energy and environmental benefits of generating electricity from willow biomass," Renewable Energy, Elsevier, vol. 29(7), pages 1023-1042.
    8. Andrea Bonfiglio & Francesco Chelli, 2008. "Assessing the Behaviour of Non-Survey Methods for Constructing Regional Input-Output Tables through a Monte Carlo Simulation," Economic Systems Research, Taylor & Francis Journals, vol. 20(3), pages 243-258.
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    Cited by:

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    3. 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).
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    More about this item

    Keywords

    Community/Rural/Urban Development; Environmental Economics and Policy; Resource /Energy Economics and Policy;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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