We need stable, long-term policy support! — Evaluating the economic rationale behind the prevalent investor lament for forest-based biofuel production
Author
Abstract
Suggested Citation
DOI: 10.1016/j.apenergy.2022.119044
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Kozlova, Mariia, 2017. "Real option valuation in renewable energy literature: Research focus, trends and design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 180-196.
- Jafri, Yawer & Wetterlund, Elisabeth & Anheden, Marie & Kulander, Ida & Håkansson, Åsa & Furusjö, Erik, 2019. "Multi-aspect evaluation of integrated forest-based biofuel production pathways: Part 1. Product yields & energetic performance," Energy, Elsevier, vol. 166(C), pages 401-413.
- Näyhä, Annukka & Pesonen, Hanna-Leena, 2012. "Diffusion of forest biorefineries in Scandinavia and North America," Technological Forecasting and Social Change, Elsevier, vol. 79(6), pages 1111-1120.
- Hassett, Kevin A & Metcalf, Gilbert E, 1999.
"Investment with Uncertain Tax Policy: Does Random Tax Policy Discourage Investment?,"
Economic Journal, Royal Economic Society, vol. 109(457), pages 372-393, July.
- Kevin Hassett & Gilbert E. Metcalf, 1994. "Investment with Uncertain Tax Policy: Does Random Tax Policy Discourage Investment?," NBER Working Papers 4780, National Bureau of Economic Research, Inc.
- Kevin A. Hassett & Gilbert E. Metcalf, 1998. "Investment With Uncertain Tax Policy: Does Random Tax Policy Discourage Investment?," Discussion Papers Series, Department of Economics, Tufts University 9823, Department of Economics, Tufts University.
- Jafri, Yawer & Wetterlund, Elisabeth & Mesfun, Sennai & Rådberg, Henrik & Mossberg, Johanna & Hulteberg, Christian & Furusjö, Erik, 2020. "Combining expansion in pulp capacity with production of sustainable biofuels – Techno-economic and greenhouse gas emissions assessment of drop-in fuels from black liquor part-streams," Applied Energy, Elsevier, vol. 279(C).
- Mai-Moulin, T. & Hoefnagels, R. & Grundmann, P. & Junginger, M., 2021. "Effective sustainability criteria for bioenergy: Towards the implementation of the european renewable directive II," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
- Schachter, J.A. & Mancarella, P., 2016. "A critical review of Real Options thinking for valuing investment flexibility in Smart Grids and low carbon energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 261-271.
- Sarah L. Stattman & Aarti Gupta & Lena Partzsch & Peter Oosterveer, 2018. "Toward Sustainable Biofuels in the European Union? Lessons from a Decade of Hybrid Biofuel Governance," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
- World Bank, "undated". "State and Trends of Carbon Pricing 2020 [Situación y tendencias de la fijación del precio al carbono 2020]," World Bank Publications - Reports 33809, The World Bank Group.
- Connolly, D. & Mathiesen, B.V. & Ridjan, I., 2014. "A comparison between renewable transport fuels that can supplement or replace biofuels in a 100% renewable energy system," Energy, Elsevier, vol. 73(C), pages 110-125.
- Magdalena Fallde & Johan Torén & Elisabeth Wetterlund, 2017. "Energy System Models as a Means of Visualising Barriers and Drivers of Forest-Based Biofuels: An Interview Study of Developers and Potential Users," Sustainability, MDPI, vol. 9(10), pages 1-19, October.
- Hamelin, Lorie & Borzęcka, Magdalena & Kozak, Małgorzata & Pudełko, Rafał, 2019. "A spatial approach to bioeconomy: Quantifying the residual biomass potential in the EU-27," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 127-142.
- Markel, Evan & Sims, Charles & English, Burton C., 2018. "Policy uncertainty and the optimal investment decisions of second-generation biofuel producers," Energy Economics, Elsevier, vol. 76(C), pages 89-100.
- Gazheli, Ardjan & van den Bergh, Jeroen, 2018. "Real options analysis of investment in solar vs. wind energy: Diversification strategies under uncertain prices and costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2693-2704.
- Liu, Shen & Colson, Gregory & Wetzstein, Michael, 2018.
"Biodiesel investment in a disruptive tax-credit policy environment,"
Energy Policy, Elsevier, vol. 123(C), pages 19-30.
- Liu, Shen & Colson, Gregory J. & Wetzstein, Michael E., 2015. "Disruptive Policy Impacts on Biodiesel Investment: The Third Leg in 3-T Policy," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205582, Agricultural and Applied Economics Association.
- Jafri, Yawer & Wetterlund, Elisabeth & Anheden, Marie & Kulander, Ida & Håkansson, Åsa & Furusjö, Erik, 2019. "Multi-aspect evaluation of integrated forest-based biofuel production pathways: Part 2. economics, GHG emissions, technology maturity and production potentials," Energy, Elsevier, vol. 172(C), pages 1312-1328.
- Charles R. Harris & K. Jarrod Millman & Stéfan J. Walt & Ralf Gommers & Pauli Virtanen & David Cournapeau & Eric Wieser & Julian Taylor & Sebastian Berg & Nathaniel J. Smith & Robert Kern & Matti Picu, 2020. "Array programming with NumPy," Nature, Nature, vol. 585(7825), pages 357-362, September.
- Ghoddusi, Hamed, 2017. "Blending under uncertainty: Real options analysis of ethanol plants and biofuels mandates," Energy Economics, Elsevier, vol. 61(C), pages 110-120.
- Zetterholm, Jonas & Wetterlund, Elisabeth & Pettersson, Karin & Lundgren, Joakim, 2018. "Evaluation of value chain configurations for fast pyrolysis of lignocellulosic biomass - Integration, feedstock, and product choice," Energy, Elsevier, vol. 144(C), pages 564-575.
- Akbari, Maryam & Oyedun, Adetoyese Olajire & Kumar, Amit, 2018. "Ammonia production from black liquor gasification and co-gasification with pulp and waste sludges: A techno-economic assessment," Energy, Elsevier, vol. 151(C), pages 133-143.
- Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
- Karasu, Seçkin & Altan, Aytaç & Bekiros, Stelios & Ahmad, Wasim, 2020. "A new forecasting model with wrapper-based feature selection approach using multi-objective optimization technique for chaotic crude oil time series," Energy, Elsevier, vol. 212(C).
- Ji Wu & Jing Zhang & Shiyu Zhang & Liping Zou, 2020. "The economic policy uncertainty and firm investment in Australia," Applied Economics, Taylor & Francis Journals, vol. 52(31), pages 3354-3378, June.
- Kevin A. Hassett, 1999.
"Tax Policy and Investment,"
Books,
American Enterprise Institute, number 53049, September.
- Kevin A. Hassett & R. Glenn Hubbard, 1996. "Tax Policy and Investment," NBER Working Papers 5683, National Bureau of Economic Research, Inc.
- Li, Yihua & Tseng, Chung-Li & Hu, Guiping, 2015. "Is now a good time for Iowa to invest in cellulosic biofuels? A real options approach considering construction lead times," International Journal of Production Economics, Elsevier, vol. 167(C), pages 97-107.
- Liu, Guanchun & Zhang, Chengsi, 2020. "Economic policy uncertainty and firms' investment and financing decisions in China," China Economic Review, Elsevier, vol. 63(C).
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Sun, Bo & Fan, Boyang & Wu, Chun & Xie, Jingdong, 2024. "Exploring incentive mechanisms for the CCUS project in China's coal-fired power plants: An option-game approach," Energy, Elsevier, vol. 288(C).
- Sun, Bo & Fan, Boyang & Zhang, Yifan & Xie, Jingdong, 2023. "Investment decisions and strategies of China's energy storage technology under policy uncertainty: A real options approach," Energy, Elsevier, vol. 278(PA).
- Lin, Boqiang & Zhao, Hengsong, 2023. "Tracking policy uncertainty under climate change," Resources Policy, Elsevier, vol. 83(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Fedorova, Elena & Ledyaeva, Svetlana & Drogovoz, Pavel & Nevredinov, Alexandr, 2022. "Economic policy uncertainty and bankruptcy filings," International Review of Financial Analysis, Elsevier, vol. 82(C).
- Wong, Kit Pong, 2011. "Progressive taxation and the intensity and timing of investment," Economic Modelling, Elsevier, vol. 28(1-2), pages 100-108, January.
- Ferguson, Andrew & Hu, Wei & Lam, Peter, 2022. "Political uncertainty and deal structure: Evidence from Australian mining project acquisitions," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
- Bertolini, Marina & D'Alpaos, Chiara & Moretto, Michele, 2018. "Do Smart Grids boost investments in domestic PV plants? Evidence from the Italian electricity market," Energy, Elsevier, vol. 149(C), pages 890-902.
- Linnerud, Kristin & Andersson, Ane Marte & Fleten, Stein-Erik, 2014. "Investment timing under uncertain renewable energy policy: An empirical study of small hydropower projects," Energy, Elsevier, vol. 78(C), pages 154-164.
- Haehl, Christian & Spinler, Stefan, 2018. "Capacity expansion under regulatory uncertainty:A real options-based study in international container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 113(C), pages 75-93.
- Hjalmar Boehm & Michael Funke, 2000. "Optimal Investment Strategies under Demand and Tax Policy Uncertainty," CESifo Working Paper Series 311, CESifo.
- Wälde, Klaus, 2003.
"Endogenous business cycles and growth,"
Dresden Discussion Paper Series in Economics
12/03, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
- Klaus Walde, 2004. "Endogenous business cycles and growth," Money Macro and Finance (MMF) Research Group Conference 2003 109, Money Macro and Finance Research Group.
- Klaus Wälde, 2003. "Endogenous Business Cycles and Growth," CESifo Working Paper Series 920, CESifo.
- Liu, Shen & Colson, Gregory & Wetzstein, Michael, 2018.
"Biodiesel investment in a disruptive tax-credit policy environment,"
Energy Policy, Elsevier, vol. 123(C), pages 19-30.
- Liu, Shen & Colson, Gregory J. & Wetzstein, Michael E., 2015. "Disruptive Policy Impacts on Biodiesel Investment: The Third Leg in 3-T Policy," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205582, Agricultural and Applied Economics Association.
- Makoto Goto & Katsumasa Nishide & Ryuta Takashima, 2013. "Irreversible Investment under Competition with a Markov Switching Regime," KIER Working Papers 861, Kyoto University, Institute of Economic Research.
- Davison, Matt & Merener, Nicolas, 2023. "Equilibrium and real options in the ethanol industry: Modeling and empirical evidence," Journal of Commodity Markets, Elsevier, vol. 31(C).
- Luis H. R. Alvarez & Erkki Koskela, 2005. "Progressive Taxation and Irreversible Investment under Uncertainty," CESifo Working Paper Series 1377, CESifo.
- Hanno Dihle, 2015. "Real Options in a Ramsey style Growth Model," Discussion Paper Series 32, Department of International Economic Policy, University of Freiburg, revised Dec 2015.
- Rainer Niemann, 2007. "The Impact of Tax Uncertainty on Irreversible Investment," CESifo Working Paper Series 2075, CESifo.
- Kang, Wensheng & Lee, Kiseok & Ratti, Ronald A., 2014.
"Economic policy uncertainty and firm-level investment,"
Journal of Macroeconomics, Elsevier, vol. 39(PA), pages 42-53.
- Kang, Wensheng & Lee, Kiseok & Ratti, Ronald A., 2013. "Economic Policy Uncertainty and Firm-Level Investment," MPRA Paper 51277, University Library of Munich, Germany.
- Ping Shi & Bo Yan & Jun Zhao, 2020. "Appropriate timing for SMEs to introduce an Internet-based online channel under uncertain operating costs: a real options analysis," Electronic Commerce Research, Springer, vol. 20(4), pages 969-999, December.
- Castellini, Marta & Menoncin, Francesco & Moretto, Michele & Vergalli, Sergio, 2021.
"Photovoltaic Smart Grids in the prosumers investment decisions: a real option model,"
Journal of Economic Dynamics and Control, Elsevier, vol. 126(C).
- Marta Castellini & Francesco Menoncin & Michele Moretto & Sergio Vergalli, 2019. "Photovoltaic Smart Grids in the Prosumers Investment Decisions: a Real Option Model," Working Papers 2019.28, Fondazione Eni Enrico Mattei.
- Castellini, Marta & Menoncin, Francesco & Moretto, Michele & Vergalli, Sergio, 2020. "Photovoltaic Smart Grids in the Prosumers Investment Decisions: a Real Option Model," ES: Economics for Sustainability 301034, Fondazione Eni Enrico Mattei (FEEM) > ES: Economics for Sustainability.
- Dibiasi, Andreas & Abberger, Klaus & Siegenthaler, Michael & Sturm, Jan-Egbert, 2018. "The effects of policy uncertainty on investment: Evidence from the unexpected acceptance of a far-reaching referendum in Switzerland," European Economic Review, Elsevier, vol. 104(C), pages 38-67.
- Pennings, Enrico, 2005. "How to maximize domestic benefits from foreign investments: the effect of irreversibility and uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 29(5), pages 873-889, May.
- Kozlova, Mariia, 2017. "Real option valuation in renewable energy literature: Research focus, trends and design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 180-196.
More about this item
Keywords
Real options; Drop-in biofuels; Pulp mill; Integration; Uncertainty;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:318:y:2022:i:c:s0306261922004457. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.