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Internal, external and location factors influencing cofiring of biomass with coal in the U.S. northern region

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  • Aguilar, Francisco X.
  • Goerndt, Michael E.
  • Song, Nianfu
  • Shifley, Stephen

Abstract

The use of biomass as a source of energy has been identified as a viable option to diminish reliance on fossil fuels. We parameterized the effect of selected internal (e.g. coal-fire presence), external (e.g. price and renewable energy mandates) and location (e.g. biomass availability, infrastructure) variables on the likelihood of using biomass in cofiring with coal by building a two-stage econometric model. The first stage controlled for factors driving the spatial location of coal power plants and the second stage concentrated on factors influencing cofiring. The empirical model was applied in the Northeast quadrant of the U.S. where the unit of observation was an individual county. Results of our model stress the significant effect of existing flexible coal feeding systems that permit the incorporation of biomass, transportation infrastructure and biomass availability (woody biomass in particular in the form of residues from the wood products industry). State-level renewable energy portfolio standards showed no statistically significant effect on the adoption of cofiring biomass with coal. Further developments of biomass cofiring in the U.S. northern region are most likely to take place in the Great Lakes region.

Suggested Citation

  • Aguilar, Francisco X. & Goerndt, Michael E. & Song, Nianfu & Shifley, Stephen, 2012. "Internal, external and location factors influencing cofiring of biomass with coal in the U.S. northern region," Energy Economics, Elsevier, vol. 34(6), pages 1790-1798.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1790-1798
    DOI: 10.1016/j.eneco.2012.07.005
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    Cited by:

    1. Picciano, Paul & Aguilar, Francisco X. & Burtraw, Dallas & Mirzaee, Ashkan, 2022. "Environmental and socio-economic implications of woody biomass co-firing at coal-fired power plants," Resource and Energy Economics, Elsevier, vol. 68(C).
    2. Ashkan Mirzaee & Ronald G. McGarvey & Francisco X. Aguilar & Erin M. Schliep, 2023. "Impact of biopower generation on eastern US forests," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4087-4105, May.
    3. Asche, Frank & Misund, Bård & Sikveland, Marius, 2013. "The relationship between spot and contract gas prices in Europe," Energy Economics, Elsevier, vol. 38(C), pages 212-217.
    4. Sedjo, Roger A. & Sohngen, Brent & Riddle, Anne, 2013. "Wood Bioenergy and Land Use: A Challenge to the Searchinger Hypothesis," RFF Working Paper Series dp-13-33, Resources for the Future.
    5. Dahal, Ram P. & Aguilar, Francisco X. & McGarvey, Ronald G. & Becker, Dennis & Abt, Karen L., 2020. "Localized economic contributions of renewable wood-based biopower generation," Energy Economics, Elsevier, vol. 91(C).
    6. Young, Jesse D. & Anderson, Nathaniel M. & Naughton, Helen T. & Mullan, Katrina, 2018. "Economic and policy factors driving adoption of institutional woody biomass heating systems in the U.S," Energy Economics, Elsevier, vol. 69(C), pages 456-470.
    7. Mirzaee, Ashkan & McGarvey, Ronald G. & Aguilar, Francisco X., 2024. "Feasibility of satisfying projected biopower demands in support of decarbonization interventions: A spatially-explicit cost optimization model applied to woody biomass in the eastern US," Energy Economics, Elsevier, vol. 136(C).
    8. Hadi Karimi & Sandra D. Ekşioğlu & Michael Carbajales-Dale, 2021. "A biobjective chance constrained optimization model to evaluate the economic and environmental impacts of biopower supply chains," Annals of Operations Research, Springer, vol. 296(1), pages 95-130, January.

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    More about this item

    Keywords

    Cofiring; Biomass; Logit model; Infrastructure;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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