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Logging residue supply and costs for electricity generation: Potential variability and policy considerations

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  • Baker, Justin S.
  • Crouch, Adam
  • Cai, Yongxia
  • Latta, Greg
  • Ohrel, Sara
  • Jones, Jason
  • Latané, Annah

Abstract

This paper applies a spatial allocation optimization model to evaluate logging residue supply potential and costs for bioelectricity generation within the conterminous United States. Simulations are developed to estimate a range in supply potential and costs across a broad range of sensitivity scenarios, including (1) different biomass availability rates based on observed roundwood removals, (2) renewable energy targets set nationally or at a state-level, (3) with and without biomass sourcing restrictions within a state, (4) with and without access to public lands, and (5) policy restrictions on eligible facility types. Under the least restrictive policy scenario (a hypothetical national mandate), total supply is 8.8 million dry tons (MDT) at $20/DT and increases to 32.5 MDT at $80/DT. Results fall within the range of previous logging residue supply studies in the U.S., including the last two Billion Ton reports. Results from this paper offer important policy insight into the potential cost efficiency of a flexible policy design. Sensitivity scenarios show potential supply cost increases that could result from policies imposing regional restrictions, limiting access to public lands, and restricting eligible facilities. Restricting biomass supply sources within state boundaries reduces total supply up to 10% relative to an unrestricted national policy.

Suggested Citation

  • Baker, Justin S. & Crouch, Adam & Cai, Yongxia & Latta, Greg & Ohrel, Sara & Jones, Jason & Latané, Annah, 2018. "Logging residue supply and costs for electricity generation: Potential variability and policy considerations," Energy Policy, Elsevier, vol. 116(C), pages 397-409.
    • Handle: RePEc:eee:enepol:v:116:y:2018:i:c:p:397-409
    DOI: 10.1016/j.enpol.2017.11.026
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    References listed on IDEAS

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    1. Latta, Gregory S. & Baker, Justin S. & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013. "A multi-sector intertemporal optimization approach to assess the GHG implications of U.S. forest and agricultural biomass electricity expansion," Journal of Forest Economics, Elsevier, vol. 19(4), pages 361-383.
    2. He, Lixia & English, Burton C. & De La Torre Ugarte, Daniel G. & Hodges, Donald G., 2014. "Woody biomass potential for energy feedstock in United States," Journal of Forest Economics, Elsevier, vol. 20(2), pages 174-191.
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    1. Baker, Justin S. & Van Houtven, George & Phelan, Jennifer & Latta, Gregory & Clark, Christopher M. & Austin, Kemen G. & Sodiya, Olakunle E. & Ohrel, Sara B. & Buckley, John & Gentile, Lauren E. & Mart, 2023. "Projecting U.S. forest management, market, and carbon sequestration responses to a high-impact climate scenario," Forest Policy and Economics, Elsevier, vol. 147(C).

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