IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v38y2010i10p5912-5926.html
   My bibliography  Save this article

Regional economic impacts of biomass based energy service use: A comparison across crops and technologies for East Styria, Austria

Author

Listed:
  • Trink, Thomas
  • Schmid, Christoph
  • Schinko, Thomas
  • Steininger, Karl W.
  • Loibnegger, Thomas
  • Kettner, Claudia
  • Pack, Alexandra
  • Töglhofer, Christoph

Abstract

Biomass action plans in many European countries seek to expand biomass heat and fuel supply, mainly to be supplied by peripheral, agricultural regions. We develop a two-plus-ten-region energy-focused computable general equilibrium (CGE) model that acknowledges land competition in analysing the sub-state local-regional economic implications of such a strategy, embedded within a global context. Our model is based on a full cost analysis of selected biomass technologies covering a range of agricultural and forestry crops, as well as thermal insulation. The local-regional macroeconomic effects differ significantly across technologies and are governed by factors such as net labour intensity in crop production. The high land intensity of agricultural biomass products crowds out conventional agriculture, and thus lowers employment and drives up land prices and the consumer price index. The regional economic results show that net employment effects are positive for all forestry based biomass energy, and also show for which agriculture based biomass systems this is true, even when accounting for land competition. When regional consumer price development governs regional wages or when the agricultural sector is in strong enough competition to the international market, positive employment and welfare impacts vanish fully for agriculture based bio-energy.

Suggested Citation

  • Trink, Thomas & Schmid, Christoph & Schinko, Thomas & Steininger, Karl W. & Loibnegger, Thomas & Kettner, Claudia & Pack, Alexandra & Töglhofer, Christoph, 2010. "Regional economic impacts of biomass based energy service use: A comparison across crops and technologies for East Styria, Austria," Energy Policy, Elsevier, vol. 38(10), pages 5912-5926, October.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:5912-5926
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00416-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:wsr:ecbook:2010:i:ii-005 is not listed on IDEAS
    2. Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
    3. Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
    4. Kuster, Robert & Ellersdorfer, Ingo & Fahl, Ulrich, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Climate Change Modelling and Policy Working Papers 12035, Fondazione Eni Enrico Mattei (FEEM).
    5. Robert Küster & ingo Ellersdorfer & Ulrich Fahl, 2007. "A CGE-Analysis of Energy Policies Considering Labor Market Imperfections and Technology Specifications," Working Papers 2007.7, Fondazione Eni Enrico Mattei.
    6. Jacoby, Henry D. & Reilly, John M. & McFarland, James R. & Paltsev, Sergey, 2006. "Technology and technical change in the MIT EPPA model," Energy Economics, Elsevier, vol. 28(5-6), pages 610-631, November.
    7. Breuss, Fritz & Steininger, Karl, 1998. "Biomass Energy Use to Reduce Climate Change: A General Equilibrium Analysis for Austria," Journal of Policy Modeling, Elsevier, vol. 20(4), pages 513-535, August.
    8. Wiepke Wissema, 2006. "Building a Social Accounting Matrix for Ireland with specific detail in relation to energy and carbon dioxide emissions," The Institute for International Integration Studies Discussion Paper Series iiisdp170, IIIS.
    9. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
    10. Ignaciuk, Adriana M. & Dellink, Rob B., 2006. "Biomass and multi-product crops for agricultural and energy production--an AGE analysis," Energy Economics, Elsevier, vol. 28(3), pages 308-325, May.
    11. Ignaciuk, A. & Vohringer, F. & Ruijs, A. & van Ierland, E.C., 2006. "Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis," Energy Policy, Elsevier, vol. 34(10), pages 1127-1138, July.
    12. Bentzen, Jan & Smith, Valdemar & Dilling-Hansen, Mogens, 1997. "Regional income effects and renewable fuels : Increased usage of renewable energy sources in Danish rural areas and its impact on regional incomes," Energy Policy, Elsevier, vol. 25(2), pages 185-191, February.
    13. Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(2), pages 117-141, June.
    14. Elghali, Lucia & Clift, Roland & Sinclair, Philip & Panoutsou, Calliope & Bauen, Ausilio, 2007. "Developing a sustainability framework for the assessment of bioenergy systems," Energy Policy, Elsevier, vol. 35(12), pages 6075-6083, December.
    15. Madlener, Reinhard, 2007. "Innovation diffusion, public policy, and local initiative: The case of wood-fuelled district heating systems in Austria," Energy Policy, Elsevier, vol. 35(3), pages 1992-2008, March.
    16. Bilgic, Abdulbaki & King, Stephen A. & Lusby, Aaron K. & Schreiner, Dean F., 2002. "Estimates of U.S. Regional Commodity Trade Elasticities of Substitution," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(2), pages 1-20.
    17. Karl Steininger & Herbert Voraberger, 2003. "Exploiting the Medium Term Biomass Energy Potentials in Austria: A Comparison of Costs and Macroeconomic Impact," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 359-377, April.
    18. Claudia Pichl & Wilfried Puwein & Karl W. Steininger, 2000. "Aus WIFO-Studien: Erneuerbare Energieträger in Österreichs Wirtschaft. Volkswirtschaftliche Evaluierung am Beispiel der Biomasse," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(3), pages 211-215, March.
    19. Berndes, Goran & Hansson, Julia, 2007. "Bioenergy expansion in the EU: Cost-effective climate change mitigation, employment creation and reduced dependency on imported fuels," Energy Policy, Elsevier, vol. 35(12), pages 5965-5979, December.
    20. Faaij, Andre P.C., 2006. "Bio-energy in Europe: changing technology choices," Energy Policy, Elsevier, vol. 34(3), pages 322-342, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    2. Randall Jackson & Amir B. Ferreira Neto & Elham Erfanian, 2016. "Woody Biomass Processing: Potential Economic Impacts on Rural Regions," Working Papers Working Paper 2016-04-v3, Regional Research Institute, West Virginia University.
    3. Randall W. Jackson & Amir Borges Ferreira Neto & Elham Erfanian & Péter Járosi, 2019. "Woody Biomass Processing and Rural Regional Development," Economic Development Quarterly, , vol. 33(3), pages 234-247, August.
    4. repec:wsr:ecbook:2013:i:iv-004 is not listed on IDEAS
    5. Thomas Schinko & Birgit Bednar-Friedl & Barbara Truger & Rafael Bramreiter & Nadejda Komendantova & Michael Hartner, 2020. "Economy-wide benefits and costs of local-level energy transition in Austrian Climate and Energy Model Regions," Graz Economics Papers 2020-05, University of Graz, Department of Economics.
    6. Jenniches, Simon, 2018. "Assessing the regional economic impacts of renewable energy sources – A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 35-51.
    7. Djanibekov, Utkur & Finger, Robert & Guta, Dawit Diriba & Varun, Gaur & Mirzabaev, Alisher, 2016. "A generic model for analyzing nexus issues of households’ bioenergy use," Discussion Papers 230416, University of Bonn, Center for Development Research (ZEF).
    8. Lin, Boqiang & Zhang, Guoliang, 2013. "Estimates of electricity saving potential in Chinese nonferrous metals industry," Energy Policy, Elsevier, vol. 60(C), pages 558-568.
    9. Phimister, Euan & Roberts, Deborah, "undated". "Allowing for uncertain and asymmetric policy shocks: a CGE analysis of the impacts of on-shore wind farm developments in north east Scotland," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182663, European Association of Agricultural Economists.

    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.
    1. Randall W. Jackson & Amir Borges Ferreira Neto & Elham Erfanian & Péter Járosi, 2019. "Woody Biomass Processing and Rural Regional Development," Economic Development Quarterly, , vol. 33(3), pages 234-247, August.
    2. repec:wsr:ecbook:2013:i:iv-004 is not listed on IDEAS
    3. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    4. Panichelli, Luis & Gnansounou, Edgard, 2015. "Impact of agricultural-based biofuel production on greenhouse gas emissions from land-use change: Key modelling choices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 344-360.
    5. Rivers, Nicholas, 2013. "Renewable energy and unemployment: A general equilibrium analysis," Resource and Energy Economics, Elsevier, vol. 35(4), pages 467-485.
    6. Cansino, JM & Cardenete, MA & González-Limón, JM & Román, R, 2013. "Economic impacts of biofuels deployment in Andalusia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 274-282.
    7. Mu, Yaqian & Wang, Can & Cai, Wenjia, 2018. "The economic impact of China's INDC: Distinguishing the roles of the renewable energy quota and the carbon market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2955-2966.
    8. Mordechai SHECHTER & Ruslana Rachel PALATNIK, 2008. "Can Climate Change Mitigation Policy Benefit the Israeli Economy? A Computable General Equilibrium Analysis," EcoMod2008 23800132, EcoMod.
    9. Welfle, Andrew & Gilbert, Paul & Thornley, Patricia, 2014. "Securing a bioenergy future without imports," Energy Policy, Elsevier, vol. 68(C), pages 1-14.
    10. Muritala Taiwo Adewale & Awolaja Ayodeji Muyideen & James Olurotimi, 2013. "Impact of Climate Change on Employment in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(3), pages 153-161, June.
    11. Shiro Takeda & Toshi H. Arimura & Makoto Sugino, 2019. "Labor Market Distortions and Welfare-Decreasing International Emissions Trading," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 271-293, September.
    12. Mu, Yaqian & Evans, Samuel & Wang, Can & Cai, Wenjia, 2018. "How will sectoral coverage affect the efficiency of an emissions trading system? A CGE-based case study of China," Applied Energy, Elsevier, vol. 227(C), pages 403-414.
    13. Viccaro, Mauro & Rocchi, Benedetto & Cozzi, Mario & Egging, Rudolf G. & Perez-Valdes, Gerardo A. & Romano, Severino, 2017. "Promoting the Bioelectricity Sector at the Regional Level: an Impact Analysis of Energy Tax Policy," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261158, European Association of Agricultural Economists.
    14. Ryohei Nakamura, 2013. "A New Approach to the Endogenous Correction of Interregional Income Disparity: Extended Interregional IO by Trading Biomass CO2 Credit," ERSA conference papers ersa13p367, European Regional Science Association.
    15. Shibasaki, Ryuichi & Yonemoto, Kiyoshi & Watanabe, Tomihiro, 2008. "On the effects of trade liberalization policies on regional economies based on "Transnational Interregional Input-Output Table between China and Japan"," Conference papers 331790, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Erisa Dautaj Şenerdem & K. Ali Akkemik, 2020. "Evaluation of the reform in the Turkish electricity sector: a CGE analysis," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 389-419, August.
    17. Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
    18. Emilio Cerdá & Alejandro Caparrós & Paola Ovando, 2008. "Bioenergía en la Unión Europea," Economic Reports 26-08, FEDEA.
    19. Kiula, Olga & Markandya, Anil & Ščasný, Milan & Menkyna Tsuchimoto, Fusako, 2014. "The Economic and Environmental Effects of Taxing Air Pollutants and CO2: Lessons from a Study of the Czech Republic," MPRA Paper 66599, University Library of Munich, Germany, revised Oct 2015.
    20. Ina Meyer & Claudia Kettner-Marx & Daniela Kletzan-Slamanig & Erwin Schmid & Martin Schönhart & Andreas Gobiet & Olivia Koland & Thomas Loibnegger & Christoph Schmid & Thomas Trink, 2010. "AMARA – Adequacy of Mitigation and Adaptation Options for a Case Study Region in Austria. The Case for Agriculture and Forestry," WIFO Studies, WIFO, number 38862, January.
    21. Schmidt, Johannes & Leduc, Sylvain & Dotzauer, Erik & Schmid, Erwin, 2011. "Cost-effective policy instruments for greenhouse gas emission reduction and fossil fuel substitution through bioenergy production in Austria," Energy Policy, Elsevier, vol. 39(6), pages 3261-3280, June.

    Corrections

    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:enepol:v:38:y:2010:i:10:p:5912-5926. 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/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.