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Maintaining environmental quality while expanding biomass production: Sub-regional U.S. policy simulations

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  • Egbendewe-Mondzozo, Aklesso
  • Swinton, Scott M.
  • Izaurralde, R. César
  • Manowitz, David H.
  • Zhang, Xuesong

Abstract

This paper evaluates environmental policy effects on ligno-cellulosic biomass production and environmental outcomes using an integrated bioeconomic optimization model. The environmental policy integrated climate (EPIC) model is used to simulate crop yields and environmental indicators in current and future potential bioenergy cropping systems based on weather, topographic and soil data. The crop yield and environmental outcome parameters from EPIC are combined with biomass transport costs and economic parameters in a representative farmer profit-maximizing mathematical optimization model. The model is used to predict the impact of alternative policies on biomass production and environmental outcomes. We find that without environmental policy, rising biomass prices initially trigger production of annual crop residues, resulting in increased greenhouse gas emissions, soil erosion, and nutrient losses to surface and ground water. At higher biomass prices, perennial bioenergy crops replace annual crop residues as biomass sources, resulting in lower environmental impacts. Simulations of three environmental policies namely a carbon price, a no-till area subsidy, and a fertilizer tax reveal that only the carbon price policy systematically mitigates environmental impacts. The fertilizer tax is ineffectual and too costly to farmers. The no-till subsidy is effective only at low biomass prices and is too costly to government.

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  • Egbendewe-Mondzozo, Aklesso & Swinton, Scott M. & Izaurralde, R. César & Manowitz, David H. & Zhang, Xuesong, 2013. "Maintaining environmental quality while expanding biomass production: Sub-regional U.S. policy simulations," Energy Policy, Elsevier, vol. 57(C), pages 518-531.
    • Handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:518-531
    DOI: 10.1016/j.enpol.2013.02.021
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    3. Naveen Adusumilli & Taesoo Lee & M. Edward Rister & Ronald D. Lacewell, 2014. "The Economics of Mitigation of Water Pollution Externalities from Biomass Production for Energy," Resources, MDPI, vol. 3(4), pages 1-13, December.
    4. Lukáš Moravec & Jana Hinke & Gabriela Kukalová & Adéla Šlapáková, 2019. "Comparison of Tax Burden on Farms in Selected US States," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(3), pages 839-851.
    5. Wei Li & Guomin Li & Rongxia Zhang & Wen Sun & Wen Wu & Baihui Jin & Pengfei Cui, 2017. "Carbon Reduction Potential of Resource-Dependent Regions Based on Simulated Annealing Programming Algorithm," Sustainability, MDPI, vol. 9(7), pages 1-17, July.

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