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Renewable energy policies and competition for biomass: Implications for land use, food prices, and processing industry

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  • Chen, Xiaoguang
  • Önal, Hayri

Abstract

We use a mathematical programming model to examine the impacts of simultaneous implementation of two US biofuel and bioenergy policies on commodity markets and spatial distribution of future cellulosic biorefineries. The key findings based on our numerical simulation are: (1) the number and average annual production capacity of cellulosic biofuel refineries depend on the total renewable fuels mandate; (2) the mix of cellulosic biomass feedstock depends on the assumptions about the production costs of energy crops and the amount of cropland that can be used for energy crops, but regardless of the assumptions crop residues are the primary biomass source to meet the demand for biomass for biofuel production and electricity generation; and (3) the biomass production areas would surround either future cellulosic biorefineries or the existing coal-based power plants to reduce the costs of biomass transportation. These findings have important implications for biorefinery investors and provide valuable policy insights for the selection of Biomass Crop Assistance Program project areas.

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  • Chen, Xiaoguang & Önal, Hayri, 2016. "Renewable energy policies and competition for biomass: Implications for land use, food prices, and processing industry," Energy Policy, Elsevier, vol. 92(C), pages 270-278.
    • Handle: RePEc:eee:enepol:v:92:y:2016:i:c:p:270-278
    DOI: 10.1016/j.enpol.2016.02.022
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    Cited by:

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    3. Fabio G. Santeramo & Monica Delsignore & Enrica Imbert & Mariarosaria Lombardi, 2023. "The Future of the EU Bioenergy Sector: Economic, Environmental, Social, and Legislative Challenges," International Review of Environmental and Resource Economics, now publishers, vol. 17(1), pages 1-1–52, April.
    4. Sharma, Bijay P. & Yu, T. Edward & English, Burton C. & Boyer, Christopher N. & Larson, James A., 2020. "Impact of government subsidies on a cellulosic biofuel sector with diverse risk preferences toward feedstock uncertainty," Energy Policy, Elsevier, vol. 146(C).
    5. Brinkman, Marnix L.J. & Wicke, Birka & Faaij, André P.C. & van der Hilst, Floor, 2019. "Projecting socio-economic impacts of bioenergy: Current status and limitations of ex-ante quantification methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    6. Montalvo-Navarrete, Juan M. & Lasso-Palacios, Ana P., 2024. "Energy access sustainability criteria definition for Colombian rural areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    7. Lin, Jun & Li, Yanan & Qian, Yanjun & Liu, Guoquan, 2024. "Effectiveness of government subsidies for biomass-based industries: Incorporating the feedstock acquisition process," Energy Policy, Elsevier, vol. 192(C).
    8. Poggi, Francesca & Firmino, Ana & Amado, Miguel, 2018. "Planning renewable energy in rural areas: Impacts on occupation and land use," Energy, Elsevier, vol. 155(C), pages 630-640.

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