IDEAS home Printed from https://ideas.repec.org/a/eee/foreco/v19y2013i4p432-449.html
   My bibliography  Save this article

Wood biomass use for energy in Europe under different assumptions of coal, gas and CO2 emission prices and market conditions

Author

Listed:
  • Moiseyev, Alexander
  • Solberg, Birger
  • Kallio, A. Maarit I.

Abstract

This study examines the effects of different coal, natural gas and carbon emission prices and market situations on the use of wood for electricity and heat production in the European Union. The analysis is carried out using the global forest sector model EFI-GTM expanded to cover electricity and heat production from wood, coal, natural gas, wind and solar energy. Analysis shows that with low coal and gas prices, use of wood for energy will be limited to low cost logging residues. With high coal, and especially natural gas prices, industrial wood also comes to be used for energy. At a carbon price of 100€/tCO2, some 32Mm3 of industrial wood, in addition to 224Mm3 of logging residues, are projected to be used for electricity and heat in the EU region (including Norway and Switzerland) in 2030. The relatively low quantity of industrial wood used by the energy sector despite the collapse of the use of coal is explained by the fact that under high CO2 prices, other energy forms like natural gas, solar and wind energy become more and more competitive. However, the amount of industrial wood used for energy may substantially increase with subsidies for using wood for electricity and heat, even with relatively low carbon prices. With a high coal and gas price and a carbon price of 100€/t, a subsidy of 30€/MWh to the wood based and coal with wood co-firing electricity production will have a significant impact on the European wood based sector. Depending on the development of the market demand for forest industry products, such a subsidy may cause a 10–12.5% reduction in forest products production, a 6–9% increase in harvest level, about 30–60% increase in the pulpwood prices, and a 6–9 fold increase of wood imports in the EU, compared to the respective case without a subsidy in 2030.

Suggested Citation

  • Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I., 2013. "Wood biomass use for energy in Europe under different assumptions of coal, gas and CO2 emission prices and market conditions," Journal of Forest Economics, Elsevier, vol. 19(4), pages 432-449.
    • Handle: RePEc:eee:foreco:v:19:y:2013:i:4:p:432-449
    DOI: 10.1016/j.jfe.2013.10.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1104689913000469
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfe.2013.10.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I. & Lindner, Marcus, 2011. "An economic analysis of the potential contribution of forest biomass to the EU RES target and its implications for the EU forest industries," Journal of Forest Economics, Elsevier, vol. 17(2), pages 197-213, April.
    2. Kallio, A. Maarit I. & Anttila, Perttu & McCormick, Megan & Asikainen, Antti, 2011. "Are the Finnish targets for the energy use of forest chips realistic--Assessment with a spatial market model," Journal of Forest Economics, Elsevier, vol. 17(2), pages 110-126, April.
    3. Sjølie, Hanne K. & Latta, Gregory S. & Adams, Darius M. & Solberg, Birger, 2011. "Impacts of agent information assumptions in forest sector modeling," Journal of Forest Economics, Elsevier, vol. 17(2), pages 169-184, April.
    4. Lauri, Pekka & Kallio, A. Maarit I. & Schneider, Uwe A., 2012. "Price of CO2 emissions and use of wood in Europe," Forest Policy and Economics, Elsevier, vol. 15(C), pages 123-131.
    5. Hansson, Julia & Berndes, Gran & Johnsson, Filip & Kjrstad, Jan, 2009. "Co-firing biomass with coal for electricity generation--An assessment of the potential in EU27," Energy Policy, Elsevier, vol. 37(4), pages 1444-1455, April.
    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. Xian, Hui & Colson, Gregory & Karali, Berna & Wetzstein, Michael, 2017. "Do nonrenewable-energy prices affect renewable-energy volatility? The case of wood pellets," Journal of Forest Economics, Elsevier, vol. 28(C), pages 42-48.
    2. Kallio, A. Maarit I. & Solberg, Birger & Käär, Liisa & Päivinen, Risto, 2018. "Economic impacts of setting reference levels for the forest carbon sinks in the EU on the European forest sector," Forest Policy and Economics, Elsevier, vol. 92(C), pages 193-201.
    3. Beatriz M. Paredes-Sánchez & José P. Paredes-Sánchez & Paulino J. García-Nieto, 2020. "Energy Multiphase Model for Biocoal Conversion Systems by Means of a Nodal Network," Energies, MDPI, vol. 13(11), pages 1-13, May.
    4. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Alsaleh, Mohd & Abdul-Rahim, A.S. & Mohd-Shahwahid, H.O., 2017. "An empirical and forecasting analysis of the bioenergy market in the EU28 region: Evidence from a panel data simultaneous equation model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1123-1137.
    6. Guo, Jinggang & Gong, Peichen, 2019. "Assessing the impacts of rising fuelwood demand on Swedish forest sector: An intertemporal optimization approach," Forest Policy and Economics, Elsevier, vol. 105(C), pages 91-98.
    7. Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I., 2014. "The impact of subsidies and carbon pricing on the wood biomass use for energy in the EU," Energy, Elsevier, vol. 76(C), pages 161-167.
    8. Hurmekoski, Elias & Sjølie, Hanne K., 2018. "Comparing forest sector modelling and qualitative foresight analysis: Cases on wood products industry," Journal of Forest Economics, Elsevier, vol. 31(C), pages 11-16.
    9. Kallio, A.M.I. & Salminen, O. & Sievänen, R., 2016. "Forests in the Finnish low carbon scenarios," Journal of Forest Economics, Elsevier, vol. 23(C), pages 45-62.

    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. Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I., 2014. "The impact of subsidies and carbon pricing on the wood biomass use for energy in the EU," Energy, Elsevier, vol. 76(C), pages 161-167.
    2. Kallio, A.M.I. & Salminen, O. & Sievänen, R., 2013. "Sequester or substitute—Consequences of increased production of wood based energy on the carbon balance in Finland," Journal of Forest Economics, Elsevier, vol. 19(4), pages 402-415.
    3. Galik, Christopher S. & Abt, Robert C. & Latta, Gregory & Vegh, Tibor, 2015. "The environmental and economic effects of regional bioenergy policy in the southeastern U.S," Energy Policy, Elsevier, vol. 85(C), pages 335-346.
    4. 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.
    5. Latta, Gregory S. & Sjølie, Hanne K. & Solberg, Birger, 2013. "A review of recent developments and applications of partial equilibrium models of the forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 350-360.
    6. Lauri, Pekka & Havlík, Petr & Kindermann, Georg & Forsell, Nicklas & Böttcher, Hannes & Obersteiner, Michael, 2014. "Woody biomass energy potential in 2050," Energy Policy, Elsevier, vol. 66(C), pages 19-31.
    7. Lauri, Pekka & Kallio, A. Maarit I. & Schneider, Uwe A., 2012. "Price of CO2 emissions and use of wood in Europe," Forest Policy and Economics, Elsevier, vol. 15(C), pages 123-131.
    8. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    9. Hurmekoski, Elias & Hetemäki, Lauri, 2013. "Studying the future of the forest sector: Review and implications for long-term outlook studies," Forest Policy and Economics, Elsevier, vol. 34(C), pages 17-29.
    10. Lochhead, Kyle & Ghafghazi, Saeed & Havlik, Petr & Forsell, Nicklas & Obersteiner, Michael & Bull, Gary & Mabee, Warren, 2016. "Price trends and volatility scenarios for designing forest sector transformation," Energy Economics, Elsevier, vol. 57(C), pages 184-191.
    11. Kallio, A.M.I. & Salminen, O. & Sievänen, R., 2016. "Forests in the Finnish low carbon scenarios," Journal of Forest Economics, Elsevier, vol. 23(C), pages 45-62.
    12. Alice Favero & Robert Mendelsohn, 2013. "Evaluating the Global Role of Woody Biomass as a Mitigation Strategy," Working Papers 2013.37, Fondazione Eni Enrico Mattei.
    13. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    14. Halaj, Daniel & Brodrechtova, Yvonne, 2018. "Marketing decision making in the forest biomass market: The case of Austria, Finland and Slovakia," Forest Policy and Economics, Elsevier, vol. 97(C), pages 201-209.
    15. Miguel Riviere & Sylvain Caurla, 2020. "Representations of the Forest Sector in Economic Models [Les représentations du secteur forestier dans les modèles économiques]," Post-Print hal-03088084, HAL.
    16. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Hoefnagels, Ric & Banse, Martin & Dornburg, Veronika & Faaij, André, 2013. "Macro-economic impact of large-scale deployment of biomass resources for energy and materials on a national level—A combined approach for the Netherlands," Energy Policy, Elsevier, vol. 59(C), pages 727-744.
    18. Roni, Md.S. & Eksioglu, Sandra D. & Searcy, Erin & Jha, Krishna, 2014. "A supply chain network design model for biomass co-firing in coal-fired power plants," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 115-134.
    19. Escudero, Marcos & Jiménez, Ángel & González, Celina & López, Ignacio, 2013. "Quantitative analysis of potential power production and environmental benefits of Biomass Integrated Gasification Combined Cycles in the European Union," Energy Policy, Elsevier, vol. 53(C), pages 63-75.
    20. Kuznetsov, G.V. & Syrodoy, S.V. & Nigay, N.A. & Maksimov, V.I. & Gutareva, N.Yu., 2021. "Features of the processes of heat and mass transfer when drying a large thickness layer of wood biomass," Renewable Energy, Elsevier, vol. 169(C), pages 498-511.

    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:foreco:v:19:y:2013:i:4:p:432-449. 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/wps/find/journaldescription.cws_home/701775/description#description .

    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.