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Macroeconomic impacts of bioenergy production on surplus agricultural land--A case study of Argentina

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  • Wicke, Birka
  • Smeets, Edward
  • Tabeau, Andrzej
  • Hilbert, Jorge
  • Faaij, André

Abstract

This paper assesses the macroeconomic impacts in terms of GDP, trade balance and employment of large-scale bioenergy production on surplus agricultural land. An input-output model is developed with which the direct, indirect and induced macroeconomic impacts of bioenergy production and agricultural intensification, which is needed to make agricultural land become available for bioenergy production, are assessed following a scenario approach. The methodology is applied to a case study of Argentina. The results of this study reveal that large-scale pellet production in 2015 would directly increase GDP by 4%, imports by 10% and employment by 6% over the reference situation in 2001. When accounting for indirect and induced impacts, GDP increases by 18%, imports by 20% and employment by 26% compared to 2001. Agricultural intensification reduces but does not negate these positive impacts of bioenergy production. Accounting for agricultural intensification, the increase in GDP as a result of bioenergy production on surplus agricultural land would amount to 16%, 20% in imports and 16% in employment compared to 2001.

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  • Wicke, Birka & Smeets, Edward & Tabeau, Andrzej & Hilbert, Jorge & Faaij, André, 2009. "Macroeconomic impacts of bioenergy production on surplus agricultural land--A case study of Argentina," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2463-2473, December.
    • Handle: RePEc:eee:rensus:v:13:y:2009:i:9:p:2463-2473
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    1. Herreras Martínez, Sara & van Eijck, Janske & Pereira da Cunha, Marcelo & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, Andre, 2013. "Analysis of socio-economic impacts of sustainable sugarcane–ethanol production by means of inter-regional Input–Output analysis: Demonstrated for Northeast Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 290-316.
    2. Kaenchan, Piyanon & Puttanapong, Nattapong & Bowonthumrongchai, Thongchart & Limskul, Kitti & Gheewala, Shabbir H., 2019. "Macroeconomic modeling for assessing sustainability of bioethanol production in Thailand," Energy Policy, Elsevier, vol. 127(C), pages 361-373.
    3. Kobos, Peter H. & Malczynski, Leonard A. & Walker, La Tonya N. & Borns, David J. & Klise, Geoffrey T., 2018. "Timing is everything: A technology transition framework for regulatory and market readiness levels," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 211-225.
    4. 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).
    5. Borzoni, Matteo, 2011. "Multi-scale integrated assessment of soybean biodiesel in Brazil," Ecological Economics, Elsevier, vol. 70(11), pages 2028-2038, September.
    6. Brinkman, Marnix L.J. & da Cunha, Marcelo P. & Heijnen, Sanne & Wicke, Birka & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, André P.C. & van der Hilst, Floor, 2018. "Interregional assessment of socio-economic effects of sugarcane ethanol production in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 347-362.

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