IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v112y2016icp275-284.html
   My bibliography  Save this article

How government subsidy leads to sustainable bioenergy development

Author

Listed:
  • Kung, Chih-Chun
  • Zhang, Liguo
  • Kong, Fanbin

Abstract

Sustainable development requires energy source stability and environmental maintenance. Over-exploitation and the intensive use of nonrenewable fossil fuels thus eventually hamper the development of human society. Bioenergy is one solution to this problem. This study formulates a price endogenous, partial equilibrium mathematical model to simulate the economic and environmental effects of bioenergy development in Jiangxi province, China. The result indicates that the farmers' revenue primarily originates from energy sales, government subsidies and emission reduction. An inappropriate subsidy amount will result in inefficient resource allocation; in addition, the marginal benefit from bioenergy production is fairly small. The result also shows that the joint production of bio-electricity and ethanol could be a better choice if climate change mitigation is considered.

Suggested Citation

  • Kung, Chih-Chun & Zhang, Liguo & Kong, Fanbin, 2016. "How government subsidy leads to sustainable bioenergy development," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 275-284.
    • Handle: RePEc:eee:tefoso:v:112:y:2016:i:c:p:275-284
    DOI: 10.1016/j.techfore.2016.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004016251600069X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2016.03.003?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. Rivers, Nicholas & Schaufele, Brandon, 2015. "Salience of carbon taxes in the gasoline market," Journal of Environmental Economics and Management, Elsevier, vol. 74(C), pages 23-36.
    2. 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.
    3. Iyer, Gokul & Hultman, Nathan & Eom, Jiyong & McJeon, Haewon & Patel, Pralit & Clarke, Leon, 2015. "Diffusion of low-carbon technologies and the feasibility of long-term climate targets," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 103-118.
    4. Hugo Storm & Klaus Mittenzwei & Thomas Heckelei, 2015. "Direct Payments, Spatial Competition, and Farm Survival in Norway," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1192-1205.
    5. Bruce A. McCarl & Uwe A. Schneider, 2000. "U.S. Agriculture's Role in a Greenhouse Gas Emission Mitigation World: An Economic Perspective," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 134-159.
    6. Scott A. Hamilton & Bruce A. McCarl & Richard M. Adams, 1985. "The Effect of Aggregate Response Assumptions on Environmental Impact Analyses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 407-413.
    7. Ching-Cheng Chang & Bruce A. McCarl & James W. Mjelde & James W. Richardson, 1992. "Sectoral Implications of Farm Program Modifications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 38-49.
    8. Eom, Jiyong & Edmonds, Jae & Krey, Volker & Johnson, Nils & Longden, Thomas & Luderer, Gunnar & Riahi, Keywan & Van Vuuren, Detlef P., 2015. "The impact of near-term climate policy choices on technology and emission transition pathways," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 73-88.
    9. Bruce A. McCarl, 2008. "Food, Biofuel, Global Agriculture, and Environment: Discussion," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 530-532.
    10. Johannes Lehmann & John Gaunt & Marco Rondon, 2006. "Bio-char Sequestration in Terrestrial Ecosystems – A Review," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 11(2), pages 395-419, March.
    11. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    12. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    13. Chi‐Chung Chen & Ching‐Cheng Chang, 2005. "The impact of weather on crop yield distribution in Taiwan: some new evidence from panel data models and implications for crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 503-511, November.
    14. Johannes Lehmann, 2007. "A handful of carbon," Nature, Nature, vol. 447(7141), pages 143-144, May.
    15. Ben C. French, 1960. "Some Considerations in Estimating Assembly Cost Functions for Agricultural Processing Operations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(4), pages 767-778.
    16. Kung, Chih-Chun & Zhang, Ning, 2015. "Renewable energy from pyrolysis using crops and agricultural residuals: An economic and environmental evaluation," Energy, Elsevier, vol. 90(P2), pages 1532-1544.
    17. Kung, Chih-Chun & McCarl, Bruce A. & Cao, Xiaoyong, 2013. "Economics of pyrolysis-based energy production and biochar utilization: A case study in Taiwan," Energy Policy, Elsevier, vol. 60(C), pages 317-323.
    18. Dusan Drabik & Harry De Gorter & David R. Just & Govinda R. Timilsina, 2015. "The Economics of Brazil’s Ethanol-Sugar Markets, Mandates, and Tax Exemptions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1433-1450.
    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. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 56-86.
    2. Hongyun Han & Shu Wu, 2019. "Determinants of the Behavioral Lock-in of Rural Residents’ Direct Biomass Energy Consumption in China," Sustainability, MDPI, vol. 11(2), pages 1-25, January.
    3. Zhao, Shukuan & Xu, Baoda & Zhang, Weiyong, 2018. "Government R&D subsidy policy in China: An empirical examination of effect, priority, and specifics," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 75-82.
    4. Zhang, JingJing & Guan, Jiancheng, 2018. "The time-varying impacts of government incentives on innovation," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 132-144.
    5. Kung, Chih-Chun & Cao, Xiaoyong & Choi, Yongrok & Kung, Shan-Shan, 2019. "A stochastic analysis of cropland utilization and resource allocation under climate change," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    6. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, vol. 1, pages 56-86, January.
    7. Li, Zhengda & Zheng, Chengxin & Liu, Aimin & Yang, Yang & Yuan, Xiaoling, 2022. "Environmental taxes, green subsidies, and cleaner production willingness: Evidence from China's publicly traded companies," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    8. Salgado, Mario A. Heredia & Tarelho, Luís A.C. & Matos, Arlindo & Robaina, M. & Narváez, Ricardo & Peralta, Miguel E., 2018. "Thermoeconomic analysis of integrated production of biochar and process heat from quinoa and lupin residual biomass," Energy Policy, Elsevier, vol. 114(C), pages 332-341.
    9. Song, Yang & Sahut, Jean-Michel & Zhang, Zhiyuan & Tian, Yifan & Hikkerova, Lubica, 2022. "The effects of government subsidies on the sustainable innovation of university-industry collaboration," Technological Forecasting and Social Change, Elsevier, vol. 174(C).

    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. Chih-Chun Kung & Bruce A. McCarl & Chi-Chung Chen & Xiaoyong Cao, 2014. "Environmental Impact and Energy Production: Evaluation of Biochar Application on Taiwanese Set-Aside Land," Energy & Environment, , vol. 25(1), pages 13-39, February.
    2. Chih-Chun Kung & Meng-Shiuh Chang, 2015. "Effect of Agricultural Feedstock to Energy Conversion Rate on Bioenergy and GHG Emissions," Sustainability, MDPI, vol. 7(5), pages 1-15, May.
    3. Chih-Chun Kung & Bruce A. McCarl & Chi-Chung Chen, 2014. "An Environmental and Economic Evaluation of Pyrolysis for Energy Generation in Taiwan with Endogenous Land Greenhouse Gases Emissions," IJERPH, MDPI, vol. 11(3), pages 1-19, March.
    4. Kung, Chih-Chun, 2019. "A stochastic evaluation of economic and environmental effects of Taiwan's biofuel development under climate change," Energy, Elsevier, vol. 167(C), pages 1051-1064.
    5. Meng-Shiuh CHANG & Wen WANG & Chih-Chun KUNG, 2015. "Economic effects of the biochar application on rice supply in Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 284-295.
    6. Kung, Chih-Chun & Zhang, Ning, 2015. "Renewable energy from pyrolysis using crops and agricultural residuals: An economic and environmental evaluation," Energy, Elsevier, vol. 90(P2), pages 1532-1544.
    7. Kung, Chih-Chun & Zhang, Ning & Choi, Yongrok & Xiong, Kai & Yu, Jiangli, 2019. "Effectiveness of crop residuals in ethanol and pyrolysis-based electricity production: A stochastic analysis under uncertain climate impacts," Energy Policy, Elsevier, vol. 125(C), pages 267-276.
    8. Kung, Chih-Chun & Lan, Xiaolong & Yang, Yunxia & Kung, Shan-Shan & Chang, Meng-Shiuh, 2022. "Effects of green bonds on Taiwan's bioenergy development," Energy, Elsevier, vol. 238(PA).
    9. Kung, Chih-Chun & Mu, Jianhong E., 2019. "Prospect of China's renewable energy development from pyrolysis and biochar applications under climate change," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    10. Meng-Shiuh Chang & Chih-Chun Kung, 2018. "The greenhouse gas impact of bioenergy in developing economies: Evidence from Taiwan," Energy & Environment, , vol. 29(3), pages 315-332, May.
    11. Chih-Chun KUNG, 2018. "A dynamic framework of sustainable development in agriculture and bioenergy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(10), pages 445-455.
    12. Chih-Chun Kung & Hualin Xie & Tao Wu & Shih-Chih Chen, 2014. "Biofuel for Energy Security: An Examination on Pyrolysis Systems with Emissions from Fertilizer and Land-Use Change," Sustainability, MDPI, vol. 6(2), pages 1-18, January.
    13. Kung, Chih-Chun & Wu, Tao, 2021. "Influence of water allocation on bioenergy production under climate change: A stochastic mathematical programming approach," Energy, Elsevier, vol. 231(C).
    14. Kung, Chih-Chun & Cao, Xiaoyong & Choi, Yongrok & Kung, Shan-Shan, 2019. "A stochastic analysis of cropland utilization and resource allocation under climate change," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    15. Xiaoyong CAO & Chih-Chun KUNG & Yuelong WANG, 2017. "An environmental and economic evaluation of carbon sequestration from pyrolysis and biochar application in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(12), pages 569-578.
    16. Kung, Chih-Chun & Fei, Chengcheng J. & McCarl, Bruce A. & Fan, Xinxin, 2022. "A review of biopower and mitigation potential of competing pyrolysis methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    17. Kung, Chih-Chun & McCarl, Bruce A. & Cao, Xiaoyong, 2013. "Economics of pyrolysis-based energy production and biochar utilization: A case study in Taiwan," Energy Policy, Elsevier, vol. 60(C), pages 317-323.
    18. Schneider, Uwe A. & McCarl, Bruce A. & Schmid, Erwin, 2007. "Agricultural sector analysis on greenhouse gas mitigation in US agriculture and forestry," Agricultural Systems, Elsevier, vol. 94(2), pages 128-140, May.
    19. Kung, Chih-Chun & McCarl, Bruce A., 2020. "The potential role of renewable electricity generation in Taiwan," Energy Policy, Elsevier, vol. 138(C).
    20. Zhang, Zhikun & Zhu, Zongyuan & Shen, Boxiong & Liu, Lina, 2019. "Insights into biochar and hydrochar production and applications: A review," Energy, Elsevier, vol. 171(C), pages 581-598.

    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:tefoso:v:112:y:2016:i:c:p:275-284. 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.sciencedirect.com/science/journal/00401625 .

    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.