IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v49y2022i4p910-941..html
   My bibliography  Save this article

Optimal localisation of agricultural biofuel production facilities and feedstock: a Swedish case study

Author

Listed:
  • Ida Nordin
  • Katarina Elofsson
  • Torbjörn Jansson

Abstract

Policies for investment in biofuel production facilities and feedstock may be necessary in order to meet climate and renewable energy targets. These policies entail a trade-off between high transportation costs of biomass and economies of scale of production facilities. We develop a spatial optimisation model and investigate the cost-effective localization of production facilities for ethanol from agricultural land in Sweden. Feedstock costs are found to be most important in determining the location, although high feedstock density motivates locating large facilities in areas with high feedstock costs. At higher production, feedstock from the whole country is preferred despite high transport costs.

Suggested Citation

  • Ida Nordin & Katarina Elofsson & Torbjörn Jansson, 2022. "Optimal localisation of agricultural biofuel production facilities and feedstock: a Swedish case study," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 910-941.
    • Handle: RePEc:oup:erevae:v:49:y:2022:i:4:p:910-941.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbab043
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    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. Hermann Lotze-Campen & Martin Lampe & Page Kyle & Shinichiro Fujimori & Petr Havlik & Hans Meijl & Tomoko Hasegawa & Alexander Popp & Christoph Schmitz & Andrzej Tabeau & Hugo Valin & Dirk Willenbocke, 2014. "Impacts of increased bioenergy demand on global food markets: an AgMIP economic model intercomparison," Agricultural Economics, International Association of Agricultural Economists, vol. 45(1), pages 103-116, January.
    2. Natarajan, Karthikeyan & Leduc, Sylvain & Pelkonen, Paavo & Tomppo, Erkki & Dotzauer, Erik, 2014. "Optimal locations for second generation Fischer Tropsch biodiesel production in Finland," Renewable Energy, Elsevier, vol. 62(C), pages 319-330.
    3. 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.
    4. Anders Skonhoft & Bjart Holtsmark, 2014. "The Norwegian support and subsidy of electric cars. Should it be adopted by other countries?," Working Paper Series 15814, Department of Economics, Norwegian University of Science and Technology.
    5. Jussi Lankoski & Markku Ollikainen, 2008. "Bioenergy crop production and climate policies: a von Thunen model and the case of reed canary grass in Finland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(4), pages 519-546, December.
    6. Sharma, B. & Birrell, S. & Miguez, F.E., 2017. "Spatial modeling framework for bioethanol plant siting and biofuel production potential in the U.S," Applied Energy, Elsevier, vol. 191(C), pages 75-86.
    7. Britz, Wolfgang & Delzeit, Ruth, 2013. "The impact of German biogas production on European and global agricultural markets, land use and the environment," Energy Policy, Elsevier, vol. 62(C), pages 1268-1275.
    8. Wetterlund, Elisabeth & Leduc, Sylvain & Dotzauer, Erik & Kindermann, Georg, 2012. "Optimal localisation of biofuel production on a European scale," Energy, Elsevier, vol. 41(1), pages 462-472.
    9. Vass, Miriam Münnich & Elofsson, Katarina, 2016. "Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?," Journal of Forest Economics, Elsevier, vol. 24(C), pages 82-105.
    10. Nasim Zandi Atashbar & Nacima Labadie & Christian Prins, 2018. "Modelling and optimisation of biomass supply chains: a review," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3482-3506, May.
    11. Comber, Alexis & Dickie, Jennifer & Jarvis, Claire & Phillips, Martin & Tansey, Kevin, 2015. "Locating bioenergy facilities using a modified GIS-based location–allocation-algorithm: Considering the spatial distribution of resource supply," Applied Energy, Elsevier, vol. 154(C), pages 309-316.
    12. Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2012. "Biofuel supply chain design under competitive agricultural land use and feedstock market equilibrium," Energy Economics, Elsevier, vol. 34(5), pages 1623-1633.
    13. Jeffrey Apland & Hans Andersson, 1996. "Optimal Location of Processing Plants: Sector Modeling Considerations and an Example," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(3), pages 491-504.
    14. Banja, Manjola & Sikkema, Richard & Jégard, Martin & Motola, Vincenzo & Dallemand, Jean-François, 2019. "Biomass for energy in the EU – The support framework," Energy Policy, Elsevier, vol. 131(C), pages 215-228.
    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. Ibrahim M. Hezam & Fausto Cavallaro & Jyoti Lakshmi & Pratibha Rani & Subhanshu Goyal, 2023. "Biofuel Production Plant Location Selection Using Integrated Picture Fuzzy Weighted Aggregated Sum Product Assessment Framework," Sustainability, MDPI, vol. 15(5), pages 1-19, February.

    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. 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).
    2. Chakraborty, Abhishek & Biswal, Anima & Pandey, Varun & Shadab, Syed & Kalyandeep, K. & Murthy, C.S. & Seshasai, M.V.R. & Rao, P.V.N. & Jain, Niveta & Sehgal, V.K. & Kaushik, Nirmala & Singh, Sanjay &, 2022. "Developing a spatial information system of biomass potential from crop residues over India: A decision support for planning and establishment of biofuel/biomass power plant," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    3. Röder, Mirjam, 2016. "More than food or fuel. Stakeholder perceptions of anaerobic digestion and land use; a case study from the United Kingdom," Energy Policy, Elsevier, vol. 97(C), pages 73-81.
    4. Holmgren, Kristina M. & Berntsson, Thore S. & Andersson, Eva & Rydberg, Tomas, 2015. "The influence of biomass supply chains and by-products on the greenhouse gas emissions from gasification-based bio-SNG production systems," Energy, Elsevier, vol. 90(P1), pages 148-162.
    5. Vincent Martinet, 2012. "Effect of soil heterogeneity on the welfare economics of biofuel policies," Working Papers 2012/01, INRA, Economie Publique.
    6. Cebi, Selcuk & Ilbahar, Esra & Atasoy, Aylin, 2016. "A fuzzy information axiom based method to determine the optimal location for a biomass power plant: A case study in Aegean Region of Turkey," Energy, Elsevier, vol. 116(P1), pages 894-907.
    7. Kolb, Sebastian & Plankenbühler, Thomas & Hofmann, Katharina & Bergerson, Joule & Karl, Jürgen, 2021. "Life cycle greenhouse gas emissions of renewable gas technologies: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    8. Karel Janda & Ladislav Kristoufek, 2019. "The relationship between fuel and food prices: Methods, outcomes, and lessons for commodity price risk management," CAMA Working Papers 2019-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    9. Holmgren, Kristina M. & Berntsson, Thore S. & Andersson, Eva & Rydberg, Tomas, 2016. "Comparison of integration options for gasification-based biofuel production systems – Economic and greenhouse gas emission implications," Energy, Elsevier, vol. 111(C), pages 272-294.
    10. He-Lambert, Lixia & English, Burton C. & Lambert, Dayton M. & Shylo, Oleg & Larson, James A. & Yu, T. Edward & Wilson, Bradly, 2018. "Determining a geographic high resolution supply chain network for a large scale biofuel industry," Applied Energy, Elsevier, vol. 218(C), pages 266-281.
    11. Lovrak, Ana & Pukšec, Tomislav & Duić, Neven, 2020. "A Geographical Information System (GIS) based approach for assessing the spatial distribution and seasonal variation of biogas production potential from agricultural residues and municipal biowaste," Applied Energy, Elsevier, vol. 267(C).
    12. Karel Janda & Ladislav Krištoufek, 2019. "The Relationship Between Fuel and Food Prices: Methods and Outcomes," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 195-216, October.
    13. Catherine L. Kling & Raymond W. Arritt & Gray Calhoun & David A. Keiser, 2017. "Integrated Assessment Models of the Food, Energy, and Water Nexus: A Review and an Outline of Research Needs," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 143-163, October.
    14. Jonas Zetterholm & Elina Bryngemark & Johan Ahlström & Patrik Söderholm & Simon Harvey & Elisabeth Wetterlund, 2020. "Economic Evaluation of Large-Scale Biorefinery Deployment: A Framework Integrating Dynamic Biomass Market and Techno-Economic Models," Sustainability, MDPI, vol. 12(17), pages 1-28, September.
    15. Durusut, Emrah & Tahir, Foaad & Foster, Sam & Dineen, Denis & Clancy, Matthew, 2018. "BioHEAT: A policy decision support tool in Ireland’s bioenergy and heat sectors," Applied Energy, Elsevier, vol. 213(C), pages 306-321.
    16. Pettersson, Karin & Wetterlund, Elisabeth & Athanassiadis, Dimitris & Lundmark, Robert & Ehn, Christian & Lundgren, Joakim & Berglin, Niklas, 2015. "Integration of next-generation biofuel production in the Swedish forest industry – A geographically explicit approach," Applied Energy, Elsevier, vol. 154(C), pages 317-332.
    17. Sajedinia, Ehsanreza & Tyner, Wally, 2017. "Use of General Equilibrium Models in Evaluating Biofuels Policies," Conference papers 332885, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Famoso, F. & Prestipino, M. & Brusca, S. & Galvagno, A., 2020. "Designing sustainable bioenergy from residual biomass: Site allocation criteria and energy/exergy performance indicators," Applied Energy, Elsevier, vol. 274(C).
    19. Zuzana LAJDOVA & Jan LAJDA & Peter BIELIK, 2016. "The impact of the biogas industry on agricultural sector in Germany," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(1), pages 1-8.
    20. Mesfun, Sennai & Leduc, Sylvain & Patrizio, Piera & Wetterlund, Elisabeth & Mendoza-Ponce, Alma & Lammens, Tijs & Staritsky, Igor & Elbersen, Berien & Lundgren, Joakim & Kraxner, Florian, 2018. "Spatio-temporal assessment of integrating intermittent electricity in the EU and Western Balkans power sector under ambitious CO2 emission policies," Energy, Elsevier, vol. 164(C), pages 676-693.

    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:oup:erevae:v:49:y:2022:i:4:p:910-941.. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.