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Assessing The Welfare Effects Of Promoting Biomass Growth And The Use Of Bioenergy

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  • TOMMY LUNDGREN

    (Centre for Environmental and Resource Economics, S-901 87 Umeå, Sweden)

  • PER-OLOV MARKLUND

    (Centre for Environmental and Resource Economics, S-901 87 Umeå, Sweden)

Abstract

Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare effects of promoting biomass growth and the use of bioenergy, and especially the role of carbon neutrality. As an illustration, a hypothetical intensive forest cultivation project is simulated. Costs and benefits of the project show that only determining the postive effects of promoting biomass growth and the use of bioenergy, such as substitution away from fossil fuels and carbon sequestration is not sufficient. But more importantly, to achieve a balanced measure of the effects on the climate, we must also incorporate all carbon emissions that are associated with bioenergy. Not doing so will over-estimate the positive climate effects of increasing the use of bioenergy.

Suggested Citation

  • Tommy Lundgren & Per-Olov Marklund, 2013. "Assessing The Welfare Effects Of Promoting Biomass Growth And The Use Of Bioenergy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-13.
    • Handle: RePEc:wsi:ccexxx:v:04:y:2013:i:01:n:s2010007813500036
    DOI: 10.1142/S2010007813500036
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    References listed on IDEAS

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    1. Thomas Aronsson & Karl-Gustaf Löfgren & Kenneth Backlund, 2004. "Welfare Measurement in Imperfect Markets," Books, Edward Elgar Publishing, number 2494.
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    1. Eriksson, Mathilda & Brännlund, Runar & Lundgren, Tommy, 2018. "Pricing forest carbon: Implications of asymmetry in climate policy," Journal of Forest Economics, Elsevier, vol. 32(C), pages 84-93.
    2. Giuseppe Di Vita & Manuela Pilato & Biagio Pecorino & Filippo Brun & Mario D’Amico, 2017. "A Review of the Role of Vegetal Ecosystems in CO 2 Capture," Sustainability, MDPI, vol. 9(10), pages 1-10, October.
    3. Eriksson, Mathilda, 2016. "The Role of the Forest in Climate Policy," Umeå Economic Studies 927, Umeå University, Department of Economics.

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