IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211198.html
   My bibliography  Save this paper

The Impact of Different Energy Policy Options on Feedstock Price and Land Demand for Maize Silage: The Case of Biogas in Lombardy

Author

Listed:
  • Bartoli, A.
  • Cavicchioli, D.
  • Kremmydas, D.
  • Rozakis, S.
  • Olper, Alessandro

Abstract

The growing demand of green maize for biogas production in Northern Italy has triggered an intense debate concerning land rents, maize prices and their possible negative consequences on important agri-food chains. The aim of this work is to quantify the extent to which the rapid spread of biogas raised the maize price at regional level, increasing the demand of land for energy crops. For this purpose we built a partial-equilibrium model simulating the agricultural sector and the biogas industry in Lombardy, under two alternative subsidization schemes. Results show that policy measures implemented in 2013 – reducing the average subsidy per kWh – may contribute to enforce the sustainability of the sector and decreasing its competition with agri-food chains: maize demand for biogas would decrease, compared to the old scheme, lessening the market clearing price and reducing land demand for energy purposes.

Suggested Citation

  • Bartoli, A. & Cavicchioli, D. & Kremmydas, D. & Rozakis, S. & Olper, Alessandro, 2015. "The Impact of Different Energy Policy Options on Feedstock Price and Land Demand for Maize Silage: The Case of Biogas in Lombardy," 2015 Conference, August 9-14, 2015, Milan, Italy 211198, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211198
    DOI: 10.22004/ag.econ.211198
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211198/files/Bartoli-Biogas%20Production%20in%20Lombardy-825.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211198?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. A O Kazakçi & S Rozakis & D Vanderpooten, 2007. "Energy crop supply in France: a min-max regret approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(11), pages 1470-1479, November.
    2. Delzeit, Ruth & Britz, Wolfgang & Holm-Müller, Karin, 2011. "Modelling regional input markets with numerous processing plants: The case of green maize for biogas production in Germany," Discussion Papers 162892, University of Bonn, Institute for Food and Resource Economics.
    3. Carrosio, Giovanni, 2013. "Energy production from biogas in the Italian countryside: Policies and organizational models," Energy Policy, Elsevier, vol. 63(C), pages 3-9.
    4. Donati, Michele & Bodini, Diego & Arfini, Filippo & Zezza, Annalisa, 2013. "An integrated PMP model to assess the development of agro-energy crops and the effect on water requirements," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-21, December.
    5. repec:dau:papers:123456789/2840 is not listed on IDEAS
    6. Chinese, D. & Patrizio, P. & Nardin, G., 2014. "Effects of changes in Italian bioenergy promotion schemes for agricultural biogas projects: Insights from a regional optimization model," Energy Policy, Elsevier, vol. 75(C), pages 189-205.
    7. Haas, Reinhard & Panzer, Christian & Resch, Gustav & Ragwitz, Mario & Reece, Gemma & Held, Anne, 2011. "A historical review of promotion strategies for electricity from renewable energy sources in EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(2), pages 1003-1034, February.
    8. Fabio Bartolini & Luciana G. Angelini & Gianluca Brunori & Oriana Gava, 2015. "Impacts of the CAP 2014–2020 on the Agroenergy Sector in Tuscany, Italy," Energies, MDPI, vol. 8(2), pages 1-22, February.
    9. 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.
    10. Roland Carles & François-Xavier Decouvelaere & Guy Millet & Alain Revel & Jean-Claude Sourie, 1998. "Nouveaux outils pour analyser les effets de la prochaine réforme de la PAC sur les exploitations agricoles," Économie rurale, Programme National Persée, vol. 243(1), pages 56-64.
    11. Mertens, Anouk & Monderlaers, Koen & Claeys, Dakerlia & Lauwers, Ludwig H. & Buysse, Jeroen, 2014. "Unravelling the informal silage maize trade: a multi-agent modelling approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182956, European Association of Agricultural Economists.
    12. Anna Gaviglio & Biagio Pecorino & Alessandro Ragazzoni, 2014. "Produrre energia rinnovabile nelle aziende agro-zootecniche. Effetti economici dalle novit? introdotte nella normativa del 2012," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(2), pages 31-60.
    13. Bartolini, Fabio & Viaggi, Davide, 2012. "An analysis of policy scenario effects on the adoption of energy production on the farm: A case study in Emilia–Romagna (Italy)," Energy Policy, Elsevier, vol. 51(C), pages 454-464.
    14. Sorda, G. & Sunak, Y. & Madlener, R., 2013. "An agent-based spatial simulation to evaluate the promotion of electricity from agricultural biogas plants in Germany," Ecological Economics, Elsevier, vol. 89(C), pages 43-60.
    15. Delzeit, R. & Britz, W. & Holm-Müller, K., 2010. "Modelling regional maize market and transport distances for biogas production in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    16. Domschke, Wolfgang & Drexl, Andreas, 2005. "Einführung in Operations Research," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 25118, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Rozakis, Stelios & Sintori, Alexandra & Tsiboukas, Konstantinos, 2012. "Estimating utility functions of Greek dairy sheep farmers: A multicriteria mathematical programming approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-10.
    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. Junpyo Park, 2022. "Distance to Biorefinery Plants and Its Influence on Agricultural Land Value: Evidence from the United States Midwest Region," Land, MDPI, vol. 11(9), pages 1-14, September.
    2. Anna Gaviglio & Mattia Bertocchi & Eugenio Demartini, 2017. "A Tool for the Sustainability Assessment of Farms: Selection, Adaptation and Use of Indicators for an Italian Case Study," Resources, MDPI, vol. 6(4), pages 1-21, October.
    3. Lijó, Lucía & González-García, Sara & Bacenetti, Jacopo & Moreira, Maria Teresa, 2017. "The environmental effect of substituting energy crops for food waste as feedstock for biogas production," Energy, Elsevier, vol. 137(C), pages 1130-1143.
    4. Králík, T. & Knápek, J. & Vávrová, K. & Outrata, D. & Romportl, D. & Horák, M. & Jandera, J., 2023. "Ecosystem services and economic competitiveness of perennial energy crops in the modelling of biomass potential – A case study of the Czech Republic," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    5. Faruk Urak & Abdulbaki Bilgic & Gürkan Bozma & Wojciech J. Florkowski & Erkan Efekan, 2022. "Volatility in Live Calf, Live Sheep, and Feed Wheat Return Markets: A Threat to Food Price Stability in Turkey," Agriculture, MDPI, vol. 12(4), pages 1-24, April.
    6. Costas Athanasiou & Christos Drosakis & Gaylord Kabongo Booto & Costas Elmasides, 2022. "Economic Feasibility of Power/Heat Cogeneration by Biogas–Solid Oxide Fuel Cell (SOFC) Integrated Systems," Energies, MDPI, vol. 16(1), pages 1-30, December.
    7. Sören Mohrmann & Verena Otter, 2022. "Categorisation of Biogas Plant Operators in Germany with Regards to Their Intention to Use Straw Pellets as Innovative and Sustainable Substrate Alternative," Energies, MDPI, vol. 16(1), pages 1-26, December.
    8. Andrea Zanellati & Federica Spina & Luca Rollé & Giovanna Cristina Varese & Elio Dinuccio, 2020. "Fungal Pretreatments on Non-Sterile Solid Digestate to Enhance Methane Yield and the Sustainability of Anaerobic Digestion," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    9. Stelios Rozakis & Andrea Bartoli & Jacek Dach & Anna Jędrejek & Alina Kowalczyk-Juśko & Łukasz Mamica & Patrycja Pochwatka & Rafał Pudelko & Kesheng Shu, 2021. "Policy Impact on Regional Biogas Using a Modular Modeling Tool," Energies, MDPI, vol. 14(13), pages 1-21, June.
    10. Bartoli, Andrea & Hamelin, Lorie & Rozakis, Stelios & Borzęcka, Magdalena & Brandão, Miguel, 2019. "Coupling economic and GHG emission accounting models to evaluate the sustainability of biogas policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 106(C), pages 133-148.
    11. Cord-Friedrich von Hobe & Marius Michels & Oliver Musshoff, 2021. "German Farmers’ Perspectives on Price Drivers in Agricultural Land Rental Markets—A Combination of a Systematic Literature Review and Survey Results," Land, MDPI, vol. 10(2), pages 1-22, February.
    12. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    13. Forleo, Maria Bonaventura & Palmieri, Nadia & Suardi, Alessandro & Coaloa, Domenico & Pari, Luigi, 2017. "Bioenergy crops production in Italy: environmental impacts and economic performances," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261276, Italian Association of Agricultural and Applied Economics (AIEAA).
    14. Junpyo Park & John Anderson & Eric Thompson, 2019. "Land-Use, Crop Choice, and Proximity to Ethanol Plants," Land, MDPI, vol. 8(8), pages 1-14, July.
    15. Alper Bayram & Antonino Marvuglia & Maria Myridinas & Marta Porcel, 2022. "Increasing Biowaste and Manure in Biogas Feedstock Composition in Luxembourg: Insights from an Agent-Based Model," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    16. Grégory Claeys & Gustav Fredriksson & Georg Zachmann, . "The distributional effects of climate policies," Blueprints, Bruegel, number 28291, June.
    17. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, vol. 9(11), pages 1-23, November.
    18. Giovanna Croxatto Vega & Juliën Voogt & Joshua Sohn & Morten Birkved & Stig Irving Olsen, 2020. "Assessing New Biotechnologies by Combining TEA and TM-LCA for an Efficient Use of Biomass Resources," Sustainability, MDPI, vol. 12(9), pages 1-35, May.
    19. Bertoni, Danilo & Aletti, Giacomo & Ferrandi, Giulia & Micheletti, Alessandra & Cavicchioli, Daniele & Pretolani, Roberto, 2018. "Farmland Use Transitions After the CAP Greening: a Preliminary Analysis Using Markov Chains Approach," Land Use Policy, Elsevier, vol. 79(C), pages 789-800.
    20. Lauven, Lars-Peter & Geldermann, Jutta & Desideri, Umberto, 2019. "Estimating the revenue potential of flexible biogas plants in the power sector," Energy Policy, Elsevier, vol. 128(C), pages 402-410.
    21. Bartolini, Fabio & Gava, Oriana & Brunori, Gianluca, 2017. "Biogas and EU's 2020 targets: Evidence from a regional case study in Italy," Energy Policy, Elsevier, vol. 109(C), pages 510-519.

    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. Bartoli, Andrea & Hamelin, Lorie & Rozakis, Stelios & Borzęcka, Magdalena & Brandão, Miguel, 2019. "Coupling economic and GHG emission accounting models to evaluate the sustainability of biogas policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 106(C), pages 133-148.
    2. Patrizio, P. & Leduc, S. & Chinese, D. & Dotzauer, E. & Kraxner, F., 2015. "Biomethane as transport fuel – A comparison with other biogas utilization pathways in northern Italy," Applied Energy, Elsevier, vol. 157(C), pages 25-34.
    3. Chinese, D. & Patrizio, P. & Nardin, G., 2014. "Effects of changes in Italian bioenergy promotion schemes for agricultural biogas projects: Insights from a regional optimization model," Energy Policy, Elsevier, vol. 75(C), pages 189-205.
    4. Bartolini, Fabio & Gava, Oriana & Brunori, Gianluca, 2017. "Biogas and EU's 2020 targets: Evidence from a regional case study in Italy," Energy Policy, Elsevier, vol. 109(C), pages 510-519.
    5. Stelios Rozakis & Andrea Bartoli & Jacek Dach & Anna Jędrejek & Alina Kowalczyk-Juśko & Łukasz Mamica & Patrycja Pochwatka & Rafał Pudelko & Kesheng Shu, 2021. "Policy Impact on Regional Biogas Using a Modular Modeling Tool," Energies, MDPI, vol. 14(13), pages 1-21, June.
    6. Lauven, Lars-Peter & Geldermann, Jutta & Desideri, Umberto, 2019. "Estimating the revenue potential of flexible biogas plants in the power sector," Energy Policy, Elsevier, vol. 128(C), pages 402-410.
    7. Chinnici, Gaetano & D’Amico, Mario & Rizzo, Marcella & Pecorino, Biagio, 2015. "Analysis of biomass availability for energy use in Sicily," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1025-1030.
    8. Herbes, Carsten & Halbherr, Verena & Braun, Lorenz, 2018. "Factors influencing prices for heat from biogas plants," Applied Energy, Elsevier, vol. 221(C), pages 308-318.
    9. Ben Fradj, Nosra & Jayet, Pierre Alain & Rozakis, Stelios & Georganta, Eleni & Jędrejek, Anna, 2020. "Contribution of agricultural systems to the bioeconomy in Poland: Integration of willow in the context of a stylised CAP diversification," Land Use Policy, Elsevier, vol. 99(C).
    10. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, vol. 9(11), pages 1-23, November.
    11. Fabio Bartolini & Luciana G. Angelini & Gianluca Brunori & Oriana Gava, 2015. "Impacts of the CAP 2014–2020 on the Agroenergy Sector in Tuscany, Italy," Energies, MDPI, vol. 8(2), pages 1-22, February.
    12. Reidsma, Pytrik & Janssen, Sander & Jansen, Jacques & van Ittersum, Martin K., 2018. "On the development and use of farm models for policy impact assessment in the European Union – A review," Agricultural Systems, Elsevier, vol. 159(C), pages 111-125.
    13. Fabio De Menna & Remo Alessio Malagnino & Matteo Vittuari & Giovanni Molari & Giovanna Seddaiu & Paola A. Deligios & Stefania Solinas & Luigi Ledda, 2016. "Potential Biogas Production from Artichoke Byproducts in Sardinia, Italy," Energies, MDPI, vol. 9(2), pages 1-11, February.
    14. Martinát, Stanislav & Navrátil, Josef & Dvořák, Petr & Van der Horst, Dan & Klusáček, Petr & Kunc, Josef & Frantál, Bohumil, 2016. "Where AD plants wildly grow: The spatio-temporal diffusion of agricultural biogas production in the Czech Republic," Renewable Energy, Elsevier, vol. 95(C), pages 85-97.
    15. Venus, Terese E. & Strauss, Felix & Venus, Thomas J. & Sauer, Johannes, 2021. "Understanding stakeholder preferences for future biogas development in Germany," Land Use Policy, Elsevier, vol. 109(C).
    16. De Menna, Fabio & Malagnino, Remo Alessio & Vittuari, Matteo & Segrè, Andrea & Molari, Giovanni & Deligios, Paola A. & Solinas, Stefania & Ledda, Luigi, 2018. "Optimization of agricultural biogas supply chains using artichoke byproducts in existing plants," Agricultural Systems, Elsevier, vol. 165(C), pages 137-146.
    17. Luo, Tao & Khoshnevisan, Benyamin & Huang, Ruyi & Chen, Qiu & Mei, Zili & Pan, Junting & Liu, Hongbin, 2020. "Analysis of revolution in decentralized biogas facilities caused by transition in Chinese rural areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    18. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo, 2018. "Structural factors of labour allocation for farm diversification activities," Land Use Policy, Elsevier, vol. 71(C), pages 204-212.
    19. Stelios Rozakis, 2010. "Hybrid linear programming to estimate CAP impacts of flatter rates and environmental top-ups," Working Papers 2010-03, Agricultural University of Athens, Department Of Agricultural Economics.
    20. Lukas Kriechbaum & Philipp Gradl & Romeo Reichenhauser & Thomas Kienberger, 2020. "Modelling Grid Constraints in a Multi-Energy Municipal Energy System Using Cumulative Exergy Consumption Minimisation," Energies, MDPI, vol. 13(15), pages 1-23, July.

    More about this item

    Keywords

    Agricultural and Food Policy; Land Economics/Use;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae15:211198. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.