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Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model

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  • Rosburg, Alicia
  • Miranowski, John
  • Jacobs, Keri

Abstract

We develop a long-run cellulosic biofuel cost model that minimizes feedstock procurement and processing costs per gallon. The distinguishing feature of the model is that it accounts for the procurement tradeoff between the intensive margin (biomass producers' participation rate) and extensive margin (biomass capture region). To investigate the extent to which this procurement trade-off affects processors' cost-minimizing decisions, we apply the model to switchgrass ethanol production in U.S. crop reporting districts. Results suggest that location characteristics will determine the extent to which processors can reduce their total procurement costs by offering a higher biomass price to increase participation near the plant and reduce transportation costs.

Suggested Citation

  • Rosburg, Alicia & Miranowski, John & Jacobs, Keri, 2015. "Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model," ISU General Staff Papers 201510010700001000, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201510010700001000
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    Cited by:

    1. Van Meerbeek, Koenraad & Muys, Bart & Hermy, Martin, 2019. "Lignocellulosic biomass for bioenergy beyond intensive cropland and forests," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 139-149.
    2. Wang, Xin & Lim, Michael K. & Ouyang, Yanfeng, 2017. "Food-energy-environment trilemma: Policy impacts on farmland use and biofuel industry development," Energy Economics, Elsevier, vol. 67(C), pages 35-48.
    3. Li, Chao & Hayes, Dermot J. & Jacobs, Keri L., 2018. "Biomass for bioenergy: Optimal collection mechanisms and pricing when feedstock supply does not equal availability," Energy Economics, Elsevier, vol. 76(C), pages 403-410.
    4. Knápek, J. & Králík, T. & Vávrová, K. & Valentová, M. & Horák, M. & Outrata, D., 2021. "Policy implications of competition between conventional and energy crops," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).

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    More about this item

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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