Assessing the welfare effects of promoting biomass growth and the use of bioenergy – A simple back-of-an-envelope calculation

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Tommy Lundgren (tommy.lundgren@sekon.slu.se) and Per-Olov Marklund (pelle.marklund@econ.umu.se)
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No 2011:11, CERE Working Papers from  CERE - the Center for Environmental and Resource Economics

Abstract: Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare e¤ects of promoting biomass growth and the use of bioenergy. As an illustration, a forest hypothetical intensive forest cultivation project is simulated. Costs and benefi…ts of the project show that we need not only determine the postive effects of promoting biomass growth and the use of bioenergy, such as substitution away from fossil fuels and carbon sequestration. But more importantly, to achieve a balanced measure of the e¤ects on the climate, we must also incorporate all carbon emissions that is associated with bioenergy. Not doing so will overestimate the positive climate e¤ects of increasing the use of bioenergy.

Keywords: Bioenergy (search for similar items in EconPapers)
JEL-codes: Q23 Q42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
Date: 2011-08-22
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