Modeling price-driven interactions between wood bioenergy and global wood product markets |
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| Affiliation: | 1. College of Natural Resources, University of California, Berkeley, Berkeley, CA, USA;2. Energy Biosciences Institute, University of California, Berkeley, Berkeley, CA, USA;1. School of Computer Science and Technology, Dalian University of Technology, Dalian, 116024, PR China;2. School of Computer and Information Engineering, Zhongshan College of Dalian Medical University, Dalian, 116085, PR China;1. State Key Joint Laboratory of Environmental Simulation and Pollution Control, School of Environment, Beijing Normal University, Beijing, 100875, China;2. Nanjing Research Institute for Agricultural Mechanization, Ministry of Agriculture, Nanjing, 210014, China;3. School of Management Science and Engineering, Central University of Finance and Economics, Beijing, 100081, China;1. Forest Economics and Policy, School of Forestry and Wildlife Sciences, Auburn University, Auburn, AL, 36849-5418, United States;2. BETA - UMR 7522 CNRS Université de Strasbourg, 61, avenue de la Forêt Noire, 67085 Strasbourg Cedex, France;3. INRA, UMR 356 Economie Forestière - AgroParisTech, Laboratoire d’Economie Forestière, Nancy, France;4. Pinchot Institute for Conservation, Washington, DC, United States |
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| Abstract: | Higher and more volatile liquid fossil fuel prices have had profound effects on international energy and wood product markets. Understanding this evolving economic and technological landscape requires economic models that capture the interconnections between energy markets and wood product markets, and can be used to forecast the impact of alternative policy and market incentives. The need for such an analytic framework is underscored by the consensus that efficiently produced wood bioenergy could provide many climate benefits compared to fossil-fuel intensive substitutes.A model is presented for analysis of how increased use of wood bioenergy, in the forms of fuelwood, cellulosic ethanol from woody biomass, and electricity produced from wood, might interact with global markets for wood products; liquid, solid, and gaseous fuels; and electricity produced from other sources. It links U.S. energy markets with wood product markets and endogenizes the demand for wood bioenergy with price-driven market clearing mechanisms. Projections made with the model point to a substantial increase in demand for woody cellulosic ethanol in the U.S. for the next 30 years if oil prices remain high. |
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| Keywords: | Renewable energy Energy markets Bioenergy demand Woody biomass Cellulosic ethanol USFPM/GFPM |
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