Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: Modern bioenergy is seen as a promising option to curb greenhouse gas emissions. There is, however, a potential competition for land and water between bioenergy and food crops. Another question is whether biomass for energy use can be produced in a sustainable manner given the current conventional agricultural production practises. Other than the land and water competition, this question is often neglected in scenarios to meet a significant part of global energy demand with bioenergy. In the following, I address this question. There are sustainable alternatives, for example organic agriculture, to avoid the negative environmental effects of conventional agriculture. Yet, meeting a significant part of global energy demand with biomass grown sus- tainably may not be possible, as burning significant quantities of organic matter - inherent in bioenergy use - is likely to be incompatible with the principles of such alternatives, which often rely on biomass input for nutrient balance. There may therefore be a trade-off between policies and practices to increase bioenergy and those to increase sustainability in agriculture via Modern bioenergy is seen as a promising option to curb green- house gas emissions. There is, however, a potential competition for land and water between bioenergy and food crops. Another question is whether biomass for energy use can be produced in a sustainable manner given the current conventional agricultural production practises. Other than the land and water competition, this question is often neglected in scenarios to meet a significant part of global energy demand with bioenergy. In the following, I address this question. There are sustainable alternatives, for example organic agriculture, to avoid the negative environmental effects of conventional agriculture. Yet, meeting a significant part of global energy demand with biomass grown sus- tainably may not be possible, as burning significant quantities of organic matter - inherent in bioenergy use - is likely to be incompatible with the principles of such alternatives, which often rely on biomass input for nutrient balance. There may therefore be a trade-off between policies and practices to increase bioenergy and those to increase sustainability in agriculture via practices such as organic farming. This is not a general critique of bioenergy but it points to additional potential dangers of modern bioenergy as a strategy to meet significant parts of world energy demand.

Keywords: bioenergy; sustainable energy; organic agriculture; land scarcity; water scarcity

JEL-codes: Q01; Q42

26 pages, First version: August 31, 2006. Revised: August 1, 2008. Earlier revisions: April 22, 2004, April 22, 2007, June 17, 2008.

Note: forthcoming in Climatic Change

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