CERE Working Papers, CERE - the Center for Environmental and Resource Economics
No 2011:11:
Assessing the welfare effects of promoting biomass growth and the use of bioenergy – A simple back-of-an-envelope calculation
Tommy Lundgren ()
and Per-Olov Marklund ()
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; (follow links to similar papers)
JEL-Codes: Q23; Q42; (follow links to similar papers)
16 pages, August 22, 2011
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