Environmental Valuation & Cost-Benefit News
Policy And Economic Aspects Of Forest Energy Utilisation
03/27/08
06:48:06 am, by damageva 
, 337 words, 114 views 
Categories: Energy, Europe, Academic Study/Journal Article, Agriculture, Forestry and Food, Regulatory Analysis, Book, Costs and Benefits
Policy And Economic Aspects Of Forest Energy Utilisation
Bioenergy projects must be economically viable for the different actors in the value chain. Forest biomass used for energy purposes must be able to compete with other uses of the biomass, and at the same time the energy produced from biomass must be as cheap as or cheaper than energy produced from competing energy systems. The costs in these calculations are changing all the time; in particular the cost of fossil fuels shows large variations. As the risk is high and the economic margins in many cases are low, there is a tendency that investors are reluctant to invest in bioenergy projects. On the other hand, prices of wood based fuels have been rising modestly compared with e.g. oil and gas, which reduces the economic risk when investing in a bioenergy project (Metla 2006, Kåberger 1997). In addition, there are many socioeconomic benefits to bioenergy projects that in many cases are not accounted for in the market prices, which is a strong argument for economic support of bionenergy projects.
Bioenergy projects contribute to many important elements of national and regional economic development: economic growth through production and business expansion (earnings), employment, import substitution (direct and indirect on the trade balance), security and diversificaton of energy supply (distributed energy) (see e.g. Hillring 2002). Other benefits include strengthening of traditional industries and rural communities (Borsboom et al. 2002).
by Anders Lunnan 6, Lelde Vilkriste 7, Gunnar Wilhelmsen 6, Diana Mizaraite 8, Antti Asikainen 9 and Dominik Röser 9
6. Norwegian Forest and Landscape Institute, Norwegian University of Life Sciences, N-1431 Ås, Norway
7. Latvian State Forestry Research Institute, LV-2169, Salaspils, Latvia
8. Lithuanian Forest Research Institute, 4312 LT, Girionys, Lithuania
9. Finnish Forest Research Institute, FIN-80101, Joensuu, Finland
Book Chapter 8 in Sustainable Use of Forest Biomass for Energy
Edited by Dominik Röser, Antti Asikainen, Karsten Raulund-Rasmussen and Inge Stupak
Publisher: Springer Netherlands
DOI: 10.1007/978-1-4020-5054-1
ISBN: 978-1-4020-5053-4 (Print) 978-1-4020-5054-1 (Online)
Pages 197-234
SpringerLink Date March 05, 2008; Copyright 2008
Book Series: Managing Forest Ecosystems; Volume 12
http://www.springerlink.com/content/q2k327v68jvvk465/
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