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Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model

Alicia Rosburg (), John Miranowski and Keri Jacobs ()

Energy Economics, 2016, vol. 58, issue C, 77-83

Abstract: We develop a long-run cellulosic biofuel cost model that minimizes feedstock procurement and processing costs per gallon. The distinguishing feature of the model is that it accounts for the procurement tradeoff between the intensive margin (biomass producers' participation rate) and extensive margin (biomass capture region). To investigate the extent to which this procurement tradeoff affects processors' cost-minimizing decisions, we apply the model to switchgrass ethanol production in U.S. crop reporting districts. Results suggest that location characteristics will determine the extent to which processors can reduce their total procurement costs by offering a higher biomass price to increase participation near the plant and reduce transportation costs.

Keywords: Biofuel; Biomass; Cellulosic ethanol; Procurement; RFS2; Switchgrass (search for similar items in EconPapers)
JEL-codes: Q11 Q16 Q41 Q42 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model (2016) Downloads
Working Paper: Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:58:y:2016:i:c:p:77-83

DOI: 10.1016/j.eneco.2016.06.020

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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