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Heat or power: How to increase the use of energy wood at the lowest cost?

Sylvain Caurla (), Vincent Bertrand (), Philippe Delacote () and Elodie Le Cadre

Energy Economics, 2018, vol. 75, issue C, 85-103

Abstract: We compute the optimal subsidy level for fuelwood consumption that makes it possible to achieve the French biomass energy consumption target. For this purpose, we model the competition and trade-offs between the consumption of fuelwood for heat (FW-H) and the consumption of fuelwood for electricity (FW-E). To do so, we couple a forest sector model with an electricity simulation model, and we test different scenarios combining FW-H and FW-E that account for contrasting potential increases in the carbon price and the potential reduction in the number of nuclear plants. We assess the implications of these scenarios on (1) the budgetary costs for the government, (2) industrial wood producers' profits, (3) cost savings in the power sector for the different scenarios tested, and (4) the carbon balance.

Keywords: Forestry sector; Bioenergy; Biomass-based electricity; Carbon pricing; Nuclear power (search for similar items in EconPapers)
JEL-codes: Q23 Q41 Q48 (search for similar items in EconPapers)
Date: 2018
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Related works:
Working Paper: Heat or power: How to increase the use of energy wood at the lowest cost? (2018)
Working Paper: Heat or power: how to increase the use of energy wood at the lowest costs? (2017) Downloads
Working Paper: Heat or power: how to increase the use of energy wood at the lowest costs? (2017) Downloads
Working Paper: Heat or power: how to increase the use of energy wood at the lowest costs? (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:75:y:2018:i:c:p:85-103

DOI: 10.1016/j.eneco.2018.08.011

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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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