Agriculture’s Potential Regional Economic Contributions to the United States Economy When Supplying Feedstock to the Bio-Economy

Burton C. English (), Robert Jamey Menard, Daniel G. de la Torre Ugarte, Lixia H. Lambert, Chad M. Hellwinckel and Matthew H. Langholtz
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Burton C. English: Department of Agricultural and Resource Economics, University of Tennessee, Knoxville, TN 37901, USA
Robert Jamey Menard: Department of Agricultural and Resource Economics, University of Tennessee, Knoxville, TN 37901, USA
Daniel G. de la Torre Ugarte: Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, TN 37830, USA
Lixia H. Lambert: Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078, USA
Chad M. Hellwinckel: Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, TN 37830, USA
Matthew H. Langholtz: Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, TN 37830, USA

Energies, 2025, vol. 18, issue 8, 1-31

Abstract: The economic impact of obtaining biomass could become significant to U.S. rural economies via the establishment of a bioeconomy. In 2023, the Bioenergy Technologies Office (BETO) and Oak Ridge National Laboratory provided a road map to obtain over a billion tons of biomass for conversion to bioenergy and other products. Using information from this roadmap, this study estimates the potential positive and negative economic impacts that occur because of land use change, along with increased technological advances. This is achieved by using the input–output model, IMPLAN, and impacting 179 Bureau of Economic Analysis regions in the conterminous United States. Biomass included in the analysis comprises dedicated energy crops, crop residues, and forest residues. The analysis found that managing pastures more intensively could result in releasing land to produce dedicated energy crops on 30.8 million hectares, resulting in the production of 361 million metric tons of biomass. This, coupled with crop residues from barley, corn, oats, sorghum, and wheat (162 million metric tons), plus forest residues (41 million metric tons), provide 564 million dry metric tons of biomass. Assuming the price for biomass in 2023 dollars was USD 77 per dry metric-ton, this additional production results in an economic benefit for the nation of USD 619 billion, an increase from the Business As Is scenario (Baseline) of almost USD 100 billion per year, assuming a mature biomass industry. An additional 700,000 jobs are required to grow, harvest/collect, and transport the biomass material from the land.

Keywords: biomass; billion-ton report; economic impacts; simulation; POLYSYS; IMPLAN; ForSEAM (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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