Stochastic viability of second generation biofuel chains: Micro-economic spatial modeling in France

Laure Bamière, Vincent Martinet and Christophe Gouel

No 2013/02, Working Papers from INRA, Economie Publique

Abstract: To better understand the production of biofuels derived from lignocellulosic feedstock, we investigate the interplay between the agricultural sector and a biofuel facility, at the local level. More specifically, we investigate the economic and technological viability of a bioenergy facility over time in an uncertain economic context using a stochastic viability approach. Two viability constraints are taken into consideration: the facility's demand for lignocellulosic feedstock has to be satisfied each year and the associated supply cost has to be lower than the facility's profitability threshold. We assess the viability probability of various strategies the facility can adopt to ensure that the agricultural sector meets its demand for biomass. These supplying strategies are determined at the initial time and define the constant share of total demand met by contracting out the demand to farmers who grow perennial crops. Any remaining demand is met by annual crops or wood. The demand constraints and agricultural price scenarios over the time horizon are introduced in an agricultural and forest biomass supply model, which in turns determines the supply cost per unit of energy and computes the viability probabilities of the supplying strategies. If a facility is to be viable over time, it is best for it to ensure that 100% of its demand is contracted out to farmers supplying perennial dedicated crops. This result is robust to the price context.

Keywords: Biofuel; biomass production; spatial economics; stochastic viability; Monte Carlo simulation (search for similar items in EconPapers)
JEL-codes: Q12 Q16 Q42 (search for similar items in EconPapers)
Date: 2013-06-13
New Economics Papers: this item is included in nep-agr and nep-ene
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www6.versailles-grignon.inra.fr/economie_p ... pers-2013/WP_2013_02 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://www6.versailles-grignon.inra.fr/economie_publique/Media/fichiers/Working-Papers/Working-Papers-2013/WP_2013_02 [301 Moved Permanently]--> https://www6.versailles-grignon.inrae.fr/economie_publique/Media/fichiers/Working-Papers/Working-Papers-2013/WP_2013_02 [301 Moved Permanently]--> https://www6.versailles-grignon.inrae.fr/psae/Media/fichiers/Working-Papers/Working-Papers-2013/WP_2013_02 [301 Moved Permanently]--> https://psae.versailles-grignon.hub.inrae.fr/Media/fichiers/Working-Papers/Working-Papers-2013/WP_2013_02 [301 Moved Permanently]--> https://psae.versailles-saclay.hub.inrae.fr/Media/fichiers/Working-Papers/Working-Papers-2013/WP_2013_02)

Related works:
Working Paper: Stochastic viability of second generation biofuel chains: Micro-economic spatial modeling in France (2013)
Working Paper: Stochastic Viability of Second Generation Biofuel Chains: Micro-economic Spatial Modeling in France (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:apu:wpaper:2013/02

Access Statistics for this paper

More papers in Working Papers from INRA, Economie Publique Contact information at EDIRC.
Bibliographic data for series maintained by Régis Grateau ().