Dynamic Economic Analysis of Perennial Energy Crops - EffectS of The CAP Reform on Biomass Supply in Greece

Vassilis Lychnaras and Uwe Schneider ()

No FNU-132, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: Energy from the biomass of perennial crops can offset emissions of greenhouse gases from fossil fuel combustion and increase energy self sufficiency. This study uses a dynamic, multi-farm, mathematical programming model to analyze the impact of the Common Agricultural Policy reform in 2003 on biomass supply from the Kopais plain in central Greece. The perennial energy crops under review are Arundo donax L. (Giant Reed), Miscanthus x giganteus (Miscanthus), Panicum virgatum L. (Switchgrass) and Cynara cardunculus L. (Cardoon). Farm survey results from 40 farms are processed with the Biomass Economic Evaluation model to obtain micro-economic data for both conventional and energy crops. Policy simulations with the multi-farm model show that the 2003 policy reform with decoupled subsidies except for cotton and energy crops lowers the cost of biomass between 2 and 4 Euro per ton. Switchgrass appears to be the most attractive option, followed by Cardoon and Miscanthus. Arundo is never preferred. Relative to the previous agricultural policy setting of Agenda 2000, the biomass potential increases more for smaller farms and farms with a higher share of cotton, vegetables, or trees.

Keywords: Energy crops; Common Agricultural Policy; Climate mitigation Economics; Arundo; Miscanthus; Switchgrass; Cardoon; Mathematical programming; Dynamic cost minimization; Bioenergy potential; Biomass supply curve; Kopaida; Greece (search for similar items in EconPapers)
JEL-codes: Q12 Q18 Q28 Q42 Q58 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2007-04, Revised 2007-04
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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