Modeling Bioenergy, Land Use, and GHG Mitigation with FASOMGHG: Implications of Storage Costs and Carbon Policy
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Biofuels production has increased rapidly in recent years due to heightened concerns regarding climate change and energy security. Biofuels produced from agricultural feedstocks increase pressure on land resources. Competition for land is expected to continue growing in the future as mandated biofuels volumes increase along with rising demand for food, feed, and fiber, both domestically and internationally. In response to concerns regarding impacts such as indirect land use change and higher food prices, U.S. policy is focusing on second-generation (cellulosic) feedstocks to contribute the majority of the mandated increase in biofuels volume through 2022. However, there has been little work exploring supply logistics, feedstock mix, and net GHG effects of combining renewable fuels mandates with climate policy. Using the recently updated Forest and Agricultural Sector Optimization Model with Greenhouse Gases (FASOMGHG), we explore implications of alternative assumptions regarding feedstock storage costs and carbon price for renewable energy production mix, land use, and net GHG emissions. The model is used to quantify the magnitude and regional distribution of changes in the optimal mix of bioenergy feedstocks when accounting for storage costs. Further, combining a volume mandate with carbon price policy impacts feedstock mix and provides substantially larger net reduction in GHG.
KeywordsAgriculture Bioenergy Biomass storage FASOMGHG Forests GHG mitigation Transportation costs
JEL CodesC61 Q15 Q18
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