Faculty Publications

Modeling Biomass Procurement Tradeoffs Within A Cellulosic Biofuel Cost Model

Document Type

Article

Keywords

Biofuel, Biomass, Cellulosic ethanol, Procurement, RFS2, Switchgrass

Journal/Book/Conference Title

Energy Economics

Volume

58

First Page

77

Last Page

83

Abstract

We develop a long-run cellulosic biofuel cost model that minimizes feedstock procurement and processing costs per gallon. The distinguishing feature of the model is that it accounts for the procurement tradeoff between the intensive margin (biomass producers' participation rate) and extensive margin (biomass capture region). To investigate the extent to which this procurement tradeoff affects processors' cost-minimizing decisions, we apply the model to switchgrass ethanol production in U.S. crop reporting districts. Results suggest that location characteristics will determine the extent to which processors can reduce their total procurement costs by offering a higher biomass price to increase participation near the plant and reduce transportation costs.

Department

Department of Economics

Original Publication Date

8-1-2016

DOI of published version

10.1016/j.eneco.2016.06.020

Repository

UNI ScholarWorks, Rod Library, University of Northern Iowa

Language

en

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