Optimal localisation of agricultural biofuel production facilities and feedstock: a Swedish case study
Nordin, Ida; Elofsson, Katarina; Jansson, TorbjörnAbstract
Policies for investment in biofuel production facilities and feedstock may be necessary in order to meet climate and renewable energy targets. These policies entail a trade-off between high transportation costs of biomass and economies of scale of production facilities. We develop a spatial optimisation model and investigate the cost-effective localization of production facilities for ethanol from agricultural land in Sweden. Feedstock costs are found to be most important in determining the location, although high feedstock density motivates locating large facilities in areas with high feedstock costs. At higher production, feedstock from the whole country is preferred despite high transport costs.
Keywords
Agricultural land use; biofuel; climate policy; cost-effectiveness; localisation; spatial optimisationPublished in
European Review of Agricultural Economics2022, volume: 49, number: 4, pages: 910-941
Authors' information
Sustainable Development Goals
SDG7 Affordable and clean energy
UKÄ Subject classification
Economics
Publication Identifiers
DOI: https://doi.org/10.1093/erae/jbab043
URI (permanent link to this page)
https://res.slu.se/id/publ/114939