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What Is the Social Value of Second Generation Biofuels?
Author(s) -
Hertel Thomas W.,
Steinbuks Jevgenijs,
Tyner Wallace E.
Publication year - 2016
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppv027
Subject(s) - greenhouse gas , biofuel , valuation (finance) , natural resource economics , agricultural economics , economics , value (mathematics) , business , environmental economics , finance , waste management , engineering , ecology , machine learning , computer science , biology
What are second‐generation (2G) biofuel technologies worth to global society? A dynamic, economic model is used to assess the impact that introducing 2G biofuels technology has on crops, livestock, biofuels, forestry, and environmental services, as well as greenhouse gas emissions. Under baseline conditions, this amounts to $64 billion and is $84 billion under the optimistic technology case, suggesting that investing in 2G technology could be appropriate. Under greenhouse gas regulation, global valuation more than doubles to $139 and $174 billion, respectively. A flat energy price scenario eliminates the value of 2G technology to society.