Macro-economic impact of large-scale deployment of biomass resources for energy and materials on a national level—A combined approach for the Netherlands

Abstract

Biomass is considered one of the most important options in the transition to a sustainable energy system with reduced greenhouse gas (GHG) emissions and increased security of enegry supply. In order to facilitate this transition with targeted policies and implementation strategies, it is of vital importance to understand the economic benefits, uncertainties and risks of this transition. This article presents a quantification of the economic impacts on value added, employment shares and the trade balance as well as required biomass and avoided primary energy and greenhouse gases related to large scale biomass deployment on a country level (the Netherlands) for different future scenarios to 2030. This is done by using the macro-economic computable general equilibrium (CGE) model LEITAP, capable of quantifying direct and indirect effects of a bio-based economy combined with a spread sheet tool to address underlying technological details. Although the combined approach has limitations, the results of the projections show that substitution of fossil energy carriers by biomass, could have positive economic effects, as well as reducing GHG emissions and fossil energy requirement. Key factors to achieve these targets are enhanced technological development and the import of sustainable biomass resources to the Netherlands.