Agricultural Economics

Agricultural Economics

Estimating the Theoretical Potential of Cellulosic Biomass Energy in Iran and the Impact of Its Use on Social Welfare

Document Type : Research Paper

Authors
1 Sari University of Agricultural Sciences and Natural Resources
2 Department of Agricultural Economics, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University, Sari, Iran
3 Department of Geography, Ghent University, Belgium and University of Hamburg, Germany
Abstract
The generation of energy from agricultural residues is an important area of research with significant potential for sustainable energy production. Due to its favorable geographic characteristics, in Iran, the utilization of agricultural residues for energy generation has the potential to address energy security, reduce greenhouse gas (GHG) emissions, and provide economic opportunities for rural communities. Therefore, the aim of this study is to estimate the theoretical potential of cellulosic biomass energy in Iran and the impact of its use on social welfare, with a special focus on using a partial equilibrium model by maximizing the sum of consumer and producer surplus, subject to resource availability constraints, to analyze the economic consequences. This study indicates that Iran can potentially produce about 45778.8 kilotons of crop residues per year. This research indicates that the total bioenergy potential from residues in Iran can be equivalent to 197908.2 MJ. Wheat straw and Rice straw are expected to account for about 65% of biomass energy potential. Also, the simulated partial equilibrium model showed that increasing the price of wheat straw and rice straw by up to 50% and 75% respectively leads to maximum social welfare in Iran. Therefore, according to the results, appropriate pricing of biomass and creating incentives for collecting agricultural residue and increasing household awareness about the economic benefits of biomass can be selected and pursued as policies to increase social welfare. Also, to fully exploit the potential of biomass energy in Iran, it is expected that investments will be made in biomass energy extraction technologies.
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