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Adoption dynamics in bioenergy markets

Blas MOLA-YUDEGO

Summary

After the oil crisis, many European countries implemented policies in order to decreased oil dependence. These policies were later reinforced with growing environmental concerns, and dedicated to the promotion of renewable energy. One example of such a promotion was the development and establishment of energy crops as a source of biomass for energy purposes. Sweden was among the countries considering this options from the beginning, particularly focusing on fast growing willow plantations. Initial research was developed in the 1970s and 1980s and a set of policy incentives were established in the 1990s to promote and expand plantation areas. This programme and its evolution serves as an example of application of subsidies on the supply side in parallel to taxes on carbon and sulphur. Also, illustrates the effect of drastic changes in the policy framework along time, in this case as a result of Sweden joining the EU in 1995 and the changes in the subsidy schemes. At the same time, this shows the adoption patterns of farmers to innovations and crop alternatives. There are methodological tools that will help us to understand the complex patterns related to adoption, based on risk profiles. Finally, the session will present a simplified model of the different interactions between factors such as policy, profitability, cost reductions, risk perceptions, etc...

Lecture materials

  • Lecture Slides Blas MOLA-YUDEGO [PDF], Håkan ROSENQVIST [PDF][ppt]

  • Readings:

Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University. [PDF]

Roos, A., Graham, R. L., Hektor, B., & Rakos, C. (1999). Critical factors to bioenergy implementation. Biomass and Bioenergy17(2), 113-126. [PDF]

Mola-Yudego, B., Dimitriou, I., Gonzalez-Garcia, S., Gritten, D., & Aronsson, P. (2014). A conceptual framework for the introduction of energy crops.Renewable Energy72, 29-38. [PDF]

McCormick, K., & Kåberger, T. (2005). Exploring a pioneering bioenergy system: The case of Enköping in Sweden. Journal of Cleaner production,13(10), 1003-1014. [PDF]

Complementary materials

  • Plantation management (presentation) [PDF]
  • Plantation management (photos) [PDF]
  • Peat management [PDF]
  • Peat production facts [web]

Questions

 

How do we work to get increased cultivation of Salix and other energy crops where there are proper economic conditions?

 

 

How are the right conditions for profitable Salix cultivation or other energy crops created?




Objectives

This session focuses on:

  • Getting familiar with the mechanism of adoption of new technologies
  • Exploring the effects of policy tools in market dynamics
  • Reviewing the introduction of energy crops in Sweden as a case example
  • Establishing a framework for understanding the interactions between policy, technology, economy...
  • Reviewing new business models for bioenergy systems

 

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