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  • 2. The role of policy

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The role of policy on bioenergy markets



The role of policy is fundamental when studying the development of bioenergy in Europe. There are different benefits produced by the use of wood biomass for energy, which have been encouraged through different policies. Particularly relevant to understand these aspects is the concept of externalities, whether positive or negative. At EU and national level, there are different policy bodies that are related to bioenergy, related to energy policy, agricultural policy and environmental policy, which are reviewed and described. Finally, the session introduces to different economic instruments that can be used to implement energy targets and directly affect market development. Also, their use by different countries is discussed.

Lecture materials

  • Lecture Slides [PDF]

  • Readings:

Chapter 1, Markets and policy. In: Pelkonen, P. et al. eds. (2014) Forest Bioenergy for Europe. What Science can tell us, 4. European Forest Institute. pp 109. [PDF]

Ericsson, K., Huttunen, S., Nilsson, L. J., & Svenningsson, P. (2004). Bioenergy policy and market development in Finland and Sweden. Energy policy32(15), 1707-1721. [PDF]

  • Complementary readings:

Chapter 4. Development of bioenergy trade in four different settings–The role of potential and policies.Thrän, D., Hennig, C., Thiffault, E., Heinimö, J., & Andrade, O. (2014). In International Bioenergy Trade (pp. 65-101). Springer Netherlands. [RG] [printouts]

  • (previous years [PDF])




This session focuses on:

  • To get familiar with the main concepts on policy making affecting bioenergy
  • To understand the concept of externality and its relation to policy making
  • To review the different policies related to bioenergy, at national and EU level, specifically the energy policy, the CAP and the environmental protection policies.