Biomass for Energy Uses in Austria – Regional effects on the Primary Sector and Downstream Industries

The substitution of fossil fuels by renewable energy sources is an important mitigation strategy to control carbon dioxide emissions. Among the renewable energy sources, biomass is more important than water, wind and solar energy in Austria. Studies on the technical potential of biomass show that its supply could be expanded by 65% until 2020. The estimation of costs for such an expansion is the topic of this analysis. Balancing regional supplies with demands is important to meet biomass utilization goals in a cost-effective manner given its low energy density. A regional model of agricultural and forestry production is used to analyse supply responses and production constraints in a detailed manner. These results are fed into a model of the whole economy which differentiates – among others – between the energy sector and food industries. Costs and benefits of a policy that stimulates the use of biomass for energy production can therefore be evaluated consistently and comprehensively.