Agricultural Biomass Production: Implications for Economic Growth and Environment in Central and Eastern European Countries

Abstract

Introduction: Climate change and the limiting nature of fossil natural resources are compelling elements that have driven the search for environmentally friendly alternatives to the traditional economy. In this context, as the main pillar of bioeconomy, biomass can contribute to energy sustainability, temper effects of climate change, and make the use of natural resources more efficiently. Central and Eastern European (CEE) countries have a relatively common economic history of agriculture playing a pivotal role in the former centralized economy. Purpose: This chapter analyzed the importance of biomass produced from residues of crops in CEE countries. This analysis is regarded as incentive to take a deeper look at biomass in CEE countries with acknowledged agricultural potential. CEE countries have been part of the former European socialist bloc, with agriculture being a core component of the centralized economy. Even though their economies have been undergoing a lengthy transition process to the market economy, this sector of activity still holds a significant share. Therefore, CEE countries provide a suitable ground for our analysis. Methodology: The authors selected characteristics of the agricultural sectors and development, and assess their relationship with biomass production in the CEE countries, using an Ordinary Least Squares method. Then, the authors investigate the environmental implications of crop biomass production in a similar framework. Findings: The results reveal that the agricultural biomass sector contributes to economic development, and it does not have negative implications for environmental indicators. These results show that biomass production is a sustainable target to be pursued.