Economic Impact of Bioenergy Development Some evidence from Europe and the US Incidence économique du développement des bioénergies Quelques constats en Europe et aux États‐Unis Wirtschaftliche Auswirkungen der Entwicklung im Bereich Bioenergie Belege aus Europa und den USA

Abstract

summaryEconomic Impact of Bioenergy Development Some evidence from Europe and the USIn many countries there is considerable interest in the implications of bioenergy development for value added (income) and employment. This can be examined by using ex ante and ex post analysis. Existing multi‐sector studies for Austria generally point to a positive ex ante net effect for value added and employment – at least for major bioenergy crops and technologies. However, estimates can vary widely depending on assumptions about economic linkages and causality. Estimated effects are smaller when account is taken of the effect of higher energy costs on economic activity and the diversion of public funds from other uses. Impacts are likely to be stronger in rural areas than at the national level, because of the location of much of primary bioenergy activity in those areas. Ex post assessment for US ethanol refineries points to an employment multiplier close to the anticipated value of four derived from ex ante analysis. However, the ex post estimate has a high standard error. This implies that there is substantial uncertainty about the true employment impact of ethanol biorefineries in rural areas. One reason for the apparent variability may be differing effects of bioenergy development on rural wages and land prices.