Abstract
Florida has high potential to produce forest biomass as a source of renewable energy because of its favorable climate. The Florida government has developed renewable bioenergy programs and policies to reduce the costs of biofuel and compete with fossil fuels, such as the ”Florida Renewable Energy Technologies & Energy Efficiency Act”. The main purpose of this paper was to investigate the economy-wide and welfare effects of select bioenergy polices in a computable general equilibrium (CGE) modeling framework. This study simulated 2 scenarios: (1) implementation of an incentive for the production of second-generation bioenergy (a 10％ fuel tax reduction applied to the second-generation bioenergy sector) and (2) a scenario anticipating technological gains in forest bioenergy production. The modeling experiments resulted in increased welfare and gross state product, and land shifting from agriculture to forestry. Results indicated that incentives for the second-generation bioenergy sector and investments in technology would result in overall positive outcomes for Florida's economy and household welfare.
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