The Economics of Forest Energy Plantations: An Empirical Enquiry

Abstract

Biomass from forest plantations has been recognized as a viable alternative to conventional energy resources. In eastern Ontario, Canadian research into the biotechnological aspects of tree cultivation and plantation management is now at an advanced stage. The technology for conversion of biomass to usable energy is also well established. The economic feasibility of energy plantations in Ontario remains unclear, however. In this paper returns to biomass production under alternative management systems are estimated and compared. Potential regional production levels are also estimated, and end-use alternatives are considered. Results of the analysis indicate that forest energy plantations may be an economically viable investment for landowners in eastern Ontario.