New Bio-based Outlook: low fossil energy prices obstruct positive effect of bioeconomy

Published on
March 7, 2016

The transition from a fossil-based economy to a bioeconomy contributes to reduce the dependency on fossil fuels, to meet our greenhouse gas emission reduction targets, and strengthen the Dutch economy. This macroeconomic assessment of large-scale deployment of biomass to 2030 shows that a bioeconomy can positively contribute to the Dutch economy, contributes to achieving the emission reduction targets and elevates part of the cost of achieving the overall emission reduction targets.

High technological change and global markets with low biomass prices are important to achieve theseimpacts. The economic impact is very much related to volatile fossil energy prices. Low fossil energy prices reduce the macroeconomic benefits but the contributions of the bioeconomy to emission reduction remain. To achieve the positive macroeconomic impacts and emission reduction a stimulus by policies (e.g. CO2 taxes, R&D policies) is necessary.

This study was carried out by LEI Wageningen UR and Copernicus Institute of Utrecht University and was commissioned and financed by the topsector platform for knowledge development and innovation of the crosscutting theme bio-based economy (TKI-BBE) and the Dutch Ministry of Economic Affairs (Min EZ). The study is performed within the BE-Basic R&D programme and project partners Essent, DSM and Corbion provided in-kind contributions to the economic and technical aspects of the work.


You can read all research findings in the report.