The use of Biomass in Germany

Lead Institute MA Institute of Market Analysis

Model based analysis of the increasing demand of biomass on agricultural markets in Germany

Biomass can be used for the production of food and feed, bioenergy and for material use. The decision how biomass is finally used, depends substantially on (inter) national economic and political conditions.

Currently the political support of bioenergy production and the resulting competition with alternative uses of biomass are in the focus of public discussions in Germany. The positions in this issue are manifold and complex. Depending on the political or economic perspective, they include, climate and environmental protection aspects, efficiency criteria of the different lines of energy, but also ethical aspects of the use of potential food for energy.

Background and Objective

In the context of this project the focus is solely on econommic aspects of the use of biomass in Germany. The objective is give answers to the following questions:

Which use of biomass generates the highest economic benefit?
What are the effects on the demand of biomass under changing economic and political conditions?
What are the macroeconomic effects of a changing use of biomass?

Target Group

policy, economy,society

Approach

The core of the project is the development and use of a Computable General Equilibrium Model for Germany called MERA (Model of Economic Ressource Analysis).

As database a Social Accounting Matrix (SAM) for Germany will be generated. On the basis of Supply- and Use Tables the generation, use and distribution of the gross domestic product in Germany can be captured. In this connection the flows of goods and services of sectors, the use of intermediate inputs and factors, as well as interactions between the government, the households, enterprises and the rest of the world are recorded.