| Concerns about greenhouse gas (GHG) emission and dependency on foreign oil have prompted policy makers to develop environmentally friendly sources of energy. Forest biomass, a carbon dioxide (CO2) neutral source of energy, is thought to provide higher energy ratios, better environmental benefits regarding GHG reduction and be potentially cost competitive compared to agricultural crops. Furthermore, the use of forest biomass for energy can decrease the risk of wildfires and increase the profitability of forestlands.This dissertation explores the economics of using forest biomass for energy in the southern United States. First, the effects of bioenergy markets on nonindustrial private forest management are modeled using a Black-Scholes formula integrated with a modified Hartman model. This combined model assumes that stumpage prices are stochastic and forests are affected by catastrophic disturbances such as wildfires pest outbreaks. Second, public perceptions and views about using forest biomass biofuels are analyzed. A contingent valuation survey was conducted in Arkansas, Florida and Virginia to estimate the willingness to pay for biofuels to assess the effect of socioeconomic variables on the choice for renewable energy. Third, the effects of bioenergy markets on traditional forest product sectors are estimated. Assuming a Leontief profit function, both supply and demand functions for different components of the forest sector are derived. In addition, the effects of an increase demand for biomass for bioenergy on the sawtimber and pulpwood markets were simulated.Results of this research show that bioenergy markets would increase the profitability of forest stands. Forestland values are shown to be greater when thinning material is used for bioenergy production relative to pulpwood production. Furthermore, revenues are shown to increase as the rate of catastrophic disturbances is reduced. On average, bioenergy production increased the forestland value around 11.6% compared to pulpwood production. As bioenergy markets evolve, it is expected that profitability of forestlands will increase. Public perception study indicates that people tend to pay for biofuels to realize environmental and social benefits. Although people show heterogeneous preferences in terms of environmental attributes, their willingness to pay is greater when higher reduction of CO2 and improvements of biodiversity are offered. For an ethanol blend of 10% (E10), people were willing to pay an extra Finally, an increase in the demand for biomass for bioenergy causes an increase in the price of biomass for bioenergy, pulpwood and sawtimber and the quantity of pulpwood and sawtimber are shown to be decreased. Price of biomass for bioenergy, pulpwood and sawtimber increased 52%, 104% and 6.5%, respectively. Quantity of pulpwood and sawtimber decreased 20% and 11%, respectively. On the other hand, forest landowners and bioenergy sectors would benefit from bioenergy production while pulp and sawmill sectors are shown to contract with an increase in the demand for biomass for bioenergy. (Full text of this dissertation may be available via the University of Florida Libraries web site. Please check http://www.uflib.ufl.edu/etd.html)... |
