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GTAP Resource #2400

"What becomes of Green Gold? Evaluating the effects of increasing bio-fuel production in Finland with VATTAGE – A MONASH-type CGE model for Finland"
by Honkatukia, Juha

The European directive on renewable energy mandates increased use of bio-fuels in the transport sector and also sets an overall target of 20% to renewable energy for all 27 of the Member States. Finland is one of the few countries that already exceeds the 20% target with a renewable share of 24% of all primary energy, with bio-energy accounting for some 20%. Finland does not meet the target for bio-fuels in the transport sector, however. The potential for increasing crop-based bio-fuels is limited in the northernmost country in the world, but there is plenty of potential to use Finland’s Green Gold, the forests, for bio-fuel production. However, forest-based bio-fuel production will be in competition with other uses of wood, most notably as an input for forest industry and combined heat and electricity generation. Consequently, the various bio-energy targets may actually be in conflict with each other with possibly negative environmental and financial consequences. This study evaluates the effects of increasing the production of bio-fuels in Finland both in the light of imposing the mandatory targets, and in the light of potential bio-fuel production capacity. The study uses the VATTAGE model, a MONASH-type CGE model for Finland.

Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Created: Honkatukia, J. (4/15/2007)
Updated: Honkatukia, J. (6/1/2007)
Visits: 2,691
- Climate change policy
- Dynamic modeling

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