Economic Modeling of Bioenergy Crop Production and Carbon Emission Reduction in Illinois

Abstract

These results have several policy implications. Carbon cap-and-trade policy, if adopted, is likely to create an incentive for biomass co-firing. Such a policy would reduce the significant amount of carbon emissions and help the State obtain a considerable share of renewable energy. The carbon incentives would significantly increase the farm profitability and could help power plants achieve the emission reduction at a reasonably low cost.