The regional economic impact of biofuel production depends upon a number of interrelated factors: the specific biofuels feedstock and production technology employed; the sector's embeddedness in the rest of the economy, through its demand for local resources; and the extent to which new activity is created. These issues can be analysed using multisectoral economic models. Some studies use input–output (IO) and social accounting matrix (SAM) modelling frameworks, whilst a nascent computable general equilibrium (CGE) literature has begun to examine the regional impact of biofuel development. This paper reviews, compares and evaluates these approaches for modelling the regional economic impacts of biofuels.
- regional economic impacts
- evaluation of applications
- multisectoral modelling techniques
- computable general equilibrium
- economic modelling
- social accounting