The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia

The EU Green Deal advocates decarbonizing the EU’s energy sector, largely by transitioning to renewable sources. Latvia aims to increase renewable energy production by 10% by 2030, prioritizing biomass from forests and wood for bioenergy. This paper evaluates implementing a tax on non-biobased ener...

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Main Authors: Vineta Tetere, Jack Peerlings, Liesbeth Dries
Format: Article
Language:English
Published: Firenze University Press 2025-06-01
Series:Bio-based and Applied Economics
Subjects:
Online Access:https://oaj.fupress.net/index.php/bae/article/view/16107
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author Vineta Tetere
Jack Peerlings
Liesbeth Dries
author_facet Vineta Tetere
Jack Peerlings
Liesbeth Dries
author_sort Vineta Tetere
collection DOAJ
description The EU Green Deal advocates decarbonizing the EU’s energy sector, largely by transitioning to renewable sources. Latvia aims to increase renewable energy production by 10% by 2030, prioritizing biomass from forests and wood for bioenergy. This paper evaluates implementing a tax on non-biobased energy alongside a subsidy for biobased energy, particularly wood biomass, to promote its substitution as a step towards climate neutrality and energy self-sufficiency. Additionally, it examines technological advancements in the bioenergy sector. Using an applied general equilibrium model and 2015 supply and use data, the study assumes a nested production structure, enabling explicit substitution between domestic and imported inputs. Given Latvia’s heavy reliance on imported fossil fuels, these measures could lead to an 18% increase in bioenergy production, reducing CO2 emissions by 0.5 - 3.2%, and reducing fossil fuel imports by 1.04 – 3.9%.
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institution Kabale University
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2280-6172
language English
publishDate 2025-06-01
publisher Firenze University Press
record_format Article
series Bio-based and Applied Economics
spelling doaj-art-e26d94a2ecd44e9680f9b5f3c13babed2025-08-20T03:27:56ZengFirenze University PressBio-based and Applied Economics2280-61802280-61722025-06-0110.36253/bae-16107The Importance of Wooden Biomass in the Transition to a Bioeconomy in LatviaVineta Tetere0Jack Peerlings1Liesbeth Dries2Wageningen UniversityWageningen UniversityWageningen University The EU Green Deal advocates decarbonizing the EU’s energy sector, largely by transitioning to renewable sources. Latvia aims to increase renewable energy production by 10% by 2030, prioritizing biomass from forests and wood for bioenergy. This paper evaluates implementing a tax on non-biobased energy alongside a subsidy for biobased energy, particularly wood biomass, to promote its substitution as a step towards climate neutrality and energy self-sufficiency. Additionally, it examines technological advancements in the bioenergy sector. Using an applied general equilibrium model and 2015 supply and use data, the study assumes a nested production structure, enabling explicit substitution between domestic and imported inputs. Given Latvia’s heavy reliance on imported fossil fuels, these measures could lead to an 18% increase in bioenergy production, reducing CO2 emissions by 0.5 - 3.2%, and reducing fossil fuel imports by 1.04 – 3.9%. https://oaj.fupress.net/index.php/bae/article/view/16107biobased energynon-biobased energyproduct taxsubsidy
spellingShingle Vineta Tetere
Jack Peerlings
Liesbeth Dries
The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
Bio-based and Applied Economics
biobased energy
non-biobased energy
product tax
subsidy
title The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
title_full The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
title_fullStr The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
title_full_unstemmed The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
title_short The Importance of Wooden Biomass in the Transition to a Bioeconomy in Latvia
title_sort importance of wooden biomass in the transition to a bioeconomy in latvia
topic biobased energy
non-biobased energy
product tax
subsidy
url https://oaj.fupress.net/index.php/bae/article/view/16107
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