This thesis examines the economic implications of using agriculturally based
feedstock for bio-energy production in East Texas. Specifically I examined the use of
switchgrass, rice straw, and logging residue as a feedstock for electrical power
generation in East Texas replacing coal.
To examine the effects of such a substitution, an environmental bio-complexity
approach is used to analyze the interactions of agricultural, technological, economic, and
environmental factors. In particular, lifecycle analysis (LCA) and Cost-Benefit analysis
is used.
The results show that as we use more bio-energy for power generation, we will
get less Greenhouse Gas (GHG) emission, which will be an environmental benefit in the
long run. The main problem is that cost increases. Current biomass feedstock production
costs are generally too high for biomass feedstock to replace coal in power generation.
However I find that GHG offset prices can make biomass economically attractive. In
particular GHG offset prices and forgiveness for the emissions from combustion based on photosynthetic absorption would raise the price people would be willing to pay for
biomass feedstock making it competitive
