Modelling regional maize market and transport distances for biogas production in Germany

Abstract

Our location model aims to simulate location decisions for biogas plants based on profit maximisation to generate regional demand functions for maize and corresponding plant size structure and transport distances. By linking it with an agricultural sector model we derived regional maize markets. Comparing results for the REA with a scenario applying uniform per unit subsidy and producing the same energy, we see higher subsidy costs with the REA but lower transportation distances.Biogas, environmental effects, transport costs, choice of location, Agricultural Finance, Environmental Economics and Policy,