Macroeconomic effects of the Ethanol Biofuel Sector in Canada

作者：Mukhopadhyay Kakali^*; Thomassin Paul J

来源：Biomass and Bioenergy, 2011, 35(7): 2822-2838.

DOI：10.1016/j.biombioe.2011.03.021

• Ethanol
• E10
• Gasoline
• Input-Output
• Impact
• Canada

The Government of Canada, like many others around the world, has given much importance to biofuels to address some of its policy challenges: climate change and diversification of energy supply. To deal with the emissions, the Government plans to increase production and use of ethanol. This will have impacts on the Canadian economy. An input output model of the Canadian economy is developed to estimate the macroeconomic impacts of the Ethanol production in Canada. Several modifications have been made in the Use and Make matrix of Canada, 2003. To consider biofuel sector in the Make and Use table of Canada 2003 we have included two new industries - biofuel and E10. The four new commodities have been entered in the list - ethanol, E10, DDG and CO(2). The impact matrix is estimated from an input output model that computes the direct plus indirect impacts on the Canadian economy, 2003. This model has been closed to the household sector in the economy by endogenizing this sector into the model. Various multipliers have also been estimated. A number of simulation exercises have also been attempted to study the implications of policies to reach the Kyoto target of Canada. Results show that the macroeconomic impact of ethanol sector leads to increase in industrial output and employment. The agriculture sector makes necessary adjustments to meet the demand for ethanol product. The petroleum industry is also going to be affected. The paper concludes with several policy suggestions.

• 出版日期2011-7