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Promoting Bioenergy 
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Market Formation

As a forest landowner, you are probably wondering where the opportunities lie for establishing markets for bioenergy systems and biofuels in the near future? These questions will be answered in the following sections.

Markets need to be created for new, economically feasible alternatives which are considered desirable by society but which will not easily become successful unless a policy framework is established to promote them. International Energy Agency (IEA) talks about three perspectives through which we analyze market formation. These are:

  • Research, development, and deployment perspective, which focuses on innovation and industrial strategies.

  • Market barriers perspective, which is the economist’s perspective and focuses on decisions made by investors and users.

  • Market transformation perspective, which looks into the whole chain from production to use.
 

Markets

Top left: U.S. Department of Energy

Top right: Reuters New Media Inc.

Middle: www.glulambeams.org

Bottom left: Corbis Corporation

Bottom right: www.mdot.state.md.us


 
   

The context of new energy markets is conducive to the introduction of renewable energy options and the inclusion of users as important actors in the operation and development of energy systems. We have broadened the considerations on resource availability, technology choice, and reliability and are now asking questions about acceptability, cost return, and profitability. More attention to the users is necessary in a competitive market thus hopefully also resulting in better service provision. In addition, legislation and policy incentives that encourage developing bioenergy markets are important. 

 

 

©2007 National Learning Center for Private Forest and Range Landowners
"A program of the Cooperative Extension Service funded by the Renewable Resources Extension Act"
Last Updated: November 11, 2007