Modelling Interregional Trade of Energy Crops in Eastern Germany
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Renewable resources gain in importance in our modern society. The line of reasoning is based on their positive effects on agriculture, the environment and the economy. To support renewable energy from biomass the EU promotes the cultivation of energy crops. A spatial equilibrium model is applied based on the concept of maximizing net welfare, to provide information whether energy crop production competes with food production for land area.
The Model of Interregional Trade of Energy Crops (ITEC) refers to Eastern Germany and adjacent areas of Poland. First results show that the regions have enough feedstocks to meet the required demand for food and biofuel production. In many cases both food crops and biofuels are either traded on interregional basis or exported to "Rest of Europe" indicating that there is no competition between food and energy crops. Only green maize for biogas production strongly competes in areas where the crop is required as feed for cattle.