The greenhouse gas impact of bioenergy in developing economies: Evidence from Taiwan

Greenhouse gas emission induced global climate shift is an immediate threat to the world because of increased likelihood of the occurrence of extreme events. Expanding bioenergy production on currently set-aside land is an attractive option being considered by Taiwanese policymakers to reduce potential damages. This study investigates the impact of pyrolysis-based bioelectricity and ethanol on the greenhouse gas emission using a two-stage dynamic semi-parametric model. The results show that the bioelectricity generation has a significantly positive impact on the emission reduction. It encourages Taiwan to place more public resource on bioelectricity generation. This study is extended to forecast the emission reduction for 2015 to 2017. The quarterly emission reduction forecasts vary between 214,806 and 239,497 tons, which is less than 3% out of total emissions. It implies that the Taiwanese government could move the policy supports from biofuel production to bioelectricity production to reduce greenhouse gas emissions