Woody biomass policies and location decisions of the woody bioenergy industry in the southern United States

Biomass and Bioenergy, Volume 56,  2013, Pages 268-273.

Zhimei Guo, Donald G. Hodges, Timothy M. Young.


Department of Agricultural Economics and Rural Sociology, Auburn University, USA and

Department of Forestry, Wildlife and Fisheries, University of Tennessee Institute of Agriculture, Knoxville, TN 37996-4563, USA




Woody biomass for bioenergy production has been included in relatively few renewable energy policies since the 1970s. Recently, however, several states have implemented a variety of new woody biomass policies to spur the establishment of new bioenergy industry. Establishing new woody biomass-based facilities in a specific state is affected by a number of factors such as the strength of these new policy incentives, resource availability, business tax climate, and the available labor force. This study employs a conditional logit model (CLM) to explore the effects of woody biomass policies on the siting decisions of new bioenergy projects relative to some of these other state attributes. The CLM results suggest that state government incentives are significantly related to state success in attracting new plants. The results have substantial implications regarding woody biomass policies and the creation of a new bioenergy industry.


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