Modelling of energy-crops in agricultural sector models : a review of existing methodologies

The present report provides an overview of the different methodologies applied in partial and general equilibrium models used to analyse biofuel policies in Europe, as well as their methodological pros and cons. While the LEITAP model is included as a general equilibrium model covering biofuel demand, partial equilibrium models are represented by ESIM, FAPRI, AGLINK/COSIMO, RAUMIS, AGMEMOD (agricultural models); POLES and PRIMES (energy sector); and EUFASOM/ENFA (forestry sector). The study is highly relevant for the current modelling work at IPTS, where models such as ESIM and AGLINK play an important role in the Integrated Modelling Platform for Agro-economic Commodity and Policy Analysis (iMAP) of the AGRILIFE Unit. Additionally, the POLES model is currently part of the model portfolio used by the Competitiveness & Sustainability Unit in several studies analysing possible technological pathways of energy production and demand for bioenergy in Europe, a result of implementing the biofuel directive. This compilation of information is also important since the implicit and explicit treatment of bioenergy, either as a demand shock to the processing of oilseeds or feedstock for bioethanol and biodiesel, or as the introduction of a biofuel-sector into a computational general equilibrium (CGE) is foreseen in the short-term by other economic models used at IPTS.