The goal of this research is to assess the economic impacts associated with the production of biochar using forest-based materials in communities within Northern California. We will do so by reviewing, developing and using economic models that consider the industries and institutions that make up the economic and social infrastructure in the region. We will examine existing input/output (I/O) models, construct preliminary social accounting matrices (SAM) that contain the intra-industry relationships as well as the capital and labor flows needed to assess the impact from biochar production and review and adapt computable general equilibrium models that utilize the SAMs to analyze taxes, subsidies and programs that may promote or constrain activities related to biochar.
I/O analyses produce multipliers useful in impact analysis. The multipliers quantify how an external change in final demand will impact the various suppliers of production factors and producers of commodities in the economy. Several assumptions limit the applicability of I/O analysis results, including the inability of these models to capture internal investment activities funded by tax dollars from government accounts. SAM analysis expands the intra-industry transaction tables to include all monetary flows from sources to recipients. A SAM analysis permits describing the economic activity in those areas where proposed biochar facilities may be constructed. A general equilibrium modeling framework may also be developed.
Organizations completing task
- University of Washington
Milestones (yearly level)
- An estimate community impacts of biochar production
- Submit research article to peer reviewed publication
- Present research results at scientific conference
- Sasatani, D., and I. Eastin. 2018. Demand Curve Estimation of Locally Produced Woody Biomass Products. Applied Engineering in Agriculture. ASABE special collection publication. 34(1): 145-155.