Economic impacts of woody biomass utilization for bioenergy in Mississippi

This study examined the economic impacts of woody biomass utilization for bioenergy conversion in Mississippi. Analysis of economic impacts was organized around three groups of events: (1) recovery of logging and thinning residues, (2) electricity generation from cofiring systems, and (3) construction and operation of biofuel facilities. Input-output analysis was used to simulate economic impacts in terms of gross output, value-added, and employment. Cost information and woody biomass inventories were obtained from the literature, a statewide forest inventory, and Impact Analysis for Planning (IMPLAN) data-base. Results showed that the single activity of recovery of all available logging and thinning residues would create a considerable number of jobs and stimulate the rural economy with more resources coming to local industries and households. Due to construction and operation costs, economic impacts of biofuels were higher than biopower. However, biofuels reported the lowest employment and value-added multipliers of all three groups. This may be due, in part, to equipment and materials manufactured outside of the state. It is expected that as technology, equipment, and human capital were gradually attracted to the area, the multiplicative effect and expenditure retention should increase. These results can help decision-makers evaluate Mississippi's potential for future bioenergy development.