Coupling economic and GHG emission accounting models to evaluate the sustainability of biogas policies

Abstract

The aim of this study is to evaluate and quantify the impacts of different biogas and related policies on the agricultural sector as well as their performance in terms of climate change mitigation and associated costs. To do so we coupled the partial equilibrium approach simulating the market clearing process with the perspective of Life Cycle Assessment of GHG applying it to the well-documented Lombardy case. Results show that the recent Italian biogas policy – prompting manure utilization and reducing the average subsidy per kWh – effectively increased the environmental sustainability of the system, which only now seems able to counteract global warming. Synergies are observed when the recent Common Agricultural Policy greening reform is simultaneously considered by the model.