An Environmental Economic Analysis of Willow SRC Production

It is anticipated that biomass ‘energy crops’ will become increasingly important as a carbon-neutral energy source in the light of international commitments to reduce greenhouse gas emissions. In this paper we theoretically model short rotation coppice (SRC) biomass production and empirically apply this model to the case of SRC biomass production in the UK. An environmental economic model of site value maximising SRC biomass production is developed from existing forest economics literature in the ‘Faustmann’ tradition. The contribution made by external, non-timber benefits to ‘social’ site value is assessed, and potential for divergence between private and social value maximising strategies is identified. Case study data are drawn from the first commercial-scale willow SRC production to be established in the UK. Model results show good agreement with commercial practice.