Economic and Environmental Tradeoffs from Switchgrass and Ethanol Production (A Case in Oklahoma)

Abstract

In this study IMPLAN 2009 economic data, CEDA 4.41 environmental data and other data sources are used to determine the economic and environmental impact associated with switchgrass based ethanol production in Oklahoma. The previous land uses for crop and cattle production have been compared with projected increases in switchgrass and ethanol production to determine the net economic and environmental impacts to provide a basis for local communities to appropriately assess the tradeoffs. Given the model's assumptions, the results suggest that cellulosic ethanol production using Oklahoma grown switchgrass would result in more than 3,000 jobs, almost $250 million in value-added, and over $430 million in output to the state's economy if nine plants, each producing 50 million gallons of ethanol per year, were operational. However, switchgrass based ethanol production would increase most of the greenhouse gas emissions in the state except methane (CH4). Criteria pollutant and VOC emissions will also increase with cellulosic ethanol production. Carbon dioxide, carbon monoxide (CO), nitrogen oxide (NOX), nitrous oxide and particulate matter (PM10 and PM25) are found to be the major pollutants. This implies that switchgrass and ethanol production contribute to environmental degradation. Thus, the decision to pursue switchgrass and ethanol production depends on a local community's priority of economic gains or environmental quality.