Modeling the development and utilization of bioenergy and exploring the environmental economic benefits

• A complete bioenergy flow is schemed to industrialize bioenergy utilization.
• An input–output optimization simulation model is developed.
• Energy supply and demand and bioenergy industries’ development are optimized.
• Carbon tax and subsidies are endogenously derived by the model.
• Environmental economic benefits of bioenergy utilization are explored dynamically.

This paper outlines a complete bioenergy flow incorporating bioresource procurement, feedstock supply, conversion technologies and energy consumption to industrialize the development and utilization of bioenergy. An input–output optimization simulation model is developed to introduce bioenergy industries into the regional socioeconomy and energy production and consumption system and dynamically explore the economic, energy and environmental benefits. 16-term simulation from 2010 to 2025 is performed in scenarios preset based on bioenergy industries, carbon tax-subsidization policy and distinct levels of greenhouse gas emission constraints. An empirical study is conducted to validate and apply the model. In the optimal scenario, both industrial development and energy supply and demand are optimized contributing to a 8.41% average gross regional product growth rate and a 39.9% reduction in accumulative greenhouse gas emission compared with the base scenario. By 2025 the consumption ratio of bioenergy in total primary energy could be increased from 0.5% to 8.2%. Energy self-sufficiency rate could be increased from 57.7% to 77.9%. A dynamic carbon tax rate and the extent to which bioenergy industrial development could be promoted are also elaborated. Regional economic development and greenhouse gas mitigation can be potentially promoted simultaneously by bioenergy utilization and a proper greenhouse gas emission constraint. The methodology presented is capable of introducing new industries or policies related to energy planning and detecting the best tradeoffs of economy–energy–environment.