Why Biomass Residue Is Not as Plentiful as It Looks: Case Study on Economic Supply of Logging Residues

Biomass inventories and techno‐economic supply studies tend to overestimate economic supply of crop and timber residues, because they ignore human decisions on whether to permit residue removal. By combining information about biophysical availability, production and delivery costs, and the willingness of different types of decision maker to permit removal of logging residues, we develop a realistic prediction of economic supply that becomes very price inelastic. Because managers of only 52% of Michigan and Wisconsin forestland studied would allow the removal of logging residues, we conclude that most forecasts overestimate residue biomass supply by 50 to 100%.