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Abstract

We provide a sensitivity analysis of a 1% increase of intermediate input use of forestry biomass in all sectors of the EU28 in a global Computable General Equilibrium framework depicting land use by Agro-Ecological Zone combined with a rather high resolution with regard to sectors and regions. We find considerable indirect land use effects outside the EU28 despite the rather small shock which reflects the existing integration of global biomass markets. We conclude that policies promoting EU biomass use need to consider these indirect effects which offset, for instance, first order GHG savings from a substitution of fossil inputs by biomass.

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