Determination of Optimal Subsidies for Balancing Local Supply/Demand of Biomass Products Within a Regional Development Strategic Plan

F.A. Batzias, O. Kopsidas & Y. Pollalis
Under the assumption that energy crop farmers believe the price in the previous period will prevail in the current period as well, adjusting their cultivation species accordingly, the biomass market may exhibit instability. In the present work, optimal subsidy Iopt is determined for balancing local supply/demand of biomass products for avoiding such instability while ensuring adequacy of biomass inventory for feeding continuously a biomass processing unit. The Iopt model is implemented for parameter values referring...