How can the biogas subsidy be used despite the rebound effect?

Can biogas subsidies actually increase emissions?

Biogas is often presented as an obvious solution for reducing CO₂ emissions. Yet, behind this seemingly efficient renewable energy source lie largely overlooked indirect effects.

To stimulate biogas production, governments implement subsidies. In some countries where these incentives can be combined, producers may respond by increasing their production, sometimes by developing high-emission agricultural activities, such as livestock farming.

This is known as the rebound effect: a situation where a policy designed to reduce emissions ends up negating some of its benefits, or even worsening the overall result, by altering production or behaviors.

This is precisely what Guy Meunier, research director at INRAE, explores in his latest article, "Subsidies and the Rebound Effect in the Case of Incomplete Carbon Pricing: An Application to Biogas and Livestock Farming," co-authored with Victor Besnier.

How can we accurately assess the real impact of biogas subsidies in the presence of rebound effects and when not all emissions are properly priced?

Acknowledgements

This study was supported by our Interdisciplinary Center Energy4Climate (E4C), the Energy and Prosperity Chair, under the auspices of the Risk Foundation and the École Polytechnique Foundation (funding from the ENGIE Foundation "Resilience of energy systems in the face of climate change and negative emissions").