*Article* **Economic and Environmental Analysis of Woody Biomass Power Generation Using Forest Residues and Demolition Debris in Japan without Assuming Carbon Neutrality**

**Masaya Fujino 1,\* and Masaya Hashimoto <sup>2</sup>**


**\*** Correspondence: fujino@agri.fukushima-u.ac.jp

**Abstract:** Despite the increasing importance of renewable energy worldwide, the argument that forest biomass power generation is not carbon neutral has been rising. This research used Gifu Biomass Power Co., Ltd. (GBP) in Japan as a case study to investigate this matter. An evaluation was conducted through an input–output analysis on the economic and environmental benefits (i.e., CO2 reduction) of forest biomass power generation without assuming carbon neutrality. GBP's economic benefits were estimated to be 3452.18 million JPY during the construction period and 114.38 million JPY per year from operations. It was also estimated to generate 21.77 jobs per year in the forestry sector. CO2 emissions were estimated to increase by 423.02 tons during the construction period and 137,747 tons per year from operations. Although forests may offset CO2 by absorbing it, woody biomass power generation does not necessarily reduce CO2 emissions in Gifu Prefecture. The results indicate that woody biomass power generation is effective for the local economy but not necessarily for the global environment. The analysis should include more industrial sectors to clarify the environmental significance of wood biomass power generation without assuming carbon neutrality.

**Keywords:** CO2 emission; forestry; Gifu Prefecture; input–output analysis; renewable energy; ripple effect
