Integrating modern bioeconomy into macroeconomics: A comprehensive review of impacts and interactions

Abstract

Modern bioeconomy technologies play a pivotal role in reducing emissions and presenting substantial opportunities to advance net-zero transition and effective allocation of resources. Despite technological advancements to convert bio-based resources into sustainable products, its full significance has not been fully integrated into macroeconomic dynamics. This study integrated modern bioeconomy technologies (including bioenergy, biochemicals, and biomaterials) into the macroeconomic framework. Utilising a systematic literature review, the research explored the role of bioeconomy in five fundamental macroeconomic areas: demand, supply, Gross Domestic Product (GDP), markets, and socio-economic (employment and social cost).

Finding reveals that the bioeconomy generates an average direct and total employment impact of 1.4 and 2.5 FTE/MW, respectively. Demand-side impacts are primarily driven by consumer behaviour and attitudes, while supply-side effects depend upon resource availability. The insights are relevant to both engineers and economist, bridge the technical aspects and the broader macroeconomic system, supporting strategic decision making, sustainable policy development, and resilient bio-based macroeconomics.