The main modification made to the methodology proposed by the BCBA lies in
the definition of the SNA productive sectors’ bioeconomic contribution shares. In
this study, the calculation of these shares is not only based on the consultation with
experts, but also seeks to define the part of the production costs of the representative
products of each sector of the SNA that are based on the bioeconomy.
Within the production costs, variable costs and fixed costs are considered. The
differentiation of the bioeconomic part of the variable costs is simple, because raw
materials and inputs from bioeconomic activities are considered and those from
non-bioeconomic activities are excluded. For example, in banana production, the
bioeconomic part of variable production costs is the acquisition of young trees and
agricultural inputs of biological origin. If, for example, this activity uses biofuels for
transport, energy production or machine operation, the costs related to the purchase
of biofuels would be included in the bioeconomic part of the production costs. On
the contrary, if the fuels are of fossil origin such as gasoline or natural gas, these
costs are excluded from the bioeconomic part. Similarly, the costs of pesticides and
fertilizers of non-biological (mineral) origin are not included in the bioeconomic part
of the production costs. If these were of biological origin, they would indeed be
added to the bioeconomic part.
Electricity is an additional important item to consider in the contribution to the
bioeconomy. In the proposed methodology, the bioeconomic part of electricity costs
would depend on the bioeconomic part of the local electricity grid. Biological
sources for electricity production are biomass and biofuels. Although wind, solar,
water, and geothermal energy have a smaller carbon footprint than energy derived
from the combustion of fossil fuels, they are not of biological origin, which is why
they are excluded from the bioeconomic part of the local electricity grid.
Within the fixed costs, however, are items related to labour, maintenance of
machinery and civil construction, payment of taxes and the monthly payment of
economic investments made for civil construction, acquisition of machinery,
processing equipment, tools, land, and vehicles, among others. Since the economic
activity could not take place without this part of the production expenses, the fixed
costs are assumed to be totally bioeconomic.
Table 3.1 (continued)
d
Number obtained from the total number of garment manufacturing enterprises that use cotton and
wool as their raw materials (Ordoñez 2015)
e Value was assumed as an intermediate between wood production and paper production
f
Fraction of the energy produced from the combustion of biogas and biomass with respect to the
total energy produced in the country (INEC)
1
Guevara Ramia (2015);
2
Baca (2016);
3
Chiluisa Fogacho (2002);
4
Instituto Nacional Autónomo
de Investigaciones Agropecuarias (2002);
5
Mosquera Montoya et al. (2016);
6
Jaramillo Orozco
et al. (2017);
7
Organización de los Estados Americanos (1977);
8
Lalangui Balcázar et al. (2018);
9
Ochoa Vivanco (2015);
10
Córdova Valverde and Valverde Peralta (2015);
11
MSME-Development
Institute (2011);
12
Muenala Colimba (2018);
13
Guadalupe García and Sánchez Estevez (2014);
14
Chiluiza Benítez (2009)
3 Social and Economic Contribution of the Bioeconomic Sector in Ecuador: A. . .
43
the definition of the SNA productive sectors’ bioeconomic contribution shares. In
this study, the calculation of these shares is not only based on the consultation with
experts, but also seeks to define the part of the production costs of the representative
products of each sector of the SNA that are based on the bioeconomy.
Within the production costs, variable costs and fixed costs are considered. The
differentiation of the bioeconomic part of the variable costs is simple, because raw
materials and inputs from bioeconomic activities are considered and those from
non-bioeconomic activities are excluded. For example, in banana production, the
bioeconomic part of variable production costs is the acquisition of young trees and
agricultural inputs of biological origin. If, for example, this activity uses biofuels for
transport, energy production or machine operation, the costs related to the purchase
of biofuels would be included in the bioeconomic part of the production costs. On
the contrary, if the fuels are of fossil origin such as gasoline or natural gas, these
costs are excluded from the bioeconomic part. Similarly, the costs of pesticides and
fertilizers of non-biological (mineral) origin are not included in the bioeconomic part
of the production costs. If these were of biological origin, they would indeed be
added to the bioeconomic part.
Electricity is an additional important item to consider in the contribution to the
bioeconomy. In the proposed methodology, the bioeconomic part of electricity costs
would depend on the bioeconomic part of the local electricity grid. Biological
sources for electricity production are biomass and biofuels. Although wind, solar,
water, and geothermal energy have a smaller carbon footprint than energy derived
from the combustion of fossil fuels, they are not of biological origin, which is why
they are excluded from the bioeconomic part of the local electricity grid.
Within the fixed costs, however, are items related to labour, maintenance of
machinery and civil construction, payment of taxes and the monthly payment of
economic investments made for civil construction, acquisition of machinery,
processing equipment, tools, land, and vehicles, among others. Since the economic
activity could not take place without this part of the production expenses, the fixed
costs are assumed to be totally bioeconomic.
Table 3.1 (continued)
d
Number obtained from the total number of garment manufacturing enterprises that use cotton and
wool as their raw materials (Ordoñez 2015)
e Value was assumed as an intermediate between wood production and paper production
f
Fraction of the energy produced from the combustion of biogas and biomass with respect to the
total energy produced in the country (INEC)
1
Guevara Ramia (2015);
2
Baca (2016);
3
Chiluisa Fogacho (2002);
4
Instituto Nacional Autónomo
de Investigaciones Agropecuarias (2002);
5
Mosquera Montoya et al. (2016);
6
Jaramillo Orozco
et al. (2017);
7
Organización de los Estados Americanos (1977);
8
Lalangui Balcázar et al. (2018);
9
Ochoa Vivanco (2015);
10
Córdova Valverde and Valverde Peralta (2015);
11
MSME-Development
Institute (2011);
12
Muenala Colimba (2018);
13
Guadalupe García and Sánchez Estevez (2014);
14
Chiluiza Benítez (2009)
3 Social and Economic Contribution of the Bioeconomic Sector in Ecuador: A. . .
43