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Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models

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  • Louhichi, Kamel
  • Valin, Hogo

Abstract

This paper aims to ex-ante assess the micro-economic impacts of current EU biofuel policies on the French arable sector using an agricultural supply model (ASMMA) coupled with a computable general equilibrium model (MIRAGE-BioF). The application of this modelling framework confirms that biofuel policies would significantly affect the EU agricultural market, with price increase by 2020 as high as +40% in the case of rapeseed compared with a status quo at 2008 level. This would strongly impact land use and production of first-generation feedstock crops in France (rapeseed, cereals and sugar beets). The highest percentage increase would be in land dedicated to rapeseed (+50%), likely to occur in regions with a low initial rapeseed land share. This increase would boost farm income of most arable farms (+10% on average); however, the environment would face increase pressure from agricultural production with more use of pesticide (+5%) and increase in N2O emissions (+2.5%).

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  • Louhichi, Kamel & Valin, Hogo, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 93(3).
    • Handle: RePEc:ags:frraes:188057
    DOI: 10.22004/ag.econ.188057
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    Cited by:

    1. Ruth Delzeit & Robert Beach & Ruben Bibas & Wolfgang Britz & Jean Chateau & Florian Freund & Julien Lefevre & Franziska Schuenemann & Timothy Sulser & Hugo Valin & Bas van Ruijven & Matthias Weitzel &, 2020. "Linking Global CGE Models with Sectoral Models to Generate Baseline Scenarios: Approaches, Challenges, and Opportunities," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 162-195, June.
    2. Ruth Delzeit & Roberto Beach & Ruben Bibas & Wolfgang Britz & Jean Chateau & Florian Freund & Julien Lefevre & Franziska Schuenemann & Timothy Sulser & Hugo Valin & Bas van Ruijven & Matthias Weitzel , 2020. "Linking global CGE models with sectoral models to generate baseline scenarios: Approaches, opportunities and pitfalls," Post-Print hal-03128285, HAL.
    3. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    4. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    5. Deppermann, Andre & Offermann, Frank & Puttkammer, Judith & Grethe, Harald, 2016. "EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector," Renewable Energy, Elsevier, vol. 87(P1), pages 259-265.

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    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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