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Policy Options for China's Bio‐ethanol Development and the Implications for Its Agricultural Economy

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  • Huanguang Qiu
  • Jikun Huang
  • Michiel Keyzer
  • Wim Van Veen

Abstract

The present paper analyzes the potential impacts of bio‐ethanol expansion on agricultural production, food prices and farmers' incomes in different regions of China. The results show that increase in demand for feedstock to produce bio‐ethanol will lead to large increase in the prices of agricultural products. The increase in prices will trigger a significant rise in the production of feedstock at the cost of lower rice and wheat production. The study also reveals that the impacts of bio‐ethanol on farmers' incomes vary largely among regions and farmer groups. Given the expected expansion of bio‐ethanol production in the future, and the limited land resources for feedstock production in China, the viability of different crops as feedstock for bio‐ethanol requires careful analysis before a large‐scale expansion of China's bio‐ethanol program. Bio‐ethanol production in China should be relying more on the second generation of bio‐ethanol technologies (i.e. using celluloses to produce bio‐ethanol), and China's government should increase research investment in this field.

Suggested Citation

  • Huanguang Qiu & Jikun Huang & Michiel Keyzer & Wim Van Veen, 2008. "Policy Options for China's Bio‐ethanol Development and the Implications for Its Agricultural Economy," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 112-124, November.
    • Handle: RePEc:bla:chinae:v:16:y:2008:i:6:p:112-124
    DOI: 10.1111/j.1749-124X.2008.00141.x
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    References listed on IDEAS

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    1. Jikun Huang & Scott Rozelle, 2003. "TRADE REFORM, THE WTO AND CHINA's FOOD ECONOMY IN THE TWENTY‐FIRST CENTURY," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 143-156, June.
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    Cited by:

    1. Zanxin Wang & Wei Wei & Margaret Calderon & Xianchun Liao, 2019. "Impacts of biofuel policy on the regional economy and carbon emission reduction in Yunnan, China," Energy & Environment, , vol. 30(5), pages 930-948, August.
    2. Ge, Jianping & Lei, Yalin & Tokunaga, Suminori, 2014. "Non-grain fuel ethanol expansion and its effects on food security: A computable general equilibrium analysis for China," Energy, Elsevier, vol. 65(C), pages 346-356.
    3. Xiao, Hongbo & Wang, Jimin & Oxley, Les & Ma, Hengyun, 2012. "The evolution of hog production and potential sources for future growth in China," Food Policy, Elsevier, vol. 37(4), pages 366-377.
    4. Qu, Mei & Ahponen, Pirkkoliisa & Tahvanainen, Liisa & Pelkonen, Paavo, 2010. "Chinese academic experts' assessment for forest bio-energy development in China," Energy Policy, Elsevier, vol. 38(11), pages 6767-6775, November.
    5. Zhou, Wenji & Zhu, Bing & Li, Qiang & Ma, Tieju & Hu, Shanying & Griffy-Brown, Charla, 2010. "CO2 emissions and mitigation potential in China's ammonia industry," Energy Policy, Elsevier, vol. 38(7), pages 3701-3709, July.

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