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Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade

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  • Yang, Jun
  • Huang, Jikun
  • Qiu, Huanguang
  • Rozelle, Scott
  • Sombilla, Mercy A.

Abstract

Similar to many other countries, all nations in the Greater Mekong Subregion (GMS) have planned or are planning to develop strong national biofuel programs. The overall goal of this paper is to better understand the impacts of global and regional biofuels on agriculture and the rest of the economy, with a specific focus on the GMS. Based on a modified multi-country, multi-sector computable general equilibrium model, this study reveals that global biofuel development will significantly increase agricultural prices and production and change trade in agricultural commodities in the GMS and the rest of the world. While biofuel in the GMS will have little impacts on global prices, it will have significant effects on domestic agricultural production, land use, trade, and food security. The results also show that the extent of impacts from biofuel is highly dependent on international oil prices and the degree of substitution between biofuel and gasoline. The findings of this study have important policy implications for the GMS countries and the rest of the world.

Suggested Citation

  • Yang, Jun & Huang, Jikun & Qiu, Huanguang & Rozelle, Scott & Sombilla, Mercy A., 2009. "Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade," Applied Energy, Elsevier, vol. 86(Supplemen), pages 37-46, November.
    • Handle: RePEc:eee:appene:v:86:y:2009:i:supplement1:p:s37-s46
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    Cited by:

    1. Srirangan, Kajan & Akawi, Lamees & Moo-Young, Murray & Chou, C. Perry, 2012. "Towards sustainable production of clean energy carriers from biomass resources," Applied Energy, Elsevier, vol. 100(C), pages 172-186.
    2. Demirbas, Ayhan, 2011. "Biodiesel from oilgae, biofixation of carbon dioxide by microalgae: A solution to pollution problems," Applied Energy, Elsevier, vol. 88(10), pages 3541-3547.
    3. Kumar, S. & Shrestha, Pujan & Abdul Salam, P., 2013. "A review of biofuel policies in the major biofuel producing countries of ASEAN: Production, targets, policy drivers and impacts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 822-836.
    4. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    5. Huang, Jikun & Yang, Jun & Msangi, Siwa & Rozelle, Scott & Weersink, Alfons, 2012. "Global biofuel production and poverty in China," Applied Energy, Elsevier, vol. 98(C), pages 246-255.
    6. Kao, Chien-Ya & Chiu, Sheng-Yi & Huang, Tzu-Ting & Dai, Le & Hsu, Ling-Kang & Lin, Chih-Sheng, 2012. "Ability of a mutant strain of the microalga Chlorella sp. to capture carbon dioxide for biogas upgrading," Applied Energy, Elsevier, vol. 93(C), pages 176-183.
    7. Doumax-Tagliavini, Virginie & Sarasa, Cristina, 2018. "Looking towards policies supporting biofuels and technological change: Evidence from France," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 430-439.
    8. Ali, Tariq & Huang, Jikun & Yang, Jun, 2013. "Impact assessment of global and national biofuels developments on agriculture in Pakistan," Applied Energy, Elsevier, vol. 104(C), pages 466-474.
    9. Demirbas, M. Fatih, 2011. "Biofuels from algae for sustainable development," Applied Energy, Elsevier, vol. 88(10), pages 3473-3480.
    10. U. Martin Persson, 2015. "The impact of biofuel demand on agricultural commodity prices: a systematic review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(5), pages 410-428, September.
    11. Maung, Thein A. & Gustafson, Cole R. & Saxowsky, David M. & Nowatzki, John & Miljkovic, Tatjana & Ripplinger, David, 2013. "The logistics of supplying single vs. multi-crop cellulosic feedstocks to a biorefinery in southeast North Dakota," Applied Energy, Elsevier, vol. 109(C), pages 229-238.
    12. Doumax, Virginie & Philip, Jean-Marc & Sarasa, Cristina, 2014. "Biofuels, tax policies and oil prices in France: Insights from a dynamic CGE model," Energy Policy, Elsevier, vol. 66(C), pages 603-614.
    13. Ko, Chun-Han & Chaiprapat, Sumate & Kim, Lee-Hyung & Hadi, Pejman & Hsu, Shu-Chien & Leu, Shao-Yuan, 2017. "Carbon sequestration potential via energy harvesting from agricultural biomass residues in Mekong River basin, Southeast Asia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1051-1062.
    14. 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.
    15. Qiu, Huanguang & Huang, Jikun & Yang, Jun & Rozelle, Scott & Zhang, Yuhua & Zhang, Yahui & Zhang, Yanli, 2010. "Bioethanol development in China and the potential impacts on its agricultural economy," Applied Energy, Elsevier, vol. 87(1), pages 76-83, January.
    16. Harish, B.S & Janaki Ramaiah, M. & Babu Uppuluri, Kiran, 2015. "Bioengineering strategies on catalysis for the effective production of renewable and sustainable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 533-547.
    17. Qiu, Huanguang & Sun, Laixiang & Huang, Jikun & Rozelle, Scott, 2012. "Liquid biofuels in China: Current status, government policies, and future opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 3095-3104.
    18. Demirbas, Ayhan, 2011. "Competitive liquid biofuels from biomass," Applied Energy, Elsevier, vol. 88(1), pages 17-28, January.
    19. Wise, Marshall & Dooley, James & Luckow, Patrick & Calvin, Katherine & Kyle, Page, 2014. "Agriculture, land use, energy and carbon emission impacts of global biofuel mandates to mid-century," Applied Energy, Elsevier, vol. 114(C), pages 763-773.
    20. Oladosu, Gbadebo, 2012. "Estimates of the global indirect energy-use emission impacts of USA biofuel policy," Applied Energy, Elsevier, vol. 99(C), pages 85-96.

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    Keywords

    Biofuel GMS Impacts Agriculture;

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