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Bioenergy Supply and Environmental Impacts on Cropland: Insights from Multi-market Forecasts in a Great Lakes Subregional Bioeconomic Model

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Listed:
  • Aklesso Egbendewe-Mondzozo
  • Scott M. Swinton
  • Shujiang Kang
  • Wilfred M. Post
  • Julian C. Binfield
  • Wyatt Thompson

Abstract

Using subregional models of crop production choices in central Wisconsin and southwest Michigan, we predict biomass production, land use, and environmental impacts with details that are unavailable from national scale models. When biomass prices are raised exogenously, we find that the subregional models overestimate the supply, the land use, and the beneficial environmental aspects of perennial biomass crops. Multi-market price feedbacks tied to realistic policy parameters predict high threshold absolute prices for biomass to enter production, resulting in intensified production of biomass from annual grain crops with damaging environmental impacts. Multi-market feedbacks also predict regional specialization in energy biomass production in areas with lower yields of food crops. Policies promoting biofuels will not necessarily generate environmental benefits in the absence of environmental regulations.

Suggested Citation

  • Aklesso Egbendewe-Mondzozo & Scott M. Swinton & Shujiang Kang & Wilfred M. Post & Julian C. Binfield & Wyatt Thompson, 2015. "Bioenergy Supply and Environmental Impacts on Cropland: Insights from Multi-market Forecasts in a Great Lakes Subregional Bioeconomic Model," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(4), pages 602-618.
    • Handle: RePEc:oup:apecpp:v:37:y:2015:i:4:p:602-618.
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    2. Madhu Khanna & Ruiqing Miao, 2022. "Inducing the adoption of emerging technologies for sustainable intensification of food and renewable energy production: insights from applied economics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 1-23, January.
    3. Maxwell Mkondiwa & Jeffrey Apland, 2022. "Inter-district food flows in Malawi," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(6), pages 1553-1568, December.
    4. Debnath, Deepayan & Whistance, Jarrett & Thompson, Wyatt, 2017. "The causes of two-way U.S.–Brazil ethanol trade and the consequences for greenhouse gas emission," Energy, Elsevier, vol. 141(C), pages 2045-2053.
    5. Scott M. Swinton & Felix Dulys & Sarah S.H. Klammer, 2021. "Why Biomass Residue Is Not as Plentiful as It Looks: Case Study on Economic Supply of Logging Residues," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1003-1025, September.
    6. Rosburg, Alicia & Miranowski, John & McFadden, Jonathan, 2016. "Mitigating Feedstock Supply Risk in Corn Stover Biofuel Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235875, Agricultural and Applied Economics Association.
    7. Boris O. K. Lokonon & Aklesso Y. G. Egbendewe & Naga Coulibaly & Calvin Atewamba, 2019. "The Potential Impact Of Climate Change On Agriculture In West Africa: A Bio-Economic Modeling Approach," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 1-30, November.
    8. Miguel Carriquiry & Amani Elobeid & Jerome Dumortier & Ryan Goodrich, 2020. "Incorporating Sub‐National Brazilian Agricultural Production and Land‐Use into U.S. Biofuel Policy Evaluation," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 497-523, September.
    9. Debnath, Deepayan & Whistance, Jarrett & Thompson, Wyatt & Binfield, Julian, 2017. "Complement or substitute: Ethanol’s uncertain relationship with gasoline under alternative petroleum price and policy scenarios," Applied Energy, Elsevier, vol. 191(C), pages 385-397.
    10. Christian Barika Igbeghe & Adrián Nagy & Zoltán Gabnai & Attila Bai, 2024. "Exploring Biomass Linkages in the Food and Energy Market—A Systematic Review," Energies, MDPI, vol. 17(3), pages 1-19, January.

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