IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v35y2008i4p519-546.html
   My bibliography  Save this article

Bioenergy crop production and climate policies: a von Thunen model and the case of reed canary grass in Finland

Author

Listed:
  • Jussi Lankoski
  • Markku Ollikainen

Abstract

We examine the potential of bioenergy crops to offset greenhouse gas emissions from fossil fuels, assuming homogeneous agricultural land and distance-dependent transport costs. Variable transport costs define the socially and privately optimal extensive margin of the bioenergy crop production and imply that fertiliser intensity differs across locations. Under current policy, private fertiliser application is suboptimal, requiring location-specific input, transport or output subsidies. The theoretical model is applied to reed canary grass (Phalaris arundinacea L.) in Finland, which offsets emissions from peat in electricity production. If oats is the alternative crop, and taking permit price of CO 2 emissions as the proxy for climate benefits over the life cycle, reed canary grass production is socially optimal even 100 km away from the power plant and still offsets more than 6 tons/ha of CO 2 emissions from peat. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Jussi Lankoski & Markku Ollikainen, 2008. "Bioenergy crop production and climate policies: a von Thunen model and the case of reed canary grass in Finland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(4), pages 519-546, December.
    • Handle: RePEc:oup:erevae:v:35:y:2008:i:4:p:519-546
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbn040
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vincent Martinet, 2012. "Effect of soil heterogeneity on the welfare economics of biofuel policies," Working Papers 2012/01, INRA, Economie Publique.
    2. Schulze Steinmann, Matthias & Holm-Muller, Karin, 2010. "Thünensche Ringe der Biogaserzeugung – der Einfluss der Transportwürdigkeit nachwachsender Rohstoffe auf die Rohstoffwahl von Biogasanlagen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(01), pages 1-12, March.
    3. Lankoski, Jussi & Ollikainen, Markku, 2011. "Biofuel policies and the environment: Do climate benefits warrant increased production from biofuel feedstocks?," Ecological Economics, Elsevier, vol. 70(4), pages 676-687, February.
    4. Jose M. Vindel & Estrella Trincado & Antonio Sánchez-Bayón, 2021. "European Union Green Deal and the Opportunity Cost of Wastewater Treatment Projects," Energies, MDPI, vol. 14(7), pages 1-18, April.
    5. Schulze Steinmann, Matthias & Holm-Muller, Karin, 2010. "Thünensche Ringe der Biogaserzeugung – der Einfluss der Transportwürdigkeit nachwachsender Rohstoffe auf die Rohstoffwahl von Biogasanlagen," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(1).
    6. Ida Nordin & Katarina Elofsson & Torbjörn Jansson, 2022. "Optimal localisation of agricultural biofuel production facilities and feedstock: a Swedish case study," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 910-941.
    7. Yiming Zhang & Rui Yang & Kai Zhao & Xiangzhi Kong, 2023. "Fertilizer Application in Contract Farming: A Risk Analysis," Land, MDPI, vol. 12(8), pages 1-20, July.
    8. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    9. Trincado, E. & Vindel, J.M., 2024. "A viability index for comparing the binominal return-risk of solar radiation," Renewable Energy, Elsevier, vol. 220(C).
    10. Kosenius, Anna-Kaisa & Ollikainen, Markku, 2013. "Valuation of environmental and societal trade-offs of renewable energy sources," Energy Policy, Elsevier, vol. 62(C), pages 1148-1156.
    11. Cyril Bourgeois & Nosra Ben-Fradj & Mélissa Clodic & Pierre-Alain Jayet, 2011. "How cost-effective is a mixed policy targeting the management of three pollutants from N-fertilizers," Working Papers 2011/03, INRA, Economie Publique.
    12. Lankoski, Jussi E. & Ollikainen, Markku, 2009. "Biofuel policies and the environment: the effects of biofuel feedstock production on climate, water quality and biodiversity," 2009 Conference, August 16-22, 2009, Beijing, China 51677, International Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:35:y:2008:i:4:p:519-546. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.