IDEAS home Printed from https://ideas.repec.org/p/ags/aaae10/95980.html
   My bibliography  Save this paper

An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in the Soybean-Producing Regions of KwaZulu-Natal: Some Preliminary Results

Author

Listed:
  • Sparks, G.D.
  • Ortmann, Gerald F.
  • Lagrange, L.

Abstract

Global biofuel production has risen substantially in recent years, driven primarily by government support for biofuel industries. The stated motivations for these initiatives are numerous and have varied over time. Soybeans are the only field crop produced in sufficient quantities in KwaZulu-Natal (KZN) that the South African (SA) industrial biofuel strategy identifies as a potential biodiesel feedstock. Preliminary results from a mixed integer linear programming model support the notion of Funke et al. (2009), who contend that the incentives and commitments outlined by the industrial biofuel strategy are inadequate to both establish and sustain a domestic biodiesel industry.

Suggested Citation

  • Sparks, G.D. & Ortmann, Gerald F. & Lagrange, L., 2010. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in the Soybean-Producing Regions of KwaZulu-Natal: Some Preliminary Results," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95980, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:95980
    DOI: 10.22004/ag.econ.95980
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/95980/files/89.%20Soybean%20biofuels%20in%20KZN_%20South%20Africa.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.95980?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Herndon, Cary W. “Bill”, 2008. "The Ethanolization of Agriculture and the Roles of Agricultural Economists," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 403-414, August.
    2. Marshall, Elizabeth P., 2007. "Carving Out Policy Space for Sustainability in Biofuel Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-14, October.
    3. William W. Wilson & Won Koo & Bruce Dahl & Richard Taylor, 2008. "Impacts of Ethanol Expansion on Cropping Patterns and Grain Flows," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 642-663.
    4. de Gorter, Harry & Just, David R. & Tan, Qinwen, 2009. "The Socially Optimal Import Tariff and Tax Credit for Ethanol with Farm Subsidies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(1), pages 1-13, April.
    5. Hochman Gal & Sexton Steven E & Zilberman David D, 2008. "The Economics of Biofuel Policy and Biotechnology," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(2), pages 1-24, December.
    6. Herndon, Cary W., Jr., 2008. "The Ethanolization of Agriculture and the Roles of Agricultural Economists," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-12, August.
    7. Gardner Bruce & Tyner Wallace, 2007. "Explorations in Biofuels Economics, Policy, and History: Introduction to the Special Issue," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-8, December.
    8. G. F. Ortmann, 1987. "Land Rents and Production Costs in the South African Sugar Industry," South African Journal of Economics, Economic Society of South Africa, vol. 55(3), pages 163-169, September.
    9. Eidman, Vernon R., 2007. "Economic Parameters for Corn Ethanol and Biodiesel Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(2), pages 1-12, August.
    10. W. L. Nieuwoudt, 1980. "Value and Rent of Farm Land," South African Journal of Economics, Economic Society of South Africa, vol. 48(4), pages 249-254, December.
    11. W. L. Nieuwoudt & J. B. Bullock & G. A. Mathia, 1976. "An Economic Evaluation of Alternative Peanut Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(3), pages 485-495.
    12. Farzad Taheripour, 2008. "Welfare Effects and Unintended Consequences of Ethanol Subsidies ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 411-421.
    13. Tyner Wallace E., 2007. "Policy Alternatives for the Future Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-13, December.
    14. Madhu Khanna & Amy W. Ando & Farzad Taheripour, 2008. "Welfare Effects and Unintended Consequences of Ethanol Subsidies," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 411-421.
    15. Mark W. Rosegrant & Tingju Zhu & Siwa Msangi & Timothy Sulser, 2008. "Global Scenarios for Biofuels: Impacts and Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 495-505.
    16. William W. Wilson & Won Koo & Bruce Dahl & Richard Taylor, 2008. "Impacts of Ethanol Expansion on Cropping Patterns and Grain Flows," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 642-663.
    17. Funke, Thomas & Strauss, P.G. & Meyer, Ferdinand H., 2009. "Modelling the impacts of the industrial biofuels strategy on the South African agricultural and biofuel subsectors," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-22, September.
    18. Poray, A., 1983. "The Land Resource: A Look At Recent Agricultural Rents In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 22(2), October.
    19. William J. Baumol, 1963. "An Expected Gain-Confidence Limit Criterion for Portfolio Selection," Management Science, INFORMS, vol. 10(1), pages 174-182, October.
    20. Amigun, B. & Sigamoney, R. & von Blottnitz, H., 2008. "Commercialisation of biofuel industry in Africa: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(3), pages 690-711, April.
    21. Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(2), pages 117-141, June.
    22. Tyner, Wallace E. & Thaeripour, Farzad, 2007. "Future biofuels policy alternatives," Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48777, Farm Foundation.
    23. M. C. Lyne & G. F. Ortmann & N. Vink, 1991. "Food Security In Kwazulu: Results Of A Household‐Based Programming Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 43-55, January.
    24. Meyer, Ferdinand H. & Strauss, P.G. & Funke, Thomas, 2008. "Modelling the impacts of macro-economic variables on the South African biofuels industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-19, September.
    25. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
    26. Richard L. Simmons & Carlos Pomareda, 1975. "Equilibrium Quantity and Timing of Mexican Vegetable Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 472-479.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janda, Karel & Kristoufek, Ladislav & Zilberman, David, "undated". "Biofuels: review of policies and impacts," CUDARE Working Papers 120415, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. María Blanco & Marcel Adenäuer & Shailesh Shrestha & Arno Becker, 2012. "Methodology to assess EU Biofuel Policies: The CAPRI Approach," JRC Research Reports JRC80037, Joint Research Centre.
    3. Bayramoglu, Basak, 2008. "Efficiency of a Biofuel Subsidy Policy in the Presence of Environmental Externalities," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44399, European Association of Agricultural Economists.
    4. Dong Hee Suh & Charles B. Moss, 2017. "Dynamic adjustment of ethanol demand to crude oil prices: implications for mandated ethanol usage," Empirical Economics, Springer, vol. 52(4), pages 1587-1607, June.
    5. Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey E., 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-28, December.
    6. Castiblanco, Carmenza & Moreno, Alvaro & Etter, Andrés, 2015. "Impact of policies and subsidies in agribusiness: The case of oil palm and biofuels in Colombia," Energy Economics, Elsevier, vol. 49(C), pages 676-686.
    7. JunJie Wu & Christian Langpap, 2015. "The Price and Welfare Effects of Biofuel Mandates and Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 35-57, September.
    8. Finco, Adele & Padella, Monica & Spinozzi, Romina & Benedetti, Andrea, 2010. "Biofuel And Policy Alternatives: A Farm Level Analysis," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188088, International Consortium on Applied Bioeconomy Research (ICABR).
    9. Chao Bi & Jingjing Zeng & Wanli Zhang & Yonglin Wen, 2020. "Modelling the Coevolution of the Fuel Ethanol Industry, Technology System, and Market System in China: A History-Friendly Model," Energies, MDPI, vol. 13(5), pages 1-26, February.
    10. Karel Janda & Ladislav Kristoufek & David Zilberman, 2012. "Biofuels: policies and impacts," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(8), pages 372-386.
    11. Ujjayant Chakravorty & Marie-Hélène Hubert & Michel Moreaux & Linda Nøstbakken, 2012. "Do Biofuel Mandates Raise Food Prices?," Economics Working Paper Archive (University of Rennes & University of Caen) 201214, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    12. Catherine Hausman & Maximilian Auffhammer & Peter Berck, 2012. "Farm Acreage Shocks and Crop Prices: An SVAR Approach to Understanding the Impacts of Biofuels," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 117-136, September.
    13. Christian Langpap & JunJie Wu, 2011. "Potential Environmental Impacts of Increased Reliance on Corn-Based Bioenergy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(2), pages 147-171, June.
    14. Lapan, Harvey & Moschini, GianCarlo, 2012. "Second-best biofuel policies and the welfare effects of quantity mandates and subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 224-241.
    15. Karel Janda & Ladislav Kristoufek & David Zilberman, 2011. "Modeling the Environmental and Socio-Economic Impacts of Biofuels," Working Papers IES 2011/33, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2011.
    16. Mazumder, Diya B., 2014. "Biofuel subsidies versus the gas tax: The carrot or the stick?," Energy Economics, Elsevier, vol. 44(C), pages 361-374.
    17. Vitezslav Pisa & Jan Bruha & Vitezslav Pisa, 2011. "Dynamics of the Commodity Prices and Quantities: An Analysis using a Dynamic Multiregional CGE Model," EcoMod2011 2889, EcoMod.
    18. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Subhayu Bandyopadhyay & Sumon Bhaumik & Howard J. Wall, 2013. "Biofuel Subsidies and International Trade," Economics and Politics, Wiley Blackwell, vol. 25(2), pages 181-199, July.
    20. Cheteni, Priviledge, 2017. "Sustainability development: Biofuels in agriculture," MPRA Paper 80969, University Library of Munich, Germany, revised 24 Jun 2017.

    More about this item

    Keywords

    Crop Production/Industries; Resource /Energy Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaae10:95980. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.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.