IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61629.html
   My bibliography  Save this paper

Meeting the Mandate for Biofuels: Implications for Land Use and Food and Fuel Prices

Author

Listed:
  • Chen, Xiaoguang
  • Huang, Haixiao
  • Khanna, Madhu
  • Onal, Hayri

Abstract

Biofuels have been promoted to achieve energy security and as a solution to mitigating climate change. This research presents a framework to examine the extent to which biofuel mandates and subsidies reduce gasoline consumption and their implications for the food and fuel prices. A dynamic, multi-market equilibrium model, Biofuel and Environmental Policy Analysis Model (BEPAM), is used to estimate the effects of these policies on cropland usage between food crops and fuel crops and food and fuel prices, and to analyze the incentives provided by alternative policies for the mix of biofuels from corn and various cellulosic feedstocks that are economically viable over the 2007-2022 period. The provision of biofuel subsidies that accompany the mandate under the Renewable Fuel Standard (RFS) is found to significantly change this mix in favor of cellulosic biofuels produced from high yielding grasses and reduce the adverse impact of the RFS alone on food prices.

Suggested Citation

  • Chen, Xiaoguang & Huang, Haixiao & Khanna, Madhu & Onal, Hayri, 2010. "Meeting the Mandate for Biofuels: Implications for Land Use and Food and Fuel Prices," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61629, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61629
    DOI: 10.22004/ag.econ.61629
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61629/files/AAEA%202010_Xiaoguang%20Chen.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61629?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. John (Jake) Ferris & Satish Joshi, 2010. "Prospects for Ethanol and Biodiesel, 2008 to 2017 and Impacts on Agriculture and Food," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 91-111, Springer.
    2. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. 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.
    2. Affuso, Ermanno & Hite, Diane, 2013. "A model for sustainable land use in biofuel production: An application to the state of Alabama," Energy Economics, Elsevier, vol. 37(C), pages 29-39.
    3. Hu, Kejia & Chen, Yuche, 2019. "Equilibrium fuel supply and carbon credit pricing under market competition and environmental regulations: A California case study," Applied Energy, Elsevier, vol. 236(C), pages 815-824.

    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. Kooten, G. Cornelis van, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 149182, University of Victoria, Resource Economics and Policy.
    2. Franz Sinabell & Martin Schönhart & Erwin Schmid, 2015. "Austrian Agriculture 2010-2050. Quantitative Effects of Climate Change Mitigation Measures – An Analysis of the Scenarios WEM, WAM and a Sensitivity Analysis of the Scenario WEM," WIFO Studies, WIFO, number 58400.
    3. Liu, Xuan & van Kooten, Gerrit Cornelis & Duan, Jun, 2020. "Calibration of agricultural risk programming models using positive mathematical programming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    4. Mitter, Hermine & Schmid, Erwin, 2021. "Informing groundwater policies in semi-arid agricultural production regions under stochastic climate scenario impacts," Ecological Economics, Elsevier, vol. 180(C).
    5. Frahan, Bruno Henry de, 2005. "PMP, Extensions and Alternative Methods: Introductory Review of the State of the Art," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24537, European Association of Agricultural Economists.
    6. Uwe A. Schneider & Michael Obersteiner & Erwin Schmid & Bruce A. McCarl, 2007. "Agricultural adaptation to climate policies under technical change," Working Papers FNU-133, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2008.
    7. Wang, Weiwei & Khanna, Madhu & Dwivedi, Puneet, 2013. "Optimal Mix of Feedstock for Biofuels: Implications for Land Use and GHG Emissions," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150736, Agricultural and Applied Economics Association.
    8. Schneider, Uwe A. & McCarl, Bruce A., 2005. "Implications of a Carbon-Based Energy Tax for U.S. Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 265-279, October.
    9. Schmid, Erwin & Sinabell, Franz, 2005. "Evaluation Of Decoupling Scenarios in a Rural Development Context: Results for Austria," 89th Seminar, February 2-5, 2005, Parma, Italy 239278, European Association of Agricultural Economists.
    10. Xiaoguang Chen & Haixiao Huang & Madhu Khanna & Hayri Önal, 2011. "Meeting the Mandate for Biofuels: Implications for Land Use, Food, and Fuel Prices," NBER Chapters, in: The Intended and Unintended Effects of US Agricultural and Biotechnology Policies, pages 223-267, National Bureau of Economic Research, Inc.
    11. Livia Rasche & Uwe A. Schneider & Martha Bolívar Lobato & Ruth Sos Del Diego & Tobias Stacke, 2018. "Benefits of Coordinated Water Resource System Planning in the Cauca-Magdalena River Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-27, January.
    12. Kahil, Mohamed Taher & Connor, Jeffery D. & Albiac, Jose, 2015. "Efficient water management policies for irrigation adaptation to climate change in Southern Europe," Ecological Economics, Elsevier, vol. 120(C), pages 226-233.
    13. Uwe A. Schneider & Bruce A. McCarl, 2003. "Measuring Abatement Potentials When Multiple Change Is Present: The Case Of Greenhouse Gas Mitigation In U.S. Agriculture And Forestry," Working Papers FNU-23, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2002.
    14. van Kooten, G. Cornelis & Johnston, Craig, 2014. "Global impacts of Russian log export restrictions and the Canada–U.S. lumber dispute: Modeling trade in logs and lumber," Forest Policy and Economics, Elsevier, vol. 39(C), pages 54-66.
    15. Schmid, Erwin & Sinabell, Franz, 2005. "Using the Positive Mathematical Programming Method to Calibrate Linear Programming Models," Discussion Papers DP-10-2005, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    16. Schmid, Erwin & Sinabell, Franz, 2006. "Alternative Implementations of the Single Farm Payment - Distributional Consequences for Austria," Discussion Papers DP-17-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    17. Nunez, H., 2018. "Building a Bioethanol Market in Mexico," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275921, International Association of Agricultural Economists.
    18. Mario Andres Fernandez & Pei Huang & Bruce McCarl & Vikram Mehta, 2016. "Value of decadal climate variability information for agriculture in the Missouri River basin," Climatic Change, Springer, vol. 139(3), pages 517-533, December.
    19. Schmid, Erwin & Sinabell, Franz, 2004. "Multifunctionality of Agriculture: Political Concepts, Analytical Challenges and an Empirical Case Study," Discussion Papers DP-08-2004, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    20. Dhazn Gillig & Bruce McCarl & Ronald Sands, 2004. "Integrating agricultural and forestry GHG mitigation response into general economy frameworks: Developing a family of response functions," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(3), pages 241-259, July.

    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:aaea10:61629. 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/aaeaaea.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.