IDEAS home Printed from https://ideas.repec.org/p/ags/aaea13/150406.html
   My bibliography  Save this paper

Renewable Energy Policies for the Electricity, Transportation, and Agricultural Sectors: Complements or Substitutes

Author

Listed:
  • Oliver, Anthony
  • Khanna, Madhu

Abstract

Renewable Portfolio Standards (RPSs) have been enacted in 29 states in the US, in part to encourage an increase in the amount of electricity generated from renewable sources. Biomass can be utilized in a dedicated bio-power plant to generate electricity, co-fired with coal at an existing power plant, or used to produce cellulosic ethanol that also yields co-product electricity. Considering these options along with a detailed national model of agricultural biomass production allows for the simulation of the effect of existing policies on electricity based biomass demand. Using a multi-period, multi-market, price endogenous model of the U.S. agricultural, electricity, and transportation sectors, the effect of existing state-level RPS is evaluated along with the implications for the agriculture sector. It is found that RPSs increase generation from both biomass and wind-based electricity generation, while decreasing the amount of generation from natural gas, and coal. Due to the co-product electricity generation a greater amount of electricity is generated from biomass under the RFS & RPS scenario than the RPS scenario even though biomass prices are higher.

Suggested Citation

  • Oliver, Anthony & Khanna, Madhu, 2013. "Renewable Energy Policies for the Electricity, Transportation, and Agricultural Sectors: Complements or Substitutes," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150406, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150406
    DOI: 10.22004/ag.econ.150406
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/150406/files/oliver_khanna_AAEA%202013%20final%20draft.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.150406?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. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(2), pages 1-5, August.
    2. Huang, Haixiao & Khanna, Madhu & Önal, Hayri & Chen, Xiaoguang, 2013. "Stacking low carbon policies on the renewable fuels standard: Economic and greenhouse gas implications," Energy Policy, Elsevier, vol. 56(C), pages 5-15.
    3. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    4. Maung, Thein A. & McCarl, Bruce A., 2008. "Economics of Biomass Fuels for Electricity Production: A Case Study with Crop Residues," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6417, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Carolyn Fischer, 2010. "Renewable Portfolio Standards: When Do They Lower Energy Prices?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 101-120.
    6. Dumortier, Jerome, 2012. "Biomass Cofiring in Coal Power Plants and its Impact on Agriculture in the United States," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124944, Agricultural and Applied Economics Association.
    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. Chen, Xiaoguang & Önal, Hayri, 2016. "Renewable energy policies and competition for biomass: Implications for land use, food prices, and processing industry," Energy Policy, Elsevier, vol. 92(C), pages 270-278.
    2. David Walker, 2014. "The Economic Potential for Forest-Based Carbon Sequestration under Different Emissions Targets and Accounting Schemes," Working Papers 2014.02, School of Economics, La Trobe University.
    3. Hof, John G. & Loomis, John B., 1983. "A Recreation Optimization Model Based On The Travel Cost Method," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(1), pages 1-10, July.
    4. Lambert, David K. & McCarl, Bruce A. & He, Quifen & Kaylen, Michael S. & Rosenthal, Wesley & Chang, Ching-Cheng & Nayda, W.I., 1995. "Uncertain Yields In Sectoral Welfare Analysis: An Application To Global Warming," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    5. Lynch, Lori & Malcolm, Scott A. & Zilberman, David, 2005. "Effect of a Differentially Applied Environmental Regulation on Agricultural Trade Patterns and Production Location: The Case of Methyl Bromide," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-21, April.
    6. Cruz-Trinidad, A. (ed.), 1996. "Valuation of tropical coastal resources: theory and application of linear programming," Monographs, The WorldFish Center, number 11659, April.
    7. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    8. Mosnier, A. & Havlík, P. & Valin, H. & Baker, J. & Murray, B. & Feng, S. & Obersteiner, M. & McCarl, B.A. & Rose, S.K. & Schneider, U.A., 2013. "Alternative U.S. biofuel mandates and global GHG emissions: The role of land use change, crop management and yield growth," Energy Policy, Elsevier, vol. 57(C), pages 602-614.
    9. Chen, Chi-Chung & McCarl, Bruce A., 2000. "The Value Of Enso Information To Agriculture: Consideration Of Event Strength And Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    10. 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.
    11. Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses 28064, University of the Free State, Department of Agricultural Economics.
    12. Spreen, Thomas H. & Brown, Mark G. & Jauregui, Carlos E., 2008. "Production and Price Effects of New Diseases and Other Challenges Confronting the Processed Orange Industry," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6715, Southern Agricultural Economics Association.
    13. Xiaoguang Chen & Hayri Önal, 2014. "An Economic Analysis of the Future U.S. Biofuel Industry, Facility Location, and Supply Chain Network," Transportation Science, INFORMS, vol. 48(4), pages 575-591, November.
    14. Chih-Chun Kung & Meng-Shiuh Chang, 2015. "Effect of Agricultural Feedstock to Energy Conversion Rate on Bioenergy and GHG Emissions," Sustainability, MDPI, vol. 7(5), pages 1-15, May.
    15. Anthony Oliver & Madhu Khanna, 2018. "The spatial distribution of welfare costs of Renewable Portfolio Standards in the United States electricity sector," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 269-287, October.
    16. McCarl, Bruce A. & Apland, Jeffrey, 1986. "Validation Of Linear Programming Models," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-10, December.
    17. 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.
    18. Oyewumi, Olubukola Ayodeju & Jooste, Andre & Britz, Wolfgang & van Schalkwyk, Herman D., 2008. "Trade Liberalization in the South African Livestock Industry: implications for rural development," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 51997, African Association of Agricultural Economists (AAAE).
    19. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Impacts of Incorporating Land Exchanges Between Forestry and Agriculture in Sector Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 389-401, December.
    20. Callaway, J.M., 2000. "Assessing the Costs and Market Impacts of Carbon Sequestration, Climate Change and Acid Rain," Other publications TiSEM c58adec9-1535-46cf-b213-b, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    Environmental Economics and Policy; 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:aaea13:150406. 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.