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Impacts of the European biofuel policy on the farm sector: a general equilibrium assessment

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  • Alexandre Gohin

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

Abstract

We assess the impacts of the European indicative biofuel policy on the farm sector with a farm-detailed computable general equilibrium model. Our simulations suggest that most of the biodiesel demand will be satisfied by imports while the bioethanol demand will be satisfied mostly by domestic production. We also show that the downstream livestock sectors are never negatively affected. Finally, the positive farm income effect is rather robust to our modeling assumptions: our central estimate is a 3.2 billion farm-income increase. However, the transfer efficiency of this policy is invariably limited.

Suggested Citation

  • Alexandre Gohin, 2008. "Impacts of the European biofuel policy on the farm sector: a general equilibrium assessment," Post-Print hal-02665168, HAL.
    • Handle: RePEc:hal:journl:hal-02665168
    DOI: 10.1111/j.1467-9353.2008.00437.x
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    Citations

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    Cited by:

    1. Kim, In Seck & Binfield, Julian & Patton, Myles & Zhang, Lichun & Moss, Joan, 2013. "Impact of increasing liquid biofuel usage on EU and UK agriculture," Food Policy, Elsevier, vol. 38(C), pages 59-69.
    2. Ge, Jianping & Lei, Yalin & Tokunaga, Suminori, 2014. "Non-grain fuel ethanol expansion and its effects on food security: A computable general equilibrium analysis for China," Energy, Elsevier, vol. 65(C), pages 346-356.
    3. repec:ags:ijag24:347272 is not listed on IDEAS
    4. Hochman, Gal & Rajagopal, Deepak & Timilsina, Govinda & Zilberman, David, 2011. "The role of inventory adjustments in quantifying factors causing food price inflation," Policy Research Working Paper Series 5744, The World Bank.
    5. 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.
    6. Rebecca S. Dodder & Amani Elobeid & Timothy L. Johnson & P. Ozge Kaplan & Lyubov A. Kurkalova & Silvia Secchi & Simla Tokgoz, 2011. "Environmental Impacts of Emerging Biomass Feedstock Markets: Energy, Agriculture, and the Farmer," Center for Agricultural and Rural Development (CARD) Publications 11-wp526, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. repec:ags:ijag24:347278 is not listed on IDEAS
    8. De Lucia, Caterina & Bartlett, Mark, 2014. "Implementing a biofuel economy in the EU: Lessons from the SUSTOIL project and future perspectives for next generation biofuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 22-30.
    9. Tokgoz, Simla, 2008. "The Impact of Energy Markets on the EU Agricultural Sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44241, European Association of Agricultural Economists.
    10. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    11. Deppermann, Andre & Offermann, Frank & Puttkammer, Judith & Grethe, Harald, 2016. "EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector," Renewable Energy, Elsevier, vol. 87(P1), pages 259-265.
    12. Sukati, Mphumuzi, 2014. "The South African Bio ethanol blend mandate and its implications on regional agricultural markets and welfare," MPRA Paper 57702, University Library of Munich, Germany.
    13. Cornelis Gardebroek & Jeffrey J. Reimer & Lieneke Baller, 2017. "The Impact of Biofuel Policies on Crop Acreages in Germany and France," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 839-860, September.
    14. Ji, Xi & Long, Xianling, 2016. "A review of the ecological and socioeconomic effects of biofuel and energy policy recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 41-52.
    15. Junker, Franziska & Wolf, Verena & Marquardt, Sandra & Ledebur, Oliver, 2015. "Changes to EU Biofuel Policy- Turmoil on Feedstock Markets," 2015 Conference, August 9-14, 2015, Milan, Italy 211819, International Association of Agricultural Economists.
    16. Hu, Min & Zhang, Dayong & Ji, Qiang & Wei, Lijian, 2020. "Macro factors and the realized volatility of commodities: A dynamic network analysis," Resources Policy, Elsevier, vol. 68(C).
    17. Elizondo, Alejandra & Boyd, Roy, 2017. "Economic impact of ethanol promotion in Mexico: A general equilibrium analysis," Energy Policy, Elsevier, vol. 101(C), pages 293-301.

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