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Biomass as Sustainable Energy: The Potential and Economic Impacts on U.S. Agriculture

Author

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  • Randall Reese
  • Satheesh V. Aradhyula
  • Jason F. Shogren
  • Shaine Tyson

Abstract

This paper addresses the economic feasibility and impacts on U.S. agriculture of establishing a biomass crops industry capable of producing 8 quads methanol or 9.4 quads ethanol by the year 2030 from grasses grown as biomass feedstocks. The results suggest that such an industry could become commercially viable and that the agricultural economy would benefit. Producers of traditional and biomass crops would benefit most. While consumers and livestock producers would be worse off as a result of higher crop prices, society would gain from reduced government payments to crop producers and from lower levels of air pollution.

Suggested Citation

  • Randall Reese & Satheesh V. Aradhyula & Jason F. Shogren & Shaine Tyson, 1992. "Biomass as Sustainable Energy: The Potential and Economic Impacts on U.S. Agriculture," Center for Agricultural and Rural Development (CARD) Publications 92-wp92, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:92-wp92
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    Cited by:

    1. Sobowale, Flakkeh & Dicks, Michael R. & Adam, Brian D. & Campiche, Jody L., 2012. "Impact of United States Corn-Based Ethanol Production on Land Use," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119800, Southern Agricultural Economics Association.
    2. Lunnan, Anders, 1997. "Agriculture-based biomass energy supply -- a survey of economic issues," Energy Policy, Elsevier, vol. 25(6), pages 573-582, May.

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