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Agricultural Land Elasticities in the United States and Brazil

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  • Barr, Kanlaya Jintanakul

Abstract

The elasticity of aggregate supply of cropland is one key to understandingthe degree to which policy-induced increases in demand for biofuel feedstocksor agricultural CO2 offsets will result in higher prices or expanded cropproduction. We report land supply elasticities for the United States and Brazilestimated directly from recent changes in planted crop acreage and estimatedchanges in expected returns. The resulting aggregate implied land-use elasticitieswith respect to price are quite inelastic in the United States and Brazil elasticitieshave declined sharply in recent years. The estimated elasticities imply that currentestimates of land-based CO2 emissions from biofuels expansion may be overstated

Suggested Citation

  • Barr, Kanlaya Jintanakul, 2011. "Agricultural Land Elasticities in the United States and Brazil," Staff General Research Papers Archive 34893, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:34893
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    Keywords

    agricultural land elasticity; Brazil crop production; U.S. aggregate land supply elasticity;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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