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The Global Impacts of Biofuel Mandates

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  • Thomas W. Hertel
  • Wallace E. Tyner
  • Dileep K. Birur

Abstract

The rise in world oil prices, coupled with heightened interest in the abatement of greenhouse gas emissions, led to a sharp increase in biofuels production around the world. Previous authors have devoted considerable attention to the impacts of these policies on a country-by-country basis. However, there are also strong interactions among these programs, as they compete in world markets for feedstocks and ultimately for a limited supply of global land. In this paper, we offer the first global assessment of biofuel programs Ð focusing particularly on the EU and US. We begin with an historical analysis of the period 2001-2006, which also permits us to validate the model. We then conduct an ex ante analysis of mandates in the year 2015. We find that if these mandates are indeed fulfilled the impact on global land use could be substantial, with potentially significant implications for greenhouse gas emissions.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 31 (2010)
Issue (Month): Number 1 ()
Pages: 75-100

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Handle: RePEc:aen:journl:2010v31-01-a04

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Cited by:
  1. Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey, 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Staff General Research Papers 35548, Iowa State University, Department of Economics.
  2. Yang, Jun & Huang, Jikun & Msangi, Siwa & Rozelle, Scott & Weersink, Alfons, 2013. "The Role of Cultivated Land Expansion on the Impacts to Global Agricultural Markets from Biofuels," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149614, Agricultural and Applied Economics Association.
  3. Hoefnagels, Ric & Banse, Martin & Dornburg, Veronika & Faaij, André, 2013. "Macro-economic impact of large-scale deployment of biomass resources for energy and materials on a national level—A combined approach for the Netherlands," Energy Policy, Elsevier, vol. 59(C), pages 727-744.
  4. Birur, Dileep K. & Beach, Robert H., 2013. "Analyzing Global Implications of U.S. Biofuels Polices in a Dynamic General Equilibrium Framework," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150560, Agricultural and Applied Economics Association.
  5. Demirbas, Ayhan, 2011. "Biodiesel from oilgae, biofixation of carbon dioxide by microalgae: A solution to pollution problems," Applied Energy, Elsevier, vol. 88(10), pages 3541-3547.
  6. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, Elsevier.
  7. Chen, Xiaoguang & Huang, Haixiao & Khanna, Madhu & Önal, Hayri, 2014. "Alternative transportation fuel standards: Welfare effects and climate benefits," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 241-257.
  8. Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2012. "The Long Run Impact of Biofuels on Food Prices," Working Papers 2012-11, University of Alberta, Department of Economics.
  9. Beckman, Jayson & Hertel, Thomas & Tyner, Wallace, 2011. "Validating energy-oriented CGE models," Energy Economics, Elsevier, vol. 33(5), pages 799-806, September.
  10. Dixon, Peter & van Meijl, Hans & Rimmer, Maureen & Shutes, Lindsay & Tabeau, Andrzej, 2013. "RED vs. REDD: Biofuel Policy vs. Forest Conservation," Working Papers 152082, Factor Markets, Centre for European Policy Studies.
  11. Demirbas, M. Fatih, 2011. "Biofuels from algae for sustainable development," Applied Energy, Elsevier, vol. 88(10), pages 3473-3480.
  12. Banse, Martin & Rothe, Andrea & Tabeau, Andrzej & Van Meijl, Hans & Woltjer,Geert, 2013. "Will improved access to capital dampen the need for more agricultural land? A CGE analysis of agricultural capital markets and world-wide biofuel policies," Factor Markets Working Papers 160, Centre for European Policy Studies.
  13. Steven Rose & Elmar Kriegler & Ruben Bibas & Katherine Calvin & Alexander Popp & Detlef Vuuren & John Weyant, 2014. "Bioenergy in energy transformation and climate management," Climatic Change, Springer, vol. 123(3), pages 477-493, April.
  14. James Daniell & Michael Köpke & Séan Dennis Simpson, 2012. "Commercial Biomass Syngas Fermentation," Energies, MDPI, Open Access Journal, vol. 5(12), pages 5372-5417, December.
  15. Wetzstein, M. & Wetzstein, H., 2011. "Four myths surrounding U.S. biofuels," Energy Policy, Elsevier, vol. 39(7), pages 4308-4312, July.
  16. Demirbas, Ayhan, 2011. "Competitive liquid biofuels from biomass," Applied Energy, Elsevier, vol. 88(1), pages 17-28, January.
  17. Timilsina, Govinda R. & Landis, Florian, 2014. "Economics of transiting to renewable energy in Morocco : a general equilibrium analysis," Policy Research Working Paper Series 6940, The World Bank.
  18. Kim, Yoon Hyung, 2011. "A Comparison of Global Timber Models," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 34(3), July.
  19. Cai, Yongxia & Birur, Dileep K. & Beach, Robert H. & Davis, Lauren M., 2013. "Tradeoff of the U.S. Renewable Fuel Standard, a General Equilibrium Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150766, Agricultural and Applied Economics Association.
  20. Treesilvattanakul, Krissana & Taheripour, Farzad & Tyner, Wallace E., 2013. "Economic and Land Use Consequences of Biofuel Production and Policy with Application of US and EU Sustainability Criteria," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150712, Agricultural and Applied Economics Association.
  21. Huang, Jikun & Yang, Jun & Msangi, Siwa & Rozelle, Scott & Weersink, Alfons, 2012. "Biofuels and the poor: Global impact pathways of biofuels on agricultural markets," Food Policy, Elsevier, vol. 37(4), pages 439-451.
  22. Dixon, Peter & van Meijl, Hans & Rimmer, Maureen & Shutes, Lindsay & Tabeau, Andrzej, 2013. "RED vs. REDD: Biofuel Policy vs. Forest Conservation," Factor Markets Working Papers 152, Centre for European Policy Studies.

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