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A dynamic model of food and clean energy

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Author Info
Chakravorty, Ujjayant
Magné, Bertrand
Moreaux, Michel

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Abstract

In the midwestern United States, ethanol produced from corn is mixed with gasoline to meet clean air standards. Allocating land to produce clean fuel means taking away land from farming. We examine the use of a scarce fossil fuel that causes pollution but may be substituted by a clean fuel produced from land. When land is scarce, it is gradually shifted away from farming to energy production. However, when land is abundant, there may be a jump in the supply of clean energy. When the stock of pollution is regulated, the supply of clean energy may exhibit multiple discontinuities.

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File URL: http://www.sciencedirect.com/science/article/B6V85-4NVH7PB-6/1/87871ff2509a8ea9efd2ccf04f2512dc
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Publisher Info
Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 32 (2008)
Issue (Month): 4 (April)
Pages: 1181-1203
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Handle: RePEc:eee:dyncon:v:32:y:2008:i:4:p:1181-1203

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chakravorty, Ujjayant & Magne, Bertrand & Moreaux, Michel, 2006. "A Hotelling model with a ceiling on the stock of pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2875-2904, December. [Downloadable!] (restricted)
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  2. Forster, Bruce A., 1980. "Optimal energy use in a polluted environment," Journal of Environmental Economics and Management, Elsevier, vol. 7(4), pages 321-333, December. [Downloadable!] (restricted)
  3. Toman, Michael A. & Withagen, Cees, 2000. "Accumulative pollution, "clean technology," and policy design," Resource and Energy Economics, Elsevier, vol. 22(4), pages 367-384, October. [Downloadable!] (restricted)
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  4. Hoel, Michael & Kverndokk, Snorre, 1996. "Depletion of fossil fuels and the impacts of global warming," Resource and Energy Economics, Elsevier, vol. 18(2), pages 115-136, June. [Downloadable!] (restricted)
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  5. Farzin, Y. H., 1996. "Optimal pricing of environmental and natural resource use with stock externalities," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 31-57, October. [Downloadable!] (restricted)
  6. Michael Hoel, 1984. "Extraction of a Resource with a Substitute for Some of Its Uses," Canadian Journal of Economics, Canadian Economics Association, vol. 17(3), pages 593-602, August. [Downloadable!] (restricted)
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  1. Francisco Peñaranda & Augusto Rupérez-Micola, 2009. "The emergence of biofuels and the co-movement between crude oil and agricultural prices," Economics Working Papers 1174, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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