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RED versus REDD: Biofuel policy versus forest conservation

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  • Dixon, Peter
  • van Meijl, Hans
  • Rimmer, Maureen
  • Shutes, Lindsay
  • Tabeau, Andrzej

Abstract

We examine the interplay between Renewable Energy Directives (RED) and the United Nations Programme to Reduce Emissions from Deforestation and Forest Degradation (REDD) using a scenario approach with a recursive–dynamic global computable general equilibrium model. A methodological issue addressed in the paper is the specification of the supply of agricultural land in the face of restrictions over its availability, as arises under REDD. By giving magnitudes to the effects of REDD and RED, our simulations provide a defense against environmental skeptics who, in the absence of such estimates, can dismiss these policies as being exorbitantly expensive. Although REDD and RED are in tension with respect to land use, the paper shows that they could be implemented simultaneously without significant global problems for food supply. The paper does however pinpoint some regional problems. Implementation of RED and REDD would cause large increases in food prices in Indonesia and Southern Africa. The methodology used in this paper, if implemented at a more detailed level, could be the basis of working out compensation packages that would be needed to make pervasive RED and REDD policies politically feasible.

Suggested Citation

  • Dixon, Peter & van Meijl, Hans & Rimmer, Maureen & Shutes, Lindsay & Tabeau, Andrzej, 2016. "RED versus REDD: Biofuel policy versus forest conservation," Economic Modelling, Elsevier, vol. 52(PB), pages 366-374.
    • Handle: RePEc:eee:ecmode:v:52:y:2016:i:pb:p:366-374
    DOI: 10.1016/j.econmod.2015.09.014
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    References listed on IDEAS

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    1. Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(2), pages 117-141, June.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Sorda, Giovanni & Banse, Martin & Kemfert, Claudia, 2010. "An overview of biofuel policies across the world," Energy Policy, Elsevier, vol. 38(11), pages 6977-6988, November.
    4. Ingco,Merlinda D. & Winters,L. Alan (ed.), 2004. "Agriculture and the New Trade Agenda," Cambridge Books, Cambridge University Press, number 9780521826853.
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    Cited by:

    1. Xin Zhao & Dominique Y van der Mensbrugghe & Roman M. Keeney & Wallace E. Tyner, 2021. "Improving the Way Land Use Change is Handled in Economic Models," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 15, pages 467-515, World Scientific Publishing Co. Pte. Ltd..
    2. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    3. Combes, Jean-Louis & Delacote, Philippe & Combes Motel, Pascale & Yogo, Thierry Urbain, 2018. "Public spending, credit and natural capital: Does access to capital foster deforestation?," Economic Modelling, Elsevier, vol. 73(C), pages 306-316.
    4. Tabeau, Andrzej & van Meijl, Hans & Overmars, Koen P. & Stehfest, Elke, 2017. "REDD policy impacts on the agri-food sector and food security," Food Policy, Elsevier, vol. 66(C), pages 73-87.
    5. Johnson, Justin Andrew & Baldos, Uris Lantz & Hertel, Thomas & Nootenboom, Chris & Polasky, Stephen & Roxburgh, Toby, 2020. "Global Futures: Modelling the global economic impacts of environmental change to support policy-making," Technical Papers 323944, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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