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Land use change impacts of biofuels: Near-VAR evidence from the US

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  • Piroli, Giuseppe
  • Ciaian, Pavel
  • Kancs, d'Artis

Abstract

The present paper studies the land use change impacts of fuels and biofuels. We test the theoretical hypothesis, which says that changes in fuel prices cause changes in land use both directly and indirectly and that, because of price inter-dependencies, biofuels reinforce the land use change impacts. We apply time-series analytical mechanisms to five major traded agricultural commodities, the cultivated area of agricultural land and crude oil price. Our data consists of yearly observations extending from 1950 to 2007 for the US. The empirical findings confirm that markets for crude oil and cultivated agricultural land are interdependent: an increase in oil price by 1dollar/barrel increases land use between 54,000 and 68,000ha. We also find that the increase of bioenergy sector accelerates land use change in the US, i.e. food commodities are being substituted for bioenergy crops.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 84 (2012)
Issue (Month): C ()
Pages: 98-109

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Handle: RePEc:eee:ecolec:v:84:y:2012:i:c:p:98-109

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Near-VAR; Energy; Bioenergy; Prices; Land use; Biofuel policies; Climate change;

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Cited by:
  1. Pavel Ciaian & d'Artis Kancs & Miroslava Rajcaniova, 2012. "Bioenergy and Global Land Use Change," EERI Research Paper Series EERI_RP_2012_12, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Andrea Bastianin & Marzio Galeotti & Matteo Manera, 2013. "Food versus Fuel: Causality and Predictability in Distribution," Working Papers 241, University of Milano-Bicocca, Department of Economics, revised Mar 2013.
  3. Heinz-Peter Witzke & Pavel Ciaian & Jacques Delince, 2014. "CAPRI long-term climate change scenario analysis: The AgMIP approach," JRC-IPTS Working Papers JRC85872, Institute for Prospective and Technological Studies, Joint Research Centre.
  4. Maslyuk, Svetlana & Dharmaratna, Dinusha, 2013. "Renewable Electricity Generation, CO2 Emissions and Economic Growth: Evidence from Middle-Income Countries in Asia /Generación de electricidad renovable, las emisiones de CO2 y crecimiento económico," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 217-244, Enero.

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