Ethanol Production, Food and Forests
AbstractThis paper investigates the direct and indirect impacts of ethanol production on land use, deforestation and food production. A partial equilibrium model of a national economy with two sectors and two regions, one of which includes a residual forest, is developed. It analyses how an exogenous increase in the ethanol price affcts input allocation (land and labor) between sectors (energy crop and food). Three potential effects are identified. First, the standard and well-documented effect of direct land competition between rival uses increases deforestation and decreases food production. Second, an indirect displacement of food production across regions, provoked by a shift in the price of food, increases deforestation and reduces the total output of the food sector. Finally, labor mobility between sectors and regions tends to decrease food production but also deforestation. The overall impact of ethanol production on forest conversion is ambiguous, providing a number of interesting pointers to further, empirical research.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 51 (2012)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
Deforestation; Ethanol; Food; Indirect impacts; Land use; Migration; Q11; Q24; Q42;
Other versions of this item:
- Andrade de Sa, Saraly & Palmer, Charles & Engel, Stefanie, 2010. "Ethanol Production, Food and Forests," Proceedings of the German Development Economics Conference, Hannover 2010 21, Verein für Socialpolitik, Research Committee Development Economics.
- Saraly Andrade de Sa & Charles Palmer & Stefanie Engel, 2010. "Ethanol Production, Food and Forests," Environmental Economy and Policy Research Working Papers 48.2010, University of Cambridge, Department of Land Economics, revised 2010.
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
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.:
- Goldemberg, José & Guardabassi, Patricia, 2009. "Are biofuels a feasible option?," Energy Policy, Elsevier, vol. 37(1), pages 10-14, January.
- von Braun, Joachim & Pachauri, R. K., 2006. "The promises and challenges of biofuels for the poor in developing countries: IFPRI 2005-2006 Annual Report Essay," Annual report essays 2006Essay, International Food Policy Research Institute (IFPRI).
- Keeney, Roman & Hertel, Thomas, 2008. "The Indirect Land Use Impacts of U.S. Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," GTAP Working Papers 2810, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Hongli Feng & Bruce A. Babcock, 2010.
"Impacts of Ethanol on Planted Acreage in Market Equilibrium,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 92(3), pages 789-802.
- Feng, Hongli & Babcock, Bruce A., 2008. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," Staff General Research Papers 12959, Iowa State University, Department of Economics.
- Hongli Feng & Bruce A. Babcock, 2008. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," Center for Agricultural and Rural Development (CARD) Publications 08-wp472, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, World Bank Group, vol. 14(1), pages 73-98, February.
- Moschini, Giancarlo, 1998. "The semiflexible almost ideal demand system," European Economic Review, Elsevier, vol. 42(2), pages 349-364, February.
- Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
- Shively, Gerald & Pagiola, Stefano, 2004. "Agricultural intensification, local labor markets, and deforestation in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 241-266, May.
- Chakravorty, Ujjayant & Magné, Bertrand & Moreaux, Michel, 2006.
"A Dynamic Model of Food and Clean Energy,"
IDEI Working Papers
403, Institut d'Économie Industrielle (IDEI), Toulouse.
- Uwe Schneider & Bruce McCarl, 2003.
"Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
- Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Bluffstone Randall A., 1995. "The Effect of Labor Market Performance on Deforestation in Developing Countries under Open Access: An Example from Rural Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 42-63, July.
- Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
- Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Edward B. Barbier, 2001. "The Economics of Tropical Deforestation and Land Use: An Introduction to the Special Issue," Land Economics, University of Wisconsin Press, vol. 77(2), pages 155-171.
- Ujjayant Chakravorty & Marie-H�l�ne Hubert & Linda N�stbakken, 2009.
"Fuel Versus Food,"
Annual Review of Resource Economics,
Annual Reviews, vol. 1(1), pages 645-663, 09.
- Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
- Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
- Moschini, GianCarlo, 1998. "Semiflexible Almost Ideal Demand System, The," Staff General Research Papers 1193, Iowa State University, Department of Economics.
- Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amaz�nia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
- Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," World Bank Economic Review, World Bank Group, vol. 5(1), pages 135-53, January.
- Harry de Gorter & David R. Just, 2008. "The Economics of a Blend Mandate for Biofuels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 738-750.
- Matthias Diermeier & Torsten Schmidt, 2012. "Oil Price Effects on Land Use Competition – An Empirical Analysis," Ruhr Economic Papers 0340, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.