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.
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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)
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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.
- Saraly Andrade de Sa & Charles Palmer & Stefanie Engel, 2010. "Ethanol production, food and forests," LSE Research Online Documents on Economics 27950, London School of Economics and Political Science, LSE Library.
- 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
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