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Geography Matters: International Trade Patterns and the Indirect Land Use Effects of Biofuels

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  • Nelson B. Villoria
  • Thomas W. Hertel

Abstract

This article investigates the relationship between international trade patterns and the global distribution of coarse grain production responses to market developments in the United States. Our null hypothesis is that world markets are fully integrated, rendering the geographic persistence of bilateral trade flows irrelevant in the global production response to a change in U.S. prices. The alternative hypothesis allows price transmission to vary along with the intensity of competition among countries in specific markets. Using data from 1975 to 2002, we reject the null hypothesis. Our work has direct implications for the analysis of the global land use impacts of biofuel mandates. Copyright 2011, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 93 (2011)
Issue (Month): 4 ()
Pages: 919-935

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Handle: RePEc:oup:ajagec:v:93:y:2011:i:4:p:919-935

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Cited by:
  1. Hertel, Thomas & Jevgenijs Steinbuks & Uris Lantz Baldos, 2012. "Competition for Land in the Global Bioeconomy," GTAP Working Papers 3982, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Timilsina, Govinda R. & Mevel, Simon & Shrestha, Ashish, 2011. "Oil price, biofuels and food supply," Energy Policy, Elsevier, vol. 39(12), pages 8098-8105.
  3. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, Elsevier.
  4. Agneta Forslund & Alexandre Gohin & Chantal Le Mouël & Fabrice Levert, 2014. "Biodiesel vs. ethanol, UE vs. US biofuels: So different in terms of LUC impact?," Working Papers SMART - LERECO 14-04, INRA UMR SMART.
  5. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.

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