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Cost--benefit tests for GHG emissions from biofuel production

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  • Harry de Gorter
  • Yacov Tsur

Abstract

Biofuel greenhouse gas (GHG)-reduction standards calculated via life-cycle assessment are shown to be biased, even when indirect land-use change is included, because they are based on physical GHG emissions and uptakes and on simple aggregates of balances. We offer a GHG-reduction standard for biofuel production free of these biases, expressed for a range of discount rates and an upper bound on the GHG payback period. A numerical example, based on previously used data, reveals that converting two land types into ethanol in Brazil satisfies our biofuel emissions test, whereas in the United States no land type satisfies our criterion. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Harry de Gorter & Yacov Tsur, 2010. "Cost--benefit tests for GHG emissions from biofuel production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(2), pages 133-145, June.
  • Handle: RePEc:oup:erevae:v:37:y:2010:i:2:p:133-145
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    File URL: http://hdl.handle.net/10.1093/erae/jbq014
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    Cited by:

    1. Knoke, Thomas & Steinbeis, Otto-Emmanuel & Bösch, Matthias & Román-Cuesta, Rosa María & Burkhardt, Thomas, 2011. "Cost-effective compensation to avoid carbon emissions from forest loss: An approach to consider price-quantity effects and risk-aversion," Ecological Economics, Elsevier, vol. 70(6), pages 1139-1153, April.
    2. Marion Dupoux, 2016. "The land use change time-accounting failure," Working Papers hal-04141581, HAL.
    3. Dupoux, Marion, 2019. "The land use change time-accounting failure," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    4. Geir H. Bjertnæs, 2013. "Biofuel mandate versus favourable taxation of electric cars. The case of Norway," Discussion Papers 745, Statistics Norway, Research Department.
    5. Panichelli, Luis & Gnansounou, Edgard, 2015. "Impact of agricultural-based biofuel production on greenhouse gas emissions from land-use change: Key modelling choices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 344-360.
    6. Marion Dupoux, 2016. "The land use change time-accounting failure," EconomiX Working Papers 2016-28, University of Paris Nanterre, EconomiX.
    7. Marion Dupoux, 2016. "The land use change time-accounting failure," Working Papers 2016.25, FAERE - French Association of Environmental and Resource Economists.

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