Implications of the Biofuels Boom for the Global Livestock Industry: A Computable General Equilibrium Analysis
AbstractIn this paper, we offer a general equilibrium analysis of the impacts of US and EU biofuel mandates for the global livestock sector. Our simulation boosts biofuel production in the US and EU from 2006 levels to mandated 2015 levels. We show that mandates will encourage crop production in both biofuel and non biofuel producing regions, while reducing livestock and livestock production in most regions of the world. The non-ruminant industry curtails its production more than other livestock industries. The numerical results suggest that the biofuel mandates reduce food production in most regions while they increase crude vegetable oils in almost all regions. Implementing biofuel mandates in the US and EU will increase croplands within the biofuel and non-biofuel producer regions. A large portion of this increase will be obtained from reduced grazing lands. The biofuel producing regions are expected to reduce their coarse grains exports and raise imports of oilseeds and vegetable oils. While all livestock industries use more biofuel byproducts in their animal feed rations, the dairy and other ruminant industry benefit most from the expansion of DDGS. We finally conclude that, while biofuel mandates have important consequences for the livestock industry, they do not harshly curtail these industries. This is largely due to the important role of byproducts in substituting for higher priced feedstuffs. In addition, with relatively inelastic food demands, producers are able to pass much of the price rise on to consumers. In general, US, EU, Meddle East & North Africa, and Russia will experience significant welfare loses due to the combined US and EU mandates, while Brazil, Japan, India, and East Asia are expected to get major gains.
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 InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49330.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Biofuels; Livestock; Feed Ration; Biofuel Co-Product; Land Use; Livestock Production/Industries;
Other versions of this item:
- Taheripour, Farzad & Hertel, Thomas & Tyner, Wally, 2010. "Implications of the Biofuels Boom for the Global Livestock Industry: A Computable General Equilibrium Analysis," GTAP Working Papers 3194, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.