IDEAS home Printed from https://ideas.repec.org/p/ags/itic10/188081.html
   My bibliography  Save this paper

Biofuel Programs And Farm Support: New Tools For Old Policies?

Author

Listed:
  • Bureau, Jean-Christophe
  • Treguer, David
  • Valin, Hugo

Abstract

In this paper, we focus on some indirect effects of biofuel policies that have not attracted a lot of attention, in particular the linkages with agricultural policy. In brief, biofuel policies re-introduce in the agricultural policy some of the mechanisms that characterized the farm support of the 1980s. In both the European Union (EU) and the United States (US) these policies relied on market price support achieved through a set of guaranteed prices, public purchases and export programs. By creating an "artificial" demand of agricultural products for non food use, biofuel policies play a rather similar role to the ones played by former EU intervention/export subsidies policy and to the US export enhancement/target price programs. We focus on the welfare effects of current biofuel policies compared to old farm support policies, and we explore the similarities and differences. Finally, we present some empirical illustrations of the overall differentiated effects using a large scale general equilibrium model.

Suggested Citation

  • Bureau, Jean-Christophe & Treguer, David & Valin, Hugo, 2010. "Biofuel Programs And Farm Support: New Tools For Old Policies?," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188081, International Consortium on Applied Bioeconomy Research (ICABR).
    • Handle: RePEc:ags:itic10:188081
    DOI: 10.22004/ag.econ.188081
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/188081/files/Bureau_717.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.188081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean-Christophe Bureau & Hervé Guyomard & Florence Jacquet & David Tréguer, 2010. "European Biofuel Policy: How Far Will Public Support Go?," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 401-423, Springer.
    2. Paul A. Samuelson, 1972. "The Consumer Does Benefit from Feasible Price Stability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(3), pages 476-493.
    3. Bouët, Antoine & Dimaranan, Betina V. & Valin, Hugo, 2010. "Modeling the global trade and environmental impacts of biofuel policies," IFPRI discussion papers 1018, International Food Policy Research Institute (IFPRI).
    4. Bruce A. Babcock, 2008. "Breaking the Link between Food and Biofuels," Center for Agricultural and Rural Development (CARD) Publications 08-bp53, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Bruce L. Gardner, 1995. "Rationalizing Agricultural Export Subsidies: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 205-208.
    6. Harry de Gorter & David R. Just, 2010. "The Social Costs and Benefits of Biofuels: The Intersection of Environmental, Energy and Agricultural Policy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 4-32.
    7. Antoine BOUËT & HUGO VALIN & Betina DIMARANAN, 2009. "Biofuels in the world markets: A Computable General Equilibrium assessment of environmental costs related to land use changes," Working Papers 6, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    8. Julian M. Alston & Colin A. Carter & Vincent H. Smith, 1993. "Rationalizing Agricultural Export Subsidies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 1000-1009.
    9. Michiel Keyzer & Max Merbis & Roelf Voortman, 2008. "The Biofuel Controversy," De Economist, Springer, vol. 156(4), pages 507-527, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kamel Louhichi & Hugo Valin, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(3), pages 233-272.
    2. Dimaranan, Betina V. & Laborde, David, 2012. "Ethanol Trade Policy and Global Biofuel Mandates," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126869, International Association of Agricultural Economists.
    3. Alston, Julian M. & Smith, Vincent H. & Acquaye, Albert & Hosseini, Safdar, 1999. "Least-cost cheap-food policies: some implications of international food aid," Agricultural Economics, Blackwell, vol. 20(3), pages 191-201, May.
    4. Giannakas, Konstantinos, 2009. "The Normative Efficiency Ranking of Output and Export Subsidies under Costly and Imperfect Enforcement," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1).
    5. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
    6. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana I. A kormányzati politikák modellezése a mezőgazdaságban [The political economy of agrarian politics. Part I. Modeling of governmental policies in agricultur," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 223-246.
    7. Shively, Gerald E., 2001. "Price thresholds, price volatility, and the private costs of investment in a developing country grain market," Economic Modelling, Elsevier, vol. 18(3), pages 399-414, August.
    8. Mayeres, Inge & Proost, Stef & Delhaye, Eef & Novelli, Philippe & Conijn, Sjaak & Gómez-Jiménez, Inmaculada & Rivas-Brousse, Daniel, 2023. "Climate ambitions for European aviation: Where can sustainable aviation fuels bring us?," Energy Policy, Elsevier, vol. 175(C).
    9. Bullock, D. S. & Salhofer, K., 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics, Blackwell, vol. 18(3), pages 249-259, May.
    10. Mahama, Ramatu, 1985. "A stochastic simulation of the impact of price insulation policies on world wheat market stability," ISU General Staff Papers 198501010800008868, Iowa State University, Department of Economics.
    11. Bullock, David S. & Salhofer, Klaus, 1998. "A Note on the Efficiency of Income Redistribution with Simple and Combined Policies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 266-269, October.
    12. Rosa, Franco & Vasciaveo, Michela & Weaver, Robert D., 2014. "Agricultural and oil commodities: price transmission and market integration between US and Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-25, August.
    13. Subhayu Bandyopadhyay & Sumon Bhaumik & Howard J. Wall, 2013. "Biofuel Subsidies and International Trade," Economics and Politics, Wiley Blackwell, vol. 25(2), pages 181-199, July.
    14. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    15. Stephen P. Holland & Jonathan E. Hughes & Christopher R. Knittel & Nathan C. Parker, 2013. "Unintended Consequences of Transportation Carbon Policies: Land-Use, Emissions, and Innovation," NBER Working Papers 19636, National Bureau of Economic Research, Inc.
    16. Jean-Christophe Bureau & Sébastien Jean, 2013. "Trade liberalization in the bio-economy: coping with a new landscape," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 173-182, November.
    17. Walls, W.D. & Rusco, Frank & Kendix, Michael, 2011. "Biofuels policy and the US market for motor fuels: Empirical analysis of ethanol splashing," Energy Policy, Elsevier, vol. 39(7), pages 3999-4006, July.
    18. van der Merwe, G. P., 1990. "Research Note: Organised Futures Trading," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(1), February.
    19. Oladosu, Gbadebo & Kline, Keith, 2013. "A dynamic simulation of the ILUC effects of biofuel use in the USA," Energy Policy, Elsevier, vol. 61(C), pages 1127-1139.
    20. Piroli, Giuseppe & Rajcaniova, Miroslava & Ciaian, Pavel & Kancs, d׳Artis, 2015. "From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 921-930.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:itic10:188081. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/icabrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.