Soil heterogeneity, agricultural supply and land-use change: an application to biofuels production
AbstractBiofuels policies (blend mandate or tax credit) have impacts on food and energy prices, and on land-use. The magnitude of these effects depends on the market response to price, and thus on the agricultural supply curve, which, in turn, depends on the land availability (quantity and agronomic quality). To understand these relationship beyond marginal analysis, we develop a theoretical framework with an explicit representation of land heterogeneity. The elasticity of supply curve is shown to be non-constant. This influences the welfare economics of biofuel policies. This is due to the availability of new land of marginal quality. Biofuels policies have different impacts in different countries, depending on both their global land endowment and the position of the equilibrium on the non linear agricultural supply curve. Knowing this heterogeneity helps to refine welfare analysis.
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 INRA, Economie Publique in its series Working Papers with number 2010/05.
Date of creation: 26 Apr 2010
Date of revision:
Contact details of provider:
Postal: BP 01, 78850 Thiverval Grignon
Phone: 01 30 81 53 30
Fax: 01 30 81 53 68
Web page: http://www4.versailles-grignon.inra.fr/economie_publique_eng
More information through EDIRC
Land use; Soil heterogeneity; Agricultural economics; Supply functions; Equilibrium; Land-use changes; Biofuels;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
- Hongli Feng & Bruce A. Babcock, 2010.
"Impacts of Ethanol on Planted Acreage in Market Equilibrium,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 92(3), pages 789-802.
- Feng, Hongli & Babcock, Bruce A., 2008. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," Staff General Research Papers 12959, Iowa State University, Department of Economics.
- Hongli Feng & Bruce A. Babcock, 2008. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," Center for Agricultural and Rural Development (CARD) Publications 08-wp472, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
- Llewelyn, Richard V. & Featherstone, Allen M., 1997. "A comparison of crop production functions using simulated data for irrigated corn in western Kansas," Agricultural Systems, Elsevier, vol. 54(4), pages 521-538, August.
- Keeney, Roman & Hertel, Thomas, 2008. "The Indirect Land Use Impacts of U.S. Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," GTAP Working Papers 2810, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Carlos Arnade & David Kelch, 2007. "Estimation of Area Elasticities from a Standard Profit Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 727-737.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RÃ©gis Grateau).
If references are entirely missing, you can add them using this form.