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Land Use Change Impacts of Biofuels: Near-VAR Evidence from the US

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  • Giuseppe Piroli
  • Pavel Ciaian
  • d'Artis Kancs

Abstract

The present paper studies the land use change impacts of fuels and biofuels. We test the theoretical hypothesis, which says that changes in fuel prices cause changes in land use both directly and indirectly and, because of price inter-dependencies, biofuels reinforce the land use change impacts. Our data consists of yearly observations extending from 1950 to 2007 for the US, to which we apply time-series analytical mechanisms of five major traded agricultural commodities, the area of cultivated agricultural land and crude oil price. The empirical findings confirm that markets for crude oil and cultivated agricultural land are interdependent: an increase in oil price by 1 dollar/barrel increases land use between 54 and 68 thousand hectares. We also find that the rise of bioenergy sector accelerates land use change in the US.

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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2011_11.

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Date of creation: 11 Aug 2011
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Handle: RePEc:eei:rpaper:eeri_rp_2011_11

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Keywords: Near-VAR; energy; bioenergy; prices; land use; biofuel support policies.;

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Cited by:
  1. Andrea Bastianin & Marzio Galeotti & Matteo Manera, 2013. "Food versus Fuel: Causality and Predictability in Distribution," Working Papers 2013.23, Fondazione Eni Enrico Mattei.
  2. Maslyuk, Svetlana & Dharmaratna, Dinusha, 2013. "Renewable Electricity Generation, CO2 Emissions and Economic Growth: Evidence from Middle-Income Countries in Asia /Generación de electricidad renovable, las emisiones de CO2 y crecimiento económico," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 217-244, Enero.
  3. Pavel Ciaian & d'Artis Kancs & Miroslava Rajcaniova, 2012. "Bioenergy and Global Land Use Change," EERI Research Paper Series EERI_RP_2012_12, Economics and Econometrics Research Institute (EERI), Brussels.
  4. Heinz-Peter Witzke & Pavel Ciaian & Jacques Delince, 2014. "CAPRI long-term climate change scenario analysis: The AgMIP approach," JRC-IPTS Working Papers JRC85872, Institute for Prospective and Technological Studies, Joint Research Centre.

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