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The Land Use Impacts of the EUBiodiesel Policy: Assessing the Direct, Indirect and Induced Effects

Author

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  • Alexandre Gohin

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

This paper deals with the controversial measure of indirect land use changes of theEuropean biodiesel policy. Two studies sponsored by the European Commissionfind significant, but contrasted, land use impacts for the different vegetable oilsused for biodiesel production. The first study uses an aggregate computable generalequilibrium model capturing direct, indirect and induced effects. The second morerecent study uses a biotechnical partial equilibrium model providing a detailed rep-resentation of the indirect effects occurring through the livestock sectors. Wedevelop an original economic emulator to understand the diverging key results ofthese studies and test their sensitivity. We find that the direct and indirect effectson vegetable oil and land markets explain most of the differences. We also find thatindirect effects on the feed markets and the induced effects have less influence onthe biodiesel results. We finally argue that the development of emulators as donehere can help to understand complex policy assessments.

Suggested Citation

  • Alexandre Gohin, 2020. "The Land Use Impacts of the EUBiodiesel Policy: Assessing the Direct, Indirect and Induced Effects," Post-Print hal-02437581, HAL.
    • Handle: RePEc:hal:journl:hal-02437581
    DOI: 10.1111/1477-9552.12365
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    Cited by:

    1. David R. Harvey, 2024. "Agricultural Economics in the JAE: Some Editorial Reflections," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 3-12, February.

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