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Agricultural Land Elasticities in the United States and Brazil

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  • Barr, Kanlaya Jintanakul
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    Abstract

    The elasticity of aggregate supply of cropland is one key to understandingthe degree to which policy-induced increases in demand for biofuel feedstocksor agricultural CO2 offsets will result in higher prices or expanded cropproduction. We report land supply elasticities for the United States and Brazilestimated directly from recent changes in planted crop acreage and estimatedchanges in expected returns. The resulting aggregate implied land-use elasticitieswith respect to price are quite inelastic in the United States and Brazil elasticitieshave declined sharply in recent years. The estimated elasticities imply that currentestimates of land-based CO2 emissions from biofuels expansion may be overstated

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    Bibliographic Info

    Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 34893.

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    Date of creation: 08 Nov 2011
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    Publication status: Published in Applied Economic Perspectives and Policy 2011, vol. 33 no. 3, pp. 449-462
    Handle: RePEc:isu:genres:34893

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    Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
    Phone: +1 515.294.6741
    Fax: +1 515.294.0221
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    Web page: http://www.econ.iastate.edu
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    Related research

    Keywords: agricultural land elasticity; Brazil crop production; U.S. aggregate land supply elasticity;

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    Cited by:
    1. Hendricks, Nathan P. & Smith, Aaron D., 2012. "Comparing the Bias of Dynamic Panel Estimators in Multilevel Panels: Individual versus Grouped Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124548, Agricultural and Applied Economics Association.

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