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The Optimality of Using Marginal Land for Bioenergy Crops: Tradeoffs between Food, Fuel, and Environmental Services

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  • Valcu-Lisman, Adriana M.
  • Kling, Catherine L.
  • Gassman, Philip W.

Abstract

We assess empirically how agricultural lands should be used to produce the highest valued outputs, which include food, energy, and environmental goods and services. We explore efficiency tradeoffs associated with allocating land between food and bioenergy and use a set of market prices and nonmarket environmental values to value the outputs produced by those crops. We also examine the degree to which using marginal land for energy crops is an approximately optimal rule. Our empirical results for an agricultural watershed in Iowa show that planting energy crops on marginal land is not likely to yield the highest valued output.

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  • Valcu-Lisman, Adriana M. & Kling, Catherine L. & Gassman, Philip W., 2016. "The Optimality of Using Marginal Land for Bioenergy Crops: Tradeoffs between Food, Fuel, and Environmental Services," ISU General Staff Papers 201608010700001133, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201608010700001133
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    Cited by:

    1. Femeena, P.V. & Costello, C. & Brennan, R.A., 2023. "Spatial optimization of nutrient recovery from dairy farms to support economically viable load reductions in the Chesapeake Bay Watershed," Agricultural Systems, Elsevier, vol. 207(C).
    2. De Laporte, Aaron V. & Ripplinger, David G., 2019. "The effects of site selection, opportunity costs and transportation costs on bioethanol production," Renewable Energy, Elsevier, vol. 131(C), pages 73-82.

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