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A dynamic model of food and clean energy

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  • CHAKRAVORTY Ujjayant
  • MAGNE Bertrand
  • MOREAUX Michel

    (LERNA, University of Toulouse)

Abstract

In the midwestern United States, ethanol produced from corn is mixed with gasoline to meet clean air standards. Allocating land to produce clean fuel means taking away land from farming. We examine the use of a scarce fossil fuel that causes pollution but may be substituted by a clean fuel produced from land. When land is scarce, it is gradually shifted away from farming to energy production. However, when land is abundant, there may be a jump in the supply of clean energy. When the stock of pollution is regulated, the supply of clean energy may exhibit multiple discontinuities.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 06.10.203.

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Date of creation: Aug 2006
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Handle: RePEc:ler:wpaper:06.10.203

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  1. Snorre Kverndokk, 1994. "Depletion of Fossil Fuels and the impact of Global Warming," Discussion Papers 107, Research Department of Statistics Norway.
  2. Olli Tahvonen, 1997. "Fossil Fuels, Stock Externalities, and Backstop Technology," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 855-74, November.
  3. Sjak Smulders & Edwin van der Werf, 2008. "Climate policy and the optimal extraction of high- and low-carbon fossil fuels," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1421-1444, November.
  4. Farzin, Y. H., 1996. "Optimal pricing of environmental and natural resource use with stock externalities," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 31-57, October.
  5. Forster, Bruce A., 1980. "Optimal energy use in a polluted environment," Journal of Environmental Economics and Management, Elsevier, vol. 7(4), pages 321-333, December.
  6. Ujjayant Chakravorty & Bertrand Magne & Michel Moreaux, 2003. "A Hotelling Model with a Ceiling on the Stock of Pollution," Emory Economics 0321, Department of Economics, Emory University (Atlanta).
  7. Ulph, Alistair & Ulph, David, 1994. "The Optimal Time Path of a Carbon Tax," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 857-68, Supplemen.
  8. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
  9. Toman, Michael & Withagen, Cees, 1998. "Accumulative Pollution, "Clean Technology," and Policy Design," Discussion Papers dp-98-43, Resources For the Future.
  10. Michael Hoel, 1984. "Extraction of a Resource with a Substitute for Some of Its Uses," Canadian Journal of Economics, Canadian Economics Association, vol. 17(3), pages 593-602, August.
  11. Farzin, Y H & Tahvonen, O, 1996. "Global Carbon Cycle and the Optimal Time Path of a Carbon Tax," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 515-36, October.
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Cited by:
  1. Ujjayant Chakravorty & Marie-Hélène Hubert & Michel Moreaux, 2010. "Politiques pro-biocarburants et climatique américaines : impact sur les choix énergétiques du Brésil et des Etats-Unis et bilan carbone," Revue économique, Presses de Sciences-Po, vol. 61(1), pages 213-247.
  2. BAHEL, Eric A. & MARROUCH, Walid & GAUDET, Gérard, 2011. "The Economics of Oil, Biofuel and Food Commodities," Cahiers de recherche 2011-02, Universite de Montreal, Departement de sciences economiques.
  3. Aerwadee Premashthira & Kenneth S. Lyon, 2012. "A Dynamic General Equilibrium Model of Food and Energy Crop," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 19(2), pages 18-36, December.
  4. Mads Greaker & Michael Hoel & Knut Einar Rosendahl, 2012. "Does a Renewable Fuel Standard for Biofuels Reduce Climate Costs?," CESifo Working Paper Series 4030, CESifo Group Munich.
  5. Andrade de Sa, Saraly & Palmer, Charles & Engel, Stefanie, 2010. "Ethanol Production, Food and Forests," Proceedings of the German Development Economics Conference, Hannover 2010 21, Verein für Socialpolitik, Research Committee Development Economics.
  6. repec:fae:wpaper:2014.07 is not listed on IDEAS
  7. Michael Hoel & Thea Marcelia Sletten, 2014. "Wood-Based Bioenergy," CESifo Working Paper Series 4686, CESifo Group Munich.
  8. Saraly Andrade de Sa & Julien Daubanes, 2014. "Limit-Pricing and the Un(Effectiveness) of the Carbon Tax," OxCarre Working Papers 136, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  9. Francisco Peñaranda & Augusto Rupérez-Micola, 2009. "On the drivers of commodity co-movement: Evidence from biofuels," Economics Working Papers 1174, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2011.
  10. Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2009. "Fuel versus Food," Working Papers 2009-20, University of Alberta, Department of Economics.
  11. Chen, Xiaoguang & Huang, Haixiao & Khanna, Madhu & Önal, Hayri, 2014. "Alternative transportation fuel standards: Welfare effects and climate benefits," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 241-257.

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