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The Response of the German Agricultural Sector to the Envisaged Biofuel Targets in Germany and Abroad: A CGE Simulation

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  • Sorda, Giovanni
  • Banse, Martin

Abstract

This article analyses the impact of national, European and global biofuel targets on German food production and land allocation until 2020. The LEITAP General Equilibrium Model simulates the interaction of agricultural and energy markets in response to the envisaged expansion of the biofuel industry. First generation biofuels are integrated in the production structure of the petroleum sector. Second generation biofuels are modelled indirectly via estimated bottom-up reductions in land available for agriculture. Biofuel targets are set exogenously according to the current policy goals. The model recursively responds to increments in the biofuel mandates over three time intervals. Each country or region is required the meet its respective target and is allowed to subsidize biofuel consumption through a budget-neutral mechanism. Thanks to a nested land specification, changes in land use take into account variable elasticities of substitution among different cultivations. The results indicate that German production of biofuel crops substantially increases. In particular, oilseed output experiences a remarkable growth. Land allocation and land prices also change significantly. However, higher production does not suffice to satisfy the demand for biofuels feedstock, and imports of oilseeds and sugar rise considerably. Moreover, the model suggests that the growth in biofuel crop production among the remaining EU-26 countries is driven by the new Member States of the EU, and that the supply of EU biofuel crops also has to be enhanced by imports from abroad. Biofuel policies outside Europe show only little additional impact on German agriculture. The projected changes in food commodity prices are in line with the results of other CGE analyses, although prices rise to a lesser extent than projected in studies based on Partial Equilibrium Models. In diesem Artikel werden die Auswirkungen der nationalen, europäischen und globalen Ziele für Biokraftstoffe auf die deutsche Nahrungsmittelproduktion und Landnutzung analysiert. In dem allgemeinen Gleichgewichtsmodell LEITAP werden die Interaktionen zwischen Agrar- und Energiemärkten abgebildet und die Wirkungen des geplanten Ausbaus der Biokraftstoffnutzung untersucht. Dabei sind Biokraftstoffe der ersten Generation in die Produktionsstruktur des Mineralölsektors integriert. Die Nutzung von Biokraftstoffen der zweiten Generation wird nur indirekt in die Modellanalyse einbezogen. In den Szenarien werden die Ziele der Beimischungsanteile von Biokraftstoffen für die einzelnen EU-Mitgliedstaaten durch Gewährung von Subventionen von landwirtschaftlichen Inputs in der Kraftstoffindustrie implementiert. Die erforderlichen Subventionen werden budgetneutral für öffentliche Haushalte durch eine endogene Verbrauchssteuer auf Mineralöl finanziert. Die direkten und indirekten Wirkungen der steigenden Nachfrage nach Biokraftstoffen auf die landwirtschaftliche Bodennutzung werden durch endogene Bodennachfrage und -angebotsfunktionen im Modell abgebildet. Die Ergebnisse deuten darauf hin, dass sich die Produktion von agrarischen Rohstoffen, die in der Erzeugung von Biokraftstoffen Verwendung finden, in Deutschland, in der EU und in Drittländern deutlich erhöht. Dies gilt besonders für die Ölsaaten- und Getreideproduktion. Um die Beimischungsziele zu erreichen, werden neben inländisch erzeugter Rohware auch verstärkt Importe genutzt. Dabei wird deutlich, dass die Erzeugung in der EU-12 im Vergleich zur EU-15 besonders stark ansteigt. Die Auswirkungen der Biokraftstoffpolitiken in Nicht-EU-Ländern auf die deutsche Agrarproduktion sind als relativ gering einzuschätzen. Darüber hinaus gleichen die Veränderungen der Nahrungsmittelpreise denen der CGE-Modell- Prognosen, wenngleich die Preise in einem geringeren Maße ansteigen als in anderen Studien.

Suggested Citation

  • Sorda, Giovanni & Banse, Martin, 2011. "The Response of the German Agricultural Sector to the Envisaged Biofuel Targets in Germany and Abroad: A CGE Simulation," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(04), pages 1-16, November.
  • Handle: RePEc:ags:gjagec:169852
    DOI: 10.22004/ag.econ.169852
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    Cited by:

    1. Timilsina, Govinda R. & Landis, Florian, 2014. "Economics of transiting to renewable energy in Morocco : a general equilibrium analysis," Policy Research Working Paper Series 6940, The World Bank.
    2. Landis,Florian & Timilsina,Govinda R., 2015. "The economics of policy instruments to stimulate wind power in Brazil," Policy Research Working Paper Series 7346, The World Bank.

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