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Bioethanol development in China and the potential impacts on its agricultural economy

Author

Listed:
  • Qiu, Huanguang
  • Huang, Jikun
  • Yang, Jun
  • Rozelle, Scott
  • Zhang, Yuhua
  • Zhang, Yahui
  • Zhang, Yanli

Abstract

China is now the third largest bioethanol producer in the world after the United State and Brazil. The overall goals of this paper are to provide an overview of China's current bioethanol program, its future trend, and the likely impacts on its agricultural economy in the future. The analysis shows that China has developed an ambitious long-run biofuel program with a series of financial and institutional supports. While there are several potential feedstock crops available for bioethanol production, lack of land for feedstock production is one of major constraints in China's bioethanol expansion. The results show that although China's bioethanol expansion will have little impacts on overall agricultural prices in international markets, it will have significant impacts on the prices, productions, and trade of those energy crops being used for bioethanol production in China.

Suggested Citation

  • Qiu, Huanguang & Huang, Jikun & Yang, Jun & Rozelle, Scott & Zhang, Yuhua & Zhang, Yahui & Zhang, Yanli, 2010. "Bioethanol development in China and the potential impacts on its agricultural economy," Applied Energy, Elsevier, vol. 87(1), pages 76-83, January.
    • Handle: RePEc:eee:appene:v:87:y:2010:i:1:p:76-83
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    References listed on IDEAS

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    1. Yang, Jun & Huang, Jikun & Qiu, Huanguang & Rozelle, Scott & Sombilla, Mercy A., 2009. "Biofuels and the Greater Mekong Subregion: Assessing the impact on prices, production and trade," Applied Energy, Elsevier, vol. 86(Supplemen), pages 37-46, November.
    2. Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," The World Bank Economic Review, World Bank, vol. 18(1), pages 59-84.
    3. Gallagher, Paul W. & Dikeman, Mark & Fritz, John & Wailes, Eric & Gauthier, Wayne & Shapouri, Hosein, 2003. "Supply and Social Cost Estimates for Biomass from Crop Residues in the United States," ISU General Staff Papers 200304010800001493, Iowa State University, Department of Economics.
    4. Paul Gallagher & Mark Dikeman & John Fritz & Eric Wailes & Wayne Gauthier & Hosein Shapouri, 2003. "Supply and Social Cost Estimates for Biomass from Crop Residues in the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 335-358, April.
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