IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v37y2013icp29-39.html
   My bibliography  Save this article

A model for sustainable land use in biofuel production: An application to the state of Alabama

Author

Listed:
  • Affuso, Ermanno
  • Hite, Diane

Abstract

The Renewable Fuel Standard aims to increase the production of biofuels to improve energy efficiency and decrease carbon dioxide emissions in the US. The effectiveness of this regulation is being debated by the scientific community regarding carbon emissions from direct and indirect land-use change. A valid alternative may be to design policies that stimulate sustainable land use in biofuel production. This article develops a model that simulates a voluntary program to increase the land use efficiency in production of biofuels. This stochastic dynamic model optimizes the sustainability of biofuels producible by including climate information and participatory decisions on land use. The model is parameterized using the Maximum Entropy econometric technique to present a simulation of the program in the State of Alabama. The results of this simulation show that participatory decisions on land-use may increase the net energy value of produced biofuel up to 215.68% and reduce the carbon emissions by 19.67% towards the state energy goals.

Suggested Citation

  • Affuso, Ermanno & Hite, Diane, 2013. "A model for sustainable land use in biofuel production: An application to the state of Alabama," Energy Economics, Elsevier, vol. 37(C), pages 29-39.
    • Handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:29-39
    DOI: 10.1016/j.eneco.2013.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988313000054
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2013.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Allan N. Rae, 1971. "Stochastic Programming, Utility, and Sequential Decision Problems in Farm Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 448-460.
    2. Shumway, C. Richard, 1986. "Supply Relationships In The South - What Have We Learned?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-9, July.
    3. Chernozhukov, Victor & Fernández-Val, Iván & Kowalski, Amanda E., 2015. "Quantile regression with censoring and endogeneity," Journal of Econometrics, Elsevier, vol. 186(1), pages 201-221.
    4. Allan N. Rae, 1971. "An Empirical Application and Evaluation of Discrete Stochastic Programming in Farm Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 625-638.
    5. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, July.
    6. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 27-50, March.
    7. Xiaoguang Chen & Haixiao Huang & Madhu Khanna & Hayri Önal, 2011. "Meeting the Mandate for Biofuels: Implications for Land Use, Food, and Fuel Prices," NBER Chapters, in: The Intended and Unintended Effects of US Agricultural and Biotechnology Policies, pages 223-267, National Bureau of Economic Research, Inc.
    8. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    9. Shapouri, Hosein & Duffield, James A. & Wang, Michael Q., 2002. "The Energy Balance of Corn Ethanol: An Update," Agricultural Economic Reports 34075, United States Department of Agriculture, Economic Research Service.
    10. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    11. Novak, James L. & Nadolnyak, Denis A. & McNider, Richard, 2008. "Analysis of Irrigated Corn Production Adoption Decisions in Alabama," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6756, Southern Agricultural Economics Association.
    12. Quirino Paris, 2001. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1049-1061.
    13. Baker, Justin Scott & McCarl, Bruce A. & Murray, Brian C. & Rose, Steven K. & Alig, Ralph J. & Adams, Darius M. & Latta, Gregory S. & Beach, Robert H. & Daigneault, Adam J., 2010. "Net Farm Income and Land Use under a U.S. Greenhouse Gas Cap and Trade," Policy Issues 93683, Agricultural and Applied Economics Association.
    14. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    15. Chen, Xiaoguang & Huang, Haixiao & Khanna, Madhu & Onal, Hayri, 2010. "Meeting the Mandate for Biofuels: Implications for Land Use and Food and Fuel Prices," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61629, Agricultural and Applied Economics Association.
    16. Dicks, Michael R. & Campiche, Jody L. & Torre Ugarte, Daniel de la & Hellwinckel, Chad M. & Bryant, Henry L. & Richardson, James W., 2009. "Land Use Implications of Expanding Biofuel Demand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(2), August.
    17. Khanna, Madhu, 2008. "Cellulosic Biofuels: Are They Economically Viable and Environmentally Sustainable?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(3), pages 1-6.
    18. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    19. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    20. Boehmel, Constanze & Lewandowski, Iris & Claupein, Wilhelm, 2008. "Comparing annual and perennial energy cropping systems with different management intensities," Agricultural Systems, Elsevier, vol. 96(1-3), pages 224-236, March.
    21. Birur, Dileep K. & Beach, Robert H. & Hertel, Thomas W. & McCarl, Bruce A., 2010. "Global Implications of U.S. Biofuels Policies in an Integrated Partial and General Equilibrium Framework," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61812, Agricultural and Applied Economics Association.
    22. Paris,Quirino, 2011. "Economic Foundations of Symmetric Programming," Cambridge Books, Cambridge University Press, number 9780521123020.
    23. Paris,Quirino, 2011. "Economic Foundations of Symmetric Programming," Cambridge Books, Cambridge University Press, number 9780521194723.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Dengjun & Asche, Frank & Oglend, Atle, 2014. "Ethanol and trade: An analysis of price transmission in the US market," Energy Economics, Elsevier, vol. 42(C), pages 1-8.
    2. Affuso, Ermanno, 2017. "Food Security and Climate Change in Guyana," Farm and Business - The Journal of the Caribbean Agro-Economic Society, Caribbean Agro-Economic Society, vol. 9(1), December.
    3. Dohnal, Mirko, 2016. "Complex biofuels related scenarios generated by qualitative reasoning under severe information shortages: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 676-684.
    4. Dian Iriani, Latifah & Widodo, Tri, 2019. "The Implication of B20 Policy on Environment," MPRA Paper 91313, University Library of Munich, Germany.
    5. Si, Chengyu & Nadolnyak, Denis, 2018. "The Effects of Government Payments on Agricultural Land Use," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266628, Southern Agricultural Economics Association.
    6. Long, Huiling & Li, Xiaobing & Wang, Hong & Jia, Jingdun, 2013. "Biomass resources and their bioenergy potential estimation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 344-352.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Xuan & van Kooten, Gerrit Cornelis & Duan, Jun, 2020. "Calibration of agricultural risk programming models using positive mathematical programming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    2. Kooten, G. Cornelis van, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 149182, University of Victoria, Resource Economics and Policy.
    3. Frahan, Bruno Henry de, 2005. "PMP, Extensions and Alternative Methods: Introductory Review of the State of the Art," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24537, European Association of Agricultural Economists.
    4. Arata, Linda & Donati, Michele & Sckokai, Paolo & Arfini, Filippo, 2014. "Incorporating risk in a positive mathematical programming framework: a new methodological approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182659, European Association of Agricultural Economists.
    5. Gocht, Alexander, 2005. "Assessment of Simulation Behavior of Different Mathematical Programming Approaches," 89th Seminar, February 2-5, 2005, Parma, Italy 232598, European Association of Agricultural Economists.
    6. Polome, Philippe & Fernagut, Bruno & Harmignie, Olivier & Frahan, Bruno Henry de, 2005. "Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24727, European Association of Agricultural Economists.
    7. Arfini, Filippo & Donati, Michele & Grossi, L. & Paris, Quirino, 2008. "Revenue and Cost Functions in PMP: a Methodological Integration for a Territorial Analysis of CAP," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6636, European Association of Agricultural Economists.
    8. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    9. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    10. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    12. Alain Carpentier & Elodie Letort, 2010. "Simple econometric models for short term production choices in cropping systems," Working Papers SMART 10-11, INRAE UMR SMART.
    13. van Kooten, G. Cornelis & Johnston, Craig, 2014. "Global impacts of Russian log export restrictions and the Canada–U.S. lumber dispute: Modeling trade in logs and lumber," Forest Policy and Economics, Elsevier, vol. 39(C), pages 54-66.
    14. Weng, Weizhe & Cobourn, Kelly M. & Kemanian, Armen R. & Boyle, Kevin J. & Shi, Yuning & Stachelek, Joseph & White, Charles, 2020. "Quantifying Co-Benefits of Water Quality Policies: An Integrated Assessment Model of Nitrogen Management," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304667, Agricultural and Applied Economics Association.
    15. Mohammad Ali Asaadi & Seyed Abolghasem Mortazavi & Omid Zamani & Gholam Hassan Najafi & Talal Yusaf & Seyed Salar Hoseini, 2019. "The Impacts of Water Pricing and Non-Pricing Policies on Sustainable Water Resources Management: A Case of Ghorveh Plain at Kurdistan Province, Iran," Energies, MDPI, vol. 12(14), pages 1-16, July.
    16. Heckelei, Thomas & Mittelhammer, Ronald C. & Jansson, Torbjorn, 2008. "A Bayesian Alternative To Generalized Cross Entropy Solutions For Underdetermined Econometric Models," Discussion Papers 56973, University of Bonn, Institute for Food and Resource Economics.
    17. Arfini, Filippo & Donati, Michele & Marongiu, Sonia & Cesaro, Luca, 2012. "Farm production costs estimation trough PMP Models: an application in three Italian Regions," 2012 First Congress, June 4-5, 2012, Trento, Italy 124117, Italian Association of Agricultural and Applied Economics (AIEAA).
    18. Johnston, Craig M.T. & van Kooten, G. Cornelis, 2014. "Modelling Bi-lateral Forest Product Trade Flows: Experiencing Vertical and Horizontal Chain Optimization," Working Papers 197898, University of Victoria, Resource Economics and Policy.
    19. Kamel Louhichi & Pavel Ciaian & Maria Espinosa & Angel Perni & Sergio Gomez y Paloma, 2018. "Economic impacts of CAP greening: application of an EU-wide individual farm model for CAP analysis (IFM-CAP)," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 205-238.
    20. Louhichi, Kamel & Gomez y Paloma, Sergio, 2014. "A farm household model for agri-food policy analysis in developing countries: Application to smallholder farmers in Sierra Leone," Food Policy, Elsevier, vol. 45(C), pages 1-13.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:29-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.