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Land Allocation between Food and Energy

Author

Listed:
  • Ujjayant Chakravorty

    (Department of Economics, Tufts University, Medford, MA 02155-6722, USA)

  • Marie-Helene Hubert

    (CREM, University of Rennes I, 35042 Rennes Cedex 7, France)

  • Michel Moreaux

    (Toulouse School of Economics, 31015 Toulouse Cedex 6, France)

Abstract

Many countries are promoting biofuels as a substitute for scarce oil. This paper develops a dynamic model of land allocation between food and energy and shows how the model can be calibrated using standard optimization techniques. Some possible implications of the trade-offs between food and energy are discussed. Specifically, we show that the effect of mandates is mainly felt through increased land conversion, which increases indirect carbon emissions. Crude oil prices do not decrease significantly because of leakages.

Suggested Citation

  • Ujjayant Chakravorty & Marie-Helene Hubert & Michel Moreaux, 2014. "Land Allocation between Food and Energy," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 9(1), pages 52-69, March.
    • Handle: RePEc:fec:journl:v:9:y:2014:i:1:p:52-69
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-003-014-0004-8
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    References listed on IDEAS

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    1. Chakravorty, Ujjayant & Magné, Bertrand & Moreaux, Michel, 2008. "A dynamic model of food and clean energy," Journal of Economic Dynamics and Control, Elsevier, vol. 32(4), pages 1181-1203, April.
    2. Ujjayant Chakravorty & Bertrand Magne & Michel Moreaux, 2012. "Resource Use under Climate Stabilization: Can Nuclear Power Provide Clean Energy?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(2), pages 349-389, March.
    3. 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.
    4. Xiaoguang Chen & Madhu Khanna, 2017. "Land Use and Greenhouse Gas Implications of Biofuels: Role of Technology and Policy," Natural Resource Management and Policy, in: Madhu Khanna & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy: Volume II, pages 213-237, Springer.
    5. 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.
    6. Gouel, Christophe & Hertel, Thomas, 2006. "Introducing Forest Access Cost Functions into a General Equilibrium Model," GTAP Research Memoranda 2215, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    7. Mark W. Rosegrant & Tingju Zhu & Siwa Msangi & Timothy Sulser, 2008. "Global Scenarios for Biofuels: Impacts and Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 495-505.
    8. Thomas W. Hertel & Wallace E. Tyner & Dileep K. Birur, 2010. "The Global Impacts of Biofuel Mandates," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 75-100.
    9. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
    10. Amy W. Ando & Madhu Khanna & Farzad Taheripour, 2010. "Market and Social Welfare Effects of the Renewable Fuels Standard," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 233-250, Springer.
    11. Madhu Khanna & David Zilberman, 2012. "Modeling The Land-Use And Greenhouse-Gas Implications Of Biofuels," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-15.
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    Cited by:

    1. Khatiwada, Dilip & Silveira, Semida, 2017. "Scenarios for bioethanol production in Indonesia: How can we meet mandatory blending targets?," Energy, Elsevier, vol. 119(C), pages 351-361.

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    More about this item

    Keywords

    biofuel; food; energy; land allocation; mandate;
    All these keywords.

    JEL classification:

    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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