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Geography Matters: International Trade Patterns and the Indirect Land Use Effects of Biofuels

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  • Nelson B. Villoria
  • Thomas W. Hertel

Abstract

This article investigates the relationship between international trade patterns and the global distribution of coarse grain production responses to market developments in the United States. Our null hypothesis is that world markets are fully integrated, rendering the geographic persistence of bilateral trade flows irrelevant in the global production response to a change in U.S. prices. The alternative hypothesis allows price transmission to vary along with the intensity of competition among countries in specific markets. Using data from 1975 to 2002, we reject the null hypothesis. Our work has direct implications for the analysis of the global land use impacts of biofuel mandates. Copyright 2011, Oxford University Press.

Suggested Citation

  • Nelson B. Villoria & Thomas W. Hertel, 2011. "Geography Matters: International Trade Patterns and the Indirect Land Use Effects of Biofuels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 919-935.
  • Handle: RePEc:oup:ajagec:v:93:y:2011:i:4:p:919-935
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    File URL: http://hdl.handle.net/10.1093/ajae/aar025
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    Cited by:

    1. Thomas Hertel & Jevgenijs Steinbuks & Uris Baldos, 2013. "Competition for land in the global bioeconomy," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 129-138, November.
    2. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, Elsevier.
    3. Nelson B. Villoria & Derek Byerlee & James Stevenson, 2014. "The Effects of Agricultural Technological Progress on Deforestation: What Do We Really Know?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(2), pages 211-237.
    4. Forslund, Agneta & Gohin, Alexandre & Le Mouël, Chantal & Levert, Fabrice, 2014. "Biodiesel vs. ethanol, UE vs. US biofuels: So different in terms of LUC impact?," Working Papers 207810, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    5. Lota D. Tamini & Maurice Doyon & Rodrigue Simon, 2016. "Analyzing Trade Liberalization Effects in the Egg Sector Using a Dynamic Gravity Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 383-411, June.
    6. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy," Papers 306, World Trade Institute.
    7. Godar, Javier & Persson, U. Martin & Tizado, E. Jorge & Meyfroidt, Patrick, 2015. "Towards more accurate and policy relevant footprint analyses: Tracing fine-scale socio-environmental impacts of production to consumption," Ecological Economics, Elsevier, vol. 112(C), pages 25-35.
    8. Chen, Bowen & Villoria, Nelson B., 2018. "Food Price Variability and Import Dependence: A Country Panel Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274285, Agricultural and Applied Economics Association.
    9. Agneta Forslund & Alexandre Gohin & Chantal Le Mouël & Fabrice Levert, 2014. "Biodiesel vs. ethanol, UE vs. US biofuels: So different in terms of LUC impact?," Working Papers SMART - LERECO 14-04, INRA UMR SMART-LERECO.
    10. Vorotnikova, Ekaterina & Seale, James L, 2014. "The Effect of Energy Policy Act (EPA-2005) on Agricultural Land Allocation Dynamics in the United States," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162553, Southern Agricultural Economics Association.
    11. U. Martin Persson, 2015. "The impact of biofuel demand on agricultural commodity prices: a systematic review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(5), pages 410-428, September.
    12. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.
    13. Timilsina, Govinda R. & Mevel, Simon & Shrestha, Ashish, 2011. "Oil price, biofuels and food supply," Energy Policy, Elsevier, vol. 39(12), pages 8098-8105.
    14. repec:eee:eneeco:v:65:y:2017:i:c:p:148-160 is not listed on IDEAS

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