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Inelastic and Fragmented Farm Supply Response for Second-generation Bioenergy Feedstocks: Ex Ante Survey Evidence from Wisconsin

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  • Daniel F. Mooney
  • Bradford L. Barham
  • Chang Lian

Abstract

Second-generation bioenergy feedstocks stand poised to become a key component of the nation's agricultural and energy sectors, yet few studies have examined farm supply response using survey information. We use contingent valuation data from farmers in southwestern Wisconsin to develop ex ante supply estimates for two prospective feedstocks—corn stover and switchgrass—in terms of farmers' extensive and intensive acreage decisions. Supply response is found to be price inelastic and spatially fragmented, making widespread production unlikely in the near-term. However, heterogeneity in farmer reservation prices suggests that agglomerations or "hot spots" of feedstock supply could arise at local or regional levels.

Suggested Citation

  • Daniel F. Mooney & Bradford L. Barham & Chang Lian, 2015. "Inelastic and Fragmented Farm Supply Response for Second-generation Bioenergy Feedstocks: Ex Ante Survey Evidence from Wisconsin," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(2), pages 287-310.
    • Handle: RePEc:oup:apecpp:v:37:y:2015:i:2:p:287-310.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppu033
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    Cited by:

    1. Kwabena Krah & Daniel R Petrolia & Angelica Williams & Keith H Coble & Ardian Harri & Roderick M Rejesus, 2018. "Producer Preferences for Contracts on a Risky Bioenergy Crop," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 240-258.
    2. Csikós, Nándor & Tóth, Gergely, 2023. "Concepts of agricultural marginal lands and their utilisation: A review," Agricultural Systems, Elsevier, vol. 204(C).
    3. repec:ags:aaea16:235752 is not listed on IDEAS
    4. Scott M. Swinton & Felix Dulys & Sarah S.H. Klammer, 2021. "Why Biomass Residue Is Not as Plentiful as It Looks: Case Study on Economic Supply of Logging Residues," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1003-1025, September.
    5. Dulys, Elena & Swinton, Scott & Klammer, Sarah, 2016. "What Drives the Potential Supply of Timber Residues from Private Lands?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 242363, Agricultural and Applied Economics Association.
    6. Van Deynze, B., 2018. "The Effects of Experience on Landowner Preferences over Bioenergy Feedstocks," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277001, International Association of Agricultural Economists.
    7. Rosburg, Alicia & Miranowski, John & McFadden, Jonathan, 2016. "Mitigating Feedstock Supply Risk in Corn Stover Biofuel Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235875, Agricultural and Applied Economics Association.

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