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Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models

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  • Kamel Louhichi

    (INRA - UMR Economie Publique, Thiverval-Grignon, France & European Commission - Joint Research Centre - Institute for Prospective Technological Studies, C/ Inca Garcilaso 3; E-41092 Seville, Spain)

  • Hugo Valin

Abstract

This paper aims to ex-ante assess the micro-economic impacts of current EU biofuel policies on the French arable sector using an agricultural supply model (ASMMA) coupled with a computable general equilibrium model (MIRAGE-BioF). The application of this modelling framework confirms that biofuel policies would significantly affect the EU agricultural market, with price increase by 2020 as high as +40% in the case of rapeseed compared with a status quo at 2008 level. This would strongly impact land use and production of firstgeneration feedstock crops in France (rapeseed, cereals and sugar beets). The highest percentage increase would be in land dedicated to rapeseed (+50%), likely to occur in regions with a low initial rapeseed land share. This increase would boost farm income of most arable farms (+10% on average); however, the environment would face increase pressure from agricultural production with more use of pesticide (+5%) and increase in N2O emissions (+2.5%).

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  • Kamel Louhichi & Hugo Valin, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(3), pages 233-272.
    • Handle: RePEc:rae:jourae:v:93:y:2012:i:3:p:233-272
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    Cited by:

    1. Ruth Delzeit & Robert Beach & Ruben Bibas & Wolfgang Britz & Jean Chateau & Florian Freund & Julien Lefevre & Franziska Schuenemann & Timothy Sulser & Hugo Valin & Bas van Ruijven & Matthias Weitzel &, 2020. "Linking Global CGE Models with Sectoral Models to Generate Baseline Scenarios: Approaches, Challenges, and Opportunities," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 162-195, June.
    2. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    3. Ruth Delzeit & Roberto Beach & Ruben Bibas & Wolfgang Britz & Jean Chateau & Florian Freund & Julien Lefevre & Franziska Schuenemann & Timothy Sulser & Hugo Valin & Bas van Ruijven & Matthias Weitzel , 2020. "Linking global CGE models with sectoral models to generate baseline scenarios: Approaches, opportunities and pitfalls," Post-Print hal-03128285, HAL.
    4. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    5. Deppermann, Andre & Offermann, Frank & Puttkammer, Judith & Grethe, Harald, 2016. "EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector," Renewable Energy, Elsevier, vol. 87(P1), pages 259-265.

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    More about this item

    Keywords

    biofuels; policy analysis; agricultural supply model; arable crops; France;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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