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Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model

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Listed:
  • Jacinto F. Fabiosa
  • John C. Beghin
  • Fengxia Dong
  • JAmani Elobeid
  • Simla Tokgoz
  • Tun-Hsiang Yu

Abstract

We quantify the emergence of biofuel markets and its impact on world agriculture using the multimarket, multicommodity international FAPRI model. The model incorporates trade-offs between biofuel, feed, and food production and consumption and international feedback effects of the emergence through world prices and trade. We shock the model with exogenous changes in ethanol demand, first in the United States, then in Brazil and other countries, and compute shock multipliers for land allocation decisions for important crops and countries. The Brazilian ethanol expansion using sugarcane has fewer consequences on existing arable land allocation than the U.S. ethanol expansion does using corn feedstock.

Suggested Citation

  • Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & JAmani Elobeid & Simla Tokgoz & Tun-Hsiang Yu, 2010. "Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model," Land Economics, University of Wisconsin Press, vol. 86(4), pages 687-706.
    • Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:687-706
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    More about this item

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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