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

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

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.

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File URL: http://le.uwpress.org/cgi/reprint/86/4/687
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 86 (2010)
Issue (Month): 4 ()
Pages: 687-706

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Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:687-706
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Torre Ugarte, Daniel de la & Walsh, Marie E. & Shapouri, Hosein & Slinsky, Stephen P., 2003. "The Economic Impacts of Bioenergy Crop Production on U.S. Crop Production," Agricultural Economics Reports 33997, United States Department of Agriculture, Economic Research Service.
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