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What is the Social Value of Second Generation Biofuels?

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  • Hertel, Thomas W
  • Steinbuks, Jevgenijs
  • Tyner, Wallace E.

Abstract

What are second generation (2G) biofuel technologies worth to global society? A dynamic, economic model is used to assess the impact on crops, livestock, biofuels, forestry, and environmental services, as well as GHG emissions of introducing 2G biofuels technology. Under baseline conditions, this to amounts to $64.2 billion at today’s population or an increase of roughly 0.3% in the valuation of the world’s land resources. Under GHG regulation this global valuation more than doubles, whereas a flat energy price scenario essentially eliminates the value of 2G technology to society.

Suggested Citation

  • Hertel, Thomas W & Steinbuks, Jevgenijs & Tyner, Wallace E., 2015. "What is the Social Value of Second Generation Biofuels?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204909, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:204909
    DOI: 10.22004/ag.econ.204909
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    References listed on IDEAS

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    1. Antoine Blandine & Gurgel Angelo & Reilly John M, 2008. "Will Recreation Demand for Land Limit Biofuels Production?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(2), pages 1-29, December.
    2. Jevgenijs Steinbuks & Thomas Hertel, 2016. "Confronting the Food–Energy–Environment Trilemma: Global Land Use in the Long Run," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 545-570, March.
    3. repec:unu:wpaper:wp2012-65 is not listed on IDEAS
    4. Steinbuks, Jevgenijs & Thomas Hertel, 2012. "Forest, Agriculture, and Biofuels in a Land use model with Environmental services (FABLE)," GTAP Working Papers 3988, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    5. Havlík, Petr & Schneider, Uwe A. & Schmid, Erwin & Böttcher, Hannes & Fritz, Steffen & Skalský, Rastislav & Aoki, Kentaro & Cara, Stéphane De & Kindermann, Georg & Kraxner, Florian & Leduc, Sylvain & , 2011. "Global land-use implications of first and second generation biofuel targets," Energy Policy, Elsevier, vol. 39(10), pages 5690-5702, October.
    6. Cranfield, J. A. L. & Preckel, Paul V. & Eales, James S. & Hertel, Thomas W., 2002. "Estimating consumer demands across the development spectrum: maximum likelihood estimates of an implicit direct additivity model," Journal of Development Economics, Elsevier, vol. 68(2), pages 289-307, August.
    7. Steinbuks, Jevgenijs & Thomas Hertel, 2012. "Forest, Agriculture, and Biofuels in a Land use model with Environmental services (FABLE)," GTAP Working Papers 3988, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Jeffrey Reimer & Thomas Hertel, 2004. "Estimation of International Demand Behaviour for Use with Input-Output Based Data," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 347-366.
    9. Sergey Paltsev, 2012. "Implications of Alternative Mitigation Policies on World Prices for Fossil Fuels and Agricultural Products," WIDER Working Paper Series wp-2012-065, World Institute for Development Economic Research (UNU-WIDER).
    10. Paltsev, Sergey, 2012. "Implications of Alternative Mitigation Policies on World Prices for Fossil Fuels and Agricultural Products," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Cai,Yongyang & Steinbuks,Jevgenijs & Judd,Kenneth L. & Jaegermeyr,Jonas & Hertel,Thomas W., 2020. "Modeling Uncertainty in Large Natural Resource Allocation Problems," Policy Research Working Paper Series 9159, The World Bank.

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    More about this item

    Keywords

    Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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