IDEAS home Printed from https://ideas.repec.org/p/ags/aesc10/91804.html
   My bibliography  Save this paper

Impacts of the US Ethanol Boom in Rural Mexico

Author

Listed:
  • Dyer, George A.
  • Taylor, J. Edward

Abstract

Assessing the human and environmental impacts of biofuels requires unraveling the connection between international trade, on one hand, and local land-use and social change, on the other, while accounting for cross-scalar linkages between and within social and environmental systems. We propose a disaggregated approach to model how macro shocks shape rural households’ decisions, and how these decisions integrate onto aggregate supply and land use patterns. The approach, built on an agent-based model of rural Mexico, is used to explore the impacts of ethanol-driven US corn price increases. Our estimate of a 5.7% expansion in corn area by 2008 and wide variation across regions corresponds fairly well with ex post reports. Estimates from alternative models exceed ours by up to 200%. Corn land expanded between 1.6% in the southeast and 16% in the northwest. A 3% increase in agricultural value added nevertheless did not promote rural development, whether measured in terms of total rural value added or income. Direct and indirect (multiplier) effects on rural incomes were limited. Rural households experienced a 0.02% increase in real income, while absentee (non-rural) landholders’ income increased 3.9%. Our approach highlights the crucial role of local market conditions and interactions among microeconomic actors in shaping biofuels’ impacts via local feedback mechanisms. It suggests that subsistence activities might keep deforestation pressures in check in some developing areas while precluding the rural population from benefiting. A disaggregated approach should help integrate future research on land-use change and economics.

Suggested Citation

  • Dyer, George A. & Taylor, J. Edward, 2010. "Impacts of the US Ethanol Boom in Rural Mexico," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91804, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc10:91804
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/91804
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Corral, Serafín & Legna-de la Nuez, David & Romero-Manrique de Lara, David, 2015. "Integrated assessment of biofuel production in arid lands: Jatropha cultivation on the island of Fuerteventura," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 41-53.

    More about this item

    Keywords

    Crop Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc10:91804. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aesukea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.