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Biofuel do Brasil? - Impact of Multinational Biofuel Mandates on Agri-food Trade

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Listed:
  • Banse, Martin
  • Junker, Franziska
  • Prins, Anne Gerdien
  • Stehfest, Elke
  • Tabeau, Andrzej A.
  • Woltjer, Geert B.
  • van Meijl, Hans

Abstract

This paper analyzes the consequences of enhanced biofuel production in regions and countries of the world that have announced plans to implement or expand on biofuel policies. The analysis considers not only mandatory blending targets for transportation fuels, but also voluntary ones. The chosen quantitative modeling approach is two-fold: it combines a multi-sectoral economic model (LEITAP) with a spatial bio-physical land use model (IMAGE). This paper adds to existing research by considering biofuel policies in the EU, the US and various other countries with considerable agricultural production and trade, such as Brazil, India and China. Moreover, the combination of the two modeling systems allows for the observation of changes in both economic and bio-physical indicators. The results show that some indicators with high political relevance, such as agricultural prices and greenhouse gas emissions from land use, do not necessarily react proportionally to increasing demand for agricultural products from the biofuel sector. This finding should be considered when designing biofuel policies because these indicators are directly relevant for food security and climate change.

Suggested Citation

  • Banse, Martin & Junker, Franziska & Prins, Anne Gerdien & Stehfest, Elke & Tabeau, Andrzej A. & Woltjer, Geert B. & van Meijl, Hans, 2012. "Biofuel do Brasil? - Impact of Multinational Biofuel Mandates on Agri-food Trade," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123838, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:123838
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    File URL: http://ageconsearch.umn.edu/record/123838/files/Biofuel%20do%20Brazil-final%20paper.pdf
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    References listed on IDEAS

    as
    1. Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(2), pages 117-141, June.
    2. Sorda, Giovanni & Banse, Martin & Kemfert, Claudia, 2010. "An overview of biofuel policies across the world," Energy Policy, Elsevier, vol. 38(11), pages 6977-6988, November.
    3. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
    4. Jayson Beckman & Carol Adaire Jones & Ronald Sands, 2011. "A Global General Equilibrium Analysis of Biofuel Mandates and Greenhouse Gas Emissions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 334-341.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    International Relations/Trade; Land Economics/Use; Resource /Energy Economics and Policy;

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