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Dedicated Energy Crops and Competition for Agricultural Land

Author

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  • Sands, Ronald D.
  • Malcolm, Scott A.
  • Suttles, Shellye A.
  • Marshall, Elizabeth

Abstract

Dedicated energy crops, such as switchgrass in the United States, have received much attention as potential renewable feedstocks for liquid fuels or bioelectricity; however, markets do not presently exist for large-scale use of this resource. This study examines three policy scenarios that could create a market for bioelectricity using dedicated energy crops: a subsidy for bioelectricity generation, a national Renewable Portfolio Standard (RPS), and a national cap-and-trade policy to limit carbon dioxide (CO2) emissions. Model results suggest that energy crops as a share of total cropland by region would be greatest in the Northern Plains, Southeast, and Appalachia. Even though the impact of energy crop production on land use across scenarios is similar by design, the impacts on other model outputs are quite different, including the mix of electricity-generating technologies, the price of electricity, CO2 emissions, and the cost relative to a no-policy reference scenario. For example, the price of electricity increases with cap-and-trade but declines with a bioelectricity subsidy. In all scenarios, U.S. CO2 emissions decrease relative to the reference scenario. Emissions reductions are greatest in the cap-and-trade scenario, but significant reductions are also obtained with an RPS.

Suggested Citation

  • Sands, Ronald D. & Malcolm, Scott A. & Suttles, Shellye A. & Marshall, Elizabeth, 2017. "Dedicated Energy Crops and Competition for Agricultural Land," Economic Research Report 252445, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:252445
    DOI: 10.22004/ag.econ.252445
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    References listed on IDEAS

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    1. Ronald Sands & Hannah Förster & Carol Jones & Katja Schumacher, 2014. "Bio-electricity and land use in the Future Agricultural Resources Model (FARM)," Climatic Change, Springer, vol. 123(3), pages 719-730, April.
    2. Sands, Ronald & Jones, Carol & Marshall, Elizabeth P., 2014. "Global Drivers of Agricultural Demand and Supply," Economic Research Report 186137, United States Department of Agriculture, Economic Research Service.
    3. Darwin, Roy & Tsigas, Marinos E. & Lewandrowski, Jan & Raneses, Anton, 1995. "World Agriculture and Climate Change: Economic Adaptations," Agricultural Economic Reports 33933, United States Department of Agriculture, Economic Research Service.
    4. Muhammad, Andrew & Meade, Birgit Gisela Saager & Regmi, Anita & Seale, James L., 2011. "International Evidence on Food Consumption Patterns: An Update Using 2005 International Comparison Program Data," Technical Bulletins 120252, United States Department of Agriculture, Economic Research Service.
    5. Gibbs, Holly & Sahoko Yui & Richard Plevin, 2014. "New Estimates of Soil and Biomass Carbon Stocks for Global Economic Models," GTAP Technical Papers 4344, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    6. Leon E. Clarke, Allen A. Fawcett, John P. Weyant, James McFarland, Vaibhav Chaturvedi, and Yuyu Zhou, 2014. "Technology and U.S. Emissions Reductions Goals: Results of the EMF 24 Modeling Exercise," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    7. Gibbs, Holly & Yui, Sahoko & Plevin, Richard, 2014. "New Estimates of Soil and Biomass Carbon Stocks for Global Economic Models," Technical Papers 283432, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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    Cited by:

    1. Robert Czubaszek & Agnieszka Wysocka-Czubaszek & Piotr Banaszuk, 2020. "GHG Emissions and Efficiency of Energy Generation through Anaerobic Fermentation of Wetland Biomass," Energies, MDPI, Open Access Journal, vol. 13(24), pages 1-25, December.
    2. Tomoko Hasegawa & Ronald D. Sands & Thierry Brunelle & Yiyun Cui & Stefan Frank & Shinichiro Fujimori & Alexander Popp, 2020. "Food security under high bioenergy demand toward long-term climate goals," Climatic Change, Springer, vol. 163(3), pages 1587-1601, December.
    3. Xin Zhao & Dominique Y van der Mensbrugghe & Roman M. Keeney & Wallace E. Tyner, 2021. "Improving the Way Land Use Change is Handled in Economic Models," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 15, pages 467-515, World Scientific Publishing Co. Pte. Ltd..
    4. Rob Dellink & Dominique Van der Mensbrugghe & Bert Saveyn, 2020. "Shaping Baseline Scenarios of Economic Activity with CGE Models: Introduction to the Special Issue," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 1-27, June.
    5. Ronald D. Sands, 2018. "U.S. Carbon Tax Scenarios And Bioenergy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 1-12, February.
    6. Sands, Ronald D., 2020. "Global Diets and Demand for Calories from Crops," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304601, Agricultural and Applied Economics Association.
    7. Nico Bauer & Steven K. Rose & Shinichiro Fujimori & Detlef P. Vuuren & John Weyant & Marshall Wise & Yiyun Cui & Vassilis Daioglou & Matthew J. Gidden & Etsushi Kato & Alban Kitous & Florian Leblanc &, 2020. "Global energy sector emission reductions and bioenergy use: overview of the bioenergy demand phase of the EMF-33 model comparison," Climatic Change, Springer, vol. 163(3), pages 1553-1568, December.
    8. Marshall, Elizabeth & Aillery, Marcel & Ribaudo, Marc & Key, Nigel & Sneeringer, Stacy & Hansen, LeRoy & Malcolm, Scott & Riddle, Anne, 2018. "Reducing Nutrient Losses From Cropland in the Mississippi/Atchafalaya River Basin: Cost Efficiency and Regional Distribution," Economic Research Report 277567, United States Department of Agriculture, Economic Research Service.

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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy;
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