IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Modeling the global trade and environmental impacts of biofuel policies

  • Bouët, Antoine
  • Dimaranan, Betina V.
  • Valin, Hugo

There is rising skepticism about the potential positive environmental impacts of first generation biofuels. Growing biofuel crops could induce diversion of other crops dedicated to food and feed needs. The relocation of production could increase deforestation and bring significant new volumes of carbon into the atmosphere. In this paper, we develop a methodology for assessing the indirect land use change effects related to biofuel policies in a computable general equilibrium framework. We rely on the trade policy model MIRAGE and on the GTAP 7 database, both of which have been modified and improved to explicitly capture the role of different types of biofuel feedstock crops, energy demand and substitution, and carbon emissions. Land use changes are represented at the level of agroecological zones in a dynamic framework using land substitution with nesting of constant elasticity of transformation functions and a land supply module that takes into account the effects of economic land expansion. In this integrated global approach, we capture the environmental cost of different land conversions due to biofuels in the carbon budget, taking into account both direct and indirect carbon dioxide emissions related to land use change. We apply this methodology to look at the impacts of biofuel (ethanol) policies for transportation in the United States and in the European Union with and without ethanol trade liberalization. We find that emissions released because of ethanol programs significantly worsen the total carbon balance of biofuel policies. Ethanol trade liberalization benefits are ambiguous and depend highly on the parameters governing land use change, particularly in Brazil. We conclude by pointing out the critical aspects that have to be refined in order to improve our understanding of the environmental implications of biofuel development.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ifpri.org/sites/default/files/publications/ifpridp01018.pdf
Download Restriction: no

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1018.

as
in new window

Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:fpr:ifprid:1018
Contact details of provider: Postal: 2033 K Street, NW, Washington, DC 20006
Phone: 202-862-5600
Fax: 202-467-4439
Web page: http://www.ifpri.org/Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Bureau, Jean-Christophe & Disdier, Anne-Célia & Gauroy, Christine & Tréguer, David, 2010. "A quantitative assessment of the determinants of the net energy value of biofuels," Energy Policy, Elsevier, vol. 38(5), pages 2282-2290, May.
  2. Gohin, A. & Chantret, F., 2010. "The long-run impact of energy prices on world agricultural markets: The role of macro-economic linkages," Energy Policy, Elsevier, vol. 38(1), pages 333-339, January.
  3. Dermot J. Hayes & Bruce A. Babcock & Jacinto F. Fabiosa & Simla Tokgoz & Amani Elobeid & Tun-Hsiang (Edward) Yu & Fengxia Dong & Chad E. Hart & Ed Chavez & Suwen Pan & Miguel Carriquiry & Jerome Dumor, 2009. "Biofuels: Potential Production Capacity, Effects on Grain and Livestock Sectors, and Implications for Food Prices and Consumers," Center for Agricultural and Rural Development (CARD) Publications 09-wp487, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. 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.
  5. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  6. Seale, James L., Jr. & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence On Food Consumption Patterns," Technical Bulletins 33580, United States Department of Agriculture, Economic Research Service.
  7. Gurgel Angelo & Reilly John M & Paltsev Sergey, 2007. "Potential Land Use Implications of a Global Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-36, December.
  8. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
  9. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
  10. Darwin, Roy & Tsigas, Marinos & Lewandrowski, Jan & Raneses, Anton, 1996. "Land use and cover in ecological economics," Ecological Economics, Elsevier, vol. 17(3), pages 157-181, June.
  11. Hochman, Gal & Sexton, Steven E. & Zilberman, David D., 2010. "The economics of trade, biofuel, and the environment," CUDARE Working Paper Series 1100, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  12. Yvan Decreux & Hugo Valin, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 2007-15, CEPII research center.
  13. Headey, Derek & Fan, Shenggen, 2008. "Anatomy of a crisis: The causes and consequences of surging food prices," IFPRI discussion papers 831, International Food Policy Research Institute (IFPRI).
  14. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guerin & Sebastien Jean, 2002. "MIRAGE, un modele d'equilibre general calculable pour l'evaluation des politiques commerciales," Economie Internationale, CEPII research center, issue 89-90, pages 109-153.
  15. Golub, Alla & Hertel, Thomas & Lee, Huey-Lin & Rose, Steven & Sohngen, Brent, 2009. "The opportunity cost of land use and the global potential for greenhouse gas mitigation in agriculture and forestry," Resource and Energy Economics, Elsevier, vol. 31(4), pages 299-319, November.
  16. Taheripour, Farzad & Dileep Birur & Thomas Hertel & Wally Tyner, 2007. "Introducing Liquid Biofuels into the GTAP Data Base," GTAP Research Memoranda 2534, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  17. Lee, Huey-Lin & Hertel, Thomas & Rose, Steven & Avetisyan, Misak, 2008. "An Integrated Global Land Use Data Base for CGE Analysis of Climate Policy Options," GTAP Working Papers 2603, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  18. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Center for Agricultural and Rural Development (CARD) Publications 89-tr13, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  19. Golub, Alla & W. Hertel, Thomas, 2008. "Global Economic Integration and Land Use Change," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 463-488.
  20. 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.
  21. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 89-tr13, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  22. Michael J. Roberts & Wolfram Schlenker, 2009. "World Supply and Demand of Food Commodity Calories," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1235-1242.
  23. Sohngen, Brent & Tennity, Colleen & Hnytka, Marc & Meeusen, Karl, 2008. "Global Forestry Data for the Economic Modeling of Land Use," GTAP Working Papers 2602, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1018. 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: ()

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.