A Dynamic Model of Food and Clean Energy
In the midwestern United States, ethanol produced from corn is mixed with gasoline to meet clean air standards. Allocating land to produce clean fuel means taking away land from farming. We examine a model in which a scarce fossil fuel (e.g., oil) causes pollution but may be substituted by a clean fuel produced from land. Methodologically, we extend the Hotelling model to consider a substitute produced in the agricultural sector. We discover a range of prices within which the land-based fuel may substitute for the fossil fuel. When land is abundant, the supply of the clean fuel may exhibit multiple discontinuities. Environmental regulation may cause food production and farm prices to remain constant for a period of time.
(This abstract was borrowed from another version of this item.)
|Date of creation:||May 2006|
|Date of revision:|
|Publication status:||Published in Journal of Economic Dynamics and Control, vol.�32, n°4, avril 2008, p.�1181-1203.|
|Contact details of provider:|| Postal: |
Phone: +33 (0)5 61 12 85 89
Fax: + 33 (0)5 61 12 86 37
Web page: http://www.idei.fr/
More information through EDIRC
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.:
- Hoel, Michael & Kverndokk, Snorre, 1996.
"Depletion of fossil fuels and the impacts of global warming,"
Resource and Energy Economics,
Elsevier, vol. 18(2), pages 115-136, June.
- Snorre Kverndokk, 1994. "Depletion of Fossil Fuels and the impact of Global Warming," Discussion Papers 107, Research Department of Statistics Norway.
- Farzin, Y. H., 1996. "Optimal pricing of environmental and natural resource use with stock externalities," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 31-57, October.
- Ujjayant Chakravorty & Bertrand Magne & Michel Moreaux, 2003.
"A Hotelling Model with a Ceiling on the Stock of Pollution,"
0321, Department of Economics, Emory University (Atlanta).
- Chakravorty, Ujjayant & Magne, Bertrand & Moreaux, Michel, 2006. "A Hotelling model with a ceiling on the stock of pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2875-2904, December.
- Chakravorty, Ujjayant & Magné, Bertrand & Moreaux, Michel, 2005. "A Hotelling Model with a Ceiling on the Stock of Pollution," IDEI Working Papers 368, Institut d'Économie Industrielle (IDEI), Toulouse.
- Ujjayant Chakravorty & Bertrand Magne & Michel Moreaux, 2006. "A Hotelling model with a ceiling on the stock of pollution," Working Papers 25547, Institut National de la Recherche Agronomique, France.
- Olli Tahvonen, 1997. "Fossil Fuels, Stock Externalities, and Backstop Technology," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 855-74, November.
- Michael Hoel, 1984. "Extraction of a Resource with a Substitute for Some of Its Uses," Canadian Journal of Economics, Canadian Economics Association, vol. 17(3), pages 593-602, August.
- Forster, Bruce A., 1980. "Optimal energy use in a polluted environment," Journal of Environmental Economics and Management, Elsevier, vol. 7(4), pages 321-333, December.
- repec:dgr:kubcen:2005119 is not listed on IDEAS
- Toman, Michael A. & Withagen, Cees, 2000.
"Accumulative pollution, "clean technology," and policy design,"
Resource and Energy Economics,
Elsevier, vol. 22(4), pages 367-384, October.
- Toman, Michael & Withagen, Cees, 1998. "Accumulative Pollution, "Clean Technology," and Policy Design," Discussion Papers dp-98-43, Resources For the Future.
- Farzin, Y H & Tahvonen, O, 1996. "Global Carbon Cycle and the Optimal Time Path of a Carbon Tax," Oxford Economic Papers, Oxford University Press, vol. 48(4), pages 515-36, October.
- Ulph, Alistair & Ulph, David, 1994. "The Optimal Time Path of a Carbon Tax," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 857-68, Supplemen.
- Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
When requesting a correction, please mention this item's handle: RePEc:ide:wpaper:5704. 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 references are entirely missing, you can add them using this form.