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Agricultural Land Elasticities in the United States and Brazil

Listed author(s):
  • Barr, Kanlaya Jintanakul
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    The elasticity of aggregate supply of cropland is one key to understandingthe degree to which policy-induced increases in demand for biofuel feedstocksor agricultural CO2 offsets will result in higher prices or expanded cropproduction. We report land supply elasticities for the United States and Brazilestimated directly from recent changes in planted crop acreage and estimatedchanges in expected returns. The resulting aggregate implied land-use elasticitieswith respect to price are quite inelastic in the United States and Brazil elasticitieshave declined sharply in recent years. The estimated elasticities imply that currentestimates of land-based CO2 emissions from biofuels expansion may be overstated

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    Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers Archive with number 34893.

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    Date of creation: 08 Nov 2011
    Publication status: Published in Applied Economic Perspectives and Policy 2011, vol. 33 no. 3, pp. 449-462
    Handle: RePEc:isu:genres:34893
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    Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070

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