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Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model

Author

Listed:
  • Fabiosa, Jacinto F.
  • Beghin, John
  • Dong, Fengxia
  • Elobeid, Amani
  • Tokgoz, Simla
  • Yu, Tun-Hsiang

Abstract

We quantify the emergence of biofuel markets and its impact on world agriculture using the multimarket, multicommodity international FAPRI model. The model incorporates trade-offs between biofuel, feed, and food production and consumption and international feedback effects of the emergence through world prices and trade. We shock the model with exogenous changes in ethanol demand, first in the United States, then in Brazil and other countries, and compute shock multipliers for land allocation decisions for important crops and countries. The Brazilian ethanol expansion using sugarcane has fewer consequences on existing arable land allocation than the U.S. ethanol expansion does using corn feedstock.

Suggested Citation

  • Fabiosa, Jacinto F. & Beghin, John & Dong, Fengxia & Elobeid, Amani & Tokgoz, Simla & Yu, Tun-Hsiang, 2010. "Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model," ISU General Staff Papers 201001010800001509, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201001010800001509
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    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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