Ethanol Production, Food and Forests
This paper investigates the direct and indirect impacts of ethanol production on land use, deforestation and food production. A partial equilibrium model of a national economy with two sectors and two regions, one of which includes a residual forest, is developed. It analyses how an exogenous increase in the ethanol price affcts input allocation (land and labor) between sectors (energy crop and food). Three potential effects are identified. First, the standard and well-documented effect of direct land competition between rival uses increases deforestation and decreases food production. Second, an indirect displacement of food production across regions, provoked by a shift in the price of food, increases deforestation and reduces the total output of the food sector. Finally, labor mobility between sectors and regions tends to decrease food production but also deforestation. The overall impact of ethanol production on forest conversion is ambiguous, providing a number of interesting pointers to further, empirical research.
|Date of creation:||2010|
|Date of revision:||2010|
|Contact details of provider:|| Postal: 19 Silver Street, Cambridge CB3 9EP|
Phone: +44 1223 337147
Fax: +44 1223 337130
Web page: http://www.landecon.cam.ac.uk
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.:
- Edward B. Barbier, 2001. "The Economics of Tropical Deforestation and Land Use: An Introduction to the Special Issue," Land Economics, University of Wisconsin Press, vol. 77(2), pages 155-171.
- Ujjayant Chakravorty & Marie-Hélène Hubert & Linda Nøstbakken, 2009.
"Fuel Versus Food,"
- Chakravorty, Ujjayant & Magné, Bertrand & Moreaux, Michel, 2006.
"A Dynamic Model of Food and Clean Energy,"
IDEI Working Papers
403, Institut d'Économie Industrielle (IDEI), Toulouse.
- Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
- Harry de Gorter & David R. Just, 2008. "The Economics of a Blend Mandate for Biofuels," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 738-750.
- Moschini, GianCarlo, 1998. "Semiflexible Almost Ideal Demand System, The," Staff General Research Papers Archive 1193, Iowa State University, Department of Economics.
- Bluffstone Randall A., 1995. "The Effect of Labor Market Performance on Deforestation in Developing Countries under Open Access: An Example from Rural Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 42-63, July.
- Keeney, Roman & Hertel, Thomas, 2008. "The Indirect Land Use Impacts of U.S. Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," GTAP Working Papers 2810, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Feng, Hongli & Babcock, Bruce, 2010. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," ISU General Staff Papers 201004070700001493, Iowa State University, Department of Economics.
- Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," World Bank Economic Review, World Bank Group, vol. 5(1), pages 135-153, January.
- Quintero, J.A. & Montoya, M.I. & Sánchez, O.J. & Giraldo, O.H. & Cardona, C.A., 2008. "Fuel ethanol production from sugarcane and corn: Comparative analysis for a Colombian case," Energy, Elsevier, vol. 33(3), pages 385-399.
- Feng, Hongli & Babcock, Bruce A., 2008.
"Impacts of Ethanol on Planted Acreage in Market Equilibrium,"
Staff General Research Papers Archive
12959, Iowa State University, Department of Economics.
- Hongli Feng & Bruce A. Babcock, 2010. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 789-802.
- Hongli Feng & Bruce A. Babcock, 2008. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," Center for Agricultural and Rural Development (CARD) Publications 08-wp472, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Jacob Mincer, 1977.
"Family Migration Decisions,"
NBER Working Papers
0199, National Bureau of Economic Research, Inc.
- Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amazônia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
- Goldemberg, José & Guardabassi, Patricia, 2009. "Are biofuels a feasible option?," Energy Policy, Elsevier, vol. 37(1), pages 10-14, January.
- Uwe A. Schneider & Bruce A. McCarl, 2001.
"Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation,"
Center for Agricultural and Rural Development (CARD) Publications
01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
- Shively, Gerald & Pagiola, Stefano, 2004. "Agricultural intensification, local labor markets, and deforestation in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 241-266, May.
- 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 Archive 12881, Iowa State University, Department of Economics.
- Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
- Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
- von Braun, Joachim & Pachauri, R. K., 2006. "The promises and challenges of biofuels for the poor in developing countries: IFPRI 2005-2006 Annual Report Essay," Annual report essays 2006Essay, International Food Policy Research Institute (IFPRI).
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Moschini, Giancarlo, 1998. "The semiflexible almost ideal demand system," European Economic Review, Elsevier, vol. 42(2), pages 349-364, February.
- Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, World Bank Group, vol. 14(1), pages 73-98, February.
When requesting a correction, please mention this item's handle: RePEc:lnd:wpaper:482010. 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: (Unai Pascual)
If references are entirely missing, you can add them using this form.