IDEAS home Printed from https://ideas.repec.org/p/ngi/dpaper/12-10.html
   My bibliography  Save this paper

The Scope for Increasing Biofuel Crop Production in Japan: An Analysis of Alternative Policies

Author

Listed:
  • Ai Leon

    (National Institute for Agro-Environmental Sciences (NIAES))

  • Roberto Leon

    (National Graduate Institute for Policy Studies)

Abstract

In 2010, concerns regarding Japan’s excessive dependence on imports for food and energy caused the Japanese government to introduce subsidies to stimulate biofuel crop production. In this paper, we study the viability of price subsidies and certain other policies with respect to increasing the production of biofuel crops. First, we estimate the elasticity of the supply of Japanese agriculture with respect to price (inclusive of the subsidy for each unit of production). For this purpose, we use a longitudinal database of 1822 municipalities that covers all 47 prefectures of Japan. This database includes information about the production of 116 crops and their respective revenues, including subsidies. Using panel data regression techniques, we determine that although the long-run supply of certain crops is highly elastic, this supply is highly inelastic if the production of other crops is held constant. Therefore, an increase in the demand for biofuel crops will cause substantial price increases of agricultural products, largely crowding out the demand for food crops. We then discuss the viability of encouraging various agricultural practices, such as multiple cropping and the cultivation of recently abandoned land. Instead of using abandoned land, which produces a lower yield and requires abundant labor, we recommend a multiple cropping system that involves the rotation of rice and wheat. Although these measures will increase biofuel crop production to a certain extent in the short run, full-scale biofuel crop production can only take place after substantial reforms are implemented to increase the production capacity of the Japanese agricultural sector.

Suggested Citation

  • Ai Leon & Roberto Leon, 2012. "The Scope for Increasing Biofuel Crop Production in Japan: An Analysis of Alternative Policies," GRIPS Discussion Papers 12-10, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:12-10
    as

    Download full text from publisher

    File URL: https://grips.repo.nii.ac.jp/?action=repository_action_common_download&item_id=1097&item_no=1&attribute_id=20&file_no=1
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ngi:dpaper:12-10. 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: (). General contact details of provider: http://edirc.repec.org/data/gripsjp.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.