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Articles 1 - 15 of 15

Full-Text Articles in Social and Behavioral Sciences

Environmental Impacts Of Emerging Biomass Feedstock Markets: Energy, Agriculture, And The Farmer, Rebecca S. Dodder, Amani E. Elobeid, Timothy L. Johnson, P. Ozge Kaplan, Lyubov A. Kurkalova, Silvia Secchi, Simla Tokgoz Dec 2011

Environmental Impacts Of Emerging Biomass Feedstock Markets: Energy, Agriculture, And The Farmer, Rebecca S. Dodder, Amani E. Elobeid, Timothy L. Johnson, P. Ozge Kaplan, Lyubov A. Kurkalova, Silvia Secchi, Simla Tokgoz

CARD Working Papers

The tighter linkages between energy and crop markets due to recent climate and energy legislation in the US have large potential environmental impacts beyond carbon sequestration and climate mitigation. These range from effects on water quality and quantity, soil erosion, habitat and biodiversity preservation. These impacts are very location and management-decision specific, as they are the product of atomistic decisions and depend on soil and landscape specific variables. In order to fully understand the effects of biomass markets, the new and stronger linkages and feedback effects between national- and global-scale energy and commodity markets must be properly understood and identified ...


The Trade-Off Between Bioenergy And Emissions When Land Is Scarce, Nathan S. Kauffman, Dermot J. Hayes Jan 2011

The Trade-Off Between Bioenergy And Emissions When Land Is Scarce, Nathan S. Kauffman, Dermot J. Hayes

CARD Working Papers

Agricultural biofuels require the use of scarce land, and this land has opportunity cost. We explore the objective function of a social planner who includes a land constraint in the optimization decision to minimize environmental cost. The results show that emissions should be measured on a per acre basis. Conventional agricultural life cycle assessments for biofuels report carbon emissions on a per gallon basis, thereby ignoring the implications of land scarcity and implicitly assuming an infinite supply of the inputs needed for production. Switchgrass and corn are then modeled as competing alternatives to show how the inclusion of a land ...


World Market Impacts Of High Biofuel Use In The European Union, Miguel Carriquiry, Fengxia Dong, Xiaodong Du, Amani E. Elobeid, Jacinto F. Fabiosa, Eddie Chavez, Suwen Pan Jul 2010

World Market Impacts Of High Biofuel Use In The European Union, Miguel Carriquiry, Fengxia Dong, Xiaodong Du, Amani E. Elobeid, Jacinto F. Fabiosa, Eddie Chavez, Suwen Pan

CARD Working Papers

This study examines the world market impact of an expansion in the biofuel sector in the European Union with particular focus on indirect land-use impacts. In the first scenario, an increase of 1 million tonnes oil equivalent (Mtoe) of wheat ethanol use in the European Union expands world land area used in agricultural commodity production by 366,000 hectares, representing an increase of 0.039% in total area. In the second scenario, an increase of 1 Mtoe of rapeseed oil biodiesel use in the European Union expands world land area by 352,000 hectares, representing an increase of 0.038 ...


Cardiovascular Disease—Risk Benefits Of Clean Fuel Technology And Policy: A Statistical Analysis, Paul Gallagher, William Lazarus, Hosein Shapouri, Roger Conway, Fantu Bachewe, Amelia Fischer Feb 2010

Cardiovascular Disease—Risk Benefits Of Clean Fuel Technology And Policy: A Statistical Analysis, Paul Gallagher, William Lazarus, Hosein Shapouri, Roger Conway, Fantu Bachewe, Amelia Fischer

Economics Publications

The hypothesis of this study is that there is a statistical relationship between the cardiovascular disease mortality rate and the intensity of fuel consumption (measured in gallons/square mile) at a particular location. We estimate cross-sectional regressions of the mortality rate due to cardiovascular disease against the intensity of fuel consumption using local data for the entire US, before the US Clean Air Act (CAA) in 1974 and after the most recent policy revisions in 2004. The cardiovascular disease rate improvement estimate suggests that up to 60 cardiovascular disease deaths per 100,000 residents are avoided in the largest urban ...


Biofuels: Potential Production Capacity, Effects On Grain And Livestock Sectors, And Implications For Food Prices And Consumers, Dermot J. Hayes, Bruce A. Babcock, Jacinto F. Fabiosa, Simla Tokgoz, Amani E. Elobeid, Tun-Hsiang (Edward) Yu, Fengxia Dong, Chad E. Hart, Eddie Chavez, Suwen Pan, Miguel Carriquiry, Jerome R. F. Dumortier Mar 2009

Biofuels: Potential Production Capacity, Effects On Grain And Livestock Sectors, And Implications For Food Prices And Consumers, Dermot J. Hayes, Bruce A. Babcock, Jacinto F. Fabiosa, Simla Tokgoz, Amani E. Elobeid, Tun-Hsiang (Edward) Yu, Fengxia Dong, Chad E. Hart, Eddie Chavez, Suwen Pan, Miguel Carriquiry, Jerome R. F. Dumortier

CARD Working Papers

We examine four scenarios for the evolution of the biofuel sector using a partial equilibrium model of the world agricultural sector. The model includes the new Renewable Fuels Standard in the 2007 energy act, the two-way relationship between fossil energy and biofuel markets, and a new trend toward corn oil extraction in ethanol plants. At one extreme, one scenario eliminates all support to the biofuel sector when the energy price is low, while the other extreme assumes no distribution bottleneck in ethanol demand growth when the energy price is high. Of the remaining two scenarios, one considers a pure market ...


Impacts Of Ethanol On Planted Acreage In Market Equilibrium, Hongli Feng, Bruce A. Babcock Jun 2008

Impacts Of Ethanol On Planted Acreage In Market Equilibrium, Hongli Feng, Bruce A. Babcock

CARD Working Papers

Land use impacts of biofuel expansion have attracted a tremendous amount of attention because of the implications for the climate, the environment, and the food supply. To examine these impacts, we set up an economic framework that links input use and land allocation decisions with ethanol and agricultural commodity markets. Crops can be substitutes or complements in supply depending on the relative magnitude of three effects of crop prices: total cropland effect, land share effect, and input use effect. We show that with unregulated free markets, total cropland area increases with corn prices whether crops are substitutes or complements in ...


Crop-Based Biofuel Production Under Acreage Constraints And Uncertainty, Mindy L. Baker, Dermot J. Hayes, Bruce A. Babcock Feb 2008

Crop-Based Biofuel Production Under Acreage Constraints And Uncertainty, Mindy L. Baker, Dermot J. Hayes, Bruce A. Babcock

CARD Working Papers

A myriad of policy issues and questions revolve around understanding the bioeconomy. To gain insight, we develop a stochastic and dynamic general equilibrium model and capture the uncertain nature of key variables such as crude oil prices and commodity yields. We also incorporate acreage limitations on key feedstocks such as corn, soybeans, and switchgrass. We make standard assumptions that investors are rational and engage in biofuel production only if returns exceed what they can expect to earn from alternative investments. The Energy Independence and Security Act of 2007 mandates the use of 36 billion gallons of biofuels by 2022, with ...


Greenhouse Gas Impacts Of Ethanol From Iowa Corn: Life Cycle Analysis Versus System-Wide Accounting, Hongli Feng, Ofir D. Rubin, Bruce A. Babcock Feb 2008

Greenhouse Gas Impacts Of Ethanol From Iowa Corn: Life Cycle Analysis Versus System-Wide Accounting, Hongli Feng, Ofir D. Rubin, Bruce A. Babcock

CARD Working Papers

Life cycle analysis (LCA) is the standard approach used to evaluate the greenhouse gas (GHG) benefits of biofuels. However, it is increasingly recognized that LCA results do not account for some impacts—including land use changes—that have important implications on GHGs. Thus, an alternative accounting system that goes beyond LCA is needed. In this paper, we contribute to the literature by laying out the basics of a system-wide accounting (SWA) method that takes into account all potential changes in GHGs resulting from biofuel expansion. We applied both LCA and SWA to assess the GHG impacts of ethanol based on ...


Implied Objectives Of U.S. Biofuel Subsidies, Ofir D. Rubin, Miguel Carriquiry, Dermot J. Hayes Feb 2008

Implied Objectives Of U.S. Biofuel Subsidies, Ofir D. Rubin, Miguel Carriquiry, Dermot J. Hayes

CARD Working Papers

Biofuel subsidies in the United States have been justified on the following grounds: energy independence, a reduction in greenhouse gas emissions, improvements in rural development related to biofuel plants, and farm income support. The 2007 energy act emphasizes the first two objectives. In this study, we quantify the costs and benefits that different biofuels provide. We consider the first two objectives separately and show that each can be achieved with a lower social cost than that of the current policy. Then, we show that there is no evidence to disprove that the primary objective of biofuel policy is to support ...


Food Security And Biofuels Development: The Case Of China, Fengxia Dong Oct 2007

Food Security And Biofuels Development: The Case Of China, Fengxia Dong

CARD Briefing Papers

Biofuels production is expanding rapidly all over the world, driven by rising crude oil prices, the desire of countries to be energy independent, and concerns about climate change. As developed countries, especially the United States, are expanding biofuels production, developing countries are expanding their biofuels industries as well, to power their growing economies. However, developing countries must address the food security issue when they develop biofuels. As China is a developing country with rapid economic growth, population growth, significant demand for fuels, and food security concerns, it serves as a good example for studying the opportunities and challenges faced by ...


A Comparative Analysis Of The Development Of The United States And European Union Biodiesel Industries, Miguel Carriquiry Jul 2007

A Comparative Analysis Of The Development Of The United States And European Union Biodiesel Industries, Miguel Carriquiry

CARD Briefing Papers

Worldwide production of biodiesel is growing at a rapid pace. Arguably, the European Union (EU) is the global leader in biodiesel production, but the United States has recently expanded its production. The growth of the biodiesel industry in both regions has been fueled by a series of government-provided financial incentives. However, the timing of the growth and incentive provisions, the nature of the main incentives, and the market conditions differ across regions. This article provides a comparative analysis of the EU and U.S. biodiesel industries, highlighting market and policy aspects that are leading to a rapid but distinct growth.


The Growth And Direction Of The Biodiesel Industry In The United States, Nicholas D. Paulson, Roger Ginder May 2007

The Growth And Direction Of The Biodiesel Industry In The United States, Nicholas D. Paulson, Roger Ginder

CARD Working Papers

The biodiesel industry in the United States has realized significant growth over the past decade through large increases in annual production and production capacity and a transition from smaller batch plants to larger-scale continuous producers. The larger, continuous-flow plants provide operating cost advantages over the smaller batch plants through their ability to capture co-products and reuse certain components in the production process. This paper uses a simple capital budgeting model developed by the authors along with production data supplied by industry sources to estimate production costs, return-on-investment levels, and break-even conditions for two common plant sizes (30 and 60 million ...


The Long-Run Impact Of Corn-Based Ethanol On The Grain, Oilseed, And Livestock Sectors: A Preliminary Assessment, Amani E. Elobeid, Simla Tokgoz, Dermot J. Hayes, Bruce A. Babcock, Chad E. Hart Nov 2006

The Long-Run Impact Of Corn-Based Ethanol On The Grain, Oilseed, And Livestock Sectors: A Preliminary Assessment, Amani E. Elobeid, Simla Tokgoz, Dermot J. Hayes, Bruce A. Babcock, Chad E. Hart

CARD Briefing Papers

The ongoing growth of corn-based ethanol production raises some fundamental questions about what impact continued growth will have on U.S. and world agriculture. Estimates of the long-run potential for ethanol production can be made by calculating the corn price at which the incentive to expand ethanol production disappears. Under current ethanol tax policy, if the prices of crude oil, natural gas, and distillers grains stay at current levels, then the break-even corn price is $4.05 per bushel. A multi-commodity, multi-country system of integrated commodity models is used to estimate the impacts if we ever get to $4.05 ...


Removal Of U.S. Ethanol Domestic And Trade Distortions: Impact On U.S. And Brazilian Ethanol Markets, Amani E. Elobeid, Simla Tokgoz Oct 2006

Removal Of U.S. Ethanol Domestic And Trade Distortions: Impact On U.S. And Brazilian Ethanol Markets, Amani E. Elobeid, Simla Tokgoz

CARD Working Papers

We analyze the impact of trade liberalization and removal of the federal tax credit in the United States on U.S. and Brazilian ethanol markets using a multi-market international ethanol model calibrated on 2005 market data and policies. The removal of trade distortions induces a 23.2 percent increase in the price of world ethanol on average between 2006 and 2015 relative to the baseline. The U.S. domestic ethanol price decreases by 14.1 percent, which results in a 7.5 percent decline in production and a 3.2 percent increase in consumption. The lower domestic price leads to ...


Some Long-Run Effects Of Growing Markets And Renewable Fuel Standards On Additives Markets And The Us Ethanol Industry, Paul W. Gallagher, Hosein Shapouri, Jeffrey Price, Guenter Schamel, Heather Brubaker Sep 2003

Some Long-Run Effects Of Growing Markets And Renewable Fuel Standards On Additives Markets And The Us Ethanol Industry, Paul W. Gallagher, Hosein Shapouri, Jeffrey Price, Guenter Schamel, Heather Brubaker

Economics Publications

The effects of likely regulatory and policy changes in the US gasoline and additives market are compared to a reference baseline. The baseline reflects existing EPA policies about fuel quality regulation and likely petroleum and gasoline expansions. The market and welfare effects are presented for implementing a renewable fuel standard; imposing a national ban on the additive MTBE; and removing the oxygen standard for reformulated fuel. Market and welfare estimates are based on adjusting product market demands and factor supplies. Product market and price analyses include quality-differentiated products, such as refinery gasoline, chemical additives and ethanol at the wholesale level ...