Making the market: How U.S. Policy influences near term agriculture and biofuel industry production and profitability under technology adoption

The beneficiaries of technology adoption in agriculture and biofuels markets in the United States are heavily influenced by domestic biofuel policies and market context. Biofuel mandates, one of the key pillars of domestic biofuel policies, may significantly alter the elasticity of demand for biofuels as well as the derived demand for maize used to produce a significant share of ethanol in the United States. Using a stochastic agriculture and biofuels model, we assess how the introduction of technology may affect the crops and biofuel markets under binding and non-binding biofuel mandates and discuss the implications for analysis of EU biofuel policies.biofuels, policy, technology adoption, mandates, Agricultural and Food Policy, Farm Management, Land Economics/Use,

Implications of the Biofuels Boom for the Global Livestock Industry: A Computable General Equilibrium Analysis

In this paper, we offer a general equilibrium analysis of the impacts of US and EU biofuel mandates for the global livestock sector. Our simulation boosts biofuel production in the US and EU from 2006 levels to mandated 2015 levels. We show that mandates will encourage crop production in both biofuel and non biofuel producing regions, while reducing livestock and livestock production in most regions of the world. The non-ruminant industry curtails its production more than other livestock industries. The numerical results suggest that the biofuel mandates reduce food production in most regions while they increase crude vegetable oils in almost all regions. Implementing biofuel mandates in the US and EU will increase croplands within the biofuel and non-biofuel producer regions. A large portion of this increase will be obtained from reduced grazing lands. The biofuel producing regions are expected to reduce their coarse grains exports and raise imports of oilseeds and vegetable oils. While all livestock industries use more biofuel byproducts in their animal feed rations, the dairy and other ruminant industry benefit most from the expansion of DDGS. We finally conclude that, while biofuel mandates have important consequences for the livestock industry, they do not harshly curtail these industries. This is largely due to the important role of byproducts in substituting for higher priced feedstuffs. In addition, with relatively inelastic food demands, producers are able to pass much of the price rise on to consumers. In general, US, EU, Meddle East & North Africa, and Russia will experience significant welfare loses due to the combined US and EU mandates, while Brazil, Japan, India, and East Asia are expected to get major gains.Biofuels, Livestock, Feed Ration, Biofuel Co-Product, Land Use, Livestock Production/Industries,

Biofuels: Political/Economic Boondoggle or Energy Salvation for Western States?

Nearly all western states lack comparative advantages for producing corn for ethanol and oilseeds for biodiesel. Despite this disadvantage, most western states have legislated incentives for production of biofuels. Unfavorable changes in price relationships, high transportation costs for imported feedstocks, and tight credit markets in 2008 and 2009 led to bankruptcies and plant closures at a disproportionate rate in the western biofuel industry. Policy makers in western states are advised to fund research and development for bioenergy and biofuel feedstocks in which they have a comparative advantage. These include forestry by-products, food processing and crop residues, and livestock wastes.biodiesel, bioenergy research, biofuels, biofuel bankruptcies, biofuel feedstocks, biofuel incentives, corn ethanol, western United States, Resource /Energy Economics and Policy,

Engineering management of gas turbine power plant co2 for microalgae biofuel production

Fossil fuel accounts for over 80% of the world`s primary energy, particularly in areas of transportation, manufacturing and domestic heating. However, depletion of fossil reserves, frequent threats to the security of fossil fuel supply, coupled with concerns over emissions of greenhouse gases associated with fossil fuel use has motivated research towards developing renewable and sustainable sources for energy fuels. Consequently, the use of microalgae culture to convert CO2 from power plants flue gases into biomass that are readily converted into biofuel offers a window of opportunities to enhance, compliment or replace fossil- fuel-use. Interest in the use of microalgae biomass for biofuel production is high as it affords the potential for power plant CO2 sequestration – (1kg of dry algae biomass uses about 1.83kg CO2). Similarly, its capacity to utilise nutrients from a variety of wastewater, sets it apart from other biomass resources. These outlined benefits all emphasis the need for extended R&D efforts to advance commercial microalgae biofuel production. The paper is aimed at investigating the environmental performance of the microalgae biofuel production process using LCA

Economics and agricultural market impacts of growing biofuel production

This paper analyses the economics of biofuel production and the implications that the accelerating growth in biofuel production in many countries could have on agricultural markets. It shows that production costs of ethanol and biodiesel differ significantly across countries and feedstock crops. These costs often exceed those of fossil fuels. In consequence, the economics of biofuel production depends on public support in most countries. Similarly, land requirements for crops required to enable significant shares of biofuel production in transport fuel consumption are shown to be substantial in many countries given current technologies. An expected growth in biofuel production is, therefore, likely to have a significant increasing impact on world prices for sugar, cereals and oilseeds beyond what is caused by higher crude oil prices alone. The paper points out a number of policy issues that require attention and further analysis to facilitate a fuller discussion of biofuel policies.biofuels, production costs, resource requirements, agricultural market impacts, biofuel policies, Demand and Price Analysis, International Relations/Trade, Resource /Energy Economics and Policy,

Biofuel Subsidies: An Open-Economy Analysis

We present a general equilibrium analysis of biofuel subsidies in an open-economy context. In the small-country case, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large-country case, the optimal tax on crude departs from its standard Pigouvian level and a biofuel subsidy is optimal. A biofuel subsidy spurs global demand for food and confers a terms-of-trade benefit to the food-exporting nation. This might encourage the food-exporting nation to use a subsidy even if it raises global crude use. The food importer has no such incentive for subsidization. Terms-of-trade effects wash out between trading nations; hence, any policy intervention by the two trading nations that raises crude use must be jointly suboptimal.optimal biofuel subsidy, Pigouvian tax, terms-of-trade, pollution externality

Biofuel subsidies: an open-economy analysis

We present a general equilibrium analysis of biofuel subsidies in an open-economy context. In the small-country case, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large-country case, the optimal tax on crude departs from its standard Pigouvian level and a biofuel subsidy is optimal. A biofuel subsidy spurs global demand for food and confers a terms-of-trade benefit to the food-exporting nation. This might encourage the food-exporting nation to use a subsidy even if it raises global crude use. The food importer has no such incentive for subsidization. Terms-of-trade effects wash out between trading nations; hence, any policy intervention by the two trading nations that raises crude use must be jointly suboptimal.Macroeconomics ; Economic conditions

The Blood of Going Green: Using Environmental Initiatives to Account for the Human Rights Violations of the Green Movement

Part I of this Note first illustrates the science of climate change and the push for biofuel development. Next, this Note uses human rights to define the problems associated with biofuel development in Brazil, Argentina and Paraguay, and introduces the environmental law framework that can address these human rights violation. Part II details the main human rights violations in Brazil, Argentina, and Paraguay occurring at the hands of the soy industry, and surveys the main existing certification proposals that attempt to mitigate social and environmental abuses. Finally, Part III proposes ways that developed countries can collectively mitigate the negative human rights and environmental implications from biofuel development beyond their borders by implementing a comprehensive certification scheme in climate change initiatives that contain emissions reduction requirements

MODELLING IMPACTS OF SOME EUROPEAN BIOFUEL MEASURES

Against the background of increasing concerns regarding the energy supply security as well as environmental concern the interest for renewable energy sources has increased in recent years. The biofuel sector, backed by public policies, experienced a strong increase in and outside Europe. A methodology that allows for the estimation of the impacts of the fulfilment of the proposed biofuel targets in the EU member states is proposed and implemented in the AGMEMOD model for France and Germany. The so called normative approach, based on the use of a logistic function as biofuel demand function allows to perform simulations to assess the impact of the biofuel demand expansion on agricultural markets. The implemented approach and the simulation results indicate that crops production would adjust to the modified demand situation and depending on the proposed scenario the domestic supply would not be enough for the achievement of the biofuel targets in France and Germany.biofuel targets, biodiesel, ethanol, modelling, Crop Production/Industries, Public Economics, Resource /Energy Economics and Policy,

Consequences of EU Biofuel Policies on Agricultural Production and Land Use

This article assesses the implications of European Union (EU) biofuel policies based on a general equilibrium framework with endogenous land supply. The results show that, without policy intervention to stimulate the use of biofuel crops, the targets set by the EU Biofuels Directive will not be met. European biofuel policies boosting demand for biofuel crops have a strong impact on agriculture globally and within Europe, leading to an increase in land use. On the other hand, the long–term declining trend in real agricultural prices may slow down or even reverse