Agri-Environmental Policies When the Spatial Pattern of Biodiversity Reserves Matters

The aim of this paper is to compare different policy instruments for cost-effective habitat conservation on agricultural lands, when the desired spatial pattern of reserves is a random mosaic. We use a spatially explicit mathematical programming model which studies the farmers' behavior as profit maximizers under technical and administrative constraints. Facing different policy measures, each farmer chooses its land-use at the field level, which determines the landscape at the regional level. A spatial pattern index (Ripley L function) is then associated to the obtained landscape, indicating on the degree of dispersion of the reserve. We compare a subsidy per hectare of reserve with an auction scheme and an agglomeration malus. We find that the auction is superior to the uniform subsidy both for cost-efficiency and for the spatial pattern of the reserve. The agglomeration malus does better than the auction for the spatial pattern but is more costly.agri-environmental policies, biodiversity, mathematical programming, spatial optimization, reserve design, cost-efficiency, Environmental Economics and Policy, Resource /Energy Economics and Policy, H23, Q57, Q12, Q28,

Spatially explicit farming system modelling for an efficient agri-environmental policy design

A mathematical programming model is developed and associated to a spatial pattern index (Ripley L-function) to analyse the optimal reserve design and implementation for the Little Bustard conservation in Plaine de Niort. The model structure corresponds to three spatial levels, fields, farm and landscape. Simple in terms of area representation it is detailed in term of farm behaviour and spatially explicit. The model is applied in a normative and in a positive way. The major findings of the normative approach relate to the trade-offs between the reserve pattern and its cost. It was found that the environmentally optimal reserve, which is randomly dispersed across the zone, is the most costly one. Within the positive approach, it is illustrated that the various reserve patterns generated within the normative approach can be obtained through relatively simple uniform contract structures. The most effective contract structure is a degressive set of two payments enabling all the farms to enrol at least a small share of their land.Biodiversity, spatial optimization, mathematical programming, agri-environmental policies, Tetrax tetrax, Agricultural and Food Policy, Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Spatially explicit farming system modelling for an efficient agri-environmental policy design

A mathematical programming model is developed and associated to a spatial pattern index (Ripley L function) to analyse the optimal reserve design and implementation for the Little Bustard conservation in Plaine de Niort. The model structure corresponds to three spatial levels, fields, farm and landscape. Simple in terms of area representation, it is detailed in terms of farm behaviour and spatially explicit. The model is applied in a normative and in a positive way. The major findings of the normative approach relate to the trade-offs between the reserve pattern and its cost. It was found that the environmentally optimal reserve, which is randomly dispersed across the zone, is the most costly one. Within the positive approach, it is illustrated that the various reserve patterns generated within the normative approach can be obtained through relatively simple uniform contract structures. The most effective contract structure is a degressive set of two payments enabling the farms to enroll at least a small share of their land.Biodiversity, spatial optimization, mathematical programming, Environmental Economics and Policy, Farm Management,

Stochastic Viability of Second Generation Biofuel Chains: Micro-economic Spatial Modeling in France

Within an overall project to assess the ability of the agricultural sector to contribute to bioenergy production, we set out here to examine the economic and technological viability of a bioenergy facility in an uncertain economic context, using the stochastic viability approach. We consider two viability constraints: the facility demand for lignocellulosic feedstock has to be satisfied each year and the associated supply cost has to be lower than de profitability threshold of the facility. We assess the viability probability of various supplying strategies consisting in contracting a given share of the feedstock demand with perennial dedicated crops at the initial time and then in making up each year with annual dedicated crops or wood. The demand constraints and agricultural prices scenarios over the time horizon are introduced in an agricultural and forest biomass supply model, which in turns determines the supply cost per MWh and computes the viability probabilities of the various contract strategies. A sensibility analysis to agricultural prices at initial time is performed. Results show that when they are around or under the median (of the 1993–2007 prices), the strategy consisting in contracting 100% of the feedstock supply with perennial dedicated crops is the best one.Biofuel, Biomass production, Spatial economics, Stochastic viability, Monte Carlo simulation, Resource /Energy Economics and Policy,

Recent developments and prospects for the production of biofuels in the EU: Can they really be "Part of Solution"?

The European Union has launched an ambitious policy aiming at increasing the use of biofuels in land transport “with a view to contributing to objectives such as meeting climate change commitments, environmentally friendly security of supply and promoting renewable energy sources”. Another motivation, at least for some member states, is that the development of biofuels is expected to provide larger outlets for domestic farm products and new employment opportunities in rural areas and make future adjustments of the Common agricultural policy easier. The EU policy of support to energy crops, tax exemption for biofuels and mandatory incorporation targets in some member states, has resulted in a significant increase in the demand and supply of biofuels. The market share of biofuels remains modest (1 % in 2005 in the EU-25) but has increased dramatically over the last few months. The paper provides an analysis of recent developments and prospects for the production and utilization of biofuels in the EU. Its presents the potential benefits of biofuels in the EU as well as their possible drawbacks. In particular, it addresses the three related issues of energy efficiency, environmental benefits and cost competitiveness of EU biofuels.Resource /Energy Economics and Policy,

Stochastic viability of second generation biofuel chains: Micro-economic spatial modeling in France

To better understand the production of biofuels derived from lignocellulosic feedstock, we investigate the interplay between the agricultural sector and a biofuel facility, at the local level. More specifically, we investigate the economic and technological viability of a bioenergy facility over time in an uncertain economic context using a stochastic viability approach. Two viability constraints are taken into consideration: the facility’s demand for lignocellulosic feedstock has to be satisfied each year and the associated supply cost has to be lower than the facility’s profitability threshold. We assess the viability probability of various strategies the facility can adopt to ensure that the agricultural sector meets its demand for biomass. These supplying strategies are determined at the initial time and define the constant share of total demand met by contracting out the demand to farmers who grow perennial crops. Any remaining demand is met by annual crops or wood. The demand constraints and agricultural price scenarios over the time horizon are introduced in an agricultural and forest biomass supply model, which in turns determines the supply cost per unit of energy and computes the viability probabilities of the supplying strategies. If a facility is to be viable over time, it is best for it to ensure that 100% of its demand is contracted out to farmers supplying perennial dedicated crops. This result is robust to the price context

Energy efficiency, environmental benefits and cost competitiveness of EU biofuels

In the EU, the biofuels policy now has a significant impact on some sectors, such as the oilseeds, and future targets are likely to affect also the grains and sugar market. The paper provides a background information regarding the EU policy on biofuels. The purpose is to assess whether this policy may lead to an increase use of European agricultural products for energy, or whether it is more likely that the EU will shift towards imports of biofuels. We first describe the EU policy of support to energy crops, i.e. tax exemption for biofuels and mandatory incorporation targets in some member states, the impact on demand and supply of biofuels. We then focus on the prospects for the production and utilization of biofuels in the EU. We address the three related issues of energy efficiency, environmental benefits and cost competitiveness of EU biofuels and we present simulations regarding the competition between food and non food use of agricultural products and the consequences on the competitiveness of biofuels

Energy efficiency, environmental benefits and cost competitiveness of EU biofuels

In the EU, the biofuels policy now has a significant impact on some sectors, such as the oilseeds, and future targets are likely to affect also the grains and sugar market. The paper provides a background information regarding the EU policy on biofuels. The purpose is to assess whether this policy may lead to an increase use of European agricultural products for energy, or whether it is more likely that the EU will shift towards imports of biofuels. We first describe the EU policy of support to energy crops, i.e. tax exemption for biofuels and mandatory incorporation targets in some member states, the impact on demand and supply of biofuels. We then focus on the prospects for the production and utilization of biofuels in the EU. We address the three related issues of energy efficiency, environmental benefits and cost competitiveness of EU biofuels and we present simulations regarding the competition between food and non food use of agricultural products and the consequences on the competitiveness of biofuels

Prospects for EU Biofuel Production and Trade

The paper provides background information regarding the EU policy on biofuels. The purpose is to assess whether this policy may lead to an increased use of European agricultural products to provide energy, or whether it is more likely that the EU will shift towards imports of biofuels. The paper first describes the EU support policy for energy crops, i.e. tax exemption for biofuels and mandatory incorporation taxes in some member states, the impact on demand and supply of biofuels. It then focuses on the prospects for the production and utilization of biofuels in the EU. The paper addresses the three related issues of energy efficiency, environmental benefits and cost competitiveness of EU biofuels and presents simulations regarding the competition between food and non-food uses of agricultural products.International Relations/Trade, Resource /Energy Economics and Policy,