CHOICES

CHOICES

A publication of AAEA

A publication of AAEA
Theme: Resources and the Environment

Theme: Resources and the Environment

Theme Overview: Agriculture and Biofuels Issues: Cellulose, Greenhouse Gases, and EU and U.S. Policies

Wallace E. Tyner
A number of issues have arisen around the production of biofuels from agricultural products. These include evaluation of alternative policies, price impacts, environmental considerations, and land use. This agriculture and biofuels theme covers some very important topics ranging from local to global in scope.

Ethanol Policy Analysis—What Have We Learned So Far?

Farzad Taheripour and Wallace E. Tyner
This paper summarizes research results from the past few years relating to biofuels and biofuels policy. Areas covered include linkages between energy and agricultural prices, the biofuels link to commodity prices, ethanol policy analysis, the ethanol blending wall, cellulosic ethanol issues, and global biofuels impacts. We have done this research using firm level models, partial equilibrium, and general equilibrium analysis.

Food or Fuel? Choices and Conflicts

Thomas E. Elam
The current biofuels policy of the United States is seen as needing re–examination. Choices made by policymakers are increasing food production costs while not making a significant energy production contribution. In light of recent experience there is need for rebalancing the current policy set.

Cellulosic Biofuels: Are They Economically Viable and Environmentally Sustainable?

Madhu Khanna
Cellulosic biofuels from feedstocks, such as corn stover and energy crops, are currently more expensive than corn ethanol. Rewarding biofuels based on their environmental attributes would help promote a sustainable mix of feedstocks. Geographical variations in production costs will also lead to use of a mix of cellulosic feedstocks instead of a single feedstock.

Consequences of EU Biofuel Policies on Agricultural Production and Land Use

Martin Banse, Hans van Meijl, and Geert Woltjer
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.