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Title: Bioenergy Supply and Environmental Impacts on Cropland: Insights from Multi-market Forecasts in a Great Lakes Subregional Bioeconomic Model

Journal Article · · Applied Economic Perspectives and Policy
DOI:https://doi.org/10.1093/aepp/ppu044· OSTI ID:1376315

Using subregional models of crop production choices in central Wisconsin and southwest Michigan, we predict biomass production, land use, and environmental impacts with details that are unavailable from national scale models. When biomass prices are raised exogenously, we find that the subregional models overestimate the supply, the land use, and the beneficial environmental aspects of perennial biomass crops. Multi-market price feedbacks tied to realistic policy parameters predict high threshold absolute prices for biomass to enter production, resulting in intensified production of biomass from annual grain crops with damaging environmental impacts. Multi-market feedbacks also predict regional specialization in energy biomass production in areas with lower yields of food crops. Furthermore, policies promoting biofuels will not necessarily generate environmental benefits in the absence of environmental regulations.

Research Organization:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Organization:
USDOE
DOE Contract Number:
AC05-00OR22725
OSTI ID:
1376315
Journal Information:
Applied Economic Perspectives and Policy, Vol. 37, Issue 4; ISSN 2040-5790
Publisher:
Oxford University Press
Country of Publication:
United States
Language:
English