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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:1786724
 [1];  [2];  [3];  [3];  [4];  [4]
  1. Department of Economics and Management Sciences (FASEG) University of Lome
  2. Department of Agricultural, Food, and Resource Economics &, Great Lakes Bioenergy Research Center Michigan State University
  3. Oak Ridge National Laboratory &, Great Lakes Bioenergy Research Center
  4. Food and Agricultural Policy Research Institute, University of Missouri

Abstract 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. Policies promoting biofuels will not necessarily generate environmental benefits in the absence of environmental regulations.

Sponsoring Organization:
USDOE
Grant/Contract Number:
DE‐FCO2‐07ER64494
OSTI ID:
1786724
Journal Information:
Applied Economic Perspectives and Policy, Journal Name: Applied Economic Perspectives and Policy Vol. 37 Journal Issue: 4; ISSN 2040-5790
Publisher:
Wiley Blackwell (John Wiley & Sons)Copyright Statement
Country of Publication:
United Kingdom
Language:
English
Citation Metrics:
Cited by: 10 works
Citation information provided by
Web of Science

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