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Which biofuel market does the ethanol tariff protect? Implications for social welfare and GHG emissions AgEcon
Crago, Christine Lasco; Khanna, Madhu.
The ethanol tariff is one of the instruments used by the government to encourage domestic ethanol production. Existing literature analyzing the market and welfare effects of the US ethanol tariff has concluded that removing the tariff would increase social surplus and reduce greenhouse gas (GHG) emissions, due to the replacement of corn ethanol with lower cost and lower GHG intensive sugarcane ethanol. This paper re-examines these findings in the presence of a domestic cellulosic ethanol industry. The current RFS mandate requires 21 billion gallons of advanced biofuel, a portion of which could be met by any non-starch based biofuel that reduces emissions by at least 50% compared to an energy equivalent amount of gasoline. Sugarcane ethanol has been...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuel; Ethanol tariff; Fuel externalities; Agricultural and Food Policy; Resource /Energy Economics and Policy; Q17; Q18; Q42.
Ano: 2011 URL: http://purl.umn.edu/103784
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Managing Expected Switchgrass Biomass Yield Variability by Strategically Selecting Land to Lease AgEcon
Debnath, Deepayan; Stoecker, Arthur L.; Epplin, Francis M..
Biorefineries that plan to use switchgrass exclusively will have to account for year-to-year variability in feedstock production. The objective of this research is to determine the quantity, class, and location of land to lease for switchgrass production to provide for the needs of a biorefinery. The firm could elect to lease land based on average switchgrass yields or to lease to attempt to insure that even in the worst case (based on historical data) production year the area leased will produce sufficient feedstock to fully provide for the needs of the biorefinery. EPIC was used to generate empirical distributions of switchgrass biomass yields for three land classes for each of 30 counties. Mathematical programming was used to address the objectives and...
Tipo: Presentation Palavras-chave: EPIC; Mathematical programming; Switchgrass; Yield variability; Crop Production/Industries; Land Economics/Use; Risk and Uncertainty; Q42; Q12.
Ano: 2012 URL: http://purl.umn.edu/124230
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Removing Distortions in the U.S. Ethanol Market: What Does It Imply for the United States and Brazil? AgEcon
Elobeid, Amani E.; Tokgoz, Simla.
We analyze the impact of trade liberalization and removal of the federal tax credit in the United States on U.S. and Brazilian ethanol markets using a multi-market international ethanol model calibrated on 2005 market data and policies. The removal of trade distortions induces a 23.9 percent increase in the price of world ethanol on average between 2006 and 2015 relative to the baseline. The U.S. domestic ethanol price decreases by 13.6 percent, which results in a 7.2 percent decline in production and a 3.8 percent increase in consumption. The lower domestic price leads to a 3.7 percent rise in the share of fuel ethanol in gasoline consumption. U.S. net ethanol imports increase by 199 percent. Brazil responds to the higher world ethanol price by increasing...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuels; Ethanol; Renewable fuels; Trade liberalization; Resource /Energy Economics and Policy; F13; F17; Q17; Q18; Q42.
Ano: 2007 URL: http://purl.umn.edu/9808
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The Future Prospect of PV and CSP Solar Technologies: An Expert Elicitation Survey AgEcon
Bosetti, Valentina; Catenacci, Michela; Fiorese, Giulia; Verdolini, Elena.
In this paper we present and discuss the results of an expert elicitation survey on solar technologies. Sixteen leading European experts from the academic world, the private sector and international institutions took part in this expert elicitation survey on Photovoltaic (PV) and Concentrated Solar Power (CSP) technologies. The survey collected probabilistic information on (1) how Research, Development and Demonstration (RD&D) investments will impact the future costs of solar technologies and (2) the potential for solar technology deployment both in OECD and non-OECD countries. Understanding the technological progress and the potential of solar PV and CPS technologies is crucial to draft appropriate energy policies. The results presented in this paper...
Tipo: Working Paper Palavras-chave: Expert Elicitation; Research; Development and Demonstration; Solar Technologies; Research and Development/Tech Change/Emerging Technologies; Q42; Q55.
Ano: 2012 URL: http://purl.umn.edu/121699
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Estimating the Impacts of Storage Dry Matter Losses on Switchgrass Production AgEcon
Larson, James A.; Mooney, Daniel F.; English, Burton C.; Tyler, Donald D..
This poster estimates dry matter losses as a function of harvest method, storage treatment, and time in storage. We then calculate the cost to store switchgrass bales under alternate harvest method and storage treatment scenarios; and determine the breakeven harvest method and storage treatment as a function of biomass price and time in storage.
Tipo: Conference Paper or Presentation Palavras-chave: Biomass; Bioenergy crops; Function form; Sustainable systems; Farm Management; Production Economics; Q10; Q42.
Ano: 2010 URL: http://purl.umn.edu/61530
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The Economic Potential of Second-Generation Biofuels: Implications for Social Welfare, Land Use and Greenhouse Gas Emissions in Illinois AgEcon
Chen, Xiaoguang; Khanna, Madhu; Onal, Hayri.
This paper develops a dynamic micro-economic land use model that maximizes social welfare and internalizes externality from greenhouse gas emissions to obtain the optimal land use allocation for traditional row crops and bioenergy crops (corn stover, miscanthus and switchgrass), the mix of cellulosic feedstocks and fuel and food prices. We use this carbon tax policy as a benchmark to compare the implications of existing biofuel policies on land use, social welfare and the environment for the 2007-2022 period. The model is operationalized using yields of perennial grasses obtained from a biophysical model, county level data on yields of traditional row crops and production costs for row crops and bioenergy crops in Illinois. We show that a carbon tax policy...
Tipo: Working or Discussion Paper Palavras-chave: Cellulosic ethanol; Land use; Social welfare; Greenhouse gas emissions; Land Economics/Use; Resource /Energy Economics and Policy; Q42; Q24.
Ano: 2009 URL: http://purl.umn.edu/49484
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Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation AgEcon
Bosetti, Valentina; Lubowski, Ruben N.; Golub, Alexander; Markandya, Anil.
Discussions over tropical deforestation are currently at the forefront of climate change policy negotiations at national, regional, and international levels. This paper analyzes the effects of linking Reduced Emissions from Deforestation and Forest Degradation (REDD) to a global market for greenhouse gas emission reductions. We supplement a global climate-energy-economy model with alternative cost estimates for reducing deforestation emissions in order to examine a global program for stabilizing greenhouse gas concentrations at 550 ppmv of CO2 equivalent. Introducing REDD reduces global forestry emissions through 2050 by 20-22% in the Brazil-only case and by 64-88% in the global REDD scenarios. At the same time, REDD lowers the total costs of the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon market; Climate change; Innovation; Mitigation; Policy costs; Offsets; Reduced Emissions from Deforestation and Degradation (REDD); Technological change; Tropical deforestation; Environmental Economics and Policy; Q23; Q24; Q42; Q52; Q54; Q55.
Ano: 2009 URL: http://purl.umn.edu/52544
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Are there Carbon Savings from US Biofuel Policies? Accounting for Leakage in Land and Fuel Markets AgEcon
Bento, Antonio M.; Klotz, Richard; Landry, Joel R..
This paper applies the insights of the carbon leakage literature to study the emissions consequences of biofuel policies. We develop a simple analytic framework to decompose the intended emissions impacts of biofuel policy from four sources of carbon leakage: domestic fuel markets, domestic land markets, world land markets and world crude oil markets. A numerical simulation model illustrates the magnitude of each source of leakage for combinations of two current US biofuel policies: the Volumetric Ethanol Excise Tax Credit (VEETC) and the Renewable Fuel Standard (RFS). In the presence of both land and fuel market leakage, current US biofuel policies are unlikely to reduce greenhouse gases. Four of the five policy scenarios we consider lead to increases in...
Tipo: Conference Paper or Presentation Palavras-chave: Multi-market; Carbon leakage; Biofuels; Greenhouse gases; Agricultural and Food Policy; Land Economics/Use; Resource /Energy Economics and Policy; Q42; Q54; Q58.
Ano: 2011 URL: http://purl.umn.edu/104008
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Switching to Perennial Energy Crops under Uncertainty and Costly Reversibility AgEcon
Song, Feng; Zhao, Jinhua; Swinton, Scott M..
We study a farmer’s decision to convert traditional crop land into growing dedicated energy crops, taking in account sunk conversion costs, uncertainties in traditional and energy crop returns, and learning. The optimal decision rules differ significantly from the expected net present value rule, which ignores learning, and from real option models that allow only one way conversions into energy crops. These models also predict drastically different patterns of land conversions into and out of energy crops over time. Using corn-soybean rotations and switchgrass as examples, we show that the model predictions are sensitive to assumptions about stochastic processes of the returns. Government policies might have unintended consequences: subsidizing conversion...
Tipo: Working or Discussion Paper Palavras-chave: Real options; Irreversibility; Sunk costs; Land conversion; Biofuel; Cellulosic biomass; Dynamic modeling; Stochastic process; Biofuel policy; Land Economics/Use; Resource /Energy Economics and Policy; Risk and Uncertainty; Q42; Q24.
Ano: 2009 URL: http://purl.umn.edu/56195
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Economic Evaluation of Wind Energy as an Alternative to Natural Gas Powered Irrigation AgEcon
Guerrero, Bridget L.; Amosson, Stephen H.; Marek, Thomas H.; Johnson, Jeffrey W..
High natural gas prices have agricultural producers searching for alternative energy sources for irrigation. The economic feasibility of electric and hybrid (electric/wind) systems are evaluated as alternatives to natural gas powered irrigation. Texas Panhandle and Southern Kansas farms are assessed with a quarter-mile sprinkler system, three crops, and two pumping lifts. Breakeven points identify the price at which conversion from a natural gas irrigation system to an electric or hybrid system is cost effective. Results indicate electricity is a more feasible energy source for irrigation and policy changes such as net metering are necessary to make hybrid systems viable.
Tipo: Journal Article Palavras-chave: Electricity; Irrigation; Natural gas; Wind energy; Agribusiness; Community/Rural/Urban Development; Environmental Economics and Policy; Farm Management; International Development; Land Economics/Use; Research and Development/Tech Change/Emerging Technologies; Resource /Energy Economics and Policy; Q12; Q20; Q42.
Ano: 2010 URL: http://purl.umn.edu/90680
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Economic Effects of Biofuel Production on States and Rural Communities AgEcon
Parcell, Joseph L.; Westhoff, Patrick C..
This study summarizes research on farm-, local-, regional-, and macro-level economic effects of ethanol production. Given current production levels, the ethanol production industry annually employees approximately 3,500 workers, pays out nearly $132 million in worker salaries, generates over $110 million in local taxes, and takes in some $2 billion in government incentive payments. Projections for a 60 million gallon per year ethanol plant indicate an annual increase in corn usage of 21 million bushels, a one-time capitalization of $75 million, an increase in local corn prices between $0.06/bushel and $0.12/bushel, a 54 direct and 210 indirect jobs created, and increase in local tax revenues of $1.2 million, a decrease in federal commodity program...
Tipo: Journal Article Palavras-chave: Biofuel; Ethanol; Local economy; Government subsidies; Community/Rural/Urban Development; Resource /Energy Economics and Policy; O13; Q40; Q42; R10.
Ano: 2006 URL: http://purl.umn.edu/43774
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On the EU–U.S. Biodiesel ‘Splash & Dash' Controversy: Causes, Consequences and Policy Recommendations AgEcon
de Gorter, Harry; Drabik, Dusan; Just, David R..
Replaced with revised version of paper on 10/26/10.
Tipo: Conference Paper or Presentation Palavras-chave: Splash & dash; Biodiesel; Blender’s tax credit; Tax exemption; Trade; European Union; Unites States; Agricultural and Food Policy; International Relations/Trade; F13; Q17; Q27; Q42.
Ano: 2010 URL: http://purl.umn.edu/61425
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Biofuel Economics in a Setting of Multiple Objectives & Unintended Consequences AgEcon
Jaeger, William K.; Egelkraut, Thorsten M..
This paper examines biofuels from an economic perspective and evaluates the merits of promoting biofuel production in the context of the policies’ multiple objectives, life-cycle implications, pecuniary externalities, and other unintended consequences. The policy goals most often cited are to reduce fossil fuel use and to lower greenhouse gas emissions. But the presence of multiple objectives and various indirect effects complicates normative evaluation. To address some of these complicating factors, we look at several combinations of policy alternatives that achieve the same set of incremental gains along the two primary targeted policy dimensions, making it possible to compare the costs and cost-effectiveness of each combination of policies. For example,...
Tipo: Working or Discussion Paper Palavras-chave: Biofuel; Biodiesel; Cost-Effectiveness; Indirect Land Use Change Effects; Net Energy; Multiple Objectives; Ethanol; Ghg; Resource /Energy Economics and Policy; Q42; Q48; Q54.
Ano: 2011 URL: http://purl.umn.edu/108203
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Market Interactions, Farmer Choices, and the Sustainability of Growing Advanced Biofuels AgEcon
Jiang, Yong; Swinton, Scott M..
Advanced biofuels such as cellulosic ethanol are of great interest for their potential to supply a significant portion of U.S. fuel needs plus advantages over corn grain-based ethanol. The sustainability of agriculture-based advanced biofuels depends on how farmers would respond in providing biomass feedstock, yet economic behavior by farmers has been under recognized by the science community. Focusing on markets and policy incentives, this research shows that farmers are unlikely to convert current grain cropland to grow a dedicated cellulosic biomass crop such as switchgrass. However, the financial incentives to harvest cellulosic biomass provided by the 2008 farm bill may stimulate corn production due to demand for corn grain for feed and ethanol and...
Tipo: Working or Discussion Paper Palavras-chave: Biomass; Energy; Advanced biofuels; Corn; Land use; Switchgrass; Cellulosic ethanol; Environmental Economics and Policy; Production Economics; Resource /Energy Economics and Policy; Q42; Q12.
Ano: 2008 URL: http://purl.umn.edu/43634
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Bio-energy from Mountain Pine Beetle Timber and Forest Residuals: The Economics Story AgEcon
Niquidet, Kurt; Stennes, Brad; van Kooten, G. Cornelis.
In light of the large volumes of pine killed in the Interior forests in British Columbia by the mountain pine beetle, many are keen to employ forest biomass as an energy source. To assess the feasibility of a wood biomass-fired power plant in the BC Interior it is necessary to know both how much physical biomass might be available over the life of a plant, but also its location because transportation costs are likely to be a major operating cost for any facility. To address these issues, we construct a mathematical programming model of fiber flows in the Quesnel Timber Supply Area of BC over a 25-year time horizon. The focus of the model is on minimizing the cost of supplying feedstock throughout space and time. Results indicate that over the life of the...
Tipo: Working or Discussion Paper Palavras-chave: Forest economics; Biomass and bio-energy; Forest pests; Resource /Energy Economics and Policy; O13; Q23; Q42.
Ano: 2008 URL: http://purl.umn.edu/45476
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Irrigation Restriction and Biomass Market Interactions: The Case of the Alluvial Aquifer AgEcon
Popp, Michael P.; Nalley, Lawton Lanier; Vickery, Gina B..
The U.S. Geological Survey has determined that irrigation in Arkansas’ Delta is unsustainable. This study examines how irrigation restrictions would affect county net returns to crop production. It also considers the effect of planting less water-intensive bioenergy crops—switchgrass and forage sorghum—in the event biofuel markets become a reality. Results suggest that sustainable irrigation restrictions without bioenergy crops would decrease producer returns by 28% in the region. Introducing these alternative crops would both reduce groundwater use and may restore state producer returns, albeit with significant spatial income redistribution to crop production throughout the state.
Tipo: Journal Article Palavras-chave: Biomass crops; Ground water irrigation; Spatial income redistribution; Sustainability; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Financial Economics; Land Economics/Use; Political Economy; Resource /Energy Economics and Policy; Risk and Uncertainty; Q24; Q25; Q32; Q42; O13.
Ano: 2010 URL: http://purl.umn.edu/57150
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Questions of Costs About the French Bio-Fuel Sector by Year 2010 AgEcon
Treguer, David; Sourie, Jean-Claude; Rozakis, Stelios.
By the end of year 2010, each member state of the European Union (the EU) ought to incorporate 5.75% of bio-fuels in the total of fuels used for transportation purposes. In order to achieve such a target, tax incentives are implemented by the French government given that the production of bio-fuels still remains unprofitable, even if oil prices are about $60/barel. After a brief introduction (1), we will first demonstrate the importance borne by the cost of agricultural raw material in the total cost of biofuels (2). For this purpose a sequential multi annual LP model is used (3). Emphasis must be placed on the possible competition between food and energy crops, should the production of energy crops require land exceeding the mandatory 10% set-aside (4)....
Tipo: Conference Paper or Presentation Palavras-chave: Bio-fuels; Common Agricultural Policy; Opportunity cost; Energy crops; Kyoto Protocol; Resource /Energy Economics and Policy; C61; Q18; Q42.
Ano: 2005 URL: http://purl.umn.edu/24560
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What are the long-term drivers of food prices? Investigating improvements in the accuracy of prediction intervals for the forecast of food prices AgEcon
Benjamin, Catherine; Houee-Bigot, Magalie; Tavera, Christophe.
Over the last few years, the prices of the main agricultural raw materials have been highly volatile. The situation is unprecedented, both in the magnitude of the upward and downward volatility observed, and in the number of agricultural commodities affected. Various factors are contributing to these contrasting shifts: the role of emerging countries, changing dietary habits, an increase in energy demand related to the boom in biofuels, adverse weather conditions and speculation. In this paper we try to capture long-term relationships between crop prices and crude oil price using a partial equilibrium and times series method. The study finds little empirical evidence that the crude oil price have a significant influence on the variation of major vegetable...
Tipo: Conference Paper or Presentation Palavras-chave: Partial equilibrium modeling; Forecasting cointegration; Demand and Price Analysis; Q11; Q13; Q42.
Ano: 2009 URL: http://purl.umn.edu/49436
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Wind Power Development: Opportunities and Challenges AgEcon
van Kooten, G. Cornelis; Timilsina, Govinda R..
In this study, the prospects of wind power at the global level are reviewed. Existing studies indicate that the earth’s wind energy supply potential significantly exceeds global energy demand. Yet, only 1% of the global electricity demand is currently derived from wind power despite 40% annual growth in wind generating capacity over the last 25 years. More than 98% of total current wind power capacity is installed in the developed countries plus China and India. Existing studies estimate that wind power could supply 7% to 34% of global electricity needs by 2050. Wind power faces a large number of technical, financial, institutional, market and other barriers. To overcome these, many countries have employed various policy instruments, including capital...
Tipo: Working or Discussion Paper Palavras-chave: Wind energy; Renewable energy; Electricity grids; Resource /Energy Economics and Policy; Q25; Q32; Q42; Q48.
Ano: 2008 URL: http://purl.umn.edu/45665
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Wind Integration into Various Generation Mixtures AgEcon
Maddaloni, Jesse D.; Rowe, Andrew M.; van Kooten, G. Cornelis.
A load balance model is used to quantify the economic and environmental effects of integrating wind power into three typical generation mixtures. System operating costs over a specified period are minimized by controlling the operating schedule of existing power generating facilities for a range of wind penetrations. Unlike other studies, variable generator efficiencies, and thus variable fuel costs, are taken into account, as are the ramping constraints on thermal generators. Results indicate that system operating cost will increase by 15% to 110% (pending generation mixture) at a wind penetration of 100% of peak demand. Results also show that some mixtures will exhibit cost reductions on the order of 13% for moderate wind penetrations and high wind farm...
Tipo: Working or Discussion Paper Palavras-chave: Wind power integration; Generation mixtures; Emissions cost; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q40; Q42; Q50.
Ano: 2007 URL: http://purl.umn.edu/37044
Registros recuperados: 122
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