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Bioethanol production under endogenous crop prices: Theoretical analysis with an empirical application to barley AgEcon
Rinne, J.; Lankoski, Jussi E.; Ollikainen, Markku.
The European Union’s Emission Trading Scheme (EUETS) and the current renewable resource program provide strong incentives to use agricultural crops either for combustion in power plants to produce electricity and heat or as a feedstock for transportation fuels. In this paper we examine the social desirability of ethanol production from agricultural crops. To endogenize the competition on land use, we employ a Ricardian model of heterogeneous land quality, where land is allocated to alternative crops on the basis of their relative profitability. The model comprises three land use types: bioenergy crop, conventional feed crop and green setaside. Industry demands crops for both ethanol and feed production. Effects on the GHG balance are explicitly taken into...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuels; Agricultural land allocation; Heterogeneous land quality; Crop Production/Industries; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/44400
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