RT Journal Article
SR Electronic
T1 Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 687
OP 706
DO 10.3368/le.86.4.687
VO 86
IS 4
A1 Fabiosa, Jacinto F.
A1 Beghin, John C.
A1 Dong, Fengxia
A1 Elobeid, Amani
A1 Tokgoz, Simla
A1 Yu, Tun-Hsiang
YR 2010
UL http://le.uwpress.org/content/86/4/687.abstract
AB We quantify the emergence of biofuel markets and its impact on world agriculture using the multimarket, multicommodity international FAPRI model. The model incorporates trade-offs between biofuel, feed, and food production and consumption and international feedback effects of the emergence through world prices and trade. We shock the model with exogenous changes in ethanol demand, first in the United States, then in Brazil and other countries, and compute shock multipliers for land allocation decisions for important crops and countries. The Brazilian ethanol expansion using sugarcane has fewer consequences on existing arable land allocation than the U.S. ethanol expansion does using corn feedstock. (JEL Q17, Q42)