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GTAP Resource #2723

"Modeling the Global Economic and Environmental Implications of Biofuels Production: Preliminary Results for the Medium Term"
by Fernandez-Cornejo, Jorge, Agapi Somwaru, Henry An, Michael Brady and Ruben Lubowski

The objective of ERSs Global Biofuels project is to evaluate the global potential for biofuel adoption under different economic, policy, and technological assumptions. This project considers the economic and environmental tradeoffs as well as the distribution of benefits and costs across countries, regions, producers, and consumers. For example, the project assesses the implications of achieving current biofuel goals, such as the Renewable Fuel Standard recently passed in the 2007 Energy Act. The analysis is based on the revised Future Agricultural Resources Model (FARM II). FARM II is an integrated modeling framework developed by USDA’s Economic Research Service and designed for analyzing global changes related to long-run agricultural and environmental sustainability. FARM II includes a new land and water resources database linked to the production of agricultural and forestry commodities according to agro-ecological zones characterized by irrigated or rain-fed production conditions, length of growing seasons, temperature regime, and plant hardiness zones. This database has been incorporated into a computable general equilibrium (CGE) model of the global economy based on the GTAP 7 database modified to reflect FARM II’s economic structure. FARM II has been adapted for the analysis of the implications of biofuel production and provides a global framework with links between the agricultural and energy sectors, trade policy, and land resource use at a fine spatial scale. This paper includes preliminary simulation results of a controlled experiment under two technological and policy scenarios focusing on the medium term.

Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Created: Fernandez-Cornejo, J. (4/15/2008)
Updated: Fernandez-Cornejo, J. (5/19/2008)
Visits: 2,013
- Agricultural policies
- Technological change
- Renewable energy
- Calibration and parameter estimation
- The GTAP Data Base and extensions
- North America
- South America

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