Biofuels and Climate Change Mitigation : A CGE Analysis Incorporating Land-Use Change

The question of whether biofuels help mitigate climate change has attracted much debate in the literature. Using a global computable general equilibrium model that explicitly represents land-use change impacts due to the expansion of biofuels, this study attempts to shed some light on this question. The study shows that if biofuel mandates and targets currently announced by more than 40 countries around the world are implemented by 2020 using crop feedstocks, and if both forests and pasture lands are used to meet the new land demands for biofuel expansion, this would cause a net increase of greenhouse gas emissions released to the atmosphere until 2043, since the cumulative greenhouse gas emissions released through land-use change would exceed the reduction of emissions due to replacement of gasoline and diesel until then. However, if the use of forest lands is avoided by channeling only pasture lands to meet the demand for new lands, a net increase of cumulative greenhouse gas emissions would occur but would cease by 2021, only a year after the assumed full implementation of the mandates and targets. The study also shows, contrary to common perceptions, that the rate of deforestation does not increase with the rate of biofuel expansion; instead, the marginal rate of deforestation and corresponding land-use emissions decrease even if the production of biofuels increases.

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Bibliographic Details
Main Authors: Timilsina, Govinda R., Mevel, Simon
Language:English
Published: 2011-06-01
Subjects:ABOVE GROUND BIOMASS, ABOVEGROUND BIOMASS, AGRICULTURAL COMMODITIES, AMAZONIAN RAINFOREST, ANNUAL EMISSION, ANNUAL EMISSIONS, ATMOSPHERE, ATMOSPHERIC EMISSIONS, BIODIVERSITY, BIOMASS, CAPITAL STRUCTURE, CARBON, CARBON CONTENT, CARBON DEBT, CARBON EMISSIONS, CARBON MASS, CARBON POOLS, CARBON STOCK, CELLULOSIC ETHANOL, CHANGING LAND USE, CLIMATE, CLIMATE CHANGE, CLIMATE CHANGE IMPACTS, CLIMATE CHANGE MITIGATION, CO2, COAL, COMPUTABLE GENERAL EQUILIBRIUM MODEL, CONSERVATION, CONSERVATION RESERVE PROGRAM, CONSUMPTION OF FOSSIL, CONVERSION OF LAND, CUMULATIVE EMISSIONS, CUMULATIVE GREENHOUSE GAS EMISSIONS, DEFORESTATION ACTIVITIES, DIESEL, DOMESTIC SUPPLY, ECOLOGICAL ZONES, ECONOMIC SECTORS, ELASTICITY OF SUBSTITUTION, EMISSION, EMISSION COEFFICIENTS, EMISSION FACTOR, EMISSION FACTORS, EMISSION REDUCTIONS, EMISSIONS DATA, EMISSIONS FROM DEFORESTATION, EMISSIONS FROM LAND-USE CHANGE, EMISSIONS FROM RICE FIELDS, EMISSIONS REDUCTION, ENERGY BALANCE, ENERGY CAPITAL, ENERGY EFFICIENCY, ENERGY INFORMATION ADMINISTRATION, ENERGY POLICY, ENERGY PRICE, ENERGY PRICES, ENVIRONMENTAL CHALLENGES, ENVIRONMENTAL IMPACT, ETHANOL, ETHANOL FROM SUGARCANE, FEEDSTOCKS, FINANCIAL SUPPORT, FOREST, FOREST LAND, FOREST LANDS, FOREST PROTECTION, FOREST STOCK, FOREST STOCKS, FORESTRY, FORESTS, FOSSIL FUEL, FOSSIL FUEL CONSUMPTION, FOSSIL FUELS, FREE TRADE, FREEZE, FUEL CONSUMPTION, FUEL SUBSTITUTION, GAS RESERVES, GENERAL EQUILIBRIUM MODEL, GHG, GHGS, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS EMISSIONS, GREENHOUSE GAS INVENTORIES, GREENHOUSE GASES, GREENHOUSE GASES EMISSIONS, HOUSEHOLD EXPENDITURES, IMPORTS, INCOME, INDIRECT EMISSIONS, INTERNATIONAL ENERGY AGENCY, IPCC, LABOR SUPPLY, LAND -USE, LAND AREA, LAND CLEARING, LAND CONVERSION, LAND DATA, LAND USE, LAND USE CHANGE, LAND USE CHANGES, LAND-USE, LAND-USE EMISSIONS, METHANE, METHANE EMISSIONS, MITIGATION POTENTIAL, NATIONAL INCOME, NATURAL FORESTS, NATURAL GAS, NITROUS OXIDE, OIL, OILS, PASTURE LAND, RAIN, RAINFOREST LOSS, RATE OF DEFORESTATION, REDUCTION OF EMISSIONS, REVENUE NEUTRAL, SCENARIOS, SOIL CARBON, TAX RATES, TOTAL DEMAND, TROPICAL RAIN FORESTS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110602160352
https://hdl.handle.net/10986/3435
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Summary:The question of whether biofuels help mitigate climate change has attracted much debate in the literature. Using a global computable general equilibrium model that explicitly represents land-use change impacts due to the expansion of biofuels, this study attempts to shed some light on this question. The study shows that if biofuel mandates and targets currently announced by more than 40 countries around the world are implemented by 2020 using crop feedstocks, and if both forests and pasture lands are used to meet the new land demands for biofuel expansion, this would cause a net increase of greenhouse gas emissions released to the atmosphere until 2043, since the cumulative greenhouse gas emissions released through land-use change would exceed the reduction of emissions due to replacement of gasoline and diesel until then. However, if the use of forest lands is avoided by channeling only pasture lands to meet the demand for new lands, a net increase of cumulative greenhouse gas emissions would occur but would cease by 2021, only a year after the assumed full implementation of the mandates and targets. The study also shows, contrary to common perceptions, that the rate of deforestation does not increase with the rate of biofuel expansion; instead, the marginal rate of deforestation and corresponding land-use emissions decrease even if the production of biofuels increases.