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Agricultural and Applied Economics Association >
2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/49330
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| Title: | Implications of the Biofuels Boom for the Global Livestock Industry: A Computable General Equilibrium Analysis |
| Authors: | Taheripour, Farzad
Hertel, Thomas W.
Tyner, Wallace E. |
| Authors (Email): | Taheripour, Farzad (tfarzad@purdue.edu) |
| Keywords: | Biofuels
Livestock
Feed Ration
Biofuel Co-Product
Land Use |
| Issue Date: | 2009 |
| Series/Report no.: | Selected Paper
613185 |
| Abstract: | In this paper, we offer a general equilibrium analysis of the impacts of
US and EU biofuel mandates for the global livestock sector. Our
simulation boosts biofuel production in the US and EU from 2006 levels
to mandated 2015 levels. We show that mandates will encourage crop
production in both biofuel and non biofuel producing regions, while
reducing livestock and livestock production in most regions of the
world. The non-ruminant industry curtails its production more than other
livestock industries. The numerical results suggest that the biofuel
mandates reduce food production in most regions while they increase
crude vegetable oils in almost all regions. Implementing biofuel
mandates in the US and EU will increase croplands within the biofuel and
non-biofuel producer regions. A large portion of this increase will be
obtained from reduced grazing lands. The biofuel producing regions are
expected to reduce their coarse grains exports and raise imports of
oilseeds and vegetable oils. While all livestock industries use more
biofuel byproducts in their animal feed rations, the dairy and other
ruminant industry benefit most from the expansion of DDGS. We finally
conclude that, while biofuel mandates have important consequences for
the livestock industry, they do not harshly curtail these industries.
This is largely due to the important role of byproducts in substituting
for higher priced feedstuffs. In addition, with relatively inelastic
food demands, producers are able to pass much of the price rise on to
consumers. In general, US, EU, Meddle East & North Africa, and Russia
will experience significant welfare loses due to the combined US and EU
mandates, while Brazil, Japan, India, and East Asia are expected to get
major gains. |
| URI: | http://purl.umn.edu/49330 |
| Institution/Association: | Agricultural and Applied Economics Association>2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin |
| Total Pages: | 55 |
| Collections: | 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin
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| AAEA_Taheripour_Hertel_Tyner_613185.pdf | | 167Kb | PDF | View/Open |
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