Market interactions,farmers' choices,and the sustainability of growing advanced biofuels: a missing perspective?

Advanced biofuels such as cellulosic ethanol are of great interest in the USA. With agriculture being the major source of feedstock for advanced biofuels, how farmers would respond to markets and policy incentives in providing such feedstock can directly affect sufficient and sustainable supply of advanced biofuels and their environmental sustainability. In this study, we developed an economic model to examine farmers' production choices in a context where agricultural markets are linked to energy markets. We identified the economic conditions under which farmers could maximize their profits by converting current grain cropland to grow cellulosic biomass crops. An empirical illustration showed that with current technology, farmers are unlikely to grow switchgrass as a dedicated energy crop instead of corn on cropland. The biofuel incentives in the 2008 Farm Bill can improve the competitiveness of switchgrass, but may stimulate corn production as well, with corn residues as an alternative feedstock for advanced biofuels. The continuous, possibly expanding, corn production in future raises the same issues for advanced biofuels as for corn grain-based ethanol. To assure the environmental sustainability of advanced biofuel production, further research is needed to help design environmental policies alongside existing biofuel initiatives.     

Adjusting the economy to the new energy realities of the second half of the age of oil

Our research indicates that, due to the depletion of conventional, and hence cheap, crude oil supplies (i.e. peak oil), increasing the supply of oil in the future would require exploiting lower quality resources (i.e. expensive), and thus will most likely occur only at high prices. This situation creates a system of feedbacks where economic growth, which requires more oil, would require high oil prices that will undermine that economic growth. We conclude that the economic growth of the past 40 years is unlikely to continue unless there is some remarkable change in how we manage our economy.     

Adapting to new policy environment – past pattern and future trend in us-sino waste plastic trade flow

Plastics are one of the most used materials in human activities, where consumer consumption and industrial production together has imposed vast rise in demand for this material in last century. While plastic is ideally derived from crude oil as a primary source from manufacturers’ perspective, varying crude oil prices are driving manufacturers economically to seek for alternative sources for plastics production. Waste plastic recovered from obsolete consumer products thus becomes an economic substitution for virgin plastics, which is further intensified with the possibility of international waste plastic trading. This study focuses on waste plastic trade between the US and mainland China by performing a correlation analysis of trade data. It is suggested in this study that although waste plastics are traded from the US to mainland China in general, as many of us believes, the route is gradually shifting in the past years. With tightening Chinese customs regulations, waste plastic from the US now tends to take a transit in a third destination (Hong Kong SAR for instance) for preliminary treatment to bypass Chinese customs inspection. Such phenomenon is worth noting, as a complication in waste plastic trading route hinders waste plastic transboundary movement monitoring. Furthermore, it will have adverse consequent consumer, industrial, and environmental impacts. It is thus necessary for national competent authorities to strengthen cooperative study and communication capacity in the future as a response to the changing waste plastic trade pattern.     

Carbon abatement in the fuel market with biofuels: Implications for second best policies

A carbon tax on fuel would penalize carbon intensive fuels like gasoline and shift fuel consumption to less carbon intensive alternatives like biofuels. Since biofuel production competes for land with agricultural production, a carbon tax could increase land rents and raise food prices. This paper analyzes the welfare effect of a carbon tax on fuel consisting of gasoline and biofuel in the presence of a labor tax, with and without a biofuel subsidy. The market impacts of a carbon tax are also compared with that of a subsidy. Findings show that if a carbon tax increases biofuel demand, the tax interaction effect due to higher fuel prices is exacerbated by higher land rent and food prices and greater erosion of the carbon tax base. Thus, the second best optimal carbon tax for fuel is lower with biofuel in the fuel mix, especially if biofuel is subsidized.     

A ban on one is a boon for the other: Strict gasoline content rules and implicit ethanol blending mandates

Ethanol and methyl-tertiary butyl ether (MTBE) were close substitutes in the gasoline additives market until MTBE was banned due to the concerns about groundwater contamination, leading to a sudden and dramatic substitution toward ethanol as an alternative oxygenate and octane-booster. We use variation in the timing of MTBE bans across states to identify their effects on gasoline prices. We find that state bans increased reformulated gasoline prices by 3–6 cents in non-Midwestern states for which the bans were binding, with larger impacts during times of high ethanol prices relative to MTBE and crude oil. We find qualitatively similar, yet smaller effects for conventional gasoline. We argue on the basis of a simple conceptual model and supporting empirical evidence that these bans functioned as implicit ethanol blending mandates in areas that were previously using MTBE to comply with strict environmental constraints. Overall, our results are consistent with the theoretical prediction that mandating a minimum market share for a more costly alternative fuel—either directly, or implicitly through a ban on the preferred conventional fuel—will inevitably increase fuel prices in a competitive market.     

Biodiversität von agrarisch genutzten Ökosystemen in den Verhandlungen der COP 9 – Streitpunkt Agrartreibstoffe

The Convention on Biological Diversity (CBD) originating from 1992 today has 190 Parties. In 2000 the convention decided on a programme of work on agricultural biodiversity which explicitly included the diversity of races and types of species used in agriculture. This programme was scheduled for an In-Depth Review at the Ninth Conference of the Parties (COP 9). The preparatory meetings of the Subsidiary Body on Scientific, Technical and Technological Advice (SBSTTA) already indicated that the production and use of biofuels would be a controversial issue during COP. Parties producing biofuels emphasised the CO₂ neutrality while importing countries called for standards for sustainable production. Developing countries mentioned the risk of losing agricultural area suitable for food production and indigenous representatives asked for social standards in agricultural production and respecting of their land ownership. A compromise could only be found at ministerial level during the last conference day, agreeing that all production of biofuels should be sustainable in relation to biodiversity and under this condition urging Parties to promote the production and use of biofuels. Research on the positive and negative impacts of biofuels should be conducted.     

Exploring the future of European crop production in a liberalised market, with specific consideration of climate change and the regional competitiveness

Long-term future development of European agriculture within the global market is highly uncertain, but can potentially have large impacts on the future of agricultural businesses, rural communities and amenities such as traditional landscapes and biodiversity. Despite great uncertainties it is of interest to explore the extent of these potential changes. This paper provides an explorative scenario of the European crop production in a liberalised world without European Union (EU) market interventions. The results do not form a prediction or a business as usual scenario, but rather a plausible and salient thought-experiment of a possible future based on the consistent integration of current conceptual and quantitative models.Future scenarios for climate, demography, technology and global demand for agricultural commodities are used to assess the competitiveness of European agriculture. Regional economic competitiveness is determined by combining indicators for the economic strength of farms in a region and population pressure on agricultural land, and subsequently used to determine where agricultural production is likely to sustain under the market liberalisation scenario. The method is illustrated for the 27 EU member state countries for three commodities: wheat, potato and milk (relying on grass).Results include maps of the dominant wheat, potato and milk producing regions across Europe as projected for 2050. They show that due to increased agricultural productivity, less agricultural land will be needed to supply the European demand for food and feed. In addition, production will concentrate in those regions which have a comparative advantage. This potentially leads to a strong polarisation between north-western Europe and southern Europe, which faces negative impacts of climate change and central and northern Europe where agricultural businesses lag in economic strength and farm size. A contrasting policy intervention scenario illustrates how differences in demand and productivity result in an expansion of the agricultural area, especially for the production of wheat.Although the complete liberalisation scenario may seem unlikely, and the underlying assumptions have great uncertainty, the results help identify and map market pressures on agricultural land use across regions in Europe. As such, it stimulates policy debate on the desired future for the European agricultural sector and the trade-offs between economic competitiveness under global market conditions and policy intervention. In addition, it provides a basis for the planning of alternative economic strategies for agriculturally less competitive regions.     

Alternative transportation fuel standards: Welfare effects and climate benefits

This paper develops an integrated model of the fuel and agricultural sectors to analyze the welfare and greenhouse gas emission (GHG) effects of the existing Renewable Fuel Standard (RFS), a Low Carbon Fuel Standard (LCFS) and a carbon price policy. The conceptual framework shows that these policies differ in the incentives they create for the consumption and mix of different types of biofuels and in their effects on food and fuel prices and GHG emissions. We also simulate the welfare and GHG effects of these three policies which are normalized to achieve the same level of US GHG emissions. By promoting greater production of food-crop based biofuels, the RFS is found to lead to a larger reduction in fossil fuel use but also a larger increase in food prices and a smaller reduction in global GHG emissions compared to the LCFS and carbon tax. All three policies increase US social welfare compared to a no-biofuel baseline scenario due to improved terms-of-trade, even when environmental benefits are excluded; global social welfare increases with a carbon tax but decreases with the RFS and LCFS due to the efficiency costs imposed by these policies, even after including the benefits of mitigating GHG emissions.     

Environmental aspects of biofuels in road transportation

Energy is a vital and growing need for human activities such as transport, agriculture and industry. The transport and agriculture sectors are major consumers of fossil fuel. However, availability of fossil fuels is limited. The use of fossil fuels is of increasing environmental concerns because it produces toxic airborne particulates and greenhouse gases such as CO₂. The increasing industrialization and motorization of the world led to a steep rise for the demand of petroleum-based fuels. Hence, it is necessary to seek alternative fuels, which can be produced from resources available locally within the country such as alcohol, biodiesel and vegetable oils. Biodiesel is defined as the mono alkyl esters of vegetable oils or animal fats. Biodiesel is the best candidate for diesel fuels in the diesel engines. The advantage of biodiesel over gasoline and petroleum/diesel is its eco-friendly nature. This article reviews the production, characterization and current status of biofuels mainly biodiesel along with the environmental impacts of particulate matter, greenhouse gas emissions originated from biodiesel.     

Nanotechnology applications in pollution sensing and degradation in agriculture: a review

With the rise in the global population, the demand for increased supply of food has motivated scientists and engineers to design new methods to boost agricultural production. With limited availability of land and water resources, growth in agriculture can be achieved only by increasing productivity through good agronomy and supporting it with an effective use of modern technology. Advanced agronomical methods lay stress not only on boosting agricultural produce through use of more effective fertilizers and pesticides, but also on the hygienic storage of agricultural produce. The detrimental effects of modern agricultural methods on the ecosystem have raised serious concerns amongst environmentalists. The widespread use of persistent pesticides globally over the last six decades has contaminated groundwater and soil, resulting in diseases and hardships in non-target species such as humans and animals. The first step in the removal of disease causing microbes from food products or harmful contaminants from soil and groundwater is the effective detection of these damaging elements. Nanotechnology offers a lot of promise in the area of pollution sensing and prevention, by exploiting novel properties of nanomaterials. Nanotechnology can augment agricultural production and boost food processing industry through applications of these unique properties. Nanosensors are capable of detecting microbes, humidity and toxic pollutants at very minute levels. Organic pesticides and industrial pollutants can be degraded into harmless and often useful components, through a process called photocatalysis using metal oxide semiconductor nanostructures. Nanotechnology is gradually moving out from the experimental into the practical regime and is making its presence felt in agriculture and the food processing industry. Here we review the contributions of nanotechnology to the sensing and degradation of pollutants for improved agricultural production with sustainable environmental protection.     

Land reclamation and strip-mined coal production in appalachia

This study quantifies the short-run impacts of reclamation on strip mining costs, coal prices, production, and employment in Appalachia. A process analysis model is developed and used to estimate short-run strip-mined coal supply functions under conditions of alternative reclamation requirements. Then, an econometric model is developed and used to estimate coal demand relations. Our results show that full reclamation has rather minor impacts. In 1972, full reclamation would have increased strip-mined coal production costs an average of $0.35 per ton, reduced strip-mined coal production by 10 million tons, and cost approximately 1600 jobs in Appalachia.     

Microclimate effects of wind farms on local crop yields

This paper considers a novel spillover effect of wind farms - microclimate impacts on neighboring crop yields. Using US county-level crop and wind capacity data, I examine the effects of wind energy development on crop yields, controlling for time-invariant county characteristics and state-level annual shocks. I find robust evidence that counties with increased wind power development have also experienced increased corn and other crop yields, such that an additional 100 MW of wind capacity increases county yields by roughly 1%. At recent prices, this implies a more than $5 dollar per megawatt-hour local benefit, corresponding to several hundred million dollars in annual benefits.     

Biofuels and Biodiversity: Principles for Creating Better Policies for Biofuel Production

Abstract:  Biofuels are a new priority in efforts to reduce dependence on fossil fuels; nevertheless, the rapid increase in production of biofuel feedstock may threaten biodiversity. There are general principles that should be used in developing guidelines for certifying biodiversity-friendly biofuels. First, biofuel feedstocks should be grown with environmentally safe and biodiversity-friendly agricultural practices. The sustainability of any biofuel feedstock depends on good growing practices and sound environmental practices throughout the fuel-production life cycle. Second, the ecological footprint of a biofuel, in terms of the land area needed to grow sufficient quantities of the feedstock, should be minimized. The best alternatives appear to be fuels of the future, especially fuels derived from microalgae. Third, biofuels that can sequester carbon or that have a negative or zero carbon balance when viewed over the entire production life cycle should be given high priority. Corn-based ethanol is the worst among the alternatives that are available at present, although this is the biofuel that is most advanced for commercial production in the United States. We urge aggressive pursuit of alternatives to corn as a biofuel feedstock. Conservation biologists can significantly broaden and deepen efforts to develop sustainable fuels by playing active roles in pursuing research on biodiversity-friendly biofuel production practices and by helping define biodiversity-friendly biofuel certification standards.     

Scenarios of global bioenergy production: The trade-offs between agricultural expansion, intensification and trade

Increased future demands for food, fibre and fuels from biomass can only be met if the available land and water resources on a global scale are used and managed as efficiently as possible. The main routes for making the global agricultural system more productive are through intensification and technological change on currently used agricultural land, land expansion into currently non-agricultural areas, and international trade in agricultural commodities and processed goods. In order to analyse the trade-offs and synergies between these options, we present a global bio-economic modelling approach with a special focus on spatially explicit land and water constraints as well as technological change in agricultural production. For a global bioenergy demand scenario reaching 100 ExaJoule (EJ) until 2055 we derive a required rate of productivity increase on agricultural land between 1.2 and 1.4 percent per year under different land allocation options. A very high pressure for yield increase occurs in Sub-Saharan Africa and the Middle East, even without additional bioenergy demand. Moreover, we analyse the implicit values (shadow prices) of limited water resources. The shadow prices for bioenergy are provided as a metric for assessing the trade-offs between different land allocation options and as a link between the agricultural and energy sector.     

Impacts of crude oil on the germination and growth of cress seeds (Lepidium sp.) after bioremediation of agricultural soil polluted with crude petroleum using "adapted" Pseudomonas putida

The impacts of crude oil on the germination, growth and morphology of cress seeds (Lepidium sp.) after bioremediation of agricultural soil polluted with crude petroleum using "adapted" Pseudomonas putida (PP) were examined for 15 days. At day 15 there was 100% germination in the untreated control samples, the mean height of the seedlings was 75.8 +/- 2.6 mm and all appeared to have grown morphologically normal. In the experimental samples treated with oil and PP inoculation, there was 98% germination and the seedlings reached a height of 63.8 +/- 6.9 mm; again, morphologically the seedlings appeared normal. However, in the control samples treated with oil but without PP inoculation, there was 31-38% germination and seedling heights of 34.2 +/- 11.4-42.3 +/- 8.5 mm with abnormal morphology. Treatment of oil-impacted agricultural soil with PP as a bioremediation agent does produce soil which is capable of growing larger and healthier plants than where bioremediation has not taken place.     

Expansion of sugarcane ethanol production in Brazil: environmental and social challenges.

Several geopolitical factors, aggravated by worries of global warming, have been fueling the search for and production of renewable energy worldwide for the past few years. Such demand for renewable energy is likely to benefit the sugarcane ethanol industry in Brazil, not only because sugarcane ethanol has a positive energetic balance and relatively low production costs, but also because Brazilian ethanol has been successfully produced and used as biofuel in the country since the 1970s. However, environmental and social impacts associated with ethanol production in Brazil can become important obstacles to sustainable biofuel production worldwide. Atmospheric pollution from burning of sugarcane for harvesting, degradation of soils and aquatic systems, and the exploitation of cane cutters are among the issues that deserve immediate attention from the Brazilian government and international societies. The expansion of sugarcane crops to the areas presently cultivated for soybeans also represent an environmental threat, because it may increase deforestation pressure from soybean crops in the Amazon region. In this paper, we discuss environmental and social issues linked to the expansion of sugarcane in Brazil for ethanol production, and we provide recommendations to help policy makers and the Brazilian government establish new initiatives to produce a code for ethanol production that is environmentally sustainable and economically fair. Recommendations include proper planning and environmental risk assessments for the expansion of sugarcane to new regions such as Central Brazil, improvement of land use practices to reduce soil erosion and nitrogen pollution, proper protection of streams and riparian ecosystems, banning of sugarcane burning practices, and fair working conditions for sugarcane cutters. We also support the creation of a more constructive approach for international stakeholders and trade organizations to promote sustainable development for biofuel production in developing countries such as Brazil. Finally, we support the inclusion of environmental values in the price of biofuels in order to discourage excessive replacement of natural ecosystems such as forests, wetlands, and pasture by bioenergy crops.     

Deep stacking poultry litter as feed ingredient in livestock production

The compelling need to harness the potentials of the numerous agro-industrial by-products and the so-called “wastes” as part replacement for the more expensive conventional feed ingredients have been seriously expressed. This need has arisen mainly from the increasing demand and supply deficit of conventional feed resources with a concomitant sharp rise in their cost prices. The net effect of increased unit cost of the conventional feed resources is increased cost of the compounded rations, which by extension gives rise to increased cost of meat and animal products. It then becomes highly imperative that other sources for rapid livestock output to meet the growing human demands for animal protein foods are sourced. Such other sources should be cheap and nutritionally adequate for feeding animals with the aim of lowering the cost of producing meat. One of such measure is the recycling of poultry litter as part replacement for soya bean in livestock nutrition. Poultry litter is the by-product of poultry production, which should be managed in an environmentally friendly manner. As observed in this study, poultry litter contains 20% crude protein, 621.41 ME kcal kg^?1, and substantial amounts of minerals that could be exploited in feeding livestock. This study has explored the possibility of including poultry litter in diets in view of its contents.     

The Power of Bioenergy‐Related Standards to Protect Biodiversity

Abstract: The sustainable production of bioenergy is vital to avoiding negative impacts on environmental goods such as climate, soil, water, and especially biodiversity. We propose three key issues that should be addressed in any biodiversity risk‐mitigation strategy: conservation of areas of significant biodiversity value; mitigation of negative effects related to indirect land‐use change; and promotion of agricultural practices with few negative impacts on biodiversity. Focusing on biodiversity concerns, we compared principles and criteria set to address biodiversity and other environmental and social issues in seven standards (defined here as commodity‐based standards or roundtables, or relevant European legislation): five voluntary initiatives related to bioenergy feedstocks, the Renewable Transport Fuel Obligation (United Kingdom), and the European Renewable Energy Source Directive. Conservation of areas of significant biodiversity value was fairly well covered by these standards. Nevertheless, mitigation of negative impacts related to indirect land‐use change was underrepresented. Although the EU directive, with its bonus system for the use of degraded land and a subquota system for noncrop biofuels, offered the most robust standards to mitigate potential negative effects, all of the standards fell short in promoting agricultural practices with low negative impacts on biodiversity. We strongly recommend that each standard be benchmarked against related standards, as we have done here, and that efforts should be made to strengthen the elements that are weak or missing. This would be a significant step toward achieving a bioenergy industry that safeguards Earth's living heritage.     

The effects on electricity prices in england and wales of notional sulphur dioxide emission standards for power stations

Reducing emissions of sulphur dioxide from the electricity industry in England and Wales would require application of abatement technology and raise electricity prices through increases in marginal supply costs. Capital and operating costs of alternative abatement techniques and their application under possible long-term investment and retirement plans for the industry are discussed. An approximate halving of projected emissions is found to have an effect of the order of 5% on prices under the existing tariff structure. Reductions of up to one-fifth are found to have an effect of under 1% on electricity prices.     

Impacts of policy related to structural adjustment of agriculture on grain supply in China

China's policy on structural adjustment of its agriculture is an effective instrument for increasing agricultural production and developing the rural economy. The policy interventions used included converting cultivated land from growing grain crops to cash crops and increasing the production of meat, eggs and milk. The impacts of these changes on grain supply between 1998 and 2004 are identified and quantified at national and regional levels. The data on cultivated land diverted to other purposes are presented for the benefit of the decision maker. The paper concludes that the policy had significant impacts on China's grain supply, which declined by 14.4% of the total grain output in 1998. However, nearly 40% of the cultivated land at national level could potentially be converted by 2010. Regional disparities in the extent of the reduction in grain supply and in land conversion are highlighted with reference to different economic conditions and policy directions.