The economics of biofuel policy and biotechnology

Published

Journal Article

This paper employs a partial equilibrium trade framework to show that biofuel policy can substitute for traditional agricultural policy intended to boost farm welfare. It also shows how food market volatility can induce periods of boom and bust in the ethanol industry, causing episodes of bankruptcy and reduced capital investment. This paper further models the effects of two specific technological innovations - cellulosic ethanol and agricultural biotechnology - on food and fuel markets and demonstrates that technology can reduce ethanol market volatility. A parameterized model is used to characterize the impacts of biofuels on food and fuel markets. © 2008 The Berkeley Electronic Press. All rights reserved.

Full Text

Duke Authors

Cited Authors

  • Hochman, G; Sexton, SE; Zilberman, DD

Published Date

  • January 1, 2008

Published In

Volume / Issue

  • 6 / 2

Electronic International Standard Serial Number (EISSN)

  • 1542-0485

Digital Object Identifier (DOI)

  • 10.2202/1542-0485.1237

Citation Source

  • Scopus