Bioenergy Crop Production in the United States: Potential Quantities, Land Use Changes, and Economic Impacts on the Agricultural Sector

• Published in: Environmental & resource economics Vol. 24; no. 4; pp. 313 - 333
• Main Authors: Shapouri, Hosein, Slinsky, Stephen, Walsh, Marie, De La Torre Ugarte, Daniel G
• Format: Journal Article
• Language: English
• Published: Dordrecht European Association of Environmental and Resource Economists 01.04.2003; Springer Nature B.V
• Series: Environmental & Resource Economics
• Subjects: Agricultural economics; agricultural income; Agricultural industry; Agricultural policy; Agricultural production; Agriculture; Alternative energy sources; bioenergy crops; biomass; Biomass energy; Climate change; Collaboration; Competition; Conservation; Conservation Reserve Program; Crop production; Crops; Ecology; Economic impact; Economic models; Economic theory; Economics; Elasticity of demand; Energy crops; Energy economics; Energy industry; Environment; Environmental policy; Farm income; Grain; hybrid poplar; Laboratories; Land use; land-use changes; Linear programming; Livestock; Prices; Production costs; Profits; Raw materials; Simulation; Studies; Supply & demand; Sustainable development; switchgrass; U.S.A; Variables; willow; United States > US; USA
• ISSN: 0924-6460; 1573-1502
• DOI: 10.1023/A:1023625519092

The U.S. Departments of Agriculture and Energyjointly analyzed the economic potential for,and impacts of, large-scale bioenergy cropproduction in the United States. Anagricultural sector model (POLYSYS) wasmodified to include three potential bioenergycrops (switchgrass, hybrid poplar, and willow). At farmgate prices of US $2.44/GJ, anestimated 17 million hectares of bioenergycrops, annually yielding 171 million dry Mg ofbiomass, could potentially be produced at aprofit greater than existing agricultural usesfor the land. The estimate assumes highproductivity management practices are permittedon Conservation Reserve Program lands. Traditional crops prices are estimated toincrease 9 to 14 percent above baseline pricesand farm income increases annually by US $6.0billion above baseline.At farmgate prices of US $1.83/GJ, anestimated 7.9 million hectares of bioenergycrops, annually yielding 55 million dry Mg ofbiomass, could potentially be produced at aprofit greater than existing agricultural usesfor the land. The estimate assumes managementpractices intended to achieve highenvironmental benefits on Conservation ReserveProgram lands. Traditional crops prices areestimated to increase 4 to 9 percent abovebaseline prices and farm income increasesannually by US $2.8 billion above baseline. Copyright Kluwer Academic Publishers 2003