A dynamic model of food and clean energy

    Authors

    U. Chakravortya; B. Magne;M. Moreaux

    Comments

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    Abbreviated Journal Title

    J. Econ. Dyn. Control

    Keywords

    agriculture; environmental regulation; hotelling theory; land use; pollution; OPTIMAL TIME PATH; STOCK EXTERNALITIES; FOSSIL-FUELS; CARBON TAX; TECHNOLOGY; POLLUTION; RESOURCE; Economics

    Abstract

    In the midwestern United States, ethanol produced from corn is mixed with gasoline to meet clean air standards. Allocating land to produce clean fuel means taking away land from farming. We examine the use of a scarce fossil fuel that causes pollution but may be substituted by a clean fuel produced from land. When land is scarce, it is gradually shifted away from farming to energy production. However, when land is abundant, there may be a jump in the supply of clean energy. When the stock of pollution is regulated, the supply of clean energy may exhibit multiple discontinuities. (c) 2007 Elsevier B.V. All rights reserved.

    Journal Title

    Journal of Economic Dynamics & Control

    Volume

    32

    Issue/Number

    4

    Publication Date

    1-1-2008

    Document Type

    Article

    Language

    English

    First Page

    1181

    Last Page

    1203

    WOS Identifier

    WOS:000255622200006

    ISSN

    0165-1889

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