A Model for Sustainable Land Use in Biofuel Production: An Application to the State of Alabama

Affuso, Ermanno, and Diane Hite. "A model for sustainable land use in biofuel production: An application to the state of Alabama." Energy Economics 37 (2013): 29-39.

Posted: 24 Dec 2011 Last revised: 21 Mar 2015

See all articles by Ermanno Affuso

Ermanno Affuso

University of South Alabama - Mitchell College of Business - Department of Economics and Finance

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology

Date Written: May 2013

Abstract

The Renewable Fuel Standard aims to increase the production of biofuels to improve energy efficiency and decrease carbon dioxide emissions in the US. The effectiveness of this regulation is being debated by the scientific community regarding carbon emissions from direct and indirect land-use change. A valid alternative may be to design policies that stimulate sustainable land use in biofuel production. This article develops a model that simulates a voluntary program to increase the land use efficiency in production of biofuels. This stochastic dynamic model optimizes the sustainability of biofuels producible by including climate information and participatory decisions on land use. The model is parameterized using the Maximum Entropy econometric technique to present a simulation of the program in the State of Alabama. The results of this simulation show that participatory decisions on land-use may increase the net energy value of produced biofuel up to 215.68% and reduce the carbon emissions by 19.67% towards the state energy goals.

Keywords: Bioenergy, Econometric mathematical programming, Land-use change, Sustainable biofuels.

JEL Classification: Q27, Q28, Q42, Q48, R00

Suggested Citation

Affuso, Ermanno and Hite, Diane, A Model for Sustainable Land Use in Biofuel Production: An Application to the State of Alabama (May 2013). Affuso, Ermanno, and Diane Hite. "A model for sustainable land use in biofuel production: An application to the state of Alabama." Energy Economics 37 (2013): 29-39., Available at SSRN: https://ssrn.com/abstract=1976609 or http://dx.doi.org/10.2139/ssrn.1976609

Ermanno Affuso (Contact Author)

University of South Alabama - Mitchell College of Business - Department of Economics and Finance ( email )

College of Business and Management Studies
Mobile, AL 36688
United States
(251) 460-7908 (Phone)
(251) 460-6734 (Fax)

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States
334-844-5655 (Phone)
334-844-5639 (Fax)

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