The Impact of US Biofuels Policy on Agricultural Production and Nitrogen Loads in Alabama
Economics Research International, 2013, DOI:10.1155/2013/521254
17 Pages Posted: 26 Jan 2014
Date Written: September 29, 2013
The Energy Independence Security Act aims to increase the production of renewable fuels in order to improve the energy efficiency of the United States of America. This legislation set the biofuel production goal at 136.3 million m3 by 2022, with approximately 79 million m3 derived from advanced biofuels or renewable fuels other than corn ethanol. A bioeconomic model was used to assess the potential impact of the biofuel mandate in terms of nitrogen loss associated with corn production in northern Alabama considering the El Nino Southern Oscillation phases. From simulations conducted at the watershed level, the expansion in biofuel production would increase the production of corn by 122.89% with associated increase in nitrogen loss of 20%. Furthermore, nitrogen loss would be more severe in climatic transition towards La Nina.
Keywords: Bioenergy Economics, Bioeconomics, Environmental Economics, Non-point source pollution, SWAT, stochastic discrete programming
JEL Classification: C61, C63, Q53, Q56, Q57
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