Skip to main content

Meeting Biofuels Targets: Implications for Land Use, Greenhouse Gas Emissions, and Nitrogen Use in Illinois

  • Chapter
  • First Online:

Part of the book series: Natural Resource Management and Policy ((NRMP,volume 33))

Abstract

This article develops a dynamic micro-economic land use model to identify the cost-effective allocation of cropland for traditional row crops and perennial grasses and the mix of cellulosic feedstocks needed to meet predetermined biofuel targets over the 2007–2022 period. Yields of perennial grasses obtained from a biophysical model and together with county level data on costs of production for Illinois are used to examine the implications of these targets for crop and biofuel costs, greenhouse gas emissions, and nitrogen use. The economic viability of cellulosic feedstocks is found to depend on their yields per acre and the opportunity cost of land. The mix of viable cellulosic feedstocks varies spatially and temporally with corn stover and miscanthus coexisting in the state; corn stover is viable mainly in central and northern Illinois while miscanthus acres are primarily located in southern Illinois. Biofuel targets lead to a significant shift in acreage from soybeans and pasture to corn and a change in crop rotation and tillage practices. The biofuel targets assumed here lead to a reduction in greenhouse gas emissions, but an increase in nitrogen use.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   219.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   279.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   279.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    There have been some concerns that miscanthus, as an introduced species, might be an invasive plant. However, most varieties used for biofuel production (like Miscanthus x Giganteus) are sterile hybrids and do not produce seed.

References

  • Alig R, Adams D, McCarl B, Callaway JM, and Winnett S (1997) ``Assessing Effects of Mitigation Strategies for Global Climate Change with an Intertemporal Model of the U.S. Forest and Agriculture Sectors.’ Environ Res Econ 9: 259–274.

    Article  Google Scholar 

  • Alig R, Adams M, McCarl B, and Ince PJ (2000) ``Economics Potential of Short-Rotation Woody Crops on Agricultural Land for Pulp Fiber Production in the United States.’ Forest Prod J 50 (5): 67–74.

    Google Scholar 

  • Bange GA (2007) ``The Situation and Outlook for World Corn, Soybean, and Cotton Markets.’ Presentation to National Grain and Oils Information Center, Beijing, China.

    Google Scholar 

  • Brummer E, Burras C, Duffy M, and Moore K (2000) ``Switchgrass Production in Iowa: Economic Analysis, Soil Suitability, and Varietal Performance.’ Ames, Iowa: Iowa State University, Prepared for Bioenergy Feedstock Development Program, Oak Ridge National Laboratory, Oak ridge, TN

    Google Scholar 

  • Dhungana BR (2007) ``Economic Modeling of Bioenergy Crop Production and Carbon Emission Reduction in Illinois.’ PhD Dissertation, University of Illinois.

    Google Scholar 

  • Duffy M (2007) ``Estimated Costs for Production, Storage, and Transportation of Switchgrass.’ Dept. Agr Econ, Iowa State University, Ames, Iowa.

    Google Scholar 

  • Ellinger P (2008) Ethanol Plant Simulator. Dept. Agr Econ, University of Illinois at Urbana-Champaign, Urbana, IL.

    Google Scholar 

  • English B, Ugarte DG, Menard R, and West T (2008) ``Economic and Environmental Impacts of Biofuel Expansion: The Role of Cellulosic Ethanol.’ Paper presented at the Integration of Agricultural and Energy Systems Conference, Atlanta, GA.

    Google Scholar 

  • Farrell AE, Plevin RJ, Turner BT, Jones AD, O’ Hare M, and Kammen DM (2006) ``Ethanol Can Contribute to Energy and Environmental Goals.’ Science 311 (27): 506–509.

    Article  Google Scholar 

  • FBFM (2003) ``Farm Economics Facts and Opinions.’ Farm Business and Farm Management Newsletters. Department of Agricultural Economics, University of Illinois at Urbana-Champaign.

    Google Scholar 

  • FBFM (2007) ``Farm Economics Facts and Opinions.’ Farm Business and Farm Management Newsletters. Department of Agricultural Economics, University of Illinois at Urbana-Champaign.

    Google Scholar 

  • FBFM (2008) ``Farm Economics Facts and Opinions.’ Farm Business and Farm Management Newsletters. Department of Agricultural Economics, University of Illinois at Urbana-Champaign.

    Google Scholar 

  • Gardner B (1988) Economics of Agricultural Policies. New York: Macmillan Publishing company.

    Google Scholar 

  • Gardner BL (1976) ``Futures Prices in Supply Analysis.’ Am J Agr Econ 58 (1): 81–84.

    Article  Google Scholar 

  • Heaton EA, Clifton-Brown J, Voigt T, Jones MB, and Long SP (2004) ``Miscanthus for Renewable Energy Generation: European Union Experience and Projections for Illinois.’ Mitig Adapt Strat Glob Change 9: 433–451.

    Article  Google Scholar 

  • IPCC (2001) ``Climate Change 2001: The Scientific Basis.’ Third Assessment report of the Intergovernmental Panel on Climate Change. New York: Cambridge University Press.

    Google Scholar 

  • Khanna M (2008) ``Cellulosic Biofuels: Are They Economically Viable and Environmentally Sustainable?’ Choices, 3rd Quarter 23, (3): 16–21.

    Google Scholar 

  • Khanna M, Dhungana B, and Clifton-Brown J (2008) ``Costs of Producing Miscanthus and Switchgrass for Bioenergy in Illinois.’ Biomass Bioenerg 32 (6): 482–493.

    Article  Google Scholar 

  • Kutcher GP (1972) ``Agricultural Planning at the Regional Level: A Programming Model of Mexico's Pacific Northwest.’ Ph. D dissertation, University of Maryland.

    Google Scholar 

  • Lewandowski I, Scurlock JMO, Lindvall E, and Christou M (2003) ``The Development and Current Status of Perennial Rhizomatous Grasses as Energy Crops in the U.S. and Europe.’ Biomass Bioenerg 25 (4): 335–361.

    Article  Google Scholar 

  • Malcolm S (2008) ``Weaning Off Corn: Crop Residues and the Transition to Cellulosic Ethanol.’ Paper Presented at the Transition to A BioEconomy: Environmental and Rural Development Impact, Farm Foundation, St. Louis, MO.

    Google Scholar 

  • McCarl B and Schneider U (2001) ``The Cost of Greenhouse Gas Mitigation in U.S. Agriculture and Forestry.’ Science 294: 2481–2482.

    Article  Google Scholar 

  • McCarl BA (1982) ``Cropping Activities in Agricultural Sector Models: A Methodological Approach.’ Am J Agr Econ 64 (4): 768–772.

    Article  Google Scholar 

  • McCarl BA, Adams DM, Alig RJ, and John TC (2000) ``Analysis of Biomass Fueled Electrical Power Plants: Implications in the Agricultural and Forestry Sectors.’ Ann Oper Res 94: 37–55.

    Article  Google Scholar 

  • McCarl BA and Spreen TH (1980) ``Price Endogenous Mathematical Programming as a Tool for Policy Analysis.’ Am J Agr Econ (62): 87–102.

    Google Scholar 

  • OECD (2001) ``Market Effectsof Crop Support Measures.’

    Google Scholar 

  • Önal H and McCarl BA (1991) ``Exact Aggregation in Mathematical Programming Sector Models.’ Can J Agr Econ 39: 319–334.

    Article  Google Scholar 

  • Perlack RD, Wright LL, Graham RL, Stokes BJ, and Erbach DC (2005) ``Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion-Ton Annual Supply.’ DOE/GO-102005-2135, ORNL/TM-2005/66, Oak Ridge National Laboratory, Oak Ridge, Tennessee.

    Google Scholar 

  • Sheehan J, Aden A, Paustian K, Killian K, Brenner J, Walsh M, and Nelson R (2003) ``Energy and Environmental Aspects of Using Corn Stover for Fuel Ethanol.’ J Ind Ecol 7: 117–146.

    Article  Google Scholar 

  • Takayama T and Judge GG (1971) Spatially and TemporalPrice and Allocation Models. Amsterdam: North Holland Publishing Co.

    Google Scholar 

  • Ugarte DG, Walsh ME, Shapouri H, and Slinsky SP (2003) ``The Economic Impacts of Bioenergy Crop Production on U.S. Agriculture.’ U.S. Department of Agriculture.

    Google Scholar 

  • University of Illinois Extension (2002) ``Illinois Agronomy Handbook, 23rd Edition.’ University of Illinois, College of Agricultural, Consumer and Environmental Sciences, Cooperative Extension Service.

    Google Scholar 

  • USDA/ERS (2007) Commodity and Food Elasticities: Demand Elasticities from Literature, http://www.ers.usda.gov/Data/Elasticities/query.aspx.

  • USDA/NASS (2008a) U.S. & All States County Data – Crops, http://www.nass.usda.gov/QuickStats/Create_County_All.jsp.

  • USDA/NASS (2008b) U.S. & All States Data – Crops, http://www.nass.usda.gov/QuickStats/Create_Federal_All.jsp.

  • Wallace R, Ibsen K, McAloon A, and Yee W (2005) ``Feasibility Study for Co-Locating and Integrating Ethanol Production Plants from Corn Starch and Lignocellulosic Feedstocks.’ NREL/TP-510-37092 Revised January Edition: USDA/USDOE/NREL.

    Google Scholar 

  • Walsh ME, Ugarte DGdlt, Shapouri H, and Slinsky SP (2003) ``Bioenergy Crop Production in the United States: Potential Quantities, Land Use Changes, and Economic Impacts on the Agricultural Sector.’ Environ Res Econ 24 (4): 313–333.

    Article  Google Scholar 

  • Wu M (2008) ``Analysis of the Efficiency of the U.S. Ethanol Industry 2007.’ Argonne National Laboratory, Report Delivered to Renewable fuels Association.

    Google Scholar 

  • Wu M, Wang M, and Huo H (2006) ``Fuel-Cycle Assessment of Selected Bioethanol Production Pathways in the United States.’ Argonne National Laboratory Report, ANL/ESD/06-7.

    Google Scholar 

Download references

Acknowledgments

The authors gratefully acknowledge funding from CSREES\US Department of Agriculture, US Department of Energy and the Energy Biosciences Institute, University of California, Berkeley.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Madhu Khanna .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Khanna, M., Önal, H., Chen, X., Huang, H. (2010). Meeting Biofuels Targets: Implications for Land Use, Greenhouse Gas Emissions, and Nitrogen Use in Illinois. In: Khanna, M., Scheffran, J., Zilberman, D. (eds) Handbook of Bioenergy Economics and Policy. Natural Resource Management and Policy, vol 33. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-0369-3_17

Download citation

  • DOI: https://doi.org/10.1007/978-1-4419-0369-3_17

  • Published:

  • Publisher Name: Springer, New York, NY

  • Print ISBN: 978-1-4419-0368-6

  • Online ISBN: 978-1-4419-0369-3

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics