United States Department of Transportation
i
US Biofuel Production and Policy: Implications for Land Use Changes in Malaysia and Indonesia
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2020-01-01
[PDF-2.72 MB]
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Abstract:It has been argued that the US biofuel policy is responsible for the land use changes in Malaysia and Indonesia (M&I). In this paper, following a short literature review that highlights the relevant topics and issues, we develop analytical and numerical analyses to evaluate the extent to which production of biofuels in the US alters land use in M&I. The analytical analyses make it clear that market-mediated responses may generate some land use change in M&I due to biofuel production in the US. These analyses highlight the role of substitution among vegetable oils in linking these economies in markets for vegetable oils. To numerically quantify these effects, we modified and used a well-known Computable General Equilibrium model (CGE), GTAP-BIO. We conducted some sensitivity tests as well.
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Content Notes:Open Access This article is licensed under a Creative Commons Attribution 4.0 International License
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