Carbon cap-and-trade policy costs and benefits, particularly in relation to agriculture, forestry, and other land uses.

Program or topic

Carbon cap-and-trade policy costs and benefits, particularly in relation to agriculture, forestry, and other land uses.

Department(s) or unit(s)

Applied Economics and Management

Contact information

Antonio Bento
Associate Professor
amb396@cornell.edu

Program goals

Economic analyses relevant to carbon cap-and-trade policies, particularly in the agriculture and forestry sectors. One aspect has been developing an integrated framework to examine the economic costs, land use impacts, and greenhouse gas emissions resulting from alternative biofuels policies under the 2007 Energy Bill.

Brief Description

Our biofuels project examines the effects of three policies: (a) gradual increases in the federal mandates for corn-based ethanol and cellulosic biofuels; (b) the volumetric tax credit to encourage the production of ethanol; and (c) subsidies to promote a faster adoption of more efficient and cleaner biofuel technologies.

By capturing the interactions between the relevant agents in the economy (households, landowners, ethanol producers, regular gasoline refiners, and food producers), our framework will be the first to provide a complete picture of the potential impacts of biofuel policies and allow us to estimate the overall costs and to describe distributional impacts of these three policies to the different agents in the economy.

This framework will also be useful to compute the overall greenhouse gas emissions resulting from biofuels policies. Comparisons between standard greenhouse gas estimates based on life-cycle models, which don’t account for land use adjustments resulting from biofuels policies, will be compared against our results.

For more information



Category: Agriculture/Farming, Bio-energy/-fuel/-gas, Bio-energy/biofuel crops, Carbon credits, sequestration, Economics, Government, Land use, Natural resources, Policy

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