Modeling the global trade and environmental impacts of biofuel policies

There is rising skepticism about the potential positive environmental impacts of first generation biofuels. Growing biofuel crops could induce diversion of other crops dedicated to food and feed needs. The relocation of production could increase deforestation and bring significant new volumes of carbon into the atmosphere. This paper develop a methodology for assessing the indirect land use change effects related to biofuel policies in a computable general equilibrium framework.

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