Description: Potential Gains and Losses of Biofuel Production in Argentina : A Computable General Equilibrium Analysis

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Potential Gains and Losses of Biofuel Production in Argentina : A Computable General Equilibrium Analysis

Argentina is one of the world's largest biodiesel producers and the largest exporter, using soybeans as feedstock. Using a computable general equilibrium model that explicitly represents the biofuel industry, this study carries out several sim...

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Bibliographic Details
Main Authors:	Chisari, Omar O., Romero, Carlos A., Timilsina, Govinda
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	AGGREGATE DEMAND AGRICULTURAL ACTIVITY AGRICULTURAL ECONOMICS AGRICULTURAL POLICIES AGRICULTURAL PRODUCTION AGRICULTURE ALTERNATIVE ENERGY ALTERNATIVE ENERGY SOURCES ALTERNATIVE USE APPROACH AVAILABILITY BALANCE OF PAYMENTS BENCHMARK BEVERAGES BIODIESEL BIOENERGY BIOFUEL BIOFUEL INDUSTRY BIOFUEL PRODUCTION BIOFUEL TECHNOLOGY BIOFUELS BIOFUELS INDUSTRIES BIOFUELS INDUSTRY BIOFUELS PRODUCTION BIOMASS BONDS CANE PRODUCTION CAPITAL USE CD CEREALS CLIMATE CHANGE COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVENESS CONSUMER GROUPS CONSUMERS CROP DAMAGES DEBT DEFORESTATION DEMAND FOR CHEMICALS DEMAND FOR GASOLINE DEVELOPMENT POLICY DIESEL DISPOSABLE INCOME DISTILLERIES DIVIDENDS ECONOMIC PERFORMANCE ECONOMIC SYSTEMS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMISSION EMISSIONS ENERGY ECONOMICS ENERGY PRODUCTION ENERGY SECTORS ENERGY SOURCES ENERGY SUPPLY ENVIRONMENTAL CONCERNS ENVIRONMENTAL ISSUES ENVIRONMENTAL MANAGEMENT EQUILIBRIUM ETHANOL FROM CORN EXPORTS FEEDSTOCK FEEDSTOCKS FISCAL POLICY FOOD POLICY FOOD POLICY RESEARCH FOOD PRICES FOOD RESEARCH FOOD SUPPLY FOODS FOSSIL FOSSIL FUEL FOSSIL FUEL COUNTERPARTS FOSSIL FUELS FUEL FUEL DEMAND FULL EMPLOYMENT GAS EMISSION GASOLINE GASOLINE PRICES GDP GENERAL EQUILIBRIUM ANALYSIS GHG GRAINS GROSS DOMESTIC PRODUCT GROSS OUTPUT GROWTH RATE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME IFPRI INCOME INCOME GROUPS INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL TRADE LAND USE MAIZE MARGINAL BENEFITS MOBILITY NATURAL GAS OIL FUELS OIL INDUSTRIES OIL INDUSTRY OIL PRODUCTION OIL REFINERIES OILS OPEN ECONOMY OPPORTUNITY COST OPPORTUNITY COSTS OPTIMIZATION PETROLEUM PRICE INCENTIVES PRICES OF ETHANOL PRODUCTION FUNCTION PUBLIC SAVINGS REGULATORY REGIMES RENEWABLE ENERGIES RENEWABLE ENERGY RENEWABLE ENERGY SOURCES SOY OIL SOYBEAN SOYBEAN OIL SOYBEAN PRODUCTION SOYBEANS SUGAR SUGAR CANE SUGARCANE SUNFLOWER OIL TAX TAX REVENUE TOTAL REVENUE TRADE BALANCE TRADE LIBERALIZATION TRADITIONAL FUELS TRANSPORT TRANSPORT SYSTEM TRANSPORTATION TRANSPORTATION FUELS TRANSPORTATION INDUSTRY UNEMPLOYMENT UNEMPLOYMENT RATE UTILITY FUNCTION VALUE ADDED VEGETABLE OIL VEGETABLE OILS VEHICLE VEHICLE ENGINES VEHICLE FLEET VEHICLES WAGES WHEAT WOOD
Online Access:	http://documents.worldbank.org/curated/en/2012/07/16490829/potential-gains-losses-biofuel-production-argentina-computable-general-equilibrium-analysis http://hdl.handle.net/10986/11932

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Summary:	Argentina is one of the world's largest biodiesel producers and the largest exporter, using soybeans as feedstock. Using a computable general equilibrium model that explicitly represents the biofuel industry, this study carries out several simulations on two sets of issues: (i) international markets for biofuel and feedstock, such as an increase in prices of soybean, soybean oil, and biodiesel, and (ii) domestic policies related to biofuels, such as an introduction of biofuel mandates. Both sets of issues can have important consequences to the Argentinean economy. The simulations indicate that increases in international prices of biofuels and feedstocks would increase Argentina's gross domestic product and social welfare. Increases in international prices of ethanol and corn also can benefit Argentina, but to a lesser extent. The domestic mandates for biofuels, however, would cause small losses in economic output and social welfare because they divert part of biodiesel and feedstock from exports to lower-return domestic consumption. An increase in the export tax on either feedstock or biodiesel also would lead to a reduction in gross domestic product and social welfare, although government revenue would rise.