nep-ene New Economics Papers
on Energy Economics
Issue of 2012‒02‒08
six papers chosen by
Roger Fouquet
Basque Climate Change Centre, Bilbao, Spain

  1. Fossil fuel consumption and economic growth: causality relationship in the world By Hazuki Ishida
  2. Geographical Analysis of US Green Sector Industry Concentration By Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
  3. The External Costs Of Wind Farm Development On the High Plains: Are Developers Making An Effort To Minimize These Costs? By Williams, Ryan Blake
  4. Impact of United States Corn-Based Ethanol Production on Land Use By Sobowale, Flakkeh; Dicks, Mike; Adam, Brian; Campiche, Jody
  5. Production Profitability of Ethanol from Alternative Feedstocks in the Texas Panhandle By Almas, Lal K.; Lust, David G.; Brooks, Kathleen R.; Girase, J. R.
  6. Fertilizer Demand for Biofuel and Cereal crop Production in the United States By Acheampong, Kwame; Dicks, Michael R.

  1. By: Hazuki Ishida
    Abstract: Fossil fuels are major sources of energy, and have several advantages over other primary energy sources. Without extensive dependence on fossil fuels, it is questionable whether our economic prosperity can continue or not. This paper analyzes cointegration and causality between fossil fuel consumption and economic growth in the world over the period 1971--2008. The estimation results indicate that fossil fuel consumption and GDP are cointegrated and there exists long-run unidirectional causality from fossil fuel consumption to GDP. This paper also investigates the nexus between nonfossil energy consumption and GDP, and shows that there is no causality between the variables. The conclusions are that reducing fossil fuel consumption may hamper economic growth, and that it is unlikely that nonfossil energy will substantially replace fossil fuels. This paper also examines causal linkages between the variables using a trivariate model, and obtains the same results as those from the bivariate model.
    Date: 2012–01
  2. By: Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
    Abstract: This paper analyzes the geographic distribution of âgreen energyâ sector clustering in the lower 48 United States using recent developments in industry concentration analysis. Evidence suggests that the ten green energy subsectors and the aggregate of the firms comprising the green energy sector are regionally concentrated. Positive changes in industry concentration from 2002 to 2006 tended to be greatest in non-metropolitan counties, suggesting comparative advantage with respect to site location for the composite of firms making up these sectors.
    Keywords: Agglomeration, Location Quotient, Renewable Energy, Community/Rural/Urban Development, Industrial Organization, Research and Development/Tech Change/Emerging Technologies,
    Date: 2012
  3. By: Williams, Ryan Blake
    Keywords: Resource /Energy Economics and Policy,
    Date: 2012–02
  4. By: Sobowale, Flakkeh; Dicks, Mike; Adam, Brian; Campiche, Jody
    Abstract: This study measures the impact of corn-based ethanol production in the United States on land use in other countries, or indirect land use. Indirect land use is a change from non-cropland to cropland (e.g. deforestation) that may occur in response to increasing scarcity of cropland. As farmers worldwide respond to higher crop prices in order to maintain the global food supply and demand balance, pristine lands are cleared and converted to new cropland to replace the crops for feed and food that were diverted elsewhere to biofuel production. The results show that increasing ethanol production in the US has a positive and significant relation to U.S corn price. However, U.S. corn price does not have a significant impact on changes in corn acreage in Brazil and other countries such as Canada, Japan and China. Although many authors have hypothesized that increased ethanol production in the U.S. will increase corn prices, which will result in increased change in land use in other countries, these results suggest that the effect is minimal at best. This is important because although production of ethanol for fuel is often criticized for negatively impacting the environment because of indirect land use, this study was unable to prove the existence of indirect land use.
    Keywords: ethanol, indirect land use, Agricultural and Food Policy, Demand and Price Analysis, Land Economics/Use, Marketing,
    Date: 2012–01–17
  5. By: Almas, Lal K.; Lust, David G.; Brooks, Kathleen R.; Girase, J. R.
    Abstract: The potential of three feedstocks: grain sorghum, sweet sorghum, and switchgrass for ethanol production in the top 26 counties of the Texas Panhandle Region is analyzed using yield and production costs of feedstock, processing cost of feedstock, final demand for ethanol, farm to wholesale marketing margin, and the derived demand price of feedstock. The calculated economic returns per acre of grain sorghum, sweet sorghum, and switchgrass are -$45.37, -$410.19, and -$150.17 respectively under irrigated condition and -$38.25, -$145.09, and -$29.04 respectively under dryland condition. The evaluation in this study demonstrates that ethanol production from grain sorghum, sweet sorghum, and switchgrass in the Texas Panhandle Region is not economically feasible given the current price for ethanol in Texas. This is consistent with the status of the ethanol industry in the Texas Panhandle.
    Keywords: Ethanol production, Texas Panhandle, Grain sorghum, Sweet sorghum, and Switchgrass, Feedstock, Crop Production/Industries, Production Economics, Resource /Energy Economics and Policy, Q16, Q25, Q27, and Q42,
    Date: 2012
  6. By: Acheampong, Kwame; Dicks, Michael R.
    Abstract: The emergence of biofuel production has impacted almost all sectors of the agricultural industry and the general economy and has produced a large body of research into how increased production of biofuels will impact the agricultural sector and the general economy. All research is in agreement that total biomass production will be required to increase to meet food and fuel demands. The increase in biomass will, of necessity, require increased use of fertilizers. Research on fertilizer demand has been scarce over the last decade. Because of the recent increase in the demand for grain crops and livestock in an era with little excess capacity in commodity production, the pressure to increase output will fall to increased use of fertilizers. In addition, there is some evidence of increasing scarcity in the principle macro nutrients (eg phosphorus, nitrogen and potassium). Thus, there is an urgent need to initiate research into the demand for fertilizers to determine the economic implications of expanded crop and livestock production. This analysis can provide crop producers and policy makers with important information on the role of nutrients in the economics of expanding uses for the major grain and forage crops. Most researchers have focused on total fertilizer (N.P.K) demand for total crop production which does not capture the effects of individual fertilizers on the individual crops. This study focuses on nitrogen demand for biofuel and cereal crop production and the impact on crop prices in the United States using the method of feasible generalized least squares (FGLS) estimation by weighted least squares regression. The results show that nitrogen fertilizer is very much responsive to corn price, wheat price, nitrogen price, phosphate price, and potash price. Results also indicate that increase in nitrogen price decreases nitrogen demand while increases in the price of corn, wheat, and other fertilizers increases the demand for nitrogen fertilizer.
    Keywords: Nitrogen demand, corn production, fertilizer prices, biofuel production., Agricultural and Food Policy, Production Economics, Resource /Energy Economics and Policy,
    Date: 2012–01

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