The spillover effects of biofuel policy on participation in the conservation reserve program

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2013
Volume: 37
Issue: 9
Pages: 1755-1770

Authors (4)

Wu, Feng (not in RePEc) Guan, Zhengfei (not in RePEc) Yu, Fan (not in RePEc) Myers, Robert J. (Michigan State University)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the spillover effects of rising biofuel production on participation in the Conservation Reserve Program. Landowner participation decisions are modeled using a real options framework. We develop a land use decision model that captures biofuel-driven structural changes in market demand and derive threshold conditions that trigger participation in the program. We then quantify the impacts of biofuel production on participation at both the national and state levels using Monte Carlo simulations. The model is also used to analyze how changes in the persistence of the biofuel production boom and in the volatility of farming returns affect conservation participation decisions. Policy implications of the results are discussed.

Technical Details

RePEc Handle
repec:eee:dyncon:v:37:y:2013:i:9:p:1755-1770
Journal Field
Macro
Author Count
4
Added to Database
2026-01-26