evaluating biofuels: the consequences of using land to make fuel
TRANSCRIPT
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Evaluating BiofuElsThe ConsequenCes of
using Land To Make fueL
tim sEarchingEr
The German marshall Fund oF The uniTed sTaTes
PaPEr sEriEs
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2009 Te German Marshall Fund o the United States. All rights reserved.
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in writing rom the German Marshall Fund o the United States (GMF). Please direct inquiries to:
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About GMF
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GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders
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Evaluating Biouels
The consequences of using land to make fuel
Brussels Forum Paper Series
March 2009
S*
G M F U S
I 3
B C L 5
A C L 17F Ey C
F B P
R 5
* S w w G M F U S (GMF) w , y, H P Uy B j GMF, M S w - C C I E D w w
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Evaluating Biouels
he consequences o using land to make uel
3
By the end of 200
at least ten major
technical institutio
had released
highly cautionary
to harshly critical
reports on biofuels
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Introduction
1
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Evaluating Biouels
he consequences o using land to make uel
5
The dominant
questions for
biofuel policy
today focus on th
costs and benefi
of devoting
productive land
to biofuels, rathe
than to other
human needs.
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A. Fundamental importance of land to the
greenhouse gas equation
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Biofuels and the Competition
for Land2
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he German Marshall Fund o the United States6
Understanding the role of land in comparing greenhouse gas emissions from biofuelsand conventional fuels
Wy j w b
Table 1. GREET and U.K. default values CO2 emissions for various fuels, grams (CO2 equivalent)
per mega joule of energy in fuel
GREE
G
GREE
C
E
GREE
B
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D
1 P E 4 4 1 5
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5
Land Use Cost
x
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8/S & H 8)
14 111
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(w 1++3)1
135
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(1%)84
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8(7%)
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177
(+3%)
138
(+51%)84
* P b GREE A N
Lby 7 UK UK Rwb F Ay 8
Lan
dUseEffects
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Evaluating Biouels
he consequences o using land to make uel
7
Unfortunately,
growing plants fo
biofuels requires
land. If not used
for biofuels, land
would typically
already be
growing plants
that are removing
carbon from the
atmosphere.
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y
UK
D
V
D*
UK D
P
B
UK DR
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UK
3 3 8 5
3 14 3536 6 6 6 6
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357)
86 4345(5% 48%)
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he German Marshall Fund o the United States8
Most hectares
productive enough
to produce
average U.S. corn
yields would also
regenerate into
trees if left alone.
Using that spare
hectare for corn
ethanol would
therefore increase
carbon dioxide in
the air compared
to leaving it alone
and allowing it
to regenerate
into trees.
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4 y b Gbb (8), S(8b) F (8)
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Evaluating Biouels
he consequences o using land to make uel
9
Using land for
biofuels comes
at a high carbon
opportunity cost
for the intuitive
reason that
land with the
rainfall and soils
necessary to be
highly productive
for biofuels woul
probably also
produce a great
deal of forest or
food.
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he German Marshall Fund o the United States10
y b 17 w (B 7), w
b y wy
U b
y
C. What happens when biofuels divert
existing cropland
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Reduced food consumption
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8 D I My F R y C B
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Evaluating Biouels
he consequences o using land to make uel
11
b y w y y b (FAO
8b; B 7)
B w
A FAO , y
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(OECD 8, b 3 5) Vb
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The key to
understanding th
impact of biofuel
on food prices is
the rapid growth
rate.
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he German Marshall Fund o the United States12
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8
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Agricultural land expansion
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Higher crop prices
imply that some of
the crops diverted
to biofuels are
not replaced,
which dampens
greenhouse gas
emissions. To most
people, however,
these reductions
in demand
are probably
a worse result
than agricultural
expansion
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Evaluating Biouels
he consequences o using land to make uel
13
These ongoing yi
increases that w
occur with or wit
biofuels have gre
significance for
the worlds land
use and carbon
emissions, but th
merits of biofuels
have to be judge
independently.
Price-induced yield Increases
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Iy
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he German Marshall Fund o the United States14
w (V 17) A y 85 w
by ,
w w (Fy 5; Ab-
Ew ) I y ,
w ,
w x
S y
UN z w
(UNESCO 6), b w
x xb
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5) N x, w , b
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j
Mw, w w
b w , w ,
y w
13 w y b y,
w ,
y
P y, w y wy
y
U y
b y
w w b b
D. Doubts about the land use challenge
D
y I y w y
1 T w b by R H jw by OECD FAO 17 (OECD
8), x , FAO y w j y 16-5
13 by R H w b by E4 G w UK, j b y - b w w I j OECD 8 17 x
Many controllable
factors could in
theory change
the world land
use situation for
good or bad, but
if those factors
are independent
of biofuels, they
neither make
biofuels a better
strategy nor a
worse one.
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Evaluating Biouels
he consequences o using land to make uel
15
Making Land Available for Biofuels : S x w
y y,
(K 8), w
by b E
w w b
w w w b E
b w b
b
My b y
w b, b
b, y b b y w
Multiple Causes of Deforestation: S
b y
y b
: y w
w
O
w
b x,
w : W
w , w
? M wy
x wy
; x, w
x w b
B by
(F y b,
K 8)
M y, y
b
w yy y
I
, b b w
b j (I
Bz, x, w b y
y
) I , b b y
, y y
y
(F
, K 8)
O, y
y w b
, y wy
x, , wy
w x
I y (S
8), w y w
w w
1, y bw
/14
y
A
wy w b, b
w y (B 3),
b b- w
w w
b
Unexpected Short-Term Economic Responses: M
US y (
USDA F A Py
R I (FAPRI), w
yy by ),
j US w y
yb U S yb x Bz I 7,
US yb w wy w, y 8,
14 S b - S (8b) b y L A, yb, y Bz C
The best potentia
additional cropla
for the world
consists mostly o
tropical forests, a
there is good rea
to believe carbon
rich lands will
provide much of
worlds new crop
and pasture to
replace agricultu
lands diverted to
biofuels.
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he German Marshall Fund o the United States16
yb U S b x Mw, yb
Bz y E
b
Py, y z
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x yb b
x yb
Bz B y
b b I U S,
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US by y
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CRP , y y
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b b, b xw b
y b y
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Evaluating Biouels
he consequences o using land to make uel
17
Much of the
case for biofuels
has relied on
the potential
availability of
waste biomass.
Waste and
residual biomass
also has the
advantage that it
is cheap or free.
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y z b
x y
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b (S 8)
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b y
y
w I UK,
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A y
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b, b
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(UK RFA 8b) RFA
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Waste biomass
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b y -y y
b ,
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w
b b w ,
y yb w
b S-,
b w b b
C , , w
y b , b w
y
Avoiding Competition for Land
3
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he German Marshall Fund o the United States18
Former forests
converted to
grazing provide
perhaps the most
promising set of
lands.
b C y
b ,
ww y y
, b , b
(S 1) K
b w
M w y
b y y
w w
O y By w
U S 3 US
(J 7)
Marginal land
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I
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b Bz C
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F z
w b
w, b w z
y y y M
b Bz
b by w y
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Evaluating Biouels
he consequences o using land to make uel
19
On balance
there is probably
potential to mak
meaningful levels
of biofuels from
waste biomass
and residuals, an
probably some
potential to use
marginal lands
that otherwise
would store little
carbon or produc
little food.
y b x b
b, , by
w
z b b O
, Bz
x
Bz x
Az y w Bz
z
b , x y
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y x
x ,
w Bz w L A
P b y
by w
I , y y b
w w
, , y
w
b w w z S b
z y b y
Y b bby
b w b
, bby
w w
b
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he German Marshall Fund o the United States20
Beyond
environmental
concerns, critics
have also raised
a number of
questions about
the costs of
biofuel subsidies.
It takes at least
50 percent of the
energy in biomass
to turn the other
half of that energy
into a liquid fuel.
Financial costs of biomass
By ,
b b
b b A OECD,
b 6 y $11
b, by j y $8 $7
(OECD 8b)
OECD b w w $7
b y 1317
,
w bw w (OECD
8b) M y y b w
(S 8b, Ax A
), b
y, OECD
$6 $17 CO-
(OECDb) x
b x ,
yy $5 $
by (IEA 8b)
by
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b b w $65
b , b
b (IEA 8)
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w w (OECD 8b)
Alternative uses of biomass
A , IEA
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15 T fy z y, , b T fy y S w , b y T y - fy b, , y y U b y fy , b b f
Financial and Efficiency Concerns
4
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Evaluating Biouels
he consequences o using land to make uel
21
A IEA ,b y y b
y Y,
wb y y ,
b y y
w y
I IEA b w y y
y b y
( b by)
(IEA 8b)
b b y wy b b
b x ,
b b y y
wy b b B
y b
y w , y y
b ,
w, y b
y w yy
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he German Marshall Fund o the United States22
D w 8, E U Db
y
1 by
wb y
wby- y b bby
b w j Ey
I Sy A by
US C Db 7, w
36 b b by ,
,
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y 5
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y, b y
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w x b
bby b
b b w
b b U
xy
b b F w b
b, w b w y
w b
B
x by
The Future of Biofuel Policies
5
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Evaluating Biouels
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Instead of
subsidizing the
biofuel per se,
an alternative
approach would
subsidize the
production of the
feedstock from
specific degrade
lands.
y 5
Y, b b
w, y
, by, w
, Fw bby
w w b , y
w y ,
w b
, w b A
j y w ,
b y z
w
Hw y y b
?
US E b y
z
y b
y
b
y w
w w y
Ex
w I
b w -
w w
y W b
y b w y w, y w
b y
w
I bz b ,
w bz
I y b
w , w
Sy,
w , y bz y w
S y w w
b O
b ,
by b b
y b y y
wy w y
A by
b
, w b
b y b
w w
b , , by w
w M
b by
b w b- b w wy
w z
w b
w
b b y w w-
b M w w
b
y y
, y w w, ,
w
b B y
j b, -,
y- y ,
w-b y
A w x b
B
b
y
Y
I ,
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he German Marshall Fund o the United States24
I , y b b
y y I
, b
y y by
y w
F b, b y
w
w
b w w
y I 5 1 b
w y w , b y
w w w
b wy
Public policy
should now focus
on showing we
can produce one
billion gallons the
right way.
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Evaluating Biouels
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