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Article
A dynamic model of food and clean energy
Journal of Economic Dynamics and Control (2008)
  • Ujjayant N Chakravorty, Tufts University
  • Bertrand Magne
  • Michel Moreaux
Abstract
In the midwestern United States, ethanol produced from corn is mixed with gasoline to meet clean air standards. Allocating land to produce clean fuel means taking away land from farming. We examine the use of a scarce fossil fuel that causes pollution but may be substituted by a clean fuel produced from land. When land is scarce, it is gradually shifted away from farming to energy production. However, when land is abundant, there may be a jump in the supply of clean energy. When the stock of pollution is regulated, the supply of clean energy may exhibit multiple discontinuities.
Keywords
  • Agriculture; Environmental regulation; Hotelling theory; Land use; Pollution
Publication Date
2008
Citation Information
Ujjayant N Chakravorty, Bertrand Magne and Michel Moreaux. "A dynamic model of food and clean energy" Journal of Economic Dynamics and Control (2008)
Available at: http://works.bepress.com/chakravorty/15/