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GTAP Resource #3049

"Geography Matters: International Trade Patterns and the Indirect Land Use Effects of Biofuels "
by Villoria, Nelson B. and Thomas Hertel


Abstract
This article investigates the relationship between international trade patterns and the global distribution of coarse grain production responses to market developments in the United States. Our null hypothesis is that world markets are fully integrated, rendering the geographic persistence of bilateral trade flows irrelevant in the global production response to a change in US prices. The alternative hypothesis allows price transmission to vary along with the intensity of competition among countries in specific markets. Using data from 1975 to 2002, we reject the null hypothesis. Our work has direct implications for the analysis of the global land use impacts of biofuel mandates.


Resource Details (Export Citation) GTAP Keywords
Category: Econometric Application
Status: Published
By/In: American Journal of Agricultural Economics. Forthcoming. (Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile)
Date: 2011
Version:
Created: Villoria, N. (4/15/2009)
Updated: Villoria, N. (2/25/2011)
Visits: 3,293
- Domestic policy analysis
- Trade and the environment
- European Union
- Common Wealth of Independent States


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