Will Recreation Demand for Land Limit Biofuels Production?
Author InfoBlandine Antoine (Massachusetts Institute of Technology and Université Paris-Est – CIRED) Angelo Gurgel (Massachusetts Institute of Technology) John M. Reilly (Massachusetts Institute of Technology) Abstract We use a CGE model to investigate the potential of second generation biofuels production under possibilities of land use conversion from natural areas to agricultural land in the U.S, considering the recreational value of forests. We introduce recreational benefits of natural forests through “household” production sectors for hunting and fishing, for wildlife viewing in reserved areas, and wildlife viewing in other forest areas, based on extensive data available in the U.S. about those activities. We test the model assessing the land use changes and welfare impacts from a U.S. climate policy scenario. The new approach resulted in similar land use change as earlier work where land conversion was limited by an elasticity based on observed land supply response. The advanta