This ratio held steady even during the 2 years from October 2006 to October 2008 when feed costs increased by about two-thirds (Donohue and Cunningham, 2009). Finally, if all three policies are used in combination, then the welfare effects of the combined policy would be determined by (a) the mandated consumption quantity and (b) the net price effect of the tax credit and the import tariff policy. Harmonized Tariff Schedule of the United States (2010) (Rev. Collett, S., and P. Villega, eds. Hertel, T.W., and J.F. CH4 recovery in livestock operations is done mainly in confined livestock operations where it makes economic sense to recover the CH4. We can look at these comparisons based on mass: the freshwater withdrawals required to produce one kilogram of food product.
Biomass suppliers will incorporate the costs of soil damage and nutrient loss from biomass collection into the minimum price they are willing to accept. Land use accounts for 24% of food emissions.Twice as many emissions result from land use for livestock (16%) as for crops for human consumption (8%).12Agricultural expansion results in the conversion of forests, grasslands and other carbon ‘sinks’ into cropland or pasture resulting in carbon dioxide emissions. This range of capital recovery factors would give an effective rate of return of about 12 percent for a 20-year project. While cost has typically been the biggest development hindrance, that is slowly starting to change. Heaton, E.A., S.P. (2002) and used in the NAS-NAE-NRC (2009b) report has not materialized. 30 If the product were exported, the subsidy would essentially act as an export subsidy, which is a violation of World Trade Organization regulations. Since these incentives value the standing stock of timber, they would serve to increase the value of forests and make standing forests more competitive with other types of land uses, including feedstock production for biofuels. China and Brazil appear to have the largest potential, but growth in Brazil is hinged on the continuing development of the biofuel industry and the possibilities for using waste bagasse for electricity generation.
During this commodity price spike, which peaked between 2007 and 2009, controversy ensued over the role of increased ethanol production in increased food prices. The increase in corn production began in 1975 (well before the demand for biofuel). This increased use of ethanol would result in an increase in the demand for biofuel feedstock, as noted in item 3 in the list of effects in the previous section. Also, the magnitude of price changes at the farm, international market, or retail level resulting from increased ethanol production is determined by the complex nature of the food marketing system and the transmittal of price changes through that system.