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Agricultural Land Elasticities in the United States and Brazil

Author

Listed:
  • Kanlaya J. Barr
  • Bruce A. Babcock
  • Miguel A. Carriquiry
  • Andre M. Nassar
  • Leila Harfuch
Abstract
The elasticity of aggregate supply of cropland is one key to understanding the degree to which policy-induced increases in demand for biofuel feedstocks or agricultural CO2 offsets will result in higher prices or expanded crop production. We report land supply elasticities for the United States and Brazil estimated directly from recent changes in planted crop acreage and estimated changes in expected returns. The resulting aggregate implied land-use elasticities with respect to price are quite inelastic in the United States and Brazil elasticities have declined sharply in recent years. The estimated elasticities imply that current estimates of land-based CO2 emissions from biofuels expansion may be overstated

Suggested Citation

  • Kanlaya J. Barr & Bruce A. Babcock & Miguel A. Carriquiry & Andre M. Nassar & Leila Harfuch, 2011. "Agricultural Land Elasticities in the United States and Brazil," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 449-462.
    • Handle: RePEc:oup:apecpp:v:33:y:2011:i:3:p:449-462.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppr011
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