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Has Brazilian Ethanol Production Displaced Food Crops?

Littorin, Anders (2009)
Department of Economics
Abstract
In this thesis a first order differential supply response model, the Linear Approximate Acreage Allocation Model (Holt, 1999), is used to analyze the competition between ethanol (sugarcane) and food crops (soy, corn, cotton, rice and orange) in Brazil. In this linear multi-crop supply response model total land is assumed to exogenous, leaving the shares to be estimated along with elasticities between the crops. The empirical investigation is performed using Seemingly Unrelated Regression with panel data covering 27 regions over the years 2002 - 2007. Necessary restrictions (such as adding up, homogeneity and symmetry) imposed on the model are briefly treated. Findings indicate that soy has been displaced, i.e. it is a substitute to... (More)
In this thesis a first order differential supply response model, the Linear Approximate Acreage Allocation Model (Holt, 1999), is used to analyze the competition between ethanol (sugarcane) and food crops (soy, corn, cotton, rice and orange) in Brazil. In this linear multi-crop supply response model total land is assumed to exogenous, leaving the shares to be estimated along with elasticities between the crops. The empirical investigation is performed using Seemingly Unrelated Regression with panel data covering 27 regions over the years 2002 - 2007. Necessary restrictions (such as adding up, homogeneity and symmetry) imposed on the model are briefly treated. Findings indicate that soy has been displaced, i.e. it is a substitute to sugarcane, while other food crops analyzed are compliments. (Less)
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author
Littorin, Anders
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Brazil, sugar, Bioethanol, Acreage allocation, Ethanol, Proalcool, Supply response, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1509435
date added to LUP
2009-11-16 00:00:00
date last changed
2010-08-03 10:52:58
@misc{1509435,
  abstract     = {In this thesis a first order differential supply response model, the Linear Approximate Acreage Allocation Model (Holt, 1999), is used to analyze the competition between ethanol (sugarcane) and food crops (soy, corn, cotton, rice and orange) in Brazil. In this linear multi-crop supply response model total land is assumed to exogenous, leaving the shares to be estimated along with elasticities between the crops. The empirical investigation is performed using Seemingly Unrelated Regression with panel data covering 27 regions over the years 2002 - 2007. Necessary restrictions (such as adding up, homogeneity and symmetry) imposed on the model are briefly treated. Findings indicate that soy has been displaced, i.e. it is a substitute to sugarcane, while other food crops analyzed are compliments.},
  author       = {Littorin, Anders},
  keyword      = {Brazil,sugar,Bioethanol,Acreage allocation,Ethanol,Proalcool,Supply response,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Has Brazilian Ethanol Production Displaced Food Crops?},
  year         = {2009},
}