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Land use, land-use
change, bioenergy,
and carbon:
Global GHG implications of
the development of biofuels

Stéphane De Cara
INRA
UMR Economie Publique INRA-AgroParisTech
stdecara@grignon.inra.fr
Biofuels and land-use change
What’s at stake?

• Biofuels: additional demand for agricultural
  commodities
   – Price increase
   – Incentives for farmers (domestically and abroad) to
     increase output (crop for biofuels, but also food)
• Three ways of meeting this additional demand
   – Intensification
   – Substitution
   – Expansion
Biofuels and land-use change
What’s at stake?

• Direct land-use change                  Forest
   Land conversions toward energy use                dLUC
                                                     iLUC
   (domestically or abroad)
• Indirect land-use change               Grassland
                                                     iLUC
                                                     dLUC
   Land conversions toward non-energy     Biofuel
   agricultural use (domestically or                 dLUC
   abroad)
• Difficulties:                          Cropland
                                         for food
   –Many factors have an impact on LUC   and feed
   –How to isolate the biofuel effect?
   –Need to rely on models
Biofuels, LUC, and GHG emissions
Three questionmarks

1. Sign
   Do LUC effects increase (+) or decrease (-) GHG emissions?


1. Magnitude
   If positive, are LUC effects likely to offset the GHG emission
   savings permitted by the substitution of fossil fuel?
1. Uncertainty/Variability
   Large variability in available estimates
   True uncertainty or differences in assumptions and/or
   scenarios?
A quantitative review
Selected references


                                        485 refs


                        dLUC factor
                        239 estimates
                        (22 studies)
                        d+iLUC factor
                        561 estimates
                        (49 studies)    71 refs
A quantitative review
Distribution and descriptive statistics: d+iLUC factor (20 yrs)

                               N     Mean   StDev   Méd.   Q1    Q3    min    max


                               561     71    165      48    18    87   -327   2293
                  Fossil fuel
                  (83.8 gCO2eq/MJ)

                     -35%            • 561 data points
                     -50%            • Important variability
                                     • Some extreme points
                                     (most of them > 0)
A quantitative review
Cumulative distribution: d+iLUC factor (20 yrs)


                                 • 87% > 0 gCO2e/MJ
                                 • 54% > the 50% threshold
                                 • 44% > the 35% threshold
                                 • 26% > fossil fuel
A quantitative review
Cumulative distribution: d+iLUC factor (20 yrs) + standard LCA


                                 • 95% > 0 gCO2e/MJ
                                 •   82% > the 50% threshold
                                 •   71% > the 35% threshold
                                 •   52% > fossil fuel
                                 •   The estimates differ in
                                     – Approach used, status
                                     – Scale, resolution
                                     – Scenarios, assumptions
                                 • Are we comparing apples
                                   and oranges?
Meta-analysis
Principles

• Not another model, but a statistical treatment of
  results from the literature
• Use of results from various studies/models as
  “controlled experiments”
• Quantify the effect of various characteristics and
  assumptions on the evaluation of the d+iLUC factor
• Estimate a meta-model that allows to
  compare/predict results from various studies/models
  « all other things being equal »
Meta-analysis
       Estimated impact of various characteristics on the d+iLUC factor
       (20 yrs, gCO2e/MJ)
                  Economic models         Consequential studies

     DatePubli
                                                                  Study’s status
Peer-Reviewed
   EndogDem
                                                                  Substitution/
   Coproducts
  EndogYields
                                                                  Intensification
Crop-MargLand
   Crop-Forest                                                    Types of LUC
    Crop-Grass                                                    accounted for
     PeatxBiod
  ShareEthanol                                                    Biofuel type
      LatinAmS
                                                                  Geographical
        SEAsiaS
    NorthAmS
                                                                  coverage of
       EuropeS                                                    biofuel supply
2nd Generation                                                    2nd generation

                  n=241 (10 models)         n=246 (18 studies)
                  R2 corr=0.65              R2 corr=0.4
Meta-analysis
d+iLUC factor prediction: Laborde’s assumptions (2011, for the EC)
d+iLUC Factor (20 yrs)      38.4
Literature                 Econ.
Model                    MIRAGE
2nd Generation                  0
EuropeS                         1
NorthAmS                        1
SEAsiaS                         1
LatinAmS                        1
ShareEthanol                0.35        Meta-model prediction
PeatxBiod                       1      (MIRAGE specific effect)
Crop-Grass                      1           42 gCO2eq/MJ
Crop-Forest                     1
                                                                         Prediction (all econ.
Crop-MargLand                   1
                                                                          models combined)
EndogYields                     1
                                                                           72 gCO2eq/MJ
Coproducts                      1
EndogDem                        1
Peer-Reviewed                   0
                                  Prediction range (model-specific effect)
DatePubli                2011 (4)
                                        From 42 to 107 gCO2eq/MJ
Conclusion
Main determinants of d+iLUC factor

• The approach matters
   – Economic models (+) vs. consequential studies (-)
• The type of biofuel matters
   – Ethanol (-) vs. biodiesel (+), 2nd generation (-)
• The type of LUC considered matters
   – Peatland effect (+), deforestation in South America (+)
• Market mechanisms matter
   – Endogenous price effects (-): yields and demand
Conclusion
Key messages

1. Sign
   LUC effects tend to increase GHG emissions
    Should be accounted for in the assessment of biofuels
1. Magnitude
   The meta-model gives a d+iLUC factor of 72 gCO2eq/MJ
   (EU context, all economic models, excl. standard LCA
   emissions)
    Risk that biofuels be worse than fossil fuel w.r.t emissions
1. Uncertainty
   Part of the variability comes from differences in assumptions
    Variability alone cannot justify inaction about LUC effects
References
De Cara, S. (coord.); Goussebaille, A.; Grateau, R.; Levert, F.; Quemener, J.;
    Vermont, B. (2012), 'Revue critique des études évaluant l'effet des
    changements d'affectation des sols sur les bilans environnementaux des
    biocarburants‘. Final report. Study financed by ADEME. INRA UMR
    Economie Publique, Grignon, France, 96 pp.

Laborde, D. (2011), Assessing the Land Use Change Consequences of
    European Biofuel Policies. Final report. Study financed by the European
    Commission, DG Trade. IFPRI, Washington, DC, USA.
ADDITIONAL MATERIAL
Biofuels
The case for policy support to the development of biofuels

• Many countries have implemented policies to
  support and promote the development of biofuels
• Three main arguments
   – Mitigation of GHG emissions
   – Support to farmers’ income
   – Diversification of energy supply/Energy security
• Most environmental assessments are based on
  Lifecycle Analyses (LCAs), which overlook the
  implications for land-use change
Biofuels, LUC, and GHG emissions
Fossil fuel vs. biofuel




                          Substitution of
                          fossil fuel by    LUC effect?
                          biomass-based
                          carbon
A quantitative review
Collected references



                       485 references
A quantitative review
Approach

• Systematic and exhaustive search for available
  estimates in the literature (economics, consequential
  LCA, causal-descriptive)
• Bibliographic database
• Analysis of the collected references in order to
  define a set of relevant characteristics/assumptions
• Selection of studies based on a set of
  transparent/reproducible filters
• Description of the studies & variable coding
• Meta-analysis

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Del av seminariet "Från kolkälla till kolfälla: Om framtidens klimatsmarta jordbruk"

  • 1. Land use, land-use change, bioenergy, and carbon: Global GHG implications of the development of biofuels Stéphane De Cara INRA UMR Economie Publique INRA-AgroParisTech stdecara@grignon.inra.fr
  • 2. Biofuels and land-use change What’s at stake? • Biofuels: additional demand for agricultural commodities – Price increase – Incentives for farmers (domestically and abroad) to increase output (crop for biofuels, but also food) • Three ways of meeting this additional demand – Intensification – Substitution – Expansion
  • 3. Biofuels and land-use change What’s at stake? • Direct land-use change Forest Land conversions toward energy use dLUC iLUC (domestically or abroad) • Indirect land-use change Grassland iLUC dLUC Land conversions toward non-energy Biofuel agricultural use (domestically or dLUC abroad) • Difficulties: Cropland for food –Many factors have an impact on LUC and feed –How to isolate the biofuel effect? –Need to rely on models
  • 4. Biofuels, LUC, and GHG emissions Three questionmarks 1. Sign Do LUC effects increase (+) or decrease (-) GHG emissions? 1. Magnitude If positive, are LUC effects likely to offset the GHG emission savings permitted by the substitution of fossil fuel? 1. Uncertainty/Variability Large variability in available estimates True uncertainty or differences in assumptions and/or scenarios?
  • 5. A quantitative review Selected references 485 refs dLUC factor 239 estimates (22 studies) d+iLUC factor 561 estimates (49 studies) 71 refs
  • 6. A quantitative review Distribution and descriptive statistics: d+iLUC factor (20 yrs) N Mean StDev Méd. Q1 Q3 min max 561 71 165 48 18 87 -327 2293 Fossil fuel (83.8 gCO2eq/MJ) -35% • 561 data points -50% • Important variability • Some extreme points (most of them > 0)
  • 7. A quantitative review Cumulative distribution: d+iLUC factor (20 yrs) • 87% > 0 gCO2e/MJ • 54% > the 50% threshold • 44% > the 35% threshold • 26% > fossil fuel
  • 8. A quantitative review Cumulative distribution: d+iLUC factor (20 yrs) + standard LCA • 95% > 0 gCO2e/MJ • 82% > the 50% threshold • 71% > the 35% threshold • 52% > fossil fuel • The estimates differ in – Approach used, status – Scale, resolution – Scenarios, assumptions • Are we comparing apples and oranges?
  • 9. Meta-analysis Principles • Not another model, but a statistical treatment of results from the literature • Use of results from various studies/models as “controlled experiments” • Quantify the effect of various characteristics and assumptions on the evaluation of the d+iLUC factor • Estimate a meta-model that allows to compare/predict results from various studies/models « all other things being equal »
  • 10. Meta-analysis Estimated impact of various characteristics on the d+iLUC factor (20 yrs, gCO2e/MJ) Economic models Consequential studies DatePubli Study’s status Peer-Reviewed EndogDem Substitution/ Coproducts EndogYields Intensification Crop-MargLand Crop-Forest Types of LUC Crop-Grass accounted for PeatxBiod ShareEthanol Biofuel type LatinAmS Geographical SEAsiaS NorthAmS coverage of EuropeS biofuel supply 2nd Generation 2nd generation n=241 (10 models) n=246 (18 studies) R2 corr=0.65 R2 corr=0.4
  • 11. Meta-analysis d+iLUC factor prediction: Laborde’s assumptions (2011, for the EC) d+iLUC Factor (20 yrs) 38.4 Literature Econ. Model MIRAGE 2nd Generation 0 EuropeS 1 NorthAmS 1 SEAsiaS 1 LatinAmS 1 ShareEthanol 0.35 Meta-model prediction PeatxBiod 1 (MIRAGE specific effect) Crop-Grass 1 42 gCO2eq/MJ Crop-Forest 1 Prediction (all econ. Crop-MargLand 1 models combined) EndogYields 1 72 gCO2eq/MJ Coproducts 1 EndogDem 1 Peer-Reviewed 0 Prediction range (model-specific effect) DatePubli 2011 (4) From 42 to 107 gCO2eq/MJ
  • 12. Conclusion Main determinants of d+iLUC factor • The approach matters – Economic models (+) vs. consequential studies (-) • The type of biofuel matters – Ethanol (-) vs. biodiesel (+), 2nd generation (-) • The type of LUC considered matters – Peatland effect (+), deforestation in South America (+) • Market mechanisms matter – Endogenous price effects (-): yields and demand
  • 13. Conclusion Key messages 1. Sign LUC effects tend to increase GHG emissions  Should be accounted for in the assessment of biofuels 1. Magnitude The meta-model gives a d+iLUC factor of 72 gCO2eq/MJ (EU context, all economic models, excl. standard LCA emissions)  Risk that biofuels be worse than fossil fuel w.r.t emissions 1. Uncertainty Part of the variability comes from differences in assumptions  Variability alone cannot justify inaction about LUC effects
  • 14. References De Cara, S. (coord.); Goussebaille, A.; Grateau, R.; Levert, F.; Quemener, J.; Vermont, B. (2012), 'Revue critique des études évaluant l'effet des changements d'affectation des sols sur les bilans environnementaux des biocarburants‘. Final report. Study financed by ADEME. INRA UMR Economie Publique, Grignon, France, 96 pp. Laborde, D. (2011), Assessing the Land Use Change Consequences of European Biofuel Policies. Final report. Study financed by the European Commission, DG Trade. IFPRI, Washington, DC, USA.
  • 16. Biofuels The case for policy support to the development of biofuels • Many countries have implemented policies to support and promote the development of biofuels • Three main arguments – Mitigation of GHG emissions – Support to farmers’ income – Diversification of energy supply/Energy security • Most environmental assessments are based on Lifecycle Analyses (LCAs), which overlook the implications for land-use change
  • 17. Biofuels, LUC, and GHG emissions Fossil fuel vs. biofuel Substitution of fossil fuel by LUC effect? biomass-based carbon
  • 18. A quantitative review Collected references 485 references
  • 19. A quantitative review Approach • Systematic and exhaustive search for available estimates in the literature (economics, consequential LCA, causal-descriptive) • Bibliographic database • Analysis of the collected references in order to define a set of relevant characteristics/assumptions • Selection of studies based on a set of transparent/reproducible filters • Description of the studies & variable coding • Meta-analysis