Testimony before the US-China Economic and Security Review Commission on April 25, 2013, by Dermot Hayes, professor of Economics and Finance, Iowa State University. Testimony covers impacts on food demand from China's rising incomes and urbanization; the viability of China's attempt to remain...

In animal agriculture, biosecurity decisions are dispersed across many herd owners. Choices impacting disease spread will be determined by impacts on private economic values, and so are economic externalities. However, externalities are not all alike. By way of three very distinct examples, we...

The Environmental Protection Agency is poised to release its draft rule for mandated volumes of biofuels for 2014. Earlier this year, EPA indicated that it understood that a limited demand for biofuels, particularly for ethanol, conflicts with the scheduled mandated volumes written in the law....

Nonpoint-source pollution remains a troubling source of water quality problems despite decades of economics research on the matter. Among the chief difficulties for addressing the issue are the property rights assignments implicit in the current policy environment that favor agricultural...

In a recent paper, we estimated the potential demand for ethanol consumed in E85 using an estimated distribution of E85 acceptance by consumers and by calculating the average distance that owners of flex vehicles would have to drive to find an existing gas station that sells the fuel. Two issues...

We update the findings of the impact of ethanol production on U.S. and regional gasoline markets as reported previously in Du and Hayes (2009 and 2011), by extending the data to December 2011. The results indicate that over the period of January 2000 to December 2011, the growth in ethanol...

At the request of the oil industry and livestock groups, Congress and the Environmental Protection Agency (EPA) are considering whether to reduce biofuel blending mandates. Livestock groups want lower corn prices and the oil industry claims that it simply cannot blend more biofuels than current...

We develop a real option model of the irreversible native grassland conversion decision. Upon plowing, native grassland can be followed by either a permanent cropping system or a system in which land is put under cropping (respectively, grazing) whenever crop prices are high (respectively, low)....

Economics models used by California, the Environmental Protection Agency, and the EU Commission all predict significant emissions from conversion of land from forest and pasture to cropland in response to increased biofuel production. The models attrib-ute all supply response not captured by...

This paper develops a spatial equilibrium model suitable to analyze the economic impacts of measures (such as isolation distances and buffer zones) meant to ensure coexistence between GM and non-GM crops. We show that policies that put the cost of such measures exclusively on GM producers lead...