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Abstract

Country borders have been chosen as system boundaries to inventory GHG emissions under the Kyoto Protocol. The use of country boundaries is clear and allows summing over all countries. The country inventories purposefully account for where and when both fossil-fuel combustion emissions occur, and changes in the biological stocks of carbon occur. The approach can be widely adopted, but this accounting is hampered by uncertain data (1, 2) and two basic shortcomings: Not all countries are required to report, and not all biological carbon stocks are inventoried.

Traffic flows in the U.S. have been affected by the substantial increase and, as of January 2009, decrease in biofuel production and use. This paper considers a framework to study the effect on grain transportation flows of the 2005 Energy Act and subsequent legislation, which mandated higher production levels of biofuels, e.g. ethanol and biodiesels. Future research will incorporate changes due to the recent economic slowdown.

Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market.