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August 11, 2025Applied Economic Perspectives and Policy1 citationsOpen Access

Quantifying the land‐use change due to soybean‐based biodiesel in the United States

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RMRuiqing MiaoYLYijia LiMKMadhu Khanna

Key Points

  • Soybean oil-based biodiesel production results in about 0.96 million acres of cropland expansion per billion gallons, indicating a direct land-use change.
  • Elasticities of soybean acreage and total cropland acreage are found to be 0.011 and 0.002 respectively, highlighting the relationship between biodiesel production and land use.
  • Data from the U.S. Environmental Protection Agency between 2011 and 2020 was utilized to understand the impact of soybean oil production.
  • Implications suggest that policies promoting biofuels like soybean biodiesel may significantly alter agricultural land use patterns.

Abstract

Abstract We quantify the impact of soybean oil‐based biodiesel production on US cropland, using a method that accounts for the intermediate effect of soybean crushing facilities. Based on U.S. Environmental Protection Agency data for biodiesel production and proprietary data for soybean crushing facilities over 2011–2020, we find that the elasticities of soybean acreage and total cropland acreage with respect to soybean oil‐based biodiesel production are 0.011 and 0.002, respectively. The direct land‐use effect of soybean oil‐based biodiesel is about 0.96 million acres of cropland expansion per billion gallons, about twice as high as some estimates for corn ethanol from previous studies.

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Cite This Study

Miao et al. (2025) studied this question.

synapsesocial.com/papers/68a360d60a429f7973328e71https://doi.org/10.1002/aepp.70005
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