Abstract
The use of agricultural-based biofuels has expanded. Discussions on how to assess green house gas (GHG) emissions from biofuel policies, specifically on (non-observed) land-use change (LUC) effects involve two main topics: (i) the limitations on the existing methodologies, and (ii) how to isolate the effects of biofuels. This paper discusses the main methodologies currently used by policy-makers to take decisions on how to quantify LUCs owing to biofuel production expansion. It is our opinion that the concerns regarding GHG emissions associated with LUCs should focus on the agricultural sector as a whole rather than concentrating on biofuel production. Actually, there are several limitations of economic models and deterministic methodologies for simulating and explaining LUCs resulting from the expansion of the agricultural sector. However, it is equally true that there are avenues of possibilities to improve models and make them more accurate and precise in order to be used for policy-making. Models available need several improvements to reach perfection. Any top model requires a concentration of interdisciplinary designers in order to replicate empirical evidence and capture correctly the agricultural sector dynamics for different countries and regions. Forgetting those limitations means that models will be used for the wrong purposes.