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Fuel Versus Food

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  • Ujjayant Chakravorty
  • Marie-H�l�ne Hubert
  • Linda N�stbakken

    ()
    (Department of Economics and
    Department of Marketing, Business Economics, and Law, University of Alberta, Edmonton, Canada T6G 2R6)

Abstract

Many countries have actively encouraged the production of biofuels as a low-carbon alternative to the use of fossil fuels in transportation. To what extent do these trends imply a reallocation of scarce land away from food to fuel production? This paper critically reviews the small but growing literature in this area. We find that an increase in biofuel production may have a significant effect on food prices and, in certain parts of the world, in speeding up deforestation through land conversion. However, more research needs to be done to examine the effect of newer generation biofuel technologies that are less land intensive as well as the effect of environmental regulation and trade policies on land-use patterns.

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Bibliographic Info

Article provided by Annual Reviews in its journal Annual Review of Resource Economics.

Volume (Year): 1 (2009)
Issue (Month): 1 (09)
Pages: 645-663

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Handle: RePEc:anr:reseco:v:1:y:2009:p:645-663

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Related research

Keywords: agricultural production; biofuel economics; climate policy; environmental regulation; land allocation;

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References

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  1. Ryan, Lisa & Convery, Frank & Ferreira, Susana, 2006. "Stimulating the use of biofuels in the European Union: Implications for climate change policy," Energy Policy, Elsevier, vol. 34(17), pages 3184-3194, November.
  2. Elobeid, Amani E. & Tokgoz, Simla, 2007. "Removing Distortions in the U.S. Ethanol Market: What Does It Imply for the United States and Brazil?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9808, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Ujjayant Chakravorty & Bertrand Magne & Michel Moreaux, 2008. "A dynamic model of food and clean energy," Working Papers 26086, Institut National de la Recherche Agronomique, France.
  4. McDougall, Robert & Alla Golub, 2007. "GTAP-E: A Revised Energy-Environmental Version of the GTAP Model," GTAP Research Memoranda 2959, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  5. Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  6. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  8. Birur, Dileep & Hertel, Thomas & Tyner, Wally, 2008. "Impact of Biofuel Production on World Agricultural Markets: A Computable General Equilibrium Analysis," GTAP Working Papers 2413, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  9. Anderson, Kym & Martin, William J. & Valenzuela, Ernesto, 2006. "The Relative Importance of Global Agricultural Subsidies and Market Access," 2006 Annual meeting, July 23-26, Long Beach, CA 21180, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Keeney, Roman & Hertel, Thomas, 2008. "The Indirect Land Use Impacts of U.S. Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," GTAP Working Papers 2810, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  11. Babcock, Bruce A. & Beghin, John C. & Fuller, Frank H. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Kaus, Phillip J. & Fang, Cheng & Hart, Chad E. & Matthey, Holger & de Cara, Stephane & Kovarik, Kare, 2001. "FAPRI 2001 U.S. and World Agricultural Outlook," Staff Reports 32052, Food and Agricultural Policy Research Institute (FAPRI).
  12. Bouwman, A.F. & Van der Hoek, K.W. & Eickhout, B. & Soenario, I., 2005. "Exploring changes in world ruminant production systems," Agricultural Systems, Elsevier, vol. 84(2), pages 121-153, May.
  13. John A.L. Cranfield & Thomas W. Hertel & James S. Eales & Paul V. Preckel, 1998. "Changes in the Structure of Global Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1042-1050.
  14. Benjamin Senauer, 2008. "Food Market Effects of a Global Resource Shift Toward Bioenergy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1226-1232.
  15. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
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