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Biofuel-Food Market Interactions: A Review of Modeling Approaches and Findings

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  • Gbadebo Oladosu

    (Renewable Energy Systems Group, Environmental Sciences Division, Oak Ridge National Laboratory, 1 Bethel Valley Road, Oak Ridge, TN 37831, USA)

  • Siwa Msangi

    (Environment and Production Technology Division, International Food Policy Research Institute, Washington, DC, 20006, USA)

Abstract

The interaction between biofuels and food markets remains a policy issue for a number of reasons. There is a continuing need to understand the role of biofuels in the recent spikes in global food prices. Also, there is an ongoing discussion of changes to biofuel policy as a means to cope with severe weather-induced crop losses. Lastly, there are potential interactions between food markets and advanced biofuels, although most of the latter are expected to be produced from non-food feedstocks. This study reviews the existing literature on the food market impacts of biofuels. Findings suggest that initial conclusions attributing most of the spike in global food prices between 2005 and 2008 to biofuels have been revised. Instead, a multitude of factors, in addition to biofuels, converged during the period. Quantitative estimates of the impacts of biofuels on food markets vary significantly due to differences in modeling approaches, geographical scope, and assumptions about a number of crucial factors. In addition, many studies do not adequately account for the effects of macroeconomic changes, adverse weather conditions and direct market interventions during the recent food price spikes when evaluating the role of biofuels.

Suggested Citation

  • Gbadebo Oladosu & Siwa Msangi, 2013. "Biofuel-Food Market Interactions: A Review of Modeling Approaches and Findings," Agriculture, MDPI, vol. 3(1), pages 1-19, February.
    • Handle: RePEc:gam:jagris:v:3:y:2013:i:1:p:53-71:d:23335
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    Cited by:

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    3. Gbadebo A. Oladosu & Keith L. Kline & Johannes W. A. Langeveld, 2021. "Structural Break and Causal Analyses of U.S. Corn Use for Ethanol and Other Corn Market Variables," Agriculture, MDPI, vol. 11(3), pages 1-15, March.
    4. Stanisław Bielski & Kęstutis Romaneckas & Anastasija Novikova & Egidijus Šarauskis, 2019. "Are Higher Input Levels to Triticale Growing Technologies Effective in Biofuel Production System?," Sustainability, MDPI, vol. 11(21), pages 1-15, October.
    5. Dulys, Elena & Swinton, Scott & Klammer, Sarah, 2016. "What Drives the Potential Supply of Timber Residues from Private Lands?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 242363, Agricultural and Applied Economics Association.
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    11. Leonardo Chaves Borges Cardoso & Maurício Vaz Lobo Bittencourt, 2016. "Price Volatility Transmission From Oil To Energy And Non-Energy Agricultural Commodities," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 181, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    12. Krystyna Kurowska & Renata Marks-Bielska & Stanisław Bielski & Hubert Kryszk & Algirdas Jasinskas, 2020. "Food Security in the Context of Liquid Biofuels Production," Energies, MDPI, vol. 13(23), pages 1-16, November.
    13. Elena Claire Ricci & Massimo Peri & Lucia Baldi, 2019. "The Effects of Agricultural Price Instability on Vertical Price Transmission: A Study of the Wheat Chain in Italy," Agriculture, MDPI, vol. 9(2), pages 1-14, February.
    14. Borychowski Michał & Czyżewski Andrzej, 2015. "Determinants of prices increase of agricultural commodities in a global context," Management, Sciendo, vol. 19(2), pages 152-167, December.
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    16. Kathleen Araújo & Devinder Mahajan & Ryan Kerr & Marcelo da Silva, 2017. "Global Biofuels at the Crossroads: An Overview of Technical, Policy, and Investment Complexities in the Sustainability of Biofuel Development," Agriculture, MDPI, vol. 7(4), pages 1-22, March.
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