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Fuel versus Food

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  • Chakravorty, Ujjayant

    ()
    (University of Alberta, Department of Economics)

  • Hubert, Marie-Helene

    ()
    (University of Alberta School of Business)

  • Nostbakken, Linda

    ()
    (University of Alberta School of Business)

Abstract

Many countries are actively encouraging the supply of biofuels as a low carbon alternative to the use of fossil fuels for 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 work 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 allocation between fuel and food.

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Bibliographic Info

Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2009-20.

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Length: 34 pages
Date of creation: 01 Apr 2009
Date of revision:
Handle: RePEc:ris:albaec:2009_020

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

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  1. 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.
  2. 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.
  3. Hertel, Thomas & Tyner, Wally & Birur, Dileep, 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," GTAP Working Papers 2809, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  4. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
  5. 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, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21180, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
  7. Cranfield, John & James Eales & Thomas W. Hertel & Paul Preckel, 1998. "Changes in the Structure of Global Food Demand," GTAP Working Papers 295, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  8. Ryan, Lisa & Convery, Frank & Ferreira, Susana, 2006. "Stimulating the use of biofuels in the European Union: Implications for climate change policy," Energy Policy, Elsevier, Elsevier, vol. 34(17), pages 3184-3194, November.
  9. 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.
  10. Benjamin Senauer, 2008. "Food Market Effects of a Global Resource Shift Toward Bioenergy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 90(5), pages 1226-1232.
  11. McDougall, Robert & Alla Golub, 2007. "GTAP-E: A Revised Energy-Environmental Version of the GTAP Model," GTAP Research Memoranda, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 2959, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  12. 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.
  13. 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, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 9808, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. 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, Food and Agricultural Policy Research Institute (FAPRI) 32052, Food and Agricultural Policy Research Institute (FAPRI).
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