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The Food versus Fuel Debate: Implications for Consumers

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  • Harrison, R. Wes

Abstract

The effects of biofuel production on commodity prices and their transmission to retail food prices are discussed. Factors driving higher commodity prices are tight global supplies and increased demand of corn ethanol in the short term. Evidence suggests that higher corn prices contribute to food price inflation for some food items. These include eggs, poultry, pork, beef and milk. The findings imply that food price inflation for these items is related to increased production of corn ethanol, primarily because of high oil prices. Higher oil prices also increase fuel and energy costs, which increase marketing costs for all food categories.
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  • Harrison, R. Wes, 2009. "The Food versus Fuel Debate: Implications for Consumers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(02), pages 493-500, August.
  • Handle: RePEc:cup:jagaec:v:41:y:2009:i:02:p:493-500_00
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    Cited by:

    1. Jiang, Jingze & Marsh, Thomas L. & Tozer, Peter R., 2015. "Policy induced price volatility transmission: Linking the U.S. crude oil, corn and plastics markets," Energy Economics, Elsevier, vol. 52(PA), pages 217-227.
    2. Maung, Thein A. & Gustafson, Cole R. & Saxowsky, David M. & Nowatzki, John & Miljkovic, Tatjana & Ripplinger, David, 2013. "The logistics of supplying single vs. multi-crop cellulosic feedstocks to a biorefinery in southeast North Dakota," Applied Energy, Elsevier, vol. 109(C), pages 229-238.
    3. Wetzstein, M. & Wetzstein, H., 2011. "Four myths surrounding U.S. biofuels," Energy Policy, Elsevier, vol. 39(7), pages 4308-4312, July.
    4. Geraldo Sant'ana de Camargo Barros & Lucilio Rogerio Aparecido Alves & Mauro Osaki, 2010. "Biofuels, food security and compensatory subsidies," China Agricultural Economic Review, Emerald Group Publishing, vol. 2(4), pages 433-455, November.
    5. Ziolkowska, Jadwiga & Simon, Leo K. & Zilberman, David, 2011. "Capturing Uncertainties in Evaluation of Biofuels Feedstocks: A Multi-Criteria Approach for the US," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115980, European Association of Agricultural Economists.
    6. Cheteni, Priviledge, 2017. "Sustainability development: Biofuels in agriculture," MPRA Paper 80969, University Library of Munich, Germany, revised 24 Jun 2017.
    7. repec:eee:rensus:v:81:y:2018:i:p2:p:3159-3177 is not listed on IDEAS
    8. Arjunan, Subramanian & Moir, Christopher & Kirwan, Kerry & Pink, David, 2010. "Thegreening Of ‘Green’ Technology: Adoption Of Bio-Plastic Pla," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 187976, International Consortium on Applied Bioeconomy Research (ICABR).
    9. Jensen, Kimberly L. & Clark, Christopher D. & English, Burton C. & Menard, R. Jamey & Skahan, Denise K. & Marra, Adrienne C., 2010. "Willingness to pay for E85 from corn, switchgrass, and wood residues," Energy Economics, Elsevier, vol. 32(6), pages 1253-1262, November.
    10. Cloete, Philip C. & Idsardi, Ernst, 2012. "Bio-fuels and Food Security in South Africa: The Role of Indigenous and Traditional Food Crops," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 130172, International Association of Agricultural Economists.

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