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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, Open Access Journal, 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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, vol. 61(C), pages 963-976.
    2. Negash, Martha, 2015. "Drivers of bioenergy crop adoption: evidence from Ethiopia's castor bean contract farming," 2015 Conference, August 9-14, 2015, Milan, Italy 230226, International Association of Agricultural Economists.
    3. repec:ags:aaea16:235752 is not listed on IDEAS
    4. 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].
    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, 2016, Boston, Massachusetts 242363, Agricultural and Applied Economics Association.
    6. repec:eee:enepol:v:113:y:2018:i:c:p:368-375 is not listed on IDEAS
    7. Borychowski Michał & Czyżewski Andrzej, 2015. "Determinants of prices increase of agricultural commodities in a global context," Management, De Gruyter Open, vol. 19(2), pages 152-167, December.
    8. Ji, Xi & Long, Xianling, 2016. "A review of the ecological and socioeconomic effects of biofuel and energy policy recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 61(C), pages 41-52.
    9. 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, Open Access Journal, vol. 7(4), pages 1-22, March.
    10. Negash, Martha & Riera, Olivia, 2014. "Biodiesel value chain and access to energy in Ethiopia: Policies and business prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 975-985.
    11. Khatiwada, Dilip & Silveira, Semida, 2017. "Scenarios for bioethanol production in Indonesia: How can we meet mandatory blending targets?," Energy, Elsevier, vol. 119(C), pages 351-361.
    12. Edeseyi, Margaret E. & Kaita, Aminu Y. & Harun, Razif & Danquah, Michael K. & Acquah, Caleb & Sia, Joseph Kee Ming, 2015. "Rethinking sustainable biofuel marketing to titivate commercial interests," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 781-792.

    More about this item

    Keywords

    biofuels; food markets; fuels; models; prices; households; economy;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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