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The Effects of BioFuels Policies on Global Commodity Trade Flows

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  • Fridfinnson, Brooke
  • Rude, James

Abstract

In terms of the global situation, trade is biofuels is small relative to world-wide production; however, given ambitious consumption mandates in many developed countries as well as increasing energy consumption, this will not likely remain the case in the long-run. Although biodiesel has been classified as an industrial good, ethanol is currently marketed as an agricultural product, though not specifically for fuel use. The removal of trade barriers, particularly in the developed countries, would not only ease pressure on the traditional feedstocks and lower world ethanol prices, but allow countries with a comparative advantage to capitalize on the opportunity to produce low-cost biofuel. Whether the removal of these trade barriers on biofuels would affect their efficacy as a political tool remains to be seen.

Suggested Citation

  • Fridfinnson, Brooke & Rude, James, 2009. "The Effects of BioFuels Policies on Global Commodity Trade Flows," Working Papers 48119, Canadian Agricultural Trade Policy Research Network.
    • Handle: RePEc:ags:catpwp:48119
    DOI: 10.22004/ag.econ.48119
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    1. Amani Elobeid & Simla Tokgoz, 2006. "Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian Ethanol Markets," Center for Agricultural and Rural Development (CARD) Publications 06-wp427, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Oecd, 2006. "Agricultural Market Impacts of Future Growth in the Production of Biofuels," OECD Papers, OECD Publishing, vol. 6(1), pages 1-57.
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