Biofuel do Brasil? - Impact of Multinational Biofuel Mandates on Agri-food Trade

This paper analyzes the consequences of enhanced biofuel production in regions and countries of the world that have announced plans to implement or expand on biofuel policies. The analysis considers not only mandatory blending targets for transportation fuels, but also voluntary ones. The chosen quantitative modeling approach is two-fold: it combines a multi-sectoral economic model (LEITAP) with a spatial bio-physical land use model (IMAGE). This paper adds to existing research by considering biofuel policies in the EU, the US and various other countries with considerable agricultural production and trade, such as Brazil, India and China. Moreover, the combination of the two modeling systems allows for the observation of changes in both economic and bio-physical indicators. The results show that some indicators with high political relevance, such as agricultural prices and greenhouse gas emissions from land use, do not necessarily react proportionally to increasing demand for agricultural products from the biofuel sector. This finding should be considered when designing biofuel policies because these indicators are directly relevant for food security and climate change.