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Fuel versus Food

Author

Listed:
  • 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.

Suggested Citation

  • Chakravorty, Ujjayant & Hubert, Marie-Helene & Nostbakken, Linda, 2009. "Fuel versus Food," Working Papers 2009-20, University of Alberta, Department of Economics.
  • Handle: RePEc:ris:albaec:2009_020
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    File URL: https://sites.ualberta.ca/~econwps/2009/wp2009-20.pdf
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    References listed on IDEAS

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    Cited by:

    1. Eskandar Elmarzougui & Bruno Larue, 2013. "On the Evolving Relationship Between Corn and Oil Prices," Agribusiness, John Wiley & Sons, Ltd., vol. 29(3), pages 344-360, June.
    2. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    3. Bahel, Eric & Marrouch, Walid & Gaudet, Gérard, 2013. "The economics of oil, biofuel and food commodities," Resource and Energy Economics, Elsevier, vol. 35(4), pages 599-617.
    4. Quentin Grafton, R. & Kompas, Tom & Van Long, Ngo, 2012. "Substitution between biofuels and fossil fuels: Is there a green paradox?," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 328-341.
    5. Johanna CHOUMERT & Pascale COMBES MOTEL & Charlain GUEGANG DJIMELI, 2017. "The biofuel-development nexus: A meta-analysis," Working Papers 201709, CERDI.
    6. Irz, Xavier & Niemi, Jyrki & Liu, Xing, 2013. "Determinants of food price inflation in Finland—The role of energy," Energy Policy, Elsevier, vol. 63(C), pages 656-663.
    7. Schmitt, William F. & Szklo, Alexandre & Schaeffer, Roberto, 2011. "Policies for improving the efficiency of the Brazilian light-duty vehicle fleet and their implications for fuel use, greenhouse gas emissions and land use," Energy Policy, Elsevier, vol. 39(6), pages 3163-3176, June.
    8. Kristensen, Søren Bech Pilgaard & Birch-Thomsen, Torben & Rasmussen, Kjeld & Rasmussen, Laura Vang & Traoré, Oumar, 2014. "Cassava as an energy crop: A case study of the potential for an expansion of cassava cultivation for bioethanol production in Southern Mali," Renewable Energy, Elsevier, vol. 66(C), pages 381-390.
    9. Saraly Andrade de Sá & Charles Palmer & Stefanie Engel, 2012. "Ethanol Production, Food and Forests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 1-21, January.
    10. repec:bla:afrdev:v:29:y:2017:i:s2:p:78-95 is not listed on IDEAS
    11. repec:wsi:ccexxx:v:08:y:2017:i:04:n:s2010007817500129 is not listed on IDEAS
    12. Choumert Nkolo, Johanna & Combes Motel, Pascale & Guegang Djimeli, Charlain, 2018. "Income-generating Effects of Biofuel Policies: A Meta-analysis of the CGE Literature," Ecological Economics, Elsevier, vol. 147(C), pages 230-242.
    13. Catherine Hausman & Maximilian Auffhammer & Peter Berck, 2012. "Farm Acreage Shocks and Crop Prices: An SVAR Approach to Understanding the Impacts of Biofuels," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 117-136, September.
    14. Corato, Luca Di & Hess, Sebastian, 2013. "A Dynamic Stochastic Programming Framework for Modeling Large Scale Land Deals in Developing Countries," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150190, Agricultural and Applied Economics Association.
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    16. R. Quentin Grafton & Tom Kompas & Ngo Van Long, 2010. "Biofuels Subsidies and the Green Paradox," CESifo Working Paper Series 2960, CESifo Group Munich.
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    18. Edrisi, Sheikh Adil & Abhilash, P.C., 2016. "Exploring marginal and degraded lands for biomass and bioenergy production: An Indian scenario," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1537-1551.
    19. R. Quentin Grafton & Tom Kompas & Ngo Van Long, 2010. "Do Biofuel Subsidies Reduce Greenhouse Gas Emissions?," International and Development Economics Working Papers idec10-01, International and Development Economics.
    20. Hastik, Richard & Basso, Stefano & Geitner, Clemens & Haida, Christin & Poljanec, Aleš & Portaccio, Alessia & Vrščaj, Borut & Walzer, Chris, 2015. "Renewable energies and ecosystem service impacts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 608-623.
    21. Yeh, Sonia & Sperling, Daniel, 2010. "Low carbon fuel standards: Implementation scenarios and challenges," Energy Policy, Elsevier, vol. 38(11), pages 6955-6965, November.
    22. Hochman, Gal & Zilberman, David, 2014. "Climate change and balance of trade," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt87d2b3kx, Department of Agricultural & Resource Economics, UC Berkeley.

    More about this item

    Keywords

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

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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