Economics at your fingertips  

Abolishing biofuel policies: Possible impacts on agricultural price levels, price variability and global food security

Sergio René Araujo Enciso (), Thomas Fellmann, Ignacio Perez Dominguez () and Fabien Santini

Food Policy, 2016, vol. 61, issue C, 9-26

Abstract: In this paper we assess the impact of abolishing biofuel policies (mandates, tax credits, import and export tariffs) on agricultural price levels and price variability as well as some aspects related to global food security. For the analysis we employ a recursive-dynamic agricultural multi-commodity model within a stochastic framework. Results of the 10-years forward looking scenario indicate that the removal of biofuel policies would have a significant effect on price variability of biofuels, but only a marginal impact on the variability of agricultural commodity prices. Without biofuel policies, global biofuel demand would decrease by 25% for ethanol and 32% for biodiesel. Moreover, prices would only moderately decrease for ethanol feedstock commodities like wheat and coarse grains, while prices for biodiesel feedstock commodities, specifically vegetable oils, would be more affected. Due to competing uses of crop production such as feed and industrial use, abolishing biofuel policies would not necessarily lead to an increase in global food security, as food use increases would remain low for most crops and regions.

Keywords: Biofuels; Policy; Agricultural markets; Price variability; Price level; Food security (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.foodpol.2016.01.007

Access Statistics for this article

Food Policy is currently edited by J. Kydd

More articles in Food Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-07-02
Handle: RePEc:eee:jfpoli:v:61:y:2016:i:c:p:9-26