EconPapers    
Economics at your fingertips  
 

Will Biofuel Mandates Raise Food Prices?

Ujjayant Chakravorty (), Marie-Hélène Hubert, Michel Moreaux and Linda Nøstbakken

No 653, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: Biofuels have received a lot of attention as a substitute for gasoline in transportation. They have also been blamed for recent increases in food prices. Both the United States and the European Union have adopted mandatory blending policies that require a sharp increase in the use of biofuels. In this paper, we examine the effect of these mandates on food prices and carbon emissions. The model we use considers future world population growth and income-driven changes in dietary preferences towards higher meat and dairy consumption as well as heterogenous land quality. We find that food prices increase anyway because of increased demand for food, especially due to the higher consumption of meat products, and scarcity of fertile arable lands. The contribution of the biofuel mandates to food prices is quite small, about 5% at most. However, biofuel mandates actually increase global emissions due to land conversion and terms of trade effects, undermining the main reason for imposing the mandates.

JEL-codes: Q24 Q32 Q42 (search for similar items in EconPapers)
Date: 2010-12
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Will Biofuel Mandates Raise Food Prices? (2011) Downloads
Working Paper: Will Biofuel Mandates Raise Food Prices? (2010) Downloads
Working Paper: Will Biofuel Mandates Raise Food Prices? (2010) Downloads
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: https://EconPapers.repec.org/RePEc:ide:wpaper:23815

Access Statistics for this paper

More papers in IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-01-16
Handle: RePEc:ide:wpaper:23815