Biofuels have received a lot of attention as a substitute for gasoline in transportation. They have been blamed universally 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 their use. Many studies have shown that these energy mandates may have a large (30-60%) impact on food prices. We develop a model that takes into account that with rising incomes, people, especially in the developing world will consume more meat and dairy products, which are more land-intensive than cereals. We show that about two-thirds of the increase in food prices can be attributed to changes in consumption patterns, and only a third from clean energy mandates.
OCT172011
Do biofuel mandates raise food prices?
Spatial Economics Seminar Amsterdam
- Speaker(s)
- Ujjayant Chakravorty (University of Alberta)
- Date
- 2011-10-17
- Location
- Amsterdam