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Model estimates food-versus-biofuel trade-off

Author

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  • Rajagapol, Deepak
  • Sexton, Steven
  • Hochman, Gal
  • Roland-Holst, David
  • Zilberman, David D

Abstract

Biofuels have been criticized for raising food prices and reducing food production. While biofuels have rightly been blamed for contributing to reduced food security at a time of record-high food prices in 2008, they have not been credited with reducing the cost of gasoline, also at a time of record-high prices. We discuss the food-versus-biofuel trade-off associated with biofuel production and model the effects of biofuel production in markets for key crops and gasoline, showing that food consumers lose from biofuels but gasoline consumers enjoy substantial benefits. We also suggest ways to address the food-versus-biofuel debate.

Suggested Citation

  • Rajagapol, Deepak & Sexton, Steven & Hochman, Gal & Roland-Holst, David & Zilberman, David D, 2009. "Model estimates food-versus-biofuel trade-off," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt41k1w82x, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt41k1w82x
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    Cited by:

    1. Janda, Karel & Kristoufek, Ladislav & Zilberman, David, "undated". "Biofuels: review of policies and impacts," CUDARE Working Papers 120415, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. Na Hao & Peter Pedroni & Gregory Colson & Michael Wetzstein, 2017. "The linkage between the U.S. ethanol market and developing countries’ maize prices: a panel SVAR analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 629-638, September.
    3. Muhammad Bashir & Steven Schilizzi, 2015. "Food security policy assessment in the Punjab, Pakistan: effectiveness, distortions and their perceptions," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(5), pages 1071-1089, October.
    4. Cobuloglu, Halil I. & Büyüktahtakın, İ. Esra, 2015. "Food vs. biofuel: An optimization approach to the spatio-temporal analysis of land-use competition and environmental impacts," Applied Energy, Elsevier, vol. 140(C), pages 418-434.
    5. Dumortier, Jerome & Kent, Matthew W. & Payton, Seth B., 2016. "Plug-in vehicles and the future of road infrastructure funding in the United States," Energy Policy, Elsevier, vol. 95(C), pages 187-195.
    6. Bouët, Antoine & Dimaranan, Betina V. & Valin, Hugo, 2010. "Modeling the global trade and environmental impacts of biofuel policies," IFPRI discussion papers 1018, International Food Policy Research Institute (IFPRI).
    7. Fatima, Hira & Ahmed, Mumtaz, 2019. "Testing for Exuberance Behavior in Agricultural Commodities of Pakistan," MPRA Paper 95304, University Library of Munich, Germany.
    8. Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2016. "Enhanced models and improved solution for competitive biofuel supply chain design under land use constraints," European Journal of Operational Research, Elsevier, vol. 249(1), pages 281-297.
    9. Hu, Kejia & Chen, Yuche, 2019. "Equilibrium fuel supply and carbon credit pricing under market competition and environmental regulations: A California case study," Applied Energy, Elsevier, vol. 236(C), pages 815-824.
    10. Gillian Eggleston & Isabel Lima, 2015. "Sustainability Issues and Opportunities in the Sugar and Sugar-Bioproduct Industries," Sustainability, MDPI, vol. 7(9), pages 1-27, September.
    11. Kristoufek, Ladislav & Janda, Karel & Zilberman, David, 2012. "Relationship Between Prices of Food, Fuel and Biofuel," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135793, European Association of Agricultural Economists.
    12. Karel Janda & Eva Michalikova & Luiz Célio Souza Rocha & Paulo Rotella Junior & Barbora Schererova & David Zilberman, 2022. "Review of the Impact of Biofuels on U.S. Retail Gasoline Prices," Energies, MDPI, vol. 16(1), pages 1-21, December.
    13. Jaeger, William K. & Egelkraut, Thorsten M., 2011. "Biofuel economics in a setting of multiple objectives and unintended consequences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4320-4333.
    14. Gal Hochman & Scott Kaplan & Deepak Rajagopal & David Zilberman, 2012. "Biofuel and Food-Commodity Prices," Agriculture, MDPI, vol. 2(3), pages 1-10, September.
    15. Karel Janda & Ladislav Kristoufek & David Zilberman, 2012. "Biofuels: policies and impacts," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(8), pages 372-386.
    16. Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2012. "Biofuel supply chain design under competitive agricultural land use and feedstock market equilibrium," Energy Economics, Elsevier, vol. 34(5), pages 1623-1633.
    17. Kristoufek, Ladislav & Janda, Karel & Zilberman, David, 2012. "Correlations between biofuels and related commodities before and during the food crisis: A taxonomy perspective," Energy Economics, Elsevier, vol. 34(5), pages 1380-1391.
    18. Héctor Fernando Villatoro Flores & Takaaki Furubayashi & Toshihiko Nakata, 2016. "Analysis of Trade-offs Between First-generation Biofuels and Food Production for Japan Using CGE Modelling," International Journal of Economic Policy Studies, Springer, vol. 11(1), pages 1-24, January.
    19. Rajagopal, D. & Hochman, G. & Zilberman, D., 2011. "Indirect fuel use change (IFUC) and the lifecycle environmental impact of biofuel policies," Energy Policy, Elsevier, vol. 39(1), pages 228-233, January.

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