Model estimates food-versus-biofuel trade-off
Deepak Rajagopal, UC Berkeley
Steven Sexton, UC Berkeley
Gal Hochman, UC Berkeley
David Roland-Holst, UC Berkeley
David Zilberman, UC Berkeley
California Agriculture 63(4):199-201. DOI: 10.3733/ca.v063n04p199.
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.
D. Rajagopal is Ph.D. Candidate, Energy Resources Group, UC Berkeley; S. Sexton is Ph.D. Student, Department of Agricultural and Resource Economics, UC Berkeley; G. Hochman is Visiting Scholar, Department of Agricultural and Resource Economics, UC Berkeley; D. Roland-Holst is Professor, Department of Agricultural and Resource Economics, UC Berkeley; D. Zilberman is Professor, Department of Agricultural and Resource Economics, UC Berkeley;
The Energy Biosciences Institute funded this research.