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Social and Behavioral Sciences Commons

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Agricultural and Resource Economics

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Selected Works

2017

Land Quality

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Full-Text Articles in Social and Behavioral Sciences

The Long Run Impact Of Biofuels On Food Prices, Ujjayant N. Chakravorty, Marie Helene Hubert, Michel Moreaux, Linda Nostbakken Dec 2016

The Long Run Impact Of Biofuels On Food Prices, Ujjayant N. Chakravorty, Marie Helene Hubert, Michel Moreaux, Linda Nostbakken

Ujjayant Chakravorty

More than 40% of US corn is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for past increases in world food prices, and many studies have shown that these energy mandates in the US and EU may have a large (30-60%) impact on food prices. In this paper, we use a partial equilibrium framework to show that demand-side effects - in the form of population growth and income-driven preferences for meat and dairy products rather than cereals - may play as much of a role in raising food prices …